BOARD MEETING DATE: April 3, 2009
AGENDA NO. 28

PROPOSAL:

California Fuel Cell Partnership Steering Team Report and Quarterly Activity Report, Renew AQMD’s Membership in CaFCP for Calendar Year 2009 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 report summarizes the CaFCP Steering Team meeting held February 17-18, 2009 and provides an activity report for the period beginning October 2008. This action is also to renew AQMD’s membership in the CaFCP in an amount not to exceed $87,800 for calendar year 2009 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 CaFCP employees in 2009 to increase hydrogen and fuel cell outreach and education activities in Southern California.

COMMITTEE:

Technology, March 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

1. Receive and file the attached Steering Team meeting and quarterly activity reports.
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 2009 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 in-kind 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. 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. A CaFCP member fee of $87,800 was agreed upon by a consensus of the members to be necessary to support the activities planned for 2009 and beyond, and is unchanged from 2008.
 

The CaFCP activities for 2009 are:

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

Major accomplishments during calendar year 2008 include:

• Developed a consensus Vision for Hydrogen Station and Fuel Cell vehicles in California and drafted an Action Plan to encourage support for the increasing number of fuel cell cars and hydrogen stations planned in California;
• Enhanced effort with CA Department of Measurement Standards and standards development organizations regarding development of hydrogen codes and measurement standards;
• Increased the presence of the CaFCP in Southern California through outreach and support of community events with Regional Coordinator & Communications staff based at AQMD. The Hydrogen Road Tour across the U.S. stopped at Sunline Transit in Thousand Palms and the California Science Center in Exposition Park in Los Angeles on August 23 (see http://hydrogenroadtour08.dot.gov/).
   

Proposal

Communication needs have changed over the years, and the 2009 West Coast Hydrogen Road Tour will be a significant outreach effort this year. In order to support the ongoing CaFCP activities, fuel cell vehicle deployments and hydrogen station development in 2009 and beyond, the members agreed to maintain the annual membership fee the same as in 2008. The majority of passenger vehicle activities are anticipated to be within the district over the next few years. The Southern California Regional Coordinator and a Communications Specialist are located at the AQMD headquarters to support and coordinate with AQMD staff for these ongoing efforts.
 

Benefits to AQMD

Membership in the CaFCP is consistent with the Technology Advancement Office Clean Fuels 2009 Plan Update under “Develop and Demonstrate Fuel Cells in Vehicle Applications” 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 2009 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 in-kind cost-share for the office space and utilities at the AQMD headquarters representing annual foregone rent of approximately $10,440 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 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 $87,800 or more plus in-kind support for defraying the costs of the CaFCP including:

• Eight auto manufacturers (General Motors, Toyota, Daimler, Chrysler, Honda, Hyundai, Nissan, and Volkswagen);
• Two energy companies (Shell Hydrogen, and Chevron);
• Two fuel cell technology companies (AFCC, 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).

Associate members each pay $15,000 and 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 (EXE, 738k)

Attachment 1 - Summary of CaFCP Steering Team Meeting, February 17-18, 2009

Attachment 2 - CaFCP Quarterly Activity Report, October 2008 – December 2008