BOARD MEETING DATE: December 3, 2010
AGENDA NO. 15

PROPOSAL:

Renew AQMD’s Membership in CaFCP for Calendar Year 2011, 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 2011 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 2011 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 19, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute a contract in the amount of $137,800 from the Clean Fuels Program Fund (31) with Bevilaqua-Knight Inc., acting on behalf of the Partnership, to:

   1. Continue AQMD’s membership for calendar year 2011 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 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) regulations, which was a technology-forcing mandate requiring up to 22,000 ZEVs by 2003, which was subsequently amended. On December 9, 2009, CARB adopted Resolution 09-66, directing staff to propose further amendments by the end of 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 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 2010 include:

• Automakers supported investment in hydrogen infrastructure in California by publicly committing to deploy fuel cell vehicles in order to implement the CaFCP Action Plan;

• Increased education and outreach efforts, building on web-based resources and coordinated outreach with NHA and USFCC in Washington D.C.; and

• Built relationships with other groups like electric car advocates and fuel retailers. Continued 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 fee of $87,800 per full member was included in the draft budget to support the activities planned for 2011 and beyond and is unchanged from 2010.

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 2011 is reduced, but will include at least one major technology demonstration event in the district in 2011 (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 2011 are to:

• Promote fuel cell vehicle use and hydrogen station development in California through further 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 2011 Draft Plan Update under “Hydrogen Technologies and Infrastructure” 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 2011 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);

• One fuel cell technology company (AFCC); and

• Seven government agencies (AQMD, CARB, California Energy Commission, U.S. Department of Energy, U.S. Department of Transportation, 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 for this proposed project 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, 4.8m)

California Fuel Cell Partnership Quarterly Steering Team Meeting Summary

California Fuel Cell Partnership Quarterly Update (Jul-Sep 2010)

CALIFORNIA FUEL CELL PARTNERSHIP 

Summary of Steering Team Meeting
October 20-21, 2010

CalEPA Building
1001 I Street, Sierra Hearing Room
Sacramento, CA 95812 

 SUMMARY OF AGENDA ITEMS 

• The Steering Team meeting was led by Andreas Truckenbrodt (AFCC). Matt Miyasato (AQMD) represented AQMD on Day 1, and Josie Gonzales (AQMD) served as Vice Chair on Day 2.

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

• Bill Elrick (CaFCP) provided a status report on the progress in meeting automaker needs for hydrogen stations leading to 2015, and the preparation for future funding opportunities for hydrogen fueling. He also reported on next steps in developing a hydrogen business case and members approved the Working Group to develop a new project “Roadmap to Commercial H2 Station.”

• AQMD, DOE, EPA, and FTA provided government updates.

• Mark Ruth (National Renewable Energy Lab) presented additional detail about updating the DOE cost target for hydrogen. The 2005 Monte Carlo cost model was updated to use a gasoline-fueled hybrid electric vehicle as baseline instead of gasoline engine alone. Updated gasoline cost projections which results in hydrogen being competitive between $2-$4/gallon (instead of $2-3/gal) without tax. Some inputs may still need updating, such as station cost for smaller hydrogen stations. These updated costs will guide DOE research and planning. The PSAT model assumes fuel cell vehicles get 59 mpg and hybrid electric vehicles get 42 mpg.

• CaFCP members provided updates about their recent and planned activities. Matt Miyasato said AQMD has applied to CEC for co-funding hydrogen stations in our region and is looking forward to working with CEC.

• Andreas Truckenbrodt described five scenarios to plan for post 2012 CaFCP. During discussion, a clear preference did not emerge, so all scenarios will be further developed for discussion by the Planning Team and the Working Group, with presentation and discussion at the February Steering Team.

• Catherine Dunwoody provided an update on work with the California Hydrogen Business Council (CHBC). Catherine accepted membership on the CHBC Board and has assisted with operational management. Chris White has started working with businesses to reinvigorate CHBC over the next six months, planning the December 1^st meeting at AQMD, providing website support and maintenance, online registration for meetings, and continues to explore synergies with CaFCP. CHBC is paying for CaFCP-BKI resources. One priority is to hold future CHBC meetings at facilities that use hydrogen.

• Jennifer Hamilton (CaFCP) provided an update about the West Sacramento station which was commissioned in 2000. Maintenance and repair in 2010 was reviewed, and a hose “breakaway” incident is being evaluated in order to determine whether feedback to standards development organizations is needed.

• Tom Turrentine (UC Davis) presented an overview of the Plug-In Electric Vehicle Collaborative strategic goals which will result in development of a ten-year Strategic Plan with a draft available by the end of 2010. The PEV Collaborative and CaFCP could coordinate to hold joint ride & drives, partner on communications, and sponsor joint data collection.

• Jaime Levin (AC Transit) updated the status of fuel cell bus projects. Three first generation buses accumulated 267,000 miles with over 700,000 passengers and provided 60% better fuel economy than baseline. The 12 new buses use lighter EnerDel li-ion batteries and share service and training among five transit agencies. Fuel cells are achieving diesel comparable availability (85%) but about half the life of diesel engine. Transit agencies are planning to expand hydrogen fueling from 150 kg/day to 420 kg/day including fast fuel demonstration (12 bus/hr, 65 kg/day) and will also be able to fuel passenger cars from Toyota, Daimler, and Hyundai. LAMTA showed interest in borrowing a fuel cell bus for demonstration.

• Bill Elrick (CaFCP) reviewed membership status. UTC Fuel Cells sent a letter ending full membership and requesting associate member status. The CaFCP accepted with regret their withdrawal, and according to established protocol, could invite UTC to rejoin as an associate member after one year. After reviewing potential new associate members, CaFCP members agreed to invite Sandia National Lab (sponsored by Chrysler), Ballard (sponsored by AFCC), and BAE systems (sponsored by CARB). CaFCP will invite GTI to make a presentation at the February Steering Team meeting to learn more about their potential contributions if CaFCP invited them to be an associate member. Air Liquide is another potential associate member to be further considered by the CaFCP membership committee.

• Catherine Dunwoody reviewed the proposed 2011 budget and program goals. The objective is to continue the same three high level goals and overall staffing, but adjust specific details. Josie Gonzales offered to provide contact information about the San Bernardino Airport fire training academy, and Jennifer Hamilton agreed to forward the information to NREL for a possible future ER training session. CaFCP is planning a large event in Washington DC with NHA to complement numerous but smaller events in California. After discussion, the 2011 budget and program was approved, including funding for operation of the West Sacramento station in 2011. Bill Elrick will prepare a plan by January 2011 for the Planning Team to consider to transition to a proposed new Sacramento area hydrogen station and prepare the existing West Sacramento station for decommissioning. New CaFCP staff member Stephanie White was introduced and she will be based at AQMD and focus on community outreach in Southern California, especially to assist hydrogen station openings.

• Ed Heydorn (APCI) provided an update about hydrogen station and equipment. APCI produces 5M kg/day hydrogen, and provides 250,000 fueling events/year, which is accelerating rapidly. Stations are still custom designs, but they are trying to standardize. Actual hydrogen demand is often less than design capacity, reliability expectations are increasing, compression is the highest maintenance component but critical to reliability, and demand on dispensing is increasing. APCI uses multiple hydrogen feedstocks to address differing market needs, and provides multiple modes of delivery. APCI developed a new compressionless (cryogenic) station to provide high flow rate at AC Transit. Shell Torrance pipeline station is expected to be operational soon, then Fountain Valley, and then Mebtahi Chevron delivery is breaking ground.

• Tim Olsen (CEC) reported that hydrogen infrastructure awards are not ready to be announced as yet.

• Steve Echart (Linde) provided an equipment and station overview. Their system can use flexible fueling inputs. Linde has standardized a fueling station in a container with dispenser separate. They have a station at AC Transit that dispenses 20 kg/hour at 350 bar and 5 kg/hr at 700 bar. Their SFO station will provide hydrogen for Hythane shuttle buses & passenger cars. Their Emoryville station uses an ionic compressor for 350 bar bus fueling, and dry compressor for 700 bar passenger car fueling. Oakland bus station uses ionic compressor for 350 bar fueling. Linde had 53 stations operational by 2009, mostly EU, some China & Australia. Bus and forklift fueling drives technology for fast fueling. A cryogenic pump for Berlin next year will provide 120 kg/hr @ 900 bar. Hydrogen fueling for forklifts (in multi-shift operation) doesn’t require subsidies.

• Andreas Truckenbrodt reviewed process to rotate next CaFCP Vice Chair to the automotive sector. Josie Gonzales nominated Justin Ward (Toyota) as Vice Chair and Lance Atkins (Nissan) seconded with unanimous member approval. As the current Vice Chair, Josie Gonzales will be the 2011 Chair and will work with CaFCP staff to develop and propose priorities based on the 2011 budget that was adopted.

• Andreas Truckenbrodt reviewed CaFCP 2010 results compared to program goals, and noted progress in multiple areas.

The next CaFCP Steering Team meeting is scheduled for February 8-9, 2011 in Sacramento.

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