BOARD MEETING DATE: April 2, 2004
AGENDA NO. 5

Execute Contract to Participate in California Fuel Cell Partnership for Calendar Year 2004 and Provide Support for CaFCP Regional Coordinator Located at AQMD

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 of government agencies, automobile manufacturers, fuel suppliers, fuel cell technology providers and associate partners. Their primary focus is to demonstrate fuel cell vehicles through on-road operation in California and increase public awareness of these vehicles. This action is to continue AQMD’s participation in the CaFCP in an amount not to exceed $83,800 for calendar year 2004; and to also co-fund 50 percent, in addition to office space and utilities, for a new CaFCP Regional Coordinator position located at the AQMD in an amount not to exceed $50,000. The total amount for the CaFCP activities will therefore not exceed $133,800 from the Clean Fuels Fund.

COMMITTEE:

Technology, March 26, 2004, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract from the Clean Fuels Fund with Bevilaqua-Knight Inc., acting on behalf of the California Fuel Cell Partnership , to

1. Continue AQMD’s membership for the Calendar Year 2004 for an amount not to exceed $83,800 for common expenses of the CaFCP, and
    
2. Provide support needed to add a Regional Coordinator located at AQMD for a total amount not to exceed $50,000.

2. Provide one-year of office space and utilities at the AQMD headquarters to the CaFCP.

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 real day-to-day driving conditions. The CaFCP and member organizations have demonstrated 55 fuel cell passenger cars plus three fuel cell buses and fueling infrastructure to support them on California roads between 2000 and 2003.

The CaFCP is a collaboration in which several companies and government entities are independent participants. It is not a joint venture, legal partnership, or unincorporated association. The CaFCP membership currently includes eight auto manufacturers (DaimlerChrysler, Ford Motor Company, General Motors, Honda, Hyundai, Nissan, Toyota, 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, CEC, U.S. DOE, U.S. DOT, and U.S. 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, SunLine Transit, AC Transit, and Santa Clara Valley Transportation Authority, are participating as the host sites for the demonstration of fuel cell-powered transit buses.

Initially, the CaFCP program focused on development of vehicle, infrastructure and outreach plans for future projects. Through 2001, the CaFCP demonstrated fuel cell cars and buses using gaseous hydrogen fuel. During 2002 - 2003, the CaFCP was involved in the demonstration of cars and buses using gaseous and liquid hydrogen and methanol. A limited number of fleet customer placements began in 2002. In addition, the bus transit partners operated several zero-emission fuel cell buses. Members of the CaFCP are committed to the continuation of California Fuel Cell Partnership activities beyond 2003, and have outlined plans through 2007.

Major accomplishments of calendar year 2003 include the following:

• Demonstrated an increasing number of prototype fuel cell cars by several automakers. There were 16 fuel cell passenger cars operating based at the CaFCP headquarters in West Sacramento plus 25 operating elsewhere in California during the last quarter of 2003;
• Continued operation of gaseous hydrogen fueling with 3600 psi fill and 5000 psi fill at the West Sacramento facility, and added liquid hydrogen fueling;
• Planned for gaseous hydrogen passenger vehicle fueling stations at Auburn and Palo Alto;
• Provided training for several emergency response agencies;
• Conducted a Technology Forum and led a summit meeting of fuel cell organizations from around the world;
• Held or supported public events throughout California reaching over 200,000 people, including a three-day, 300-mile road rally along California’s Central Coast;
• Distributed 1,000 fuel cell learning kits to middle and secondary school teachers.

The goals of the CaFCP through 2007 include the following:

1. Facilitate members’ placement of up to 300 fuel cell cars and buses into fleets, operated by real-world users, primarily in two main areas – the greater Los Angeles region, and the Sacramento-San Francisco area;
2. Promote fuel stations to support the vehicle fleets and prepare communities for fuel cell vehicles and fueling;
3. Promote the development of practical codes and standards and encourage "common-fit" fueling protocols at the pump; and
4. Enhance public awareness and exchange information and resources worldwide.

Following are some of the activities planned or completed for calendar year 2004:

• Restructure CaFCP working groups to implement goals through 2007 and enhance Steering team member involvement;
• Continue operation and testing of fuel cell vehicles based at West Sacramento;
• Prepare communities for fuel cell vehicles and fueling and increase CaFCP presence in southern California;
• Coordinate with state, national and worldwide fuel cell vehicle and hydrogen programs, and promote consistent data collection and evaluation;
• Update CaFCP website and increase content, prepare and distribute CaFCP Annual Report, participate in major conferences and outreach events;
• Develop or update Resource documents including Bus Demonstration/Data Sharing Guide, Light Duty Vehicle Emergency Response Guide, Bus Emergency Response Guide, Vehicle Fueling Interface Document, Hydrogen Vehicle Facilities Study, Community Resource Guide for fleet/fueling demonstrations, Fueling Station Implementation Resource, and Fueling Station Emergency Response Guide and training materials and distribute in print and on website;
• Work closely with the environmental community to promote common goals.

In order to implement the goals of the CaFCP through 2007 and increase the presence of the CaFCP in Southern California, the CaFCP identified the need for a Regional Coordinator, and requests co-funding from AQMD. This full-time position reports to the CaFCP’s Executive Director with the responsibilities and qualifications described on the attached duty statement. CaFCP is requesting 50% co-funding from AQMD up to $50,000 per year plus cubicle and utilities at AQMD.

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 2004 update of the Technology Advancement Plan under 2004CFM2-1, "Demonstration of Fuel Cells Vehicles" and under 2004CFT-4 "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.

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 2004 common project costs in the CaFCP is not to exceed $83,800 to cover administrative, technical and program management cost, plus half the cost and office support needed to add a Regional Coordinator located at AQMD reporting to the CaFCP Executive Director, for a total amount not to exceed $136,800. 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 $83,800 for defraying the costs of the CaFCP including:

• Several auto manufacturers (General Motors, Toyota, DaimlerChrysler, Ford Motor Company, Honda, Hyundai, Nissan, and Volkswagen);
• Four energy 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 USEPA).

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.

Attachment

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