BOARD MEETING DATE: April 5, 2002
AGENDA NO. 5

Execute Contract to Develop Design Outlining Feasibility and Necessary Steps to Convert CNG Fueling Station to Hydrogen Fueling Service

SYNOPSIS:

At the Board’s direction and in consultation with staff, SunLine Transit Agency has provided AQMD with a proposed work plan and budget to develop a cost-shared design outlining the feasibility and necessary steps to convert a CNG fueling station, in the future, into a hydrogen fueling service. Under the proposal, the U.S. DOE will provide in-kind services to assist SunLine in the development of the conversion design. Staff recommends that the Board approve the development of the conversion design at a cost not to exceed $51,680. Funding is available from the Clean Fuels Fund.

COMMITTEE:

Technology, February 22, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with SunLine Transit Agency to design a plan for conversion of a CNG fueling station, including the compressor and all related components into a hydrogen fueling service in the future, in an amount not to exceed $51,680 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its July 2001 meeting, the Board directed staff to conduct a field evaluation and assessment of possible enhancements that could enable natural gas fueling stations to be compatible for future hydrogen fueling. In addition, the Board requested at its October 19, 2001 meeting that staff scope out a cost-shared study with the U. S. Department of Energy to be conducted at SunLine Transit Agency to determine the feasibility and steps necessary to convert a CNG fueling station into a hydrogen fueling station in the future. Zero-emission vehicles (ZEVs) will play an important role for the region to achieve and maintain ambient air quality standards. These ZEVs include hydrogen fuel cell vehicles currently being developed by many automobile manufacturers. For the early introduction of fuel cell vehicles in the near future, a key challenge is the development of a hydrogen fueling infrastructure.

A proposal for the design of a CNG fueling station conversion into hydrogen fueling service has been prepared and submitted by SunLine Transit Agency. Staff is recommending funding for the project for the SunLine Transit Agency to conduct the project in an amount not to exceed $51,680.

Proposal

SunLine Transit Agency, with the assistance of the U.S. Department of Energy will develop a design for the conversion of a CNG fueling station into a hydrogen fueling station. The goal of the project is to provide a design plan for the conversion to hydrogen service with evaluation and discussion of all pertinent materials, codes, standards and needed replacement components. The project will also evaluate all significant areas of concern, including compressor compatability. The fueling system will be designed to follow a logical step-by-step process with performance and safety testing procedures built into the project. In this design, hydrogen will be dispensed to fuel cell passenger cars in a fast-fill mode from dispensers at pressures that will meet the predicted fueling guidelines. The proposal developed and submitted by SunLine Transit Agency for the project covers the following steps: 1) Define and review design criteria; 2) Define design specifications; 3) Compare natural gas and hydrogen design criteria, specifications and configurations; 4) Determine steps in design phase; and 5) Final report. A portion of the effort of this project will also be directed to education and technology transfer, to provide the public and others with up-to-date information on this project.

Paragraph below added to letter for clarity after Technology Committee reviewed and approved proposal February 22, 2002:

The goal of this proposal is to develop a design plan that could be used to convert an existing CNG fueling station into hydrogen fueling service. This plan will include the steps necessary to convert the compressor and other related components from CNG fueling service to hydrogen fueling service at some future date as the demand for hydrogen fueling increases. It will also include the feasibility of this approach as compared to the installation of a separate hydrogen fueling service or the addition of hydrogen fueling to the CNG service.

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 provisions B.2.d. Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD; Specifically, clause B.2.d.(1): Projects involving cost-sharing by multiple sponsors. U.S. DOE will provide in-kind services to assist in the development of a design for the conversion of a CNG fueling station to a hydrogen fueling station in the future. It is in the best interests of the AQMD to initiate and sponsor this project to provide direct feedback to the Board and to fully prepare the CNG-to-hydrogen fueling conversion option for future consideration. Therefore, staff is recommending that the project design contract be awarded to SunLine Transit Agency.

Benefits to AQMD

The proposed project is included in the March 2002 update of the Technology Advancement Plan under 2000M4-2, "Development and Demonstration of Distributed Hydrogen Production and Refueling Stations." This project addresses the air quality objectives stated in the AQMD’s Air Quality Management Plan (AQMP) which rely heavily on the expedited implementation of lower-emission and zero-emission advanced technologies to achieve ambient air quality standards in the South Coast Air Basin. This project will provide an option for the development of hydrogen fueling infrastructure and could assist in expediting the implementation of fuel cell vehicles, which are advanced zero-emission vehicles. This, in turn, would lead to direct reductions in NOx, VOC, CO, PM, air toxics and global warming emissions from vehicles.

Resource Impacts

The total amount of AQMD funding for the proposed design phase of the project will not exceed $51,680. The proposed project plan is listed below.
 

Sufficient funds are available from the Clean Fuels Program 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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