BOARD MEETING DATE: April 6, 2007
AGENDA NO. 35

PROPOSAL:

California Fuel Cell Partnership Steering Team Report and Quarterly Activity Report, Renew AQMD’s Membership in CaFCP for Calendar Year 2007, and Provide Office Space for CaFCP

SYNOPSIS:

The AQMD has been a member of the California Fuel Cell Partnership (CaFCP) since March 17, 2000.  This action is to renew AQMD’s membership in the CaFCP in an amount not to exceed $83,800 for calendar year 2007 and co-fund 50 percent of the CaFCP Regional Coordinator position located at the AQMD, in addition to office space and utilities, in an amount not to exceed $50,000.  Further actions are to provide in-kind office space and utilities for two additional CaFCP employees in 2007 and consider sharing the Lobby space to showcase Fuel Cell Technologies of Steering Team members on a rotating basis, in an effort to educate the public and increase CaFCP’s presence in Southern California. 

COMMITTEE:

Technology, March 23, 2007, Recommended for Approval

RECOMMENDED ACTIONS:

1. Receive and file the attached quarterly status report.
2. Authorize the Chairman to execute a contract in the amount of $133,800 from the Clean Fuels Fund with Bevilaqua-Knight Inc., acting on behalf of the Partnership, to

1. Continue AQMD’s membership for  calendar year 2007 for a total amount not to exceed $83,800 for common expenses of the CaFCP;
2. Continue support for a Regional Coordinator located at AQMD for a total amount not to exceed $50,000.

3. Approve authorizing the Executive Officer to provide office space and utilities on a month-to-month basis for four cubicles for three CaFCP staff and storage at the AQMD headquarters for immediate use, and
4. Further evaluate the public educational value of shared use of the AQMD Lobby for CaFCP hydrogen and fuel cell technology displays, to be provided by the CaFCP members at no cost to the AQMD, or the CaFCP and agendize the request for further Technology Committee discussion.

Cynthia Verdugo-Peralta
AQMD Representative to CaFCP
CaFCP Chair

Background

The California Fuel Cell Partnership (CaFCP) was initiated in 1999 as a means to accelerate response to the CARB Zero Emission Vehicle (ZEV) regulations, which was a technology-forcing mandate requiring up to 22,000 ZEVs by 2003.  The AQMP and the Technology Advancement Plan have identified fuel cells for on- and off-road applications to be a core technology for attaining and maintaining cleaner air quality.  Because of the alignment of the AQMD and CaFCP goals for accelerated fuel cell vehicle commercialization, the AQMD Governing Board accepted the CaFCP formal invitation to join as a full member on March 17, 2000.

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.  The CaFCP was involved in the demonstration of cars and buses using gaseous and liquid hydrogen and methanol in 2002 and 2003.  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 CaFCP activities through 2012.  While in-kind support and careful budgeting have kept member fees consistent since the inception of the CaFCP, an increase in member fees of approximately $4,000 is under consideration to support the activities planned for 2008 and beyond.

The proposed CaFCP activities for 2007 are to:

• Facilitate members’ placement of additional fuel cell vehicles and fueling stations in California, including fuel cell buses, by coordinating and conducting outreach in demonstration communities, training first responders, and facilitating member learning exchange;
• Enable hydrogen fueling network in California by evaluating existing hydrogen stations and promoting station accessibility;
• Maintain and expand CaFCP’s position as a leading information source for hydrogen and fuel cell vehicles, in particular, specific member programs in California; and
• Maintain CaFCP organizational effectiveness and prepare for CaFCP’s future beyond 2007, including increased staff and display space in the Southern California area to mirror the increased activities of the CaFCP members, which are occurring in that region.

Major accomplishments during calendar year 2006 include:

• The demonstration of an increasing number of prototype fuel cell cars in California by several automakers, some vehicles now in their second or third generation;
• Provided training for emergency responders to help familiarize communities with fuel cell vehicles and fueling; and
• Increased the presence of the CaFCP in Southern California through outreach and community workshops with Regional Coordinator staff.

Proposal

At the request of the AQMD, the CaFCP has initiated an expanded presence in Southern California due to the increased deployment of vehicles, the largest number of fueling stations, and the greatest air quality need in this region.  Along with the existing Regional Coordinator, the CaFCP is recruiting two additional staff, a Communications Specialist and Fueling Access Project Coordinator, to be located at the AQMD headquarters.  There is an immediate need for two additional staff cubicles and a cubicle for storage.  The CaFCP is asking for AQMD approval and assistance in implementing this increased presence.

The CaFCP members have also volunteered to provide static displays and interactive software demonstrations to occupy appropriate locations within the AQMD Lobby, for example, the Lobby Theatre area.  This area could be used to rotate CaFCP member displays in parallel with AQMD materials.  One member has also offered a very large (8' × 5' × 2') wall display showcasing their well-to-wheels CO2 emissions software.  Staff believes the current display is too large and company-specific to appropriately fit in the Lobby area; however, if this hardware could be modified to enhance the AQMD Lobby Theatre, i.e., to show AQMD videos and broadcast Board meetings, staff would recommend its use.  While this is being evaluated, staff recommends running the software in a separate kiosk or even integrating it into the existing AQMD solar panel kiosk.  
NOTE:  That member has agreed to contribute up to $10,000 towards enhancing the CaFCP Southern California presence, which could be utilized towards the costs to modify the monitor and software to display other member’ technologies, including AQMD’s.

Originally, there was discussion between AQMD’s Executive Officer, Board Member Cynthia Verdugo-Peralta and the CaFCP Executive Director regarding the need for three offices, a conference room, and a coffee/copy room.  The Executive Officer provided a schematic utilizing the existing AQMD Library space for CaFCP use.  This 3,000 square foot area would be used as the Southern California activity center for the CaFCP and become the central hub for facilitating tours, hosting meetings, and assisting Members in coordinating activities in Southern California.  AQMD Building Services has estimated the conversion cost to be approximately $44,000.  The CaFCP Steering Team voted to provide these funds in their 2007 budget, in addition to another $18,000 for office furniture and equipment.  Since the Steering Team meeting in February, however, Board Member Verdugo-Peralta presented an alternative plan to postpone this renovation and utilize existing cubicles until the need for an enlarged space is more fully demonstrated.

Benefits to AQMD

Membership in the CaFCP is consistent with the Technology Advancement Office Clean Fuels 2006 Plan Update under “Demonstration of Fuel Cells Vehicles” and “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 vehicles, and strives to educate public and private organizations regarding the benefits and characteristics of these vehicles.

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.

Resource Impacts

The AQMD’s share of the calendar year 2007 common project costs in the CaFCP is not to exceed $83,800 to cover administrative, technical and program management cost, plus half the cost ($50,000) and in-kind support needed for the Regional Coordinator position located at AQMD and reporting to the CaFCP Executive Director, for a total amount not to exceed $133,800.  AQMD is also providing additional cost-share for the office space and utilities at the AQMD headquarters.  The two presented scenarios represent annual foregone rent of approximately $9,240 for the four cubicles or $93,600 for the rennovated library space.

In order to execute this agreement, AQMD will enter into a contract 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 or more plus in-kind support for defraying the costs of the CaFCP including:

• Eight auto manufacturers (General Motors, Toyota, DaimlerChrysler, Ford Motor Company, Honda, Hyundai, Nissan, and Volkswagen);
• Three energy companies (BP Amoco, Shell Hydrogen, and ChevronTexaco);
•  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).

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.

Attachments
California Fuel Cell Partnership Quarterly Steering Team Meeting Summary
California Fuel Cell Partnership Quarterly Status Report

CALIFORNIA FUEL CELL PARTNERSHIP

Summary of Steering Team Meeting
February 20-21, 2007

South Coast Air Quality Management District
21865 Copley Drive
Diamond Bar, CA 91765

Steering Team                               Steve Kukucha, Ballard
Representatives Attending:            Bill Fitzharris, BP
                                                    Analisa Bevan, CARB
                                                    Jim Boyd, CEC
                                                    Linda Gallaher, ChevronTexaco
                                                    Christian Mohrdieck, DaimlerChrysler
                                                    Robert Brown, Todd Suckow, Ford
                                                    Al Weverstad, Bob Babik, General Motors
                                                    Tae Won Lim, Hyundai-Kia Motors
                                                    Ben Knight, Honda R& D America
                                                    Bob Cassidy, Nissan Motor
                                                    (absent), National Automotive Center
                                                    Pana Ratana, Shell Hydrogen
                                                    Cynthia Verdugo-Peralta, SCAQMD
                                                    Kyo Hattori, Toyota Motor Corporation
                                                    Keith Wipke, NREL, Sig Gronich, U.S. DOE
                                                    Tim Klein, U.S. DOT
                                                    Chris Grundler, U.S. EPA
                                                    Jan Van Dokkum, UTC
                                                    Wolfgang Steiger, Volkswagen

SUMMARY OF AGENDA ITEMS

• The Steering Team meeting was chaired by Cynthia Verdugo-Peralta, Governors’ Appointee, AQMD Governing Board, with Jan Von Dokkum, President, UTC Fuel Cells, serving as Vice-Chair.
• 2006 goals and performance were reviewed.  New vehicle placements continue, and buses were added to the miles accumulated total.  Additional hydrogen stations opened in CA, with more planned for next year as part of the CAH2Net.  The CaFCP West Sacramento station continues to have more cumulative fueling events than any other station.  Six stations were tested in CA for hydrogen quality this year. 
• The 2006 CaFCP Station Access Report was reviewed and will serve as a guide for strategies to increase access to hydrogen fueling. 
• Facility planning for CaFCP activities in northern and southern CA continues.  The Safety team reports zero accidents. 
• Members provided the following updates:
  Bob Cassidy, Nissan, reported that they are operating a 700 bar fuel cell vehicle in West Sacramento and they are focused on getting a lot of fueling experience.
  Linda Gallaher, Chevron, announced that they will have three new stations operating by the end of March; a station serving the (Ford) hydrogen ICE shuttle bus at the Orlando Airport, a DOE project with Hyundai (at SCE) in Rosemead, and a station with DOE in Michigan.
  Al Weverstad, GM emphasized their plan to deploy Chevy Equinox fuel cell vehicles that need the support of 700 bar hydrogen dispensing in southern California by the fourth quarter of this year.
  Analisa Bevan, CARB, described the results of their hydrogen network stakeholders meeting held February 2, their efforts to update the CA hydrogen Blueprint plan this year, and their involvement with CEC in well to wheels analysis for AB 1007 and AB 32.
  Ben Knight, Honda, announced that they will launch their next generation fuel cell vehicle with 270 mile range next year.
  Kyo Hattori, Toyota, expressed their need for 700 bar hydrogen stations to support their fuel cell vehicle development efforts.
  Robert Brown, Ford, reported that their vehicles assigned to CEC & ARB have accumulated 320,000 miles with 97% uptime, and their HySeries vehicle was well received at the auto shows.
  Jan Van Dokkum, UTC, reported that their bus operating in Brussells shows enough increased efficiency to allow a reduction in the volume of hydrogen stored on board to still meet the operational needs.
  Christian Mohrdieck, DC, announced they expect to achieve 2 million kilometers accumulated on fuel cell vehicles next month – 3 million miles including their buses.  Most customers are extending their fuel cell vehicle leases and the fuel cell stacks are exceeding their expected life.  They are working on next generation vehicles.
  Chris Grundler, EPA, reported that his group will be leading the President’s effort to replace 20% of fuel with alternatives by 2020.
  Jim Boyd, CEC, described their efforts to address AB 1007 as the heart of the low carbon fuel strategy in CA.
  Wolfgang Steiger, VW, reported they will have two new fuel cell vehicles operating in California this year, and they are making progress on stack operation at higher temperatures and higher power.
  Bill Fitzharris, BP, described their work on two stations in Michigan and design work for 700 bar stations in CA.
  Don Eichelberger, APCI, announced the opening of their first 70 MPa hydrogen refueling station at UC Irvine next week.
  Tae Won Lim, Hyundai-Kia, reported progress for their fuel cell vehicles and bus.
• Anupom Ganguli, AQMD Public Advisor, provided an overview of Environmental Justice policies and their potential application by the CAFCP.  USEPA, CARB, and AQMD will provide best practices to the CaFCP.
• The afternoon strategy session provided an overview of automaker needs for higher pressure (700 bar) hydrogen refueling to support fuel cell vehicle demonstrations this year, and a description of near-term planned DOE infrastructure activities, followed by a discussion of how to better coordinate next generation vehicle and fueling deployments.
• Catherine Dunwoody, CaFCP, presented the revised CaFCP budget for 2007, which was approved, and a draft 2008 budget proposing increased member fees, which will be continued for further discussion.
• Jennifer Hamilton, CaFCP, presented the updated Emergency Response Guide, which was approved with edits.
• Catherine Dunwoody, CaFCP, presented revised operating protocols, which better describe duties of the Chair, and modify the number of Steering Team meetings from four per year, to 3-4 per year.
• Jaimie Levin, AC Transit, provided learnings from their program.
• Jan Van Dokkum, UTC, provided an overview of their Federal Fuel cell bus program efforts with Washington, D.C., AX Transit, and Sunline.
• Cynthia Verdugo-Peralta, AQMD, lead a discussion regarding the fuel cell bus program in California.
• Tim Klein, Senior Policy Advisor to the Administrator of US DOT, summarized $50 million FTA funding for National Fuel Cell Bus Projects announced recently at Sunline.

The next CaFCP Steering Team meeting is scheduled for June 19-20 in Southern California.

Additional information about the California Fuel Cell Partnership can be found at http://www.fuelcellpartnership.org/.

CaFCP Quarterly Update
October 2006 – December 2006

The California Fuel Cell Partnership is a unique collaborative of auto manufacturers, energy companies, fuel cell technology companies and government agencies, including SCAQMD. This report summarizes CaFCP activity in or related to Southern California for the period October 2006 through December 2006.

In 2006, the CaFCP Steering Team identified four goals to promote the commercialization of hydrogen fuel cell vehicles:

1. Support vehicle and fuel station placements
2. Enable California fueling network
3. Be a leading source for information
4. Maintain organization and plan for future

The following activities are examples of work toward achieving these goals.

Road Rally 2006

The CaFCP 5^th annual Road Rally was a huge success. Members traveled from Los Angeles to San Diego visiting thousands and giving more than 1000 Ride& Drives.

• Day 1, OC Auto show
• Day 2, OC Auto show
• Day 3, Torrance Hydrogen and Fuel Cell Vehicle Workshop
• Day 4, Speed Festival on CoronadoIsland
• Day 5, Speed Festival on CoronadoIsland

Alternative Fuels presentation for San Diego area high school students, October 12, San Diego.
Presentation and discussion on hydrogen fuel cell vehicles to approximately 70 students, teachers and faculty.

Emergency responder training and fire community outreach is an important aspect of the goal to support member fleets and stations.

Hydrogen and Fuel Cell Vehicle Workshop (Torrance), October 6th
This was the 2^nd Annual workshop CaFCP hosted in coordination with the Los Angeles Area Fire Marshal Association and the California State Firefighter’s Association. The event attracted over 100 people that stayed for a detailed codes & standards discussion and an Emergency Responder workshop session.

FireRescue Conference, Las Vegas, November 7^th-9^th
A conference focused specifically for those in the fire service specializing in rescue, such as vehicle extrication.

California State Fire Marshal Hydrogen Highway Advisory Committee meeting, December 7^th
CaFCP participates on this committee and hosts meetings for the OSFM in their effort to implement the hydrogen highway executive order.

Meeting with John Dane, Executive Director of the CaliforniaState Firefighters Association, November 2^nd
Looking for ways to collaborate with CSFA on emergency responder workshops. Coordinating for Fire Rescue Conference in San Diego in February.

Emergency Responder Outreach Numbers

CaFCP has several technical programs with teams that meet regularly to work on interoperability issues such as hydrogen quality, fueling systems, station testing and public access. This work helps achieve the goal of enabling a California fueling network. SCAQMD has been very active in the Station Review Team and DemoNet.

Station Review Team (SRT)
The Station Review Team is in the process of completing a draft report on hydrogen station accessibility in California. Final version due February, 2007.

Hydrogen Quality
Stations are actively being tested and data evaluated. Testing schedule is currently being complied and results will be shared in Q1 2007.

Outreach activities and tools show how the CaFCP works towards the goal of being a leading source of information. There was a lot of media for this quarter from Road Rally 5. Here are some highlights:

Media

• Radio:  KUSI – San Diego; KPCC radio – Pasadena;
• Print:  Life Newspaper; Parks Magazine; Penguin books; HanKyung Newspaper; Squeeze OC; Green Technology Magazine; San Diego Union Tribune;
• Television:  Los Angeles - KTTV Fox 11, ESPN; Good Day Sacramento; Vision 5 – Korea; France 2 – French TV; Fox News 6 – San Diego;

Legislative Outreach

• Bob Inglis, US House of Representatives, South Carolina
• Wayne Roper, Chief of Staff, Office of Congressman Inglis

Website

Outreach Materials

• Currently creating flash animations for CaFCP website
   

Fourth CaFCP South meeting hosted by SCAQMD, December 12^th, 2006
Discussion of station access and review of 2007 goals.

• Governor’s Inauguration, Sacramento
• Firehouse World, San Diego