South Coast Air Quality Management District

Execute Contract to Renew AQMD’s Participation in California Fuel Cell Partnership for Calendar Year 2002

SYNOPSIS:

On March 17, 2000, the Board approved joining the California Fuel Cell Partnership (CaFCP) as a full member. The CaFCP is a collaborative group composed of 19 members of government agencies, automobile manufacturers, fuel suppliers, and fuel cell technology providers. Their primary focus is to demonstrate fuel cell vehicles and increase public awareness of these vehicles. Staff recommends renewing AQMD’s participation in the CaFCP in an amount not to exceed $84,000 for calendar year 2002.

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:

Authorize the Chairman to renew AQMD's membership Participation in the California Fuel Cell Partnership for the Calendar Year 2002 by executing a contract with Bevilaqua-Knight Inc., acting on behalf of the Partnership, for an amount not to exceed $84,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

To attain federal and state clean air standards by year 2010, the AQMP relies on the significant penetration of zero and near-zero emission technologies in the Basin. Zero-emission fuel cell vehicles are among the cleanest alternatives available to comply with AQMD and ARB regulations.

The California Fuel Cell Partnership (CaFCP) was formally initiated in April of 1999. Through this public/private effort, automobile companies, technology providers, fuel suppliers, and government agencies have joined together to demonstrate fuel cell vehicles under actual day-to-day driving conditions. The CaFCP plans to place up to 60 fuel cell passenger cars and fuel cell buses on California roads between 2000 and 2003. In addition to testing the fuel cell vehicles, the CaFCP will also identify fuel infrastructure issues and help prepare the California market for this new technology.

The goals of the CaFCP include the following:

1. Demonstrate vehicle technology by operating and testing the vehicles under real-world conditions in California;
   
   
2. Demonstrate the viability of alternative fuel infrastructure technology, including hydrogen and methanol stations;
   
   
3. Explore the path to commercialization, from identifying potential problems to developing solutions; and
   
   
4. Increase public awareness and access to information about fuel cell electric vehicles, preparing the market for commercialization.

The CaFCP membership currently includes seven auto manufacturers (General Motors, Toyota, DaimlerChrysler, Ford Motor Company, Honda, Hyundai, Nissan, and Volkswagen), four fuel companies (BP Amoco, Shell, ChevronTexaco, and ExxonMobil), two fuel cell companies (Ballard Power Systems and UTC Fuel Cells), and six government agencies (AQMD, CARB, California Energy Commission, U.S. Department of Energy, U.S. Department of Transportation, and US EPA).

In addition, associate partners Air Products and Chemicals, Methanex, Praxair, Stuart Energy, Proton Energy, and PGE have joined to contribute needed expertise. Three California transit agencies, AC Transit, Santa Clara Valley Transportation Authority, and SunLine Transit are participating as the first host sites for the demonstration of fuel cell-powered transit buses.

Phase I of the CaFCP program ran through calendar year 2000, and focused on development of vehicle, infrastructure and outreach plans for future projects. Phase II, which ran through calendar years 2000-2001, involved the demonstration of fuel cell cars and buses using hydrogen fuel. Phase III, which runs through calendar years 2001-2003, involves the demonstration of cars and buses using hydrogen, methanol and possibly later a gasoline-like reformulated hydrocarbon. Expansion of this latter phase may include a limited number of fleet customers beginning in 2003. In addition, the bus transit partners plan to operate several zero-emission fuel cell buses. Members of the CaFCP are planning for the continuation of California Fuel Cell Partnership activities beyond 2003.

Major accomplishments in calendar year 2001 include the following:

• Full occupancy of the 55,000 sq. ft. California Fuel Cell Partnership facility in West Sacramento established as an operations base for on-road vehicle usage and fueling, where automotive partners and their staff occupy designated indoor garage work-bays designed to house vehicles for routine servicing, repairs and diagnostic purposes.
• The demonstration of an increasing number of prototype fuel cell cars by several automakers.
• Received interim report on ZEBus testing at Sunline and identified additional sources of funding for fuel cell buses.
• The continued operation of gaseous hydrogen fueling station at 3600 psi fill and addition of 5000 psi fill at the West Sacramento facility.
• Continued emphasis on development, improvement, and training of safety procedures and safety plan for on-site operations including on-site safety officer.
• Completion of the Fuels Scenario Study, press conference, webcast, and report distribution.
• Completed over 80 tours of West Sacramento facility for over 1,500 visitors.
• Held or supported 25 public events throughout California reaching over 175,000 people including 6 major vehicle events.

Following are some of the activities completed or planned for calendar year 2002:

• Reach consensus on post 2003 CaFCP plan, goals and objectives, and communicate key messages.
• Continue testing, maintenance, and fueling of existing and new fuel cell vehicles with emphasis on safety and best practices.
• Develop and implement approach to address codes and standards issues.
• Completion of the methanol fueling station onsite at the West Sacramento facility.
• Construction and completion of a satellite gaseous hydrogen refueling station in Richmond and exploration of future fueling opportunities and needs.
• Exchange learning among partners and with other partnerships and entities to increase the collective insight and explore issues in anticipation of vehicle introduction to fleet customers.
• Continue ongoing negotiations between AC Transit, Sunline Transit, and Santa Clara with bus manufacturers to acquire several hydrogen fuel cell buses and ensure that committed funding will be secured in contracts. Complete testing and receive final report for ZEBus.
• Display fuel cell vehicles at public events such as the Future Car Congress is Washington D.C, and the California Coast 2002 – CaFCP Road Rally September 4-7 from Monterey to Santa Barbara and arrange fueling to support planned events as necessary. Events in South Coast area include the Los Angeles Marathon and the California International Auto Show in Anaheim October 10-14.
• Distribute 1,000 middle/high schoolteacher introductory kits and develop new exhibits for public displays.

Additional information about the California Fuel Cell Partnership can be found at http://www.fuelcellpartnership.org.

Benefits to AQMD

Membership in the CaFCP is consistent with the March 2002 update of the Technology Advancement Plan under 2001CFM4-1, "Demonstration of Fuel Cells Vehicles" and under 2001CFT-1 "Assessment and Technical Support of Advanced Technologies and Information Dissemination." The AQMD supports the development, demonstration and commercialization of zero-emission and near-zero emission fuel cell vehicles, and strives to educate public and private organizations regarding the benefits and characteristics of these vehicles.

The proposed project is included within the scope of the March 2001 update of the Technology Advancement Plan under the following category: 2001CFT-1 "Assessment and Technical Support of Advanced Technologies and Information Dissemination." Real world demonstration of fuel cell vehicles and public outreach efforts will assist in overcoming commercialization barriers for fuel cell technologies. The availability and widespread distribution of this information and technical data would eventually help in accelerating the acceptance of zero-emission fuel cell vehicles. This, in turn, has the potential for wide-scale deployment leading 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 fuel cell vehicles can lead to major multi-media environmental benefits such as improved water quality 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.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. Specifically, these circumstances are B.2.d.(1): Projects involving cost sharing by multiple sponsors.

Resource Impacts

The AQMD’s share of the calendar year 2002 common project costs in the CaFCP is not to exceed $84,000 to cover administrative, technical and program management cost. AQMD will enter into an agreement with Bevilaqua-Knight, Inc. (BKI). BKI has been retained by the CaFCP, through a subcontract agreement with Ballard Power Systems, to provide the needed support for the common tasks agreed to by the CaFCP.

As listed below, each Partner is providing $84,000 for defraying the costs of the CaFCP including:

• several auto manufacturers (General Motors, Toyota, DaimlerChrysler, Ford Motor Company, Honda, Hyundai, Nissan, and Volkswagen),
• three oil companies (BP Amoco, Shell Hydrogen, ChevronTexaco and ExxonMobil),
• two fuel cell companies (Ballard Power Systems and UTC Fuel Cells), and
• six government agencies (AQMD, CARB, California Energy Commission, U.S. Department of Energy, U.S. Department of Transportation and U.S. EPA).

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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