BOARD MEETING DATE: September 10, 1999 AGENDA NO. 6


PROPOSAL:

Execute Contract to Co-Sponsor Development and Demonstration of 250 kW Hybrid Fuel Cell-MicroTurbine Power Plant

SYNOPSIS:

On April 9, 1999, the Board approved the execution of a contract with Edison Technology Solutions (ETS), for the development and demonstration of a 250 kW hybrid fuel cell-micro turbine power plant in an amount not to exceed $200,000. Subsequently, ETS, an unregulated subsidiary of Edison International (EI), has announced it is ceasing operations and has assigned this project to EI's regulated subsidiary, Southern California Edison Corporation. Total cost of this project remains at $16.2 million with AQMD cost-share not to exceed $200,000.

COMMITTEE:

Technology, August 27, 1999. Less than a quorum was present; those Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Southern California Edison Corporation for the development and demonstration of a 250 kW hybrid fuel cell-micro turbine power plant in an amount not to exceed $200,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

On April 9, 1999, the Governing Board approved the execution of a contract with Edison Technology Solutions (ETS), for the development and demonstration of a 250 kW hybrid fuel cell-micro turbine power plant in an amount not to exceed $200,000. This project proposes the factory testing and evaluation of a 200 kW pressurized fuel cell in conjunction with a 50 kW micro turbine. The testing will be conducted initially at Siemens Westinghouse facility and later at UC Irvine. Performance, emission measurement and durability are among the features to be evaluated in this testing.

Subsequent to Board action on April 9, 1999, ETS, the unregulated subsidiary of Edison International (EI), announced that it is ceasing operations, thus preventing full execution of a contract prior to the end of FY 1998-1999. This project has been assigned to Edison International’s regulated subsidiary, Southern California Edison Corporation (SCE), with no proposed changes in project scope. SCE will administer this contract from now on. In light of these developments, staff recommends the Board approve execution of the contract with SCE.

Resource Impacts

The total amount of AQMD funding for the proposed project will not exceed $200,000. Total project costs of $16.2 million dollars are distributed as follows:

Organization

Direct Funding

ETS (at least)

$1,000,000

DOE

8,000,000

CEC

2,000,000

SCE

4,000,000

TBD

1,000,000

AQMD

200,000

Total

$16,200,000

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 stationary sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Emission fee surcharges under this Clean Fuels Program are imposed on the largest stationary source facilities within the AQMD and are restricted, by statute, to support related stationary source clean fuel technology developments.

Attachments

Board Letter #8 of April 9, 1999

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