BOARD MEETING DATE: May 6, 2005
AGENDA NO. 9

Execute Contract to Participate in California Fuel Cell Partnership for Calendar Year 2005 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 composed 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 the vehicles and fueling. This action is to continue AQMD’s participation in the CaFCP in an amount not to exceed $83,800 for calendar year 2005, and to also co-fund 50 percent, in addition to office space and utilities, for the 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.

COMMITTEE:

Technology, April 22, 2005

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Bevilacqua-Knight Inc., acting on behalf of the Partnership, with funding from the Clean Fuels Fund, to

1. Continue AQMD’s membership for the Calendar year 2005 for a total amount not to exceed $83,800 for common expenses of the CaFCP, and
    
2. Continue support for 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 achieve significant mobile source emission reductions.

The California Fuel Cell Partnership is a unique collaboration in which several companies and government entities are independent participants and 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 seven government agencies (AQMD, CARB, California Energy Commission, U.S. Department of Energy, U.S. Department of Transportation, U.S. EPA, and the National Automotive Center).

In addition, associate partners Air Products and Chemicals, Praxair, Stuart Energy, Proton Energy, Pacific Gas & Electric, Ztek, and the UC Davis Institute of Transportation Studies have joined to contribute needed expertise. Three California transit agencies, SunLine Transit (Coachella Valley), AC Transit (Alameda-Contra Costa Transit District), 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 calendar years 2002 and 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 through 2007 and find great value in the collaborative efforts of the CaFCP.

Major accomplishments of calendar year 2004 include the following:

• The demonstration of an increasing number of prototype fuel cell cars in California by several automakers, some now in their second or third generation;
• Continued operation of fuel cell vehicles and gaseous hydrogen fueling at the West Sacramento facility;
• Operation of the gaseous hydrogen passenger vehicle fueling station in Richmond hosted by AC Transit, and facilitated planning for stations at San Carlos (instead of Auburn) and Palo Alto;
• Provided training for emergency responders to help prepare communities for fuel cell vehicles and fueling;
• Increased the presence of the CaFCP in Southern California by adding a Regional Coordinator and conducted a well attended Community Workshop with NHA hosted by AQMD;
• Held or supported public events throughout California, including a three-day, Cruisin’ Southern Cal road rally beginning at AQMD and ending in San Diego;
• Restructured CaFCP working groups to implement goals through 2007 and enhanced Steering Team member opportunities for involvement; and
• Prepared and distributed the first CaFCP Annual Report.

The goals of the CaFCP continuing through 2007 include:

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 of California – 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 2005:

• Facilitate members’ placement of additional fuel cell vehicles and fueling stations into fleets in California, including fuel cell buses.
• Facilitate a member forum to promote information sharing and support regarding member demonstration programs. These learning forums will include all aspects of project implementation, with a particular focus on safety learning.
• Support the implementation of California’s Hydrogen Highway Network program through current CaFCP programs and additional activities as identified by the Steering Team.
• Promote hydrogen fueling station and vehicle interoperability and accessibility.
• Promote training for First Responders in vehicle and fueling demonstration communities through direct training activities and support of comprehensive training programs.
• Engage in focused community and stakeholder outreach; use these opportunities as a forum to disseminate CaFCP lessons learned and distribute CaFCP resource documents.
• Coordinate with other fuel cell vehicle programs worldwide.
• Maintain and expand CaFCP’s position as a leading information source for hydrogen and fuel cell vehicles, in particular, specific member programs in California.

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 2005 update of the Technology Advancement Plan under "Demonstration of Fuel Cells Vehicles" and under "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.

As listed below, each Partner is providing $83,800 to defray 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
• Seven government agencies (AQMD, CARB, California Energy Commission, U.S. DOE, U.S. DOT, U.S. EPA, and the National Automotive Center).

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 in-kind support needed to add a Regional Coordinator located at AQMD reporting to the CaFCP Executive Director, for a total amount not to exceed $133,800. AQMD will enter into an agreement with Bevilacqua-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.

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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