South Coast Air Quality Management District

Execute Contract to Cosponsor Development and Demonstration of Fuel Cell Bus with Major Bus Manufacturer

SYNOPSIS: 

ThunderPower LLC, a consortium of a major bus manufacturer, (Thor Industries), major fuel cell maker International Fuel Cells, Inc, (IFC), and ISE Research, proposes to develop and demonstrate a fuel cell bus. ISE Research will develop a hydrogen fuel cell bus by integrating a 40 kW PEM fuel stack from IFC into a 30-foot bus built by El Dorado National, a Thor subsidiary. It will be tested and demonstrated in fleets in mid-2002. If prototypes show potential for commercial success, Thor plans to mass produce these buses in its Chino facility in the Basin. Staff recommends AQMD cosponsor this project in an amount not to exceed $350,000. Total project cost is $2.15 million dollars.

COMMITTEE: 

Technology, March 23, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with ISE Research, to develop and demonstrate a 30-foot zero emission PEM fuel cell bus, for an amount not to exceed $350,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP relies on the significant penetration of zero and near-zero emission technologies in the Basin to attain federal and state clean air standards by year 2010. The agency has adopted fleet rules, including a rule that requires transit fleet agencies to acquire buses that run on alternative fuels or buses with equivalent low emissions. Zero-emission fuel cell buses are among the cleanest alternatives available to transit buses to comply with AQMD and ARB regulations.

In an effort to comply with AQMD and ARB regulations on transit fleets, and to gain familiarity with the operation and maintenance of these buses, several transit agencies are evaluating the purchase of fuel cell buses. Currently, Xcellsis is the leading provider of fuel cell buses, producing 40-foot length transit buses, using Ballard fuel cell engines. Transit authorities in Chicago and Vancouver demonstrated these vehicles in revenue service. Considerable experience was gained through these demonstrations which enabled Ballard to advance its technology. It also makes clear that the participation of a major bus manufacturer is essential for the design and manufacture of fuel cell buses.

The contracting team has exceptional qualifications and has ownership of key technology assets to develop and commercialize this fuel cell bus. Thor Industries, Inc. has teamed with International Fuel Cell (IFC) and ISE Research –ThunderVolt (ISER) to form a consortium known as ThunderPower, LLC to develop and demonstrate a 30-foot fuel cell bus. This bus will use an IFC 40 kW PEM fuel cell stack in a hybrid mode, with deep-cycle discharge lead acid batteries. Public transits, school buses, airport shuttles and other government agencies are the primary users of 30-foot buses.

Thor Industries is the largest manufacturer of mid-sized buses in U.S., and owns El Dorado National and Champion buses. It has the financial strength and manufacturing capability to produce and distribute these vehicles in large numbers. International Fuel Cells (IFC) is a leading manufacturer of fuel cells, whose 200 kW phosphoric acid fuel cell has been installed in over 125 locations. It has developed and is refining the hydrogen PEM fuel cell stack for use in vehicle applications.

ISE Research, the prime contractor, has constructed several clean fuel hybrid vehicles including hybrid buses. ISE Research has developed an advanced electric drive, which among other features, includes numerous sensors that provide substantial active and passive diagnostic data to assist operations and maintenance of the proposed vehicle. ISE Research will coordinate the integration of the fuel cell, the batteries, the battery management system, the electric motor drive, the control software, and other fuel cell related auxiliary equipment.

After the first bus is developed, tested and demonstrated, ThunderPower in a subsequent phase intends to develop five fuel cell buses and test market these in fleets. If successful, the consortium intends to become a major manufacturer of fuel cell buses.

Proposal

ISE Research –ThunderVolt (ISE Research) has proposed the construction and demonstration of the fuel cell bus, through the following tasks:

• Acquire a 30-foot El Dorado National bus, with gross vehicle weight (GVW) of 31,000 lbs
• Define, specify and purchase of electric drive motor components
• Design, develop, integrate and test the electric drive motor
• Define, fabricate, test the control system
• Design, specify, acquire and assemble the gaseous hydrogen storage system
• Design, fabricate, and integrate the balance of plant systems
• Define, specify, fabricate and integrate a PEM fuel cell system
• Test the fuel cell bus and compile data on testing
• Demonstrate the hydrogen fuel cell vehicle in transit fleet operation, starting with Sunline Transit Agency
• A mobile hydrogen refueling system
• Develop operator and maintenance manuals
• Train fleet personnel in operations and maintenance
• Educational outreach and participation in trade shows

AQMD is proposing to co-sponsor the tasks that remain to be completed, resulting in the demonstration of the 30-foot hydrogen fuel cell bus in a transit bus fleet operation. The system is being designed for a minimum range of 200-250 miles and could go further with additional hydrogen tanks. ThunderPower's objective is to demonstrate that the prototype bus has basic performance (acceleration, hill-climbing, etc.) equal to or superior to conventional 30-foot buses, while offering zero emissions and less noise.

Benefits to AQMD

The proposed project is included within the scope of the March 2001 update of the Technology Advancement Plan under the following category: 2001CFM4-4 "Demonstration of Fuel Cells in On- and Off-Road Vehicle Applications."

The major anticipated benefit of AQMD’s participation in ISE Research/ and Thunder-Power’s efforts is that it would promote the development and demonstration of a zero-emission hybrid fuel cell bus from another major bus manufacturer in addition to Xcellsis. The target market of these buses is airport shuttles of major rental car agencies. When commercially ready, these buses have the potential to substantially reduce the emissions of these vehicles and hence the emissions in and around airports. If commercially successful in these target markets, they plan to assemble these buses in South Coast Basin, creating additional local jobs. In addition, there is the potential to introduce school buses that are fuel cell powered.

The decision of Thor Industries to enter the fuel cell bus market will offer potential buyers with additional choices. It has the potential to accelerate the commercialization of fuel cell vehicles in general, which in turn would lead to substantial reductions of criteria and toxic air pollutants. Such reductions would assist the Basin in meeting federal and state air quality standards by year 2010. In addition, deployment of hydrogen fuel cell vehicles can lead to major multi-media environmental benefits such as the elimination of hazardous underground water spills associated with conventional fuels, and reductions in the release of greenhouse gas emissions, such as carbon dioxide.

Sole Source Justification

Section VIII, (B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for a sole source award is made under provision B.2d(1) Projects involving cost-sharing by multiple partners. This project is being justified under B.2.d(1). The proposing contractor has multiple partners to cost-share the project.

Thor Industries is the largest manufacturer of mid-sized buses, and the second largest manufacturer of recreational vehicles in North America. Its subsidiaries are national brand bus companies, i.e. El Dorado and Champion buses. Thor is the majority member of ThunderPower, L.L.C. and will be supplying the $1 million cost share committed to the FTFCB program. If the fuel cell buses are commercially successful, Thor intends to assemble these buses in its Chino facility.

International Fuel Cells (IFC), an established fuel cell manufacturer, is a division of United Technologies. IFC has been developing and building fuel cells since the early 1960s, when the company developed a 1.5 kW fuel cell for NASA's Project Apollo. In the 1970s, IFC developed the 12 kW fuel cell system used on the Space Shuttle. IFC has also developed and built stationary fuel cell systems and power plants with power ratings ranging from 3.75 to 4,500 kW. In the automotive arena, IFC has developed a high-efficiency PEM automotive hydrogen fuel cell rated at 50 kW. The fuel cell to be utilized in the FTFCB program is a new IFC product designed to operate on gaseous hydrogen.

ISE Research-ThunderVolt Inc. (ISE-TVI) has been focused on development and integration of heavy-duty electric and hybrid-electric vehicles for more than five years. ISE-TVI has delivered eight 30-foot hybrid buses for the City of Los Angeles, and the first four buses in this series have accumulated more than 50,000 miles of in-service operation to date. ISE-TVI is also integrating hybrid-electric drive systems into six 40-foot hybrid buses for other customers, and is being considered for several additional bus integration projects. Most recently, on December 7th, 2000, ISE-TVI was awarded the Most Innovative New Product Award for its TB-30 Turbine Hybrid-Electric Bus.

SunLine Transit Agency operates a fleet of 43 buses in a 59 by 11-mile territory in the Coachella Valley, all of which use some type of alternative fuel (40 CNG and 3 electric), and SunLine is a recipient of a SCAQMD Clean Air Award. SunLine is also working with the U.S. Department of Energy on a project to install a hydrogen generating facility designed to produce commercial quantities of hydrogen. Sunline will provide the initial site for testing the completed prototype hydrogen fuel cell bus.

Other partners include Sacramento Municipal Utility District (SMUD) and Calstart/WestStart. SMUD manages the Sacramento Electric Transportation Consortium (SETC). SMUD, in collaboration with CALSTART/WestStart, will oversee the project scope and developmental milestones on behalf of the Department of Transportation’s Advanced Vehicle Program (AVP).

Resource Impacts

Total project cost is $2.15 million. AQMD’s proposed share is $350,000. As listed below, cost-sharing is being provided by various participants:
 

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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