BOARD MEETING DATE: September 5, 2008
AGENDA NO. 38

PROPOSAL:

California Fuel Cell Partnership Steering Team Report and Quarterly Activity Report

SYNOPSIS:

On April 4, 2008, the Board approved the proposal to renew membership in the California Fuel Cell Partnership (CaFCP) for 2008. This report summarizes the California Fuel Cell Partnership Steering Team meeting held June 24-25, 2008 and provides an activity report for the period beginning January 2008.

COMMITTEE:

Technology, July 25, 2008, Reviewed

RECOMMENDED ACTIONS:

Receive and file the attached Steering Team meeting and quarterly activity reports.
 

S. Roy Wilson
AQMD Representative to CaFCP

CALIFORNIA FUEL CELL PARTNERSHIP

Summary of Steering Team Meeting
June 24-25, 2008

Lake Arrowhead Resort
27984 Highway 189
Lake Arrowhead, CA 92352

Steering Team Representatives Attending:

Tom Cackette, CARB
Jim Boyd, CEC
Nicole Barber, Chevron
Reg Modlin, Jesse Schneider, Chrysler
Peter Friebe, Daimler (Day 1)
Robert Brown, Ford
Al Weverstad, General Motors
Tae Won Lim, Hyundai-Kia Motors
Ben Knight, Honda R&D America
Taro Hagiwara, Akihiro Iiyama, Nissan Motor
(absent), National Automotive Center
     Phil Baxley, Shell Hydrogen
Roy Wilson, SCAQMD
Takehito Yokoo, Toyota Motor Corp.
     Fred Joseck, U.S. DOE
(absent), U.S. DOT
Chris Grundler, U.S. EPA
Jan Van Dokkum, UTC
     (absent), Volkswagen

SUMMARY OF AGENDA ITEMS

• The Steering Team meeting was chaired by Jan van Dokkum, President, UTC Power, with Reg Modlin, Chrysler, serving as Vice Chair. Jan van Dokkum noted the departure of BP, welcomed new representative Akihiro Iiyama for Nissan, and thanked Taro Hagiwara, Nissan for his numerous contributions.
   
• Tom Cackette, ARB provided an update on climate change and transportation issues: congestion, mobility, fuel supply, urban air pollution, and global warming. Potential climate change impacts are anticipated to be so serious that they are driving other policy decisions. Without 50% transportation reductions provided by AB 32 (Pavley), CA won’t meet its goals since transportation reductions provide 20% of total needed reductions. In order to meet goals in 2050, 11% of cars could run on petroleum, assuming a 20% reduction in VMT, 70 mpeg. Working backwards, we need to ramp up 2015 to 2035 and employ multiple strategies: Pavley tailpipe standards, ZEV mandate, LCFS, goods movement, funding (AB118), urban planning, and rail expansion. ARB staff is planning to submit a new ZEV proposal for beyond 2015 to the Air Resources Board by the end of 2009. CA is active in the Western Climate Initiative (10 states & 2 Canadian provinces). 14 states have now adopted the ZEV regulation. In 2050, the CA electric grid will also need to contribute mandatory reductions, include 33% renewable, no future power generation from coal unless as clean as natural gas combined cycle, and enable charging for electric cars at night.
   
• Jim Boyd, CEC, provided background about origins of the current Alternative Fuel joint CEC & ARB plan to encourage fuel competition, reduce VMT using better urban planning, improve public transit & increase fuel efficiency, and utilize waste streams with advanced technology to produce biofuels (instead of using food crops). 9/11 attack focused CEC efforts to improve energy security through fuel diversity. Circumstances (fuel prices) have changed since the Alternative Energy plan was finished in 2007. Government money can help, but private commitments are urgently needed. AB 118 was authorized at $100M, but it was reopened for changes and it is not possible to predict the outcome. CaFCP Vision document is needed to demonstrate collective commitment to hydrogen fuel cell vehicles. 700 bar station is needed in Sacramento to demonstrate progress and continuing commitment. CEC invested $3M for PHEV research center in 2005, and can consider what is needed for hydrogen fuel cell vehicles. AB 118 competitive process will be administered through grants (not contracts), with criteria to be set by Advisory panel.
   
• Fred Joseck, USDOE EERE Hydrogen program, provided an update regarding the potential role of hydrogen in the US Energy mix. USDOE assumes that all ICE light duty vehicles will be hybrid electric by 2050, and assumes that gasoline hybrid vehicle market penetration is beginning with ramp up to 2015. Fuel cell vehicles will begin entering the market in 2015, ramping up to 2025. After 2040, transportation petroleum will primarily be used for diesel & jet fuel. DOE considers large hydroelectric as a renewable, but CEC does not. Scenarios don’t currently include diesel reduction for heavy-duty transportation or jet fuel because more work is needed on hydrogen storage.
   
• Attendees broke into three sections with mixed participation among energy, auto, and government members. Members generally agreed on the need to articulate a unified vision as CaFCP and as members of other organizations to help drive common policy initiatives.
   
• Catherine Dunwoody, CaFCP lead discussion of draft vision document, which is intended to be shared with policy leaders to inform them about hydrogen fuel cell vehicle commercialization plans. The Vision should be a living document. During Hydrogen tour in August, CaFCP will be talking to legislators about our shared vision, and need new to provide it to key stakeholders like the environmental community. This is a consensus document; not the plan of any individual members. In concept, all members agreed to vision as discussed, to be revisited as needed.
   
• Daimler is moving their main fuel cell vehicle service from West Sacramento to Palo Alto & Long Beach, but will keep vehicles in Sacramento. Daimler is on track to commercialize Class B fuel cell vehicles.
   
• The Decisions and Assignments from the February CaFCP Steering Team meeting were approved.
   
• Each member provided a short update on recent activities. Roy Wilson, AQMD, said that AQMD enjoyed demonstrating the Chevy Equinox fuel cell vehicle as part of GM’s Project Driveway, and invited everyone to attend the CAPCOA Green Technology conference September 14-16 in Long Beach.
   
• Catherine Dunwoody, CaFCP reviewed the CaFCP progress and budget for 2008. Good progress on 2008 goals except need funding for continued hydrogen fueling at CaFCP in West Sacramento (WSac) and funding for 700 bar WSac upgrade. CaFCP staff is interested in conducting monthly Public Day tours at AQMD and other southern California member facilities. The budget is on track or slightly under, although extra effort was needed to complete member use agreements at West Sacramento. CaFCP contracted with Sig Gronich, DOE (retired) to help with the Vision document.
   
• Catherine Dunwoody, CaFCP, reviewed the summary of CaFCP activities through May. Jennifer Hamilton has done more Emergency Responder training through May this year than in all of 2006. Catherine welcomed Jordan McRobie as the new CaFCP Southern California Regional Coordinator who is planning a CaFCP South station operators meeting in July and plans to invite soon-to-be-announced ARB co-funding hydrogen station awardees to participate.
   
• Chris White, CaFCP has completed review of Well to Wheels information and sent outreach material to print. CaFCP Communications team members are involved in planning the cross-country Hydrogen Tour in August. Event planned by DOT, DOE, NHA, CaFCP, BMW, and local organizations. They expect national media coverage & Discovery channel. The route aligns with individual congressional calendars. National messages will be “localized.” The big finish caravan with Sunline, VIPs driving last leg, all hydrogen fueled vehicles welcome to participate, static display & ride/drive possible, and fleet customer appreciation event planned in southern California. Through this event, there are 12 states talking about their hydrogen programs; this is a national hydrogen program being well executed by dedicated states. Both presidential candidates are invited as Senators. Event funded within 2008 CaFCP technology demonstration budget & fueling from DOE & energy providers.
   
• Fred Silver, Calstart, presented proposal to support introduction of hydrogen fueling stations in CA. CaFCP staff would work closely with Calstart in team effort. Some CaFCP members approached Calstart to undertake individual efforts, but this would likely involve duplication of effort and greater total cost. The USFCC Transportation Working group recently focused on the need to build CA hydrogen stations fast. Calstart could provide valuable help with additional fuel providers accessible to passenger vehicles that have a national presence. Members agreed to fund Calstart to identify fast and strategic fueling teams who have the potential to implement multiple hydrogen stations. Work is authorized through February 2009 using $60K of management reserve from 2008 budget and $20,000 from future 2009 budget. CaFCP shall not fund CalStart to help proponents obtain funding for hydrogen stations as this may be a conflict of interest for some members.
   
• Catherine Dunwoody, CaFCP, presented proposal reviewed by the Membership committee, and members agreed to invite Automotive Fuel Cell Corporation as a Steering Team member (sponsored by Daimler) and CA Department of Food & Agriculture as an Associate Member (sponsored by CARB). Members agreed to update membership protocols.
   
• Bill Elrick, CaFCP & Justin Ward, Toyota presented options for the continuing operation of the West Sacramento hydrogen fueling station (WSac) & options for upgrading to 700 bar. The WSac station is the busiest station in US, supports the most automakers, is the only one near Sacramento, and can serve a large area from one central station. Catherine Dunwoody, CaFCP led discussion to consider proposal to continue operating WSac. The operating expense for a new 700 bar station is expected to be approximately the same as currently for 350 bar. Several members can only commit to funding on an annual basis. Several automakers & ARB committed to West Sacramento office leases through 2012. Catherine needs to make commitment to HFS to continue fueling in 2009 by August. All members recognize the value of continuing hydrogen station operation in 2009 at CaFCP to support vehicles based there, using budget savings or drawing down reserve to continue operation of station if needed, and recruiting additional energy-like members. Energy company member representatives will determine their funding available for 2009, and may request to continue funding in 2009 same as for 2008, with balance made up through CaFCP budget or reserves.
   
• Members acknowledged proposals received in response to RFQ to upgrade WSac to provide 700 bar fueling, and agreed conceptually to using available reserves in order to solicit matching funds, but specific proposal will be considered when co-funding is identified.

The next CaFCP Steering Team meeting is scheduled for October 21-22 in Sacramento.

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

Attachments (ZIP, 10,196k)
CaFCP Quarterly Update, January 2008 – March 2008
CaFCP Quarterly Update, April 2008 – June 2008