BOARD MEETING DATE: April 4, 2008
AGENDA NO. 30

PROPOSAL:

California Fuel Cell Partnership Steering Team Report and Quarterly Activity Report, Renew AQMD’s Membership in CaFCP for Calendar Year 2008, 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 $87,800 for calendar year 2008 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 continue providing in-kind office space and utilities for two additional CaFCP employees in 2008 in an effort to educate the public and increase CaFCP’s presence in Southern California.

COMMITTEE:

Technology, March 21, 2008. Less than a quorum was present for the discussion of this item; the Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTIONS:

1. Receive and file the attached quarterly status report.
2. Authorize the Chairman to execute a contract in the amount of $137,800 from the Clean Fuels Fund with Bevilaqua-Knight Inc., acting on behalf of the Partnership, to
   1. Continue AQMD’s membership for calendar year 2008 for a total amount not to exceed $87,800 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; and
   3. Continue to provide office space and utilities on a month-to-month basis for four cubicles for CaFCP staff and storage at the AQMD headquarters.

 

S. Roy Wilson
AQMD Representative to CaFCP

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 were a technology-forcing mandate requiring up to 22,000 ZEVs by 2003. The AQMP and the Technology Advancement Clean Fuels 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 $4,000 (from $83,800 to $87,800) was agreed by a consensus of the members to be necessary to support the activities planned for 2008 and beyond.

The proposed CaFCP major activities for 2008 are to:

• Promote fuel cell vehicle use and fueling access in California;
• Facilitate member collaboration; and
• Conduct outreach and build relationships with key stakeholder groups.

Major accomplishments during calendar year 2007 include:

• The demonstration of an increasing number of prototype fuel cell vehicles and hydrogen fueling stations in California, some vehicles now in their third generation or beyond;
  Directly reached 25,000 people and 5500 Ride-&-Drivers through 48 public events and 8 stakeholder events. Hosted over 1800 visitors to the Northern and Southern California facilities. Provided 91 media interviews;
• Focused on improving station accessibility by providing information to fleet operators through www.fleet.cafcp.org and implementing a common fuel training program in California;
• Educated 500 fire and life safety professionals and worked with the National Association of State Fire Marshals, who endorsed the CaFCP emergency response (ER) training program;
  Increased the presence of the CaFCP in Southern California through outreach and support of community events with Regional Coordinator & Communications staff based at AQMD; and
• Developed new ownership and operating strategy for West Sacramento hydrogen station.

Proposal

At the request of the AQMD, the CaFCP has 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 added a Communications Specialist in 2007, located at the AQMD headquarters.

Although the CaFCP has grown and evolved, the membership fees have not increased since the beginning of the CaFCP. Annual Road Rallies across California were a focus of the CaFCP during the early years, but required a large budget and labor, so were discontinued. Communication needs have changed, and the communications budget was significantly reduced for the last couple of years, to avoid previous fee increases. In order to support the anticipated increase in communication needs for vehicle deployments and hydrogen station openings in 2008 and beyond, the members agreed to increase the annual membership fees by $4,000 in 2008. The majority of fuel cell vehicle placements and new hydrogen stations are anticipated to be located within the South Coast Air Basin over the next few years.

Benefits to AQMD

Membership in the CaFCP is consistent with the Technology Advancement Office Clean Fuels 2008 Plan Update under “Demonstration of Fuel Cell 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 2008 common project costs in the CaFCP is not to exceed $87,800 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 $137,800. AQMD is also providing additional cost-share for the office space and utilities at the AQMD headquarters representing annual foregone rent of approximately $9,240 for the four cubicles.

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 management services agreement, to provide the needed support for the common tasks agreed to by the CaFCP.

As listed below, each Full Member is providing $87,800 or more plus in-kind support for defraying the costs of the CaFCP including:

• Nine auto manufacturers (General Motors, Toyota, Daimler, Chrysler, Ford Motor Company, Honda, Hyundai, Nissan, and Volkswagen);
• Three energy companies (BP, Shell Hydrogen, and Chevron);
• One fuel cell company (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).
   

In addition, seven industry Associate Members each pay $15,000 and five government and transit Associate Members provide in-kind contributions based on their area of expertise.

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 (doc 6728 kb)

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 19-20, 2008

West Sacramento City Hall
1110 West Capitol Avenue
West Sacramento, CA 95691

Steering Team:
Bill Fitzharris, BP

Representatives Attending: 
Mary Nichols, Anthony Eggert, CARB
Jim Boyd, Peter Ward, CEC
Nicole Barber, Chevron
Reg Modlin, Chrysler
Juergen Friedrich, Daimler
Robert Brown, Rob Riley, Ford
Al Weverstad, General Motors
Tae Won Lim, Hyundai-Kia Motors
(absent), Honda R&D America
Taro Hagiwara, Nissan Motor
(absent), National Automotive Center
Phil Baxley, Shell Hydrogen
Roy Wilson, SCAQMD
Takehito Yokoo, Justin Ward, Toyota Motor Corp.
Fred Joseck, U.S. DOE
(absent), U.S. DOT
Chris Grundler, U.S. EPA
Jan Van Dokkum, UTC
John Tillman, Volkswagen

SUMMARY OF AGENDA ITEMS

• The Steering Team meeting was chaired by Jan van Dokkum, UTC Fuel Cells, with Reg Modlin, Chrysler, serving as Vice Chair.
• Bill Elrick, CaFCP presented the results of the “deep dive” survey, projecting aggregate hydrogen supply through 2015. Overall conclusions are that demand is expected to be higher than accessible supply in 2009, that demand is expected to grow faster than accessible supply, and the greatest growth in demand in California for hydrogen will be in the greater Los Angeles area.
• Analisa Bevan, CARB, provided an update on the proposed ZEV regulation amendments and the status of the CA H2 Net. The proposed amendment and staff report are posted, with the CARB hearing scheduled for March 28-29. None of the three stations awarded co-funding previously by CARB have been completed. The new solicitation is imminent and priority locations match the locations of greatest interest identified in the “deep dive” survey. $7.7 million is available for three new hydrogen stations & two upgrades to 700 bar and CARB will request additional funding for year four.
• Jim Boyd, CEC, provided an update about AB 118 which will provide $120 million per year for 7 years. They are forming an advisory group, proposing new regulations, and drafting an investment plan. Solicitations open Fall 2008.
• Nico Bouwkamp, CaFCP, Ken Stewart, UTC Power, and Jaime Levin, AC Transit, provided an update about the bus program in California. Three transit agencies operate hydrogen fueling and fuel cell buses currently, but many more expressed interest in a survey of 38 members of the California Transit Association. 8-16 next generation fuel cell hybrid buses are ordered for 2009; they will be 4000 pounds lighter using NiMH improved batteries at reduced cost.
• CaFCP members discussed how to develop a vision to transition to fuel cell vehicles. Based on the discussion, CaFCP staff proposed language to focus on the shorter term, using a few key results from the “deep dive” survey to demonstrate the urgent need for additional hydrogen fueling with good or excellent access in the Sacramento/Bay area and the greater Los Angeles area. After further discussion, three paragraphs were adopted for use in outreach to appropriate stakeholders.
• The Decisions and Assignments from the October CaFCP Steering Team meeting were approved.
• Catherine Dunwoody, CaFCP, reviewed accomplishments in 2007. Two targeted websites were started: fleet.cafcp.org provides station information, and er.cafcp.org provides updated information to fire and life safety professionals who attend CaFCP training workshops. 204 fuel cell cars and 9 fuel cell buses have been placed in CA since 1999, with about 120 vehicles currently operating in California. Investigations regarding substandard hydrogen quality are ongoing. CaFCP staff have welcomed visitors to southern California and coordinated visits as needed with AQMD staff. Operation of the West Sacramento station is in transfer to a new entity, Hydrogen Fueling Station Inc.
• Chris White, CaFCP, reviewed communications team activities planned in 2008. US DOT will be hosting 100 invited guests at CaFCP on March 10. The CaFCP public website & member resources will be updated this year. The CaFCP will be hosting an Open House for the NHA Conference attendees. CaFCP will participate in several one-day events and plan for a southern California event in the fall.
• Catherine Dunwoody, CaFCP, led discussion about the increase in funding needed for the West Sacramento hydrogen station. DOE offered the balance of funding to continue operating in 2008 and the members accepted. All automakers present affirmed their continued need for 350 bar fueling at West Sacramento and their desire for 700 bar fueling at West Sacramento.
• The revised program plan and budget for 2008 was approved, maintaining the West Sacramento hydrogen station through 2008. Planning and budget for 700 bar fueling will be discussed in June, dependent on CaFCP staff providing quotes for capital cost and expected operating costs.
• Catherine Dunwoody, CaFCP, presented information regarding the departure of Ballard as a Steering Team member, and request for Associate membership. The automotive portion of Ballard was sold to Daimler and Ford, but Ballard continues to be involved in fuel cells for buses and forklifts. After discussion, there was no member support for Ballard’s request for Associate Membership. The members might reconsider next year, if additional information is provided.

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.