BOARD MEETING DATE: September 7, 2007
AGENDA NO. 4

PROPOSAL:

Execute Contract to Cosponsor Demonstration of Advanced Fuel Cell Bus

SYNOPSIS:

 The AQMD has long supported fuel cell transit bus projects in order to accelerate their development and expose the widest possible ridership to this clean, zero-tailpipe emission technology. Sunline Transit Agency and their partners were recently awarded a grant from the Federal Transit Administration, as part of the National Fuel Cell Bus Program, to design, develop, and demonstrate an advanced technology American Fuel Cell Bus. This action is to award a contract to Sunline Transit Agency to conduct this project in an amount not to exceed $400,000 from the Clean Fuels Fund. The remainder of the $5.4 million project costs will be funded by the other project partners: FTA/CALSTART CARB, ISE, New Flyer, Sunline, and UTC.

COMMITTEE:

Technology, July 27, 2007, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Sunline Transit Agency to design, develop and demonstrate an advanced fuel cell transit bus in an amount not to exceed $400,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has long sponsored the development and deployment of fuel cell bus technologies because these heavy-duty vehicles have zero-tailpipe emissions, help establish hydrogen refueling infrastructure, and provide the greatest outreach potential through ridership. In line with this history, AQMD staff conceptually supported the Sunline Transit Agency (Sunline) proposal to the Federal Transit Administration (FTA) National Fuel Cell Bus Technology Demonstration Program to develop the next generation fuel cell bus. In October 2006, Sunline and its partners UTC, ISE, and New Flyer were selected for one of three FTA awards to develop and demonstrate fuel cell buses. This action is to award a contract to Sunline to conduct this project.

Proposal

Sunline is partnering with three leaders in the bus industry to develop a new design “American Fuel Cell Bus.” UTC, headquartered in Connecticut, will provide its new
120 kW proton exchange membrane fuel cell stack. This technology represents an improvement over the existing generation fuel cell stacks currently being demonstrated at Sunline and other transit agencies. ISE, located in Poway, CA, will provide an improved electric motor drive system to reduce weight, cost, and noise, and implement an advanced energy storage subsystem using lithium ion batteries to further reduce weight. Finally, New Flyer, located in Manitoba and Minnesota, will design and build the 40-foot chassis to incorporate streamlined aerodynamics, improved air conditioning ducting, greater window insulation, improved disc brakes, low-energy LED lighting, and reduced-friction tires. The goal is to produce a highly efficient, reduced weight, American-made chassis to compete with the Belgian Van Hool bus currently being demonstrated at Sunline and other transit agencies. CALSTART is administering the western U.S. projects for the FTA.

The project is expected to proceed in phases, starting with the design and development of the battery and power electronic subsystems, the fuel cell hybrid drive system, and the bus chassis. Once the subsystems and chassis are designed, the components, including the fuel cell, will be specified, manufactured and tested. Integration of the subsystems into the chassis will follow, with initial shakedown testing of the bus to optimize performance. The bus will then be demonstrated in revenue service for approximately one year, especially during the hottest summer months to evaluate hot weather performance. The entire project is schedule to span close to three years, concluding in 2010.

Benefits to the AQMD

This project furthers the development of fuel cell technology for transit applications with the goal of accelerating the deployment of a commercial product. If successful, this project will demonstrate a lower cost, reduced weight, and more attractive bus with a longer-lived fuel cell stack to enable an economically competitive, zero-tailpipe emission bus. This project also helps implement CARB’s Zero Emission Bus regulation, which requires urban bus fleets to transition to cleaner technologies over time.

This project was also included in the March 2007 Technology Advancement Office Clean Fuels Program 2006 Annual Report and 2007 Plan Update under “Develop and Demonstrate Fuel Cells in Vehicle Applications.”

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) Project involving cost sharing by multiple sponsors.

This project is cosponsored by other entities where AQMD’s contribution will be highly leveraged. The details of the cost-share are provided in the following section and include funding by the FTA (administered by CALSTART), CARB, ISE, New Flyer, Sunline, and UTC.

Resource Impacts

The total cost for this project is approximately $5.4 million, with the requested AQMD co-funding not to exceed $400,000, or 7% of the total project costs. The following table summarizes the funding sources and amounts for this project.

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Cleans 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.