BOARD MEETING DATE: October 7, 2005
AGENDA NO. 6

PROPOSAL:

Recognize and Appropriate Funds from California Energy Commission and Adopt Resolution to Receive and Administer Funds to Support AQMD "Five Cities" Hydrogen Program

SYNOPSIS:

The California Energy Commission (CEC) on behalf of the U.S. DOE has approved Clean Cities Program grant funding in support of five proposed hydrogen fueling stations at the cities of Santa Monica, Riverside, Burbank, Santa Ana and Ontario. These five stations will provide hydrogen fuel for 25 Toyota Prius electric hybrid vehicles that have been converted to utilize hydrogen as their fuel. The CEC requires the AQMD Governing Board to adopt a resolution to receive and administer their funding for these five projects known as the "Five Cities" Program. This funding will be used to support the purchase of the fueling and storage equipment and will cover about 5% of the overall AQMD project costs. This action is to recognize and appropriate $137,939 from the CEC for the AQMD "Five Cities" Hydrogen Program and to adopt a Resolution to receive the funds.

COMMITTEE:

Technology, September 23, 2005, Recommended for Approval

RECOMMENDED ACTIONS:

  1. Adopt the attached Resolution authorizing the Executive Officer to apply for funds and to execute in the name of the AQMD an agreement with the California Energy Commission and all other necessary documents to implement and carry out the purposes of this resolution for construction of the "Five Cities" hydrogen fueling stations, in an amount not to exceed $137,939.
     
  2. Upon receipt of the award, recognize $137,939 in revenue for the "Five Cities" projects from the California Energy Commission as a pass-through grant from the U.S. DOE-Clean Cities Program to the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

In February 2004, the AQMD submitted funding requests for five hydrogen fueling stations to the California Energy Commission (CEC)/U.S. Department of Energy (DOE)-Clean Cities Program. The program was established to support the development of alternative fuels infrastructure. These funding requests were submitted in response to a Program Opportunity Notice (PON) issued by the CEC in which funding could be provided for the purchase of equipment for new alternative energy infrastructure projects. The demonstration of hydrogen-fueled internal combustion vehicles as introduced in the AQMD "Five Cites" Hydrogen Program require adequate, reliable fueling facilities to support their operation.

The CEC, acting for the U.S. DOE, has approved the support funding for the five stations as requested in the Grant Application. The five hydrogen fueling stations are those identified with the "Five Cities" Program and include the Cities of Santa Monica, Riverside, Burbank, Santa Ana, and Ontario. The funding approved by the CEC must be used for the purchase of equipment only and must not exceed 30% of the total project cost. The actual approved funding by the U.S. DOE for this project is less than 5% of the total AQMD funding as shown in the following table.

Summary of CEC Funding for the Five Stations
 
Project Station Type CEC Funding Total Project Cost

City of Santa Monica

PEM Electrolyzer

    $27,588

    $850,000

City of Riverside

PEM Electrolyzer

    $27,588

    $850,000

City of Burbank

PEM Electrolyzer

    $27,588

    $850,000

City of Santa Ana

Transportable Bulk

    $27,588

    $216,000

City of Ontario

Transportable Bulk

    $27,587

    $216,000

      Total

$137,939

$2,982,000

Proposal

At the request of CEC, the AQMD Board, at its December 3, 2004 meeting, voted to recognize and receive the DOE Clean Cities award of $237,939. Subsequently, U.S. DOE withdrew $100,000 of the expected award.

In addition to basic project information previously submitted, the CEC requires the AQMD Board to approve and endorse a resolution empowering the AQMD to receive the funds. This resolution is included in this letter as Attachment A. This action is to adopt the Resolution provided in Attachment A. In addition, staff is requesting the Board to recognize revenues of $137,939, upon receipt of the award, from the CEC into the Clean Fuels Fund.

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. For these programs to be successful, fleets and other vehicle users must be able to rely on reliable and efficient refueling facilities. The proper operation of existing stations must be ensured, and those designing future stations must have access to information that will facilitate their design, construction and operation. The primary benefits of this project will be to help resolve these refueling station challenges and to demonstrate a large number of identical hydrogen-fueled vehicles at multiple municipal sites.

Attachment

A. Resolution for CEC Funding for "Five Cities" Program Hydrogen Stations

 

Attachment A

RESOLUTION No. _________________
Receive Funds from the California Energy Commission
in Support of the AQMD "Five Cities" Hydrogen Program

                    WHEREAS, The U.S. Department of Energy Clean Cities Program provides grant funding for the installation and demonstration of alternative fuels infrastructure, including hydrogen, to assist public agencies to establish an infrastructure for dispensing low-polluting motor vehicle fuels; and

                    WHEREAS, the California Energy Commission to achieve its transportation energy program objectives provides pass-through funds from the Department of Energy to cost-share the establishment of alternative fuels Infrastructure; and

                    WHEREAS, South Coast Air Quality Management District is desirous to implement a project with the California Energy Commission and the U.S. Department of Energy Clean Cities Alternative Fuels Infrastructure Program funds for the AQMD "Five Cities" Hydrogen Program;

                    NOW, THEREFORE, BE IT RESOLVED, that the Executive Officer of the South Coast Air Quality Management District is hereby empowered to receive funds of $137,939 and execute on behalf of South Coast Air Quality Management District an agreement with the California Energy Commission and all other necessary documents to implement and carry out the purposes of this "Five Cities" program.

_____________________               
Clerk of the Board                     

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