BOARD MEETING DATE: April 6, 2007
AGENDA NO. 11

PROPOSAL:

Execute Contract to Cosponsor Upgrade and Demonstration of  Fuel Cell Bus

SYNOPSIS:

In May 2001, the Board approved a hybrid electric fuel cell bus demonstration project.  This project successfully demonstrated a fuel cell bus with double the energy efficiency of a comparable existing natural gas bus, with equivalent reliability.  This bus was retired in late 2004 due to the expiration of the fuel cell warranty.  ISE Corporation, the original project proponent, is proposing to replace the fuel cell with a new design that includes a 12,000 hour warranty, incorporate advanced lithium ion batteries, and upgrade the onboard hydrogen storage to 5,000 psi. After development and testing, the bus will be placed into service as a part of SunLine Transit’s fleet.  This action is to cosponsor this project in an amount not to exceed $325,000.  The total project cost is $1,285,000.

COMMITTEE:

Technology, March 23, 2007, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with ISE Corporation to cost-share the upgrade and demonstration of a new fuel cell design in a hybrid electric fuel cell bus in an amount not to exceed $325,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Over 80% of the Basin’s NOx emissions inventory can be attributed to mobile sources; heavy-duty trucks and buses account for approximately 20% of the NOx inventory.

The 2007 Update of the Technology Advancement Plan for the Clean Fuels Program includes demonstration of light- and heavy-duty hydrogen fuel cell vehicles.  The 2007 AQMP calls for the accelerated introduction of both light- and heavy-duty zero-emission vehicles as an air quality attainment strategy.  In addition, the state urban transit bus regulations require transit authorities to start using Zero Emission Buses.  Additionally, use of hydrogen vehicles stimulates the long-term development of hydrogen fueling infrastructure.  Hybrid-electric drive systems and hydrogen fuel cell technology have matured over the past few years and appear to be to the point of pre-commercialization, having achieved increased durability and reliability.

In the original project approved by the Board in May 2001, Thor/ISE Research developed the first hybrid electric fuel cell bus, and successfully demonstrated the unique advantages of hybrid drive for hydrogen buses.  The bus was successfully demonstrated and subsequently placed in revenue service at SunLine Transit in June 2002, followed by a 30-day demonstration in Los Angeles County.  After the expiration of the AQMD contract, the bus provided revenue service at Alameda/Contra Costa (AC) Transit where it continued in public service.  The bus was retired from service at the end of 2004 as fuel cell warranty funding had expired.  During its two year service life, this fuel cell hybrid-electric bus demonstrated twice the fuel economy of a comparably-sized natural gas bus.

The bus developed under this initial project was used as a template to develop four additional full-size transit fuel cell buses currently in revenue service at SunLine Transit and A.C. Transit.

Proposal

ISE Corporation is proposing to upgrade the existing bus with the following technology leading improvements:

• New 75 kw fuel cell module manufactured by Ballard, with a 12,000 hours or five years, whichever comes first.  This is a six time improvement in the warranty compared to fuel cell buses currently in demonstration.
• The existing lead acid batteries will be replaced with an advanced lithium ion battery pack that reduces weight while providing more energy density.
• The 3,600 psi hydrogen storage will be replaced with a 5,000 psi rated hydrogen storage system, which is expected to provide a greater range.

Upon completion of the upgrade and testing phase, the bus will provide revenue service as a part of the SunLine Transit Fleet.  ISE Corporation will provide bus transport, on-site training and field support as needed. 

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards.  This project will further develop technology for heavy-duty HEVs, including real life durability testing of fuel cells and lithium ion batteries, and is expected to reduce NOx and PM emissions well beyond those required under existing regulations from on-road heavy-duty engines.

Success of this project will result in the production of the first hydrogen fuel cell bus with a 12,000 hour warranty, and establish a key path towards commercialization and successful implementation of CARB’s Zero Emission Bus program.

Sole Source Justification

Section VII.C.2. of the Policy for Clean Air Incentive Contracts identifies provisions under which a sole source award may be justified.  This request for a sole source award is made under provision C.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 C.2.d.(1): Projects involving cost sharing by multiple sponsors.

ISE Corporation has been instrumental in the development and demonstration of a variety of heavy-duty hybrid-electric buses using a microturbine, ICE, and fuel cell as a generator.  More recently, they have completed a successful demonstration of a fuel cell hybrid-electric bus zero-emission bus at SunLine Transit.  ISE Corporation has also developed a similar gasoline-ICE hybrid-electric bus that has been in revenue service for the past six months and will be developing a larger fuel cell bus in the near future.  ISE Research has significant experience with series hybrid drive systems, hydrogen fueling, and fuel cells.

Resource Impacts

The total cost for this project is approximately $1,285,000.  The amount of AQMD co-funding shall not exceed $325,000 or 25% of the total project cost.   The AQMD expects significant benefits from the successful completion of this demonstration project.

The following table summarizes the funding sources for this project, estimated at a total cost not to exceed $1,285,000.

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.