BOARD MEETING DATE: July 11, 2003
AGENDA NO. 7

Issue RFP to Develop and Demonstrate Hydrogen Internal Combustion Engine Vehicles and Five Hydrogen Fueling Stations

SYNOPSIS:

The high cost of fuel cell vehicles and their limited availability are restricting the widespread deployment of hydrogen vehicles and infrastructure in the commercial market. Conventional internal combustion engine (ICE) vehicles using compressed natural gas or gasoline can be successfully converted to operate using hydrogen as fuel. This action is to issue a RFP to design, engineer, convert, test, certify, demonstrate, and maintain for 60 months hydrogen ICE vehicles. In support of these hydrogen vehicles, this RFP also includes a component for five hydrogen fueling stations within the South Coast Air Basin, capable of fueling up to 10 vehicles per day and with potential expansion to fueling 20 vehicles per day.

COMMITTEE:

Technology, June 27, 2003, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of RFP #P2004-01 to solicit proposals to develop and demonstrate hydrogen internal combustion engine vehicles and five hydrogen fueling stations.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP has identified the use of alternative clean fuels in mobile sources as a key air quality attainment strategy. CARB has passed regulations that require transit buses to comply with increasingly stringent emission standards including the introduction of zero-emissions transit buses that will most likely be operating on fuel cells. Hydrogen fuel cell vehicles are true zero-emission vehicles, but currently have limited availability, high costs, and short warranty periods. Hydrogen-fueled internal combustion engine vehicles show promise as a bridge technology between fuel cell vehicles and conventional vehicles and have the potential to eliminate VOC, NOx, CO and air toxic emissions as well as greenhouse gas emissions. Furthermore, hydrogen-fueled internal combustion engine vehicles expedite the expansion of hydrogen infrastructure.

At its September 13, 2002 and June 6, 2003 meetings, the Board previously authorized funding for five and three hydrogen fueling stations, respectively. Hydrogen refueling stations are necessary to facilitate the introduction of fuel cell vehicles and the development of an extensive hydrogen fueling network will allow the introduction of hydrogen fueled vehicles throughout the AQMD. At this early stage, as hydrogen vehicles and the required infrastructure are being introduced, the demonstration of a variety of methodologies and systems will help determine the most effective and efficient methods for hydrogen generation and subsequent fueling as well as vehicle design. Hydrogen fueling can also be supported by bulk deliveries from an industrial hydrogen plant or direct connection to the Los Angeles Hydrogen Pipeline.

Proposal

The AQMD plans on being pro-active in helping to establish a hydrogen fueling network as soon as practicable. To this end, staff believes that hydrogen-fueled internal combustion engine vehicles have the potential to introduce hydrogen-fueled vehicles into the South Coast Air Basin at reasonable costs in a relatively short timeframe.

Staff has been actively working with local cities in the four-county Basin interested in hydrogen internal combustion engine vehicles and infrastructure. To date, the cities of Burbank, Ontario, Riverside, Santa Ana, and Santa Monica have agreed to participate with the AQMD on developing infrastructure and demonstrating hydrogen internal combustion engine vehicles. Staff continues to assess the interest of other local cities in an effort to expand the hydrogen infrastructure program. Staff believes it is necessary to support the development of a Basin-wide hydrogen fueling network in the near term to ensure a smooth transition to hydrogen fuel cell vehicles as well as various hydrogen/CNG fuel mixtures for other mobile applications in the South Coast Air Basin. To that end, staff recommends the Board initiate a broad spectrum of support for such a hydrogen fueling infrastructure and issue an RFP for the development of hydrogen-fueled internal combustion engine vehicles and five fueling stations. The proposals would include equipment specifications, conversion or construction processes, timelines, production capability, safety and certification plans, and 60-month maintenance agreements for both vehicles and stations. Construction guidance with respect to both present and future codes and standards must be considered as part of the proposal and discussed. These vehicles will be placed in service in demonstration fleets within the five cities discussed above, as well as at AQMD. The goal is to site the fueling stations within the cities to allow for public fueling capability, possibly adjacent to existing CNG fueling stations. The five cities have also emphasized their desire to pursue technologies for hydrogen production that could utilize renewable sources of energy. Furthermore, the cities may choose to obtain oversight management services for the fueling stations at the city’s expense.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low-emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The AQMP for the South Coast Air Basin states that motor vehicles are the most significant source of air toxic and criteria pollutant emissions in the region. The use of hydrogen fuel or mixtures of hydrogen and natural gas (e.g., hythane) provides a viable, environmentally friendly option for the future. Efforts to facilitate hydrogen-fueled vehicles and fueling infrastructure can provide long-term environmental benefits as well as help in meeting the requirements of the Federal Clean Air Act.

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:
 

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

Additionally, potential bidders will be 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 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" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Proposals received will be evaluated by a diverse, technically qualified panel in accordance with criteria contained in the RFP.

Resource Impacts

Funding for the RFP is not yet defined and staff will seek cost proposals by tasks from the bidders.

Attachment (updated 08/07/2003)

NEW! Please see this amendment to the RFP (added 08/07/2003)

RFP #P2004-01 – Develop and Demonstrate Hydrogen Internal Combustion
                       Engine Vehicles and Five Hydrogen Fueling Stations

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