BOARD MEETING DATE: July 11, 2003
AGENDA NO. 3
Execute Contract to Co-Fund Demonstration of Fuel Cell Water Taxi in Newport Harbor
SYNOPSIS:
Fuel cells are a near-zero emissions technology that can be used to displace dirty power generation in a variety of mobile applications. Water taxis, used as harbor marine vessels, are one such application where fuel cells could replace diesel generators currently used to charge on-board batteries for the electric motor. The Center for Commercial Deployment of Transportation Technologies (CCDoT), Seaworthy Systems, Millennium Cell, and Duffy Boats are partnering to demonstrate a fuel cell water taxi in Newport Harbor for total project costs of $781,000. Staff recommends co-funding with these partners to extend the demonstration for two years in an amount not to exceed $101,000 from the Clean Fuels Fund.
COMMITTEE:
Technology, June 27, 2003, Recommended for Approval
RECOMMENDED ACTION:
Execute a contract with Seaworthy Systems to co-fund the demonstration of a fuel cell water taxi in Newport Harbor for two years in an amount not to exceed $101,000 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 from fossil fuels, and, most importantly, reduced or near-zero air pollutant emissions. As identified in the Draft 2003 AQMP, recreational boats are estimated to contribute 25% of the VOCs, 21% of the CO, 2% of the NOx, and 10% of the PM10 from off-road mobile sources, a category which includes aircraft, trains, ships, and off-road vehicles and equipment. As such, a substantial amount of emissions reductions can be garnered by cleaning up this class of marine vessels.
The Center for Commercial Deployment of Transportation Technologies (CCDoT) at California State University Long Beach is funded through the Department of Defense (DOD) for the development of innovative transportation technologies that can be used by both commercial industry and the DOD. For this program, CCDoT contracted Seaworthy Systems to conduct a study for the identification and design of a clean, marine vessel fueled by hydrogen for a total project cost of $75,000. CCDoT identified Millennium Cell’s sodium-borohydride technology as the fuel of choice. This study was completed in September 2002 and concluded the first phase of the program.
The current proposal is to co-fund the Phase II effort, which is the implementation and demonstration of the fuel cell harbor vessel designed during Phase I.
Proposal
The team partners and their responsibilities for the Phase II effort are Seaworthy Systems (project management), Millennium Cell (fueling system), and Duffy Boats (vessel builder). The team has purchased the proton exchange membrane (PEM) fuel cell from Anuvu, located in Sacramento, CA. The original scope of the Phase II effort is to build the thirty-foot vessel, integrate the sodium-borohydride fueling system and fuel cell, and demonstrate the water taxi in revenue service for six months at Newport Harbor. CCDot is funding $300,000 and Duffy Boats is providing $380,000 in cash and in-kind funding. Staff recommends Board approval for $101,000 to extend the demonstration and data collection over a two-year period. This extended demonstration will allow the more detailed investigation of real-world operation, refueling procedures, fueling system design, and fuel cell integrity.
Benefits to AQMD
The proposed project is included in the March 2003 Technology Advancement Plan Update CFM2-5, "Develop and Demonstrate Fuel Cells for Marine Vessels."
The AQMP also promotes the expedited implementation of advanced technologies and clean burning fuels in Southern California to achieve air quality standards. The proposed project will demonstrate the technological feasibility of near-zero emission fuel cells in marine applications. CCDoT will use this project to evaluate the use of similar systems in their Agile Port and High Speed Sealift program to reduce emissions. As such, this project could be a springboard to more widespread commercial implementation and lower polluting technologies in the port regions of the South Coast Air Basin.
Sole Source Justification
In the "Procurement Policy and Procedure" document, Section VIII outlines the provisions for awarding a sole source contract. Specifically, under item B. 2.d, "Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD," namely (1) "Projects involving cost sharing by multiple sponsors."
CCDoT is providing 38% and Duffy Boats is providing 49% of the project costs. The AQMD’s funding represents a 13% cost-share.
Resource Impacts
The total amount of AQMD funding for this program shall not exceed $101,000. 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.
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