BOARD MEETING DATE: March 5, 2010
AGENDA NO. 5

PROPOSAL:

Issue RFP for Operation and Maintenance of Hydrogen Station at City of Burbank

SYNOPSIS:

The U.S. Department of Energy (DOE) contracted British Petroleum to install a hydrogen station at the City of Burbank. This project has ended and the title to the station was transferred to the City of Burbank. However, the City of Burbank does not have the funds to continue the operation and maintenance of this facility. This action is to issue an RFP soliciting bids for a qualified third party to operate and maintain the City of Burbank hydrogen fueling station. The exact cost, scope and manner of the services will be determined as part of the competitive bidding process.

COMMITTEE:

Technology, February 19, 2010, Recommended for Approval

RECOMMENDED ACTION:

Issue RFP #P2010-19 for the operation and maintenance of the City of Burbank hydrogen fueling station.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Hydrogen fuel cell vehicles have zero-tailpipe emissions and are a cornerstone to the California Zero Emission Vehicle (ZEV) regulation. The Board has supported the development of a hydrogen fueling network to support the introduction of a variety of hydrogen fueled vehicles throughout the South Coast Air Basin and recognizes the need for additional hydrogen fueling infrastructure for growing fleets. The primary goal is to initiate this network of hydrogen fueling stations to meet the projected fuel cell vehicle introductions by 2012 and beyond. The secondary goal is to demonstrate the most viable infrastructure technologies and designs to be adopted for future large-scale hydrogen infrastructure implementation.

The City of Burbank (City) was one of the participants in the “Five Cities Program,” which established hydrogen fueling and a small demonstration fleet of five hydrogen Prius vehicles at each city. Under the Federal Hydrogen to the Highways Program, the DOE and British Petroleum (BP) approached the City to install a larger capacity steam methane reformer (SMR) hydrogen station in place of the AQMD electrolyzer. The City was selected due to the projected demand in the region and the ease of installation and permitting due to the existing station. All parties agreed that the best course of action was to remove the electrolyzer equipment and have AQMD deploy it elsewhere.

The contract between DOE and BP has terminated, and the title to the station and all equipment was transferred to the City. Unfortunately, the City does not have sufficient funds or expertise to provide for utilities, operation and maintenance of the facility. The City has asked for funding assistance from the AQMD, CARB, DOE and the CEC. The need to provide fueling at that site is imperative to support the existing hydrogen Prius fleet and the CARB-sponsored hybrid electric fuel cell bus, which was delivered in January 2010, as well as other fuel cell vehicles operating in the area.

Proposal

Staff requests the Board to authorize the issuance of a Request for Proposal to solicit bids from uniquely qualified contractors to provide continued maintenance and operation services for the hydrogen fueling facility at the City. While the exact cost, scope and manner of the services are not known at this time, these will be determined as part of the competitive bidding process.

Applicants will have to include the ability 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

Applicants must demonstrate a plan to comply with the renewable energy requirements of SB 1505 since state funding is anticipated for this project. One strategy is for applicants to purchase biogas from a landfill or anaerobic digester, purify the gas to pipeline specifications and then inject this renewable gas into the pipeline. Applicants will need to show a physical pathway for delivery of the biogas from the source to the hydrogen station through appropriate documentation. In addition, applicants will need proper documentation and certification verifying the renewable attributes of the biogas and that these renewable attributes are being used solely by the applicant on an energy equivalent basis for the hydrogen provided for vehicle fueling. Applicants are welcome to include other strategies to comply with SB 1505.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be 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 be notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ will be 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 where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Proposals will be reviewed and evaluated by a diverse, technically qualified panel in accordance with criteria contained in the attached RFP.

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. The AQMD has also supported a number of activities directed to the commercialization of low-emission hydrogen fuel technologies. Hydrogen fueling stations are necessary to facilitate the introduction of fuel cell vehicles. The operation of the City’s existing station must be ensured to meet the anticipated demand of fuel cell vehicles projected for 2012 and beyond. This project is included in the Technology Advancement Office 2010 Draft Plan Update under “Develop and Demonstrate Distributed Hydrogen Production and Fueling Stations.”

Schedule of Events

The anticipated schedule of events for the RFP is as follows: 

Resource Impacts

Following is a list of the potential funding partners supporting the hydrogen fueling station at the City of Burbank:

*The potential funding from CEC and CARB is predicated on applicants meeting the renewable requirements of SB 1505

The total cost for continued operation and maintenance for the hydrogen fueling station at the City under RFP #P2010-19 is unknown at this time. This RFP seeks to solicit bids from qualified parties to provide these services. The exact cost, scope and manner of the services will be determined as part of the competitive bidding process and will be subject to subsequent budget approval by the Board. It is anticipated, however, that if the total potential funding identified above is realized, the station could be operated for a minimum of four years.

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. Total cost for the proposed project is $1,000,000 and the proposed amount to be funded from the Clean Fuels Fund is $200,000. Sufficient funds are available from the Clean Fuels Fund.

Attachment (DOC, 993k)

RFP #P2010-19 - Operation and Maintenance of the City of Burbank Hydrogen Station