South Coast Air Quality Management District

Execute Contract to Develop and Demonstrate Hydrogen Refueling Station in Coachella Valley

SYNOPSIS:

On October 20, 2000 the Board approved the release of an RFP to solicit cost-shared proposals to design, develop, integrate and install hydrogen stations for refueling fuel cell vehicles. Three proposals were received in response. An outside review panel unanimously selected two out of the three proposals. Staff recommends executing a contract with ISE Research to install a water electrolyzer hydrogen refueling station powered by wind near the Sunline Transit facilities in Coachella Valley in an amount not to exceed $389,882.

COMMITTEE:

Technology, September 28, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with ISE Research to install and demonstrate a water electrolyzer hydrogen refueling station in Coachella Valley, in an amount not to exceed $389,882 from the Clean Fuels Fund (Fund 31).

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 1990, the California Air Resources Board (CARB) adopted Low Emission Vehicle (LEV) regulations, which require light-duty vehicles to comply with increasingly stringent emission standards, including the mandatory sale of ZEVs. These ZEVs include hydrogen fuel cell vehicles currently being developed by many automobile manufacturers. For the early introduction of fuel cell vehicles, a key challenge is the development of a hydrogen fueling infrastructure.

At its October 2000 meeting, the Governing Board approved the release of RFP #2000-17 that solicited cost-shared proposals to design, develop, integrate and install stand-alone hydrogen refueling stations. These stations are in support of the early introduction of hydrogen-fueled vehicles, such as fuel cell vehicles within the AQMD.

RFP #2000-17 specified that each proposed station be a packaged transportable system capable of generation, purification, compression, dispensing and, preferably, storage of hydrogen. In addition, each station should be capable of fast-fill operation, compatible with early fuel cell vehicles, and have the capability to fill two vehicles overnight (slow fill) with hydrogen at 99.95% purity, at an on-board storage pressure of 5000 psia. The successful bidding team(s) were urged to demonstrate proven expertise in working with hydrogen generation systems, and with the entire refueling system. Contracting teams were expected to be well versed, preferably having direct experience with the codes, standards, safety and permitting protocols of delivering, installing, operating and maintaining these refueling stations. A total of $700,000 of AQMD funding was allocated for this RFP.

Three proposals were received. Two were judged by an outside panel to be technically qualified while the third was determined to be non-responsive to the bid requirements as no commitment was shown from the site operator. Staff is recommending funding both ISE Research and DCH Technology as successful bidders. In this board letter, staff is recommending funding to ISE Research in an amount not to exceed $390,000. The proposal submitted by DCH Technology is likely to be recommended for funding in the near future, as additional work is needed to consolidate funding from other project participants.

Proposal

ISE Research, in partnership with Stuart Energy, Quantum Technologies, Wintec and Sunline Transit Agency (Sunline) will develop and demonstrate a renewable-power based hydrogen refueling station near Sunline. The goal of the project is to provide hydrogen to the fuel cell transit buses operated by Sunline, and hydrogen fuel cell cars that are expected to be demonstrated in the future. Wintec, a major wind farm operator in Coachella Valley, will dedicate the output from three wind turbines to power a Stuart Energy electrolyzer which will generate hydrogen from water and compress it. Backup power, if needed, will be supplied by grid electricity. Hydrogen will be dispensed to Sunline Transit buses and fuel cell passenger cars in a fast-fill mode from a tube trailer filled at the wind farm and transported to the Sunline fueling site. Up to 25 kilograms of compressed hydrogen will be stored in composite tanks manufactured by Quantum Technologies. Transfer filling will be used to fill the tube trailer from the Quantum stationary tanks. A Stuart Energy supplied dispenser will allow direct refueling from the tube trailer for sunline transit buses and smaller vehicles. Planning and systems integration of the fueling station will be the responsibility of ISE Research. Sunline will also use the fueling station as an educational component of their larger Advanced Transportation Training Program.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:
 

1.	Angeles Mesa Wave, The	11.	Inland Valley Daily Bulletin	21.	Palm Springs Desert Sun
2.	Antelope Valley Press	12.	Korea Central Daily	22.	Philippine News
3.	Black Voice News	13.	La Opinion	23.	Precinct Reporter
4.	Central News Wave	14	La Prensa Hispana	24.	Rafu Shimpo
5.	Chinese Daily News	15.	La Voz	25.	Press Enterprise
6.	Eastern Group Publications	16.	Los Angeles Daily News	26.	San Bernardino Sun
7.	El Chicano	17.	Los Angeles Sentinel	27.	Santa Clarita Signal
8	El Informador	18.	Los Angeles Times	28.	The Wave
9.	Excelsior, The	19.	M/W/DVBE Source	29.	State of California Contracts
10.	Inland Empire Hispanic News	20.	Orange County Register		Register

Additionally, potential bidders were notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Proposals were received from DCH Technology, ISE Research and QuestAir. The proposals were reviewed and evaluated according to established AQMD guidelines, using the criteria outlined in the RFP. The proposals from DCH Technology and ISE Research emphasized electrolyzer technology. DCH Technology proposed to use grid-based electricity while ISE Research proposed to use electricity derived from renewable energy (wind power) to produce hydrogen from the electrolysis of water. The proposal from QuestAir, based upon methanol reforming, was deemed unresponsive to the RFP by the evaluation panel. Attachment A summarizes the evaluation of the proposals.

Selection Process

The standard criteria for weighting proposals as suggested in the Procurement Policy and Procedure was used for evaluation of the proposals (70 points for technical and 30 points for cost/co-funding). The total attainable score for technical criteria and cost was a maximum of 100 points. The proposals were also evaluated for a maximum of 15 additional points for small business, DVBE small business or DVBE joint venture, use of small business or DVBE subcontractors, and local business.

The proposals were reviewed by a panel of three outside experts. Two are senior engineers with expertise in hydrogen working at the National Renewable Energy Laboratory (NREL), a US Department of Energy (DOE) national laboratory in Denver, CO, and the third panelist is an energy specialist with the California Energy Commission. Panel composition was: one Asian-American and two Caucasians; three male. Project proponents and average scores for each category are listed in the attachment.

Among the three proposals, the panel unanimously judged the proposals from DCH Technology and ISE Research as responsive and technically qualified. Staff is recommending that a contract be awarded to DCH Technology and ISE Research at this time. In this letter, staff is recommending awarding a contract to ISE Research. Under a separate Board letter, staff is recommending to fund DCH Technology.

Benefits to AQMD

The proposed project is included in the March 2000 update of the Technology Advancement Plan under 2000M4-2, "Development and Demonstration of Distributed Hydrogen Production and Refueling Stations." Projects developed under this RFP will assist in ultimately expediting the implementation of fuel cell vehicles, which are advanced zero-emission vehicles. This, in turn, would lead to the direct reductions in NOx, VOC, CO, PM, toxics and global warming emissions from light-duty and medium-duty vehicles.

Resource Impacts

The total amount of AQMD funding for the proposed project will not exceed $390,000. The total project cost is expected to be less than $1.2 million, as shown below (cost share includes in-kind service and equipment).

Stuart (electrolyzer)	$   200,000
DOE (electrolyzer cost share)	$   200,000
ISE Research (project management)	$     19,281
Sunline Transit (transport to fueling site)	$     12,042
Wintec (wind turbine power)	$   226,000
Quantum Technologies (storage tanks)	$   130,000
AQMD funding	$   389,882
Total	$1,177,205

This project is included in the March 2000 Technology Advancement Plan update for 2001. Sufficient funds are available from the Clean Fuels Program Fund (Fund 31), 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.

Attachment
Attachment A – Proposal Evaluation Scoring

Attachment A
Proposal Evaluation Scoring

RFP 2001-17

Development and Demonstration of Distributed
Hydrogen Refueling Stations within South Coast Air Basin

Evaluation Scores (average of 3 panelists)
 

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