South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: October 4, 2002 AGENDA NO. 7
Issue RFP for Demonstration of Natural Gas, Stationary Fuel Cells in South Coast Air Basin
SYNOPSIS:
Fuel cells are energy efficient and clean sources of electricity but have high manufacturing costs at this time. In order to leverage other available state incentive funding through the California Public Utilities Commission, this RFP solicits proposals for installing and operating stationary fuel cells at an AQMD funding level not to exceed $1,000,000.
COMMITTEE:
Technology, August 23, 2002. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.
RECOMMENDED ACTION:
Approve issuance of RFP #P2003-12, to demonstrate stationary fuel cells in the South Coast Air Basin, in an amount not to exceed $1,000,000 from the Clean Fuels Fund.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Fuel cells are an advanced clean air technology, which offers the potential for extremely high efficiencies, power independence, and, most importantly, reduced or near-zero air pollutant emissions. The California Stationary Fuel Cell Collaborative, whose mission is to promote fuel cell commercialization to reduce or eliminate air pollutants and greenhouse gases, indicates that cost is the major barrier to fuel cell commercialization due to low production rates. Manufacturers further indicate that these costs can be competitively reduced with increased production volume. It is therefore necessary to provide incentives for businesses to install fuel cells in order to accelerate commercialization, gain operational experience, develop a reliability database, and achieve public awareness of the efficiency and air quality benefits. An existing incentive program by the California Public Utilities Commission program provides potential incentives up to 40% of total out-of-pocket company costs. The proposed RFP seeks to supplement and leverage these state funds to address the major barrier to fuel cell installations in the South Coast Air Basin.
Proposal
This RFP will solicit proposals to install natural gas, stationary fuel cell units within the South Coast Air Basin to provide clean electric power and supplemental heating where applicable.
Benefits to AQMD
The proposed project is included in the June 7, 2002 Advanced Air Pollution Research Plan under item D-12, "Demonstration of Commercial and Large Scale Fuel Cells."
The AQMP promotes the expedited implementation of advanced technologies and clean burning fuels in Southern California to achieve air quality standards. The proposed RFP will demonstrate the technological feasibility of near-zero emission fuel cells. As these projects demonstrate commercial viability, the technology will increase in acceptance and lead to increased orders, decreased costs, and eventual widespread application. The impact of higher efficiency, lower polluting energy production will substantially reduce emissions in the South Coast Air Basin.
Outreach
In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids will be published in the following publications:
Additionally, potential bidders will be notified from 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 will be 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"] and AQMD's bidder's 24-hour telephone message line (909) 396-2724. Staff will also conduct outreach efforts to specific sectors, such as transportation providers, construction and building industry, and port operations.
Bid Evaluation
Proposals received will be evaluated by a diverse, technically qualified panel, according to criteria contained in the attached RFP.
Resource Impacts
The total amount of AQMD funding for this program shall not exceed $1,000,000. 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.
RFP #P2003-12 - Demonstration of Natural Gas, Stationary Fuel Cells in the South Coast Air Basin
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