BOARD MEETING DATE: December 4, 2009
AGENDA NO. 13

PROPOSAL:

Renew AQMD’s Membership in CaFCP for Calendar Year 2010, Provide Office Space for CaFCP, and Receive and File California Fuel Cell Partnership Steering Team Meeting Summary and Quarterly Update

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 2010 and cofund 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 2010 in an effort to educate the public and increase CaFCP’s presence in Southern California. Finally, this action is to receive and file the CaFCP Steering Team Meeting Summary and Quarterly Update.

COMMITTEE:

Technology, November 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

1. 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 2010 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.

2. Receive and file the attached Steering Team Meeting Summary and Quarterly Update.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The California Fuel Cell Partnership (CaFCP) was initiated in 1999 as a means to accelerate response to the CARB Zero Emission Vehicle (ZEV) regulation, a technology-forcing mandate requiring up to 22,000 ZEVs by 2003, which was subsequently amended. The ZEV regulation is scheduled for a status review at the ARB meeting on December 10, with possible amendment by December 2010. 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. The CaFCP was involved in the demonstration of cars and buses using gaseous and liquid hydrogen and methanol through 2003. A limited number of fleet customer placements began in 2002. In addition, the bus transit partners operated several zero-emission fuel cell buses. CaFCP with member support is currently demonstrating fuel cell cars and buses using gaseous hydrogen fuel at 350 bar and 700 bar pressures.

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. A CaFCP Regional Coordinator and a Communications Specialist are located at the AQMD headquarters to increase support for member activities and outreach in the district.

Major accomplishments during calendar year 2009 include:

• The demonstration of additional models of optimized fuel cell cars and buses in California, and a station operational status system (SOSS) to help drivers access current information for hydrogen fueling stations;

• Provided training for emergency responders to help familiarize communities with fuel cell vehicles and fueling supported by a website focused on their needs;

• Initiated local Action Plan outreach activities with members, including development of local Community Hydrogen Action Plan white paper with UC Irvine; and

• Increased the presence of the CaFCP in Southern California through outreach and support of community events with Regional Coordinator & Communications staff based at AQMD.

Proposal

Members of the CaFCP are committed to the continuation of CaFCP activities through 2012. The member fee of $87,800 was agreed to be necessary by a consensus of the members to support the activities planned for 2010 and beyond and is unchanged from 2009.

Annual road rallies across California were a focus of the CaFCP during the early years, expanding interstate and to Canada in 2009, but required a substantial budget and labor. Communication needs have changed, and the communications budget for 2010 is reduced, but will include at least one major technology demonstration event in the district in 2010 (in addition to smaller events and conferences) and will draw on increased use of new social marketing communication tools to activate grass roots public engagement. The majority of fuel cell passenger vehicle activities are anticipated to be within the district over the next few years.

The proposed CaFCP activities for 2010 are to:

• Promote fuel cell vehicle use and hydrogen station development in California through implementation of the CaFCP Action Plan;

• Facilitate member collaboration; and

• Conduct outreach and build relationships with key stakeholder groups.

Benefits to AQMD

Membership in the CaFCP is consistent with the Technology Advancement Office Clean Fuels 2010 Draft Plan Update under “Hydrogen and Mobile Fuel Cell Technologies” 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 2010 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 $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 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/or 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 (PDF, 192k)

California Fuel Cell Partnership Quarterly Steering Team Meeting Summary
California Fuel Cell Partnership Quarterly Update (Jul-Sep 2009)

CALIFORNIA FUEL CELL PARTNERSHIP 

Summary of Steering Team Meeting
October 20-21, 2009

CARB-Monitoring Lab Division
1927 13th Street
Sacramento, CA 95811 

SUMMARY OF AGENDA ITEMS 

• The Steering Team meeting was chaired by Reg Modlin, Chrysler. Al Weverstad retired from GM; Bob Babik will be their new Steering Team representative. Supervisor Roy Wilson, SCAQMD, died unexpectedly; Supervisor Josie Gonzales will be the new Steering Team representative for AQMD.

• Sunita Satyapal, USDOE, presented an update via teleconference about DOE’s reorganized Fuel Cell Technologies program. The $244M EERE Hydrogen and Fuel Cell budget for 2009 included federal stimulus funding. $174M in 2010 will honor commitments through 2011. Fuel cell cost has been reduced 75% since 2002, which is on track to meet DOE goals by 2015. DOE Market Transformation activities will include the transportation program. Aside from existing projects under the Technology Validation program, there is no transportation fuel cell or hydrogen funding allocated for 2010, although there may be support for hydrogen stations if synergy can be shown with material handling equipment and back-up power activities.

• Andreas Truckenbrodt, AFCC, presented information about the National Innovation Programme which provides 720M Euros through 2016 as 50/50 cost share for 1.4B Euro program for hydrogen and fuel cells. 54% is allocated for transportation, 35% for stationary, and 10% for special applications. In the Hydrogen Mobility project, there are five energy partners and seven vehicle providers, plus bus fleets. BMW is providing hydrogen internal combustion engine vehicles, but the rest are providing fuel cell vehicles. A Letter of Understanding from 2015 onwards with goal of 100,000 hydrogen fueled vehicles worldwide was a prerequisite to a Memorandum of Understanding to build 1000 stations in Germany by 2017. Linde station in Stuttgart provides 3 minute refueling and reduced construction costs. NOW in Germany manages the National Innovation Programme and also eMobility which has 9 clusters of public charging for battery electric vehicles in urban regions of Germany, but is not planning a national network.

• Takehito Yokoo, Toyota presented update on Japan Hydrogen Fuel Cell (JHFC) program; phase 1 from 2002 -2005 and phase 2 from 2006 – 2010 included 8 vehicle manufacturers and deployed 60 vehicles through 2007. The program also includes hydrogen internal combustion vehicles, fuel cell bicycles, wheel chairs, and scooters. 12 hydrogen stations are operating currently including four stations at 70 MPa. JHFC plans twice the number of hydrogen stations necessary by 2016, ahead of vehicle production. In Japan, battery electric vehicles are for urban applications; fuel cell vehicles are equivalent to internal combustion engine vehicles. Japan plans for 1000 hydrogen stations by 2015, but station cost must be reduced. Greenhouse gas reduction is primary driver for hydrogen activities in Japan. Hydrogen from nuclear is part of the plan but is not a primary source for hydrogen.

• Tae-Won Lim, Hyundai-Kia, presented an update about hydrogen and fuel cell programs in Korea. Vision for 2030 started in 2007 includes 10 hydrogen stations and 200 vehicles, primarily research with monitoring through 2012. Deployment goals are set for 2020 and 2030. Green car program includes fuel cell, battery electric, plug-in hybrid electric, hybrid electric, and diesel vehicles, with a budget of $7M/yr with 50/50 cost share plus research and development for 11 types of renewable energy. The 2009 budget for hydrogen and fuel cells is $75M, reduced from $120M in 2008, with 42% allocated to transportation. So far, data has been collected on 30 vehicles and 3 buses. The Transportation Validation program plans to have 15 stations operating by 2011 from Seoul to Busan about 300 miles to support 100 vehicles. From 2012 – 2014 they plan to produce 1000 fuel cell vehicles per year, then plan for commercialization starting in 2015 with 10,000 vehicles per year.

• Bill Elrick, CaFCP, presented an update about the CaFCP Action Plan. CaFCP staff has served on ASTM committees that plan to send seven hydrogen standards to ballot this year, and is actively supporting development of SAE standard J2601. CaFCP staff is also collaborating with Calstart’s ZTug program on fuel cell bus activities. Three stations in CA provide automated or daily updated operating status information on the internet through the new station operating status system (SOSS), and staff plans to add a mobile application too. CaFCP staff developed a white paper with UCI documenting unique local community engagement processes. The blind survey of automakers will be similar to last year requesting annual vehicle deployment numbers for 2010, 2011, and 2012 due by Nov 20, plus numbers for 2013-14, and 2015 – 2018. Using the previous survey results, staff predicts there will be more fuel cell vehicles operating in California by 2011 than can be supported by the planned hydrogen stations.

• John Mough, CA Department of Measurement Standards, presented an update on fuel quality and fuel measurement to commercialize hydrogen as a transportation fuel. No hydrogen measuring device is currently approved in CA (CTEP) or nationally (NTEP), which will take at least six months by using general code and mass flow code since there is no specific hydrogen code. There are no advertising codes for hydrogen to specify sale by units like kg or unit of payment like whole cents. Last week at a station operator’s meeting in Anaheim, Sunline and a few other station operators expressed interest in getting their device approved to sell hydrogen and with a conditional use permit they could then sell hydrogen until CA codes are adopted in approximately 2011. Dispenser manufacturers are expected to pay for certification of a dispenser model which could be deployed at multiple stations. It will fall to states to enforce accuracy, probably +2% in CA for hydrogen, but it may differ in each state.

• Mike Smith, CEC provided an update on funding for AB 118. $118M was appropriated for two years with $40M allocated for H2. The allocation was removed by the CA legislature and then restored by the Governor. CEC tried to attract maximum federal stimulus ARRA co-funding. $35M co-funding from CEC successfully secured $85M from ARRA, but none for H2 in CA. There is CEC funding left for several solicitations opening soon; one for fueling infrastructure including hydrogen. Funding may be up to $20M for hydrogen with 50/50 cost share, with $40M as a ceiling for multiple years. Station costs must be reduced, focused on CaFCP Action Plan areas in southern CA, timed as vehicles are deployed. Non-monetary strategies like ARB Clean Fuels outlet and SB 1505 regulation or LCFS credits are very important to include.

• Bill Elrick, CaFCP presented plans for hydrogen fueling in Sacramento. Goals include providing hydrogen for fcvs, supporting testing at CDFA, and providing convenient outreach to legislators. A public station in Sacramento could achieve these goals; it doesn’t have to be the current WSac station behind the fence. The $700k previously approved to co-fund the application for federal stimulus funding to upgrade the WSac station was reallocated to cofund a commercial public station in Sacramento. Next steps are to secure additional funding, support station technology review, provide proposal to CaFCP Steering Team, and submit proposal for public co-funding. Matt Miyasato, AQMD, asked whether CEC and ARB may have a conflict agreeing to co-fund, since their agencies will be reviewing proposals for funding. CaFCP staff clarified that neither CaFCP nor HFS (current West Sacramento station owner) would be the entity applying for State of CA funding.

• The Decisions and Assignments from the June CaFCP Steering Team meeting were reviewed and approved.

• Catherine Dunwoody, CaFCP provided an update from the membership committee. NREL can’t sign the indemnification agreement, but will agree to confidentiality. Membership committee will consider NREL without indemnification. The Steering Team agreed to delegate this decision to the membership’s committee and accept their recommendation on this issue.

• Members provided quick updates about recent and planned activities. Lisa Mirisola, AQMD, described AQMD efforts to apply for federal co-funding for hydrogen infrastructure, and plans to submit for CEC AB 118 funding for hydrogen stations. AQMD is evaluating proposals to upgrade the AQMD hydrogen station to increase capacity and offer dual pressure.

• Catherine reviewed CaFCP accomplishments in 2009, and provided a hardcopy handout.

• Kristen Beard-King, Political Solutions, presented a proposal for legislative outreach in 2010. It is one of three proposals considered by CaFCP staff. Politicalsolutions.us since 2003 is bipartisan and has 30 clients; 60% advocacy (lobbying) and 40% consulting. This is for a consulting only contract.

• Chris White, CaFCP, presented plans to increase use of social media like Facebook and Twitter, which CaFCP started using in 2009 to improve positive awareness of hydrogen and fuel cells. CaFCP is coordinating efforts with NHA and others to increase web traffic and direct positive actions to the H2 and You website.

• Catherine proposed budget for 2010 with 3 goals: to facilitate member collaboration, implement the Action Plan, and conduct outreach and build relationships without increase in staff or salary. Reduction in income is offset by reduction in expenses mostly in the communications budget.

• After discussion, the consensus of the members was to modify the rotation of Vice Chair for one year. As one of the Technology Members, Andreas Truckenbrodt, AFCC was approved as Vice Chair for 2010, with the Vice Chair for 2011 to be chosen from among the Government members.

The next CaFCP Steering Team meeting is scheduled for February 23-24 in Sacramento.

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