BOARD MEETING DATE: July 9, 2010
AGENDA NO. 11

PROPOSAL:

Execute and Amend Contracts for Operation and Maintenance of Hydrogen Fueling Stations

SYNOPSIS:

At its March 5, 2010 meeting, the Board approved the release of an RFP to solicit proposals for the operation and maintenance of the hydrogen fueling station at the City of Burbank. This action is to recognize cofunding from the Department of Energy-National Renewable Energy Laboratory, CARB and CEC, and to execute a maintenance and operation contract with Hydrogen Frontier, Inc. in an amount not to exceed $1,060,000 from the Hydrogen Fueling Station Special Revenue Fund. This action is to also amend the contract with Hydrogenics for the continued maintenance of the AQMD hydrogen station while plans to upgrade the station are in progress, in an amount not to exceed $100,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, June 18, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

1. Establish the Hydrogen Fueling Station Special Revenue Fund;

2. Transfer up to $200,000 from the Clean Fuels Fund into the Hydrogen Fueling Station Special Revenue Fund;

3. Recognize upon receipt funds up to $360,000 from DOE – National Renewable Energy Laboratory, up to $300,000 from CARB and up to $200,000 from the CEC into the Hydrogen Fueling Station Special Revenue Fund;

4. Authorize the Chairman to execute a contract with Hydrogen Frontier, Inc for the maintenance and operation of the City of Burbank hydrogen fueling station in an amount not to exceed $1,060,000 from the Hydrogen Fueling Station Special Revenue Fund; and

5. Authorize the Chairman to amend a contract with Hydrogenics Corporation for maintenance and data management services for the hydrogen fueling station at the AQMD headquarters in an amount not to exceed $100,000 from the Clean Fuels Fund.
   

Barry R. Wallerstein, D.Env.
Executive Officer

Background

City of Burbank Hydrogen Fueling Station

At its March 2010 meeting, the Board approved the release of RFP #2010-19 to solicit proposals for the operation and maintenance of the hydrogen fueling station at the City of Burbank. Per the RFP, applicants were required to provide the following minimum services:

• Maintain safety monitoring

• Continued monthly maintenance

• Continue station operation on behalf of the City of Burbank

• Provide for emergency fueling during station outages

• Provide 24-hour auto-dialing “Help Phone” at the fueling dispenser area

• Train staff in the proper use of the fueling dispenser, card-lock system and vehicle fueling procedures

• Repair unsafe or inoperable equipment or parts of the fueling system as needed

• Provide detailed vehicle fueling reports (paper and electronic)

• Provide total station monthly summary reports (paper and electronic)

• Meet SB 1505 requirements (since State co-funding may be provided)

AQMD Hydrogen Fueling Station

At the May 2009 meeting, the Board authorized the Chairman to execute a sole source contract with Hydrogenics for the continued maintenance of the AQMD hydrogen fueling station. Staff is in the process of applying to the CEC for AB118 funds to upgrade the station which is approaching the end of its useful operational life. In the interim, and in order to maintain the AQMD hydrogen vehicle fleet, the current station requires continued maintenance.

Proposal

City of Burbank Hydrogen Fueling Station

Three proposals were received in response to the RFP and reviewed according to the AQMD’s Procurement Policy and Procedure. The technical review panel consisted of individuals with strong expertise in hydrogen fueling infrastructure. The panel was comprised of four males and one female, four Caucasians and one Asian. The evaluation panel was comprised of:

• DOE - Technology Development Manager

• CARB - Manager, Zero Emission Vehicles

• NREL - Senior Project Leader

• City of Burbank - Assistant Public Works Director

• AQMD - Planning and Rules Manager

For procurement of Research and Development (R & D) projects or projects requiring technical or scientific expertise or special projects requiring unique knowledge and abilities, technical factors including past experience are weighted at 70 points and cost is weighted at 30 points. A proposal must receive at least 56 out of 70 points in order to be deemed qualified for award. The lowest cost proposal is awarded the maximum cost points available and all other cost proposals receive points on a prorated basis. A maximum of 15 additional points above the requisite 100 points were available for disabled veteran, small or local businesses.

Table 1 shows the average scores for three proposals. One proposal received less than 56 out of 70 technical points and did not qualify. Of the two proposals qualified for funding, the highest ranking proposal is being recommended for funding.

Table 1

*This proposal did not meet the minimum technical requirement so it was not further evaluated. 

AQMD Hydrogen Fueling Station

In order to continue maintenance and data management of the existing AQMD hydrogen station, an amendment of the contract is required with Hydrogenics Corporation. This contract extends beyond the original scope of the project and will ensure the station is maintained while plans are made for the station’s upgrade. Maintenance and management services for the proposed contract with Hydrogenics Corporation will include the following:

• Train staff in the proper use of the fueling dispenser, card-lock system and vehicle fueling procedures;

• Repair unsafe or inoperable equipment or parts of the fueling system as needed;

• Detailed vehicle fueling reports (paper and electronic); and

• Summary reports for station use.

Staff proposes to amend a contract with Hydrogenics Corporation to provide maintenance, management and un-interrupted service for the AQMD hydrogen fueling station for a period of up to sixteen months at a cost not to exceed $100,000 from the Clean Fuels Fund.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ has been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s website (http://www.aqmd.gov). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low- and zero-emission hydrogen fuel technologies within its Technology Advancement Office. Hydrogen refueling stations are necessary to facilitate the introduction and deployment of fuel cell vehicles, and this effort will help to implement the Zero Emission Vehicle (ZEV) and Zero Emission Bus (ZBus) regulations. The development of an extensive hydrogen fueling network in southern California will accelerate the deployment of these cleaner vehicles. The two proposed projects are also included in the Technology Advancement Office 2010 Plan Update under “Hydrogen Technologies and Infrastructure.”

Resource Impacts

The total cost for operations and maintenance of the City of Burbank hydrogen fueling station is $1,060,000 with AQMD cost not to exceed $200,000 from the Clean Fuels Fund. The total amount for this project will be funded by the Hydrogen Fueling Station Special Revenue Fund. The following is a list of the potential funding partners and the anticipated funding support:

Table 2

The total cost of the proposed contract with Hydrogenics, for maintenance and data management services for the hydrogen fueling station at AQMD headquarters will not exceed $100,000 from the Clean Fuels Fund.

The Clean Fuels Fund was 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, established 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. Sufficient funds are available from the fund.