BOARD MEETING DATE: March 5, 2010
AGENDA NO. 9

PROPOSAL:

Execute Contract to Cosponsor Demonstration of Advanced Fuel Cell Bus

SYNOPSIS:

On September 7, 2007, the Board approved an action to execute a contract with Sunline Transit Agency (Sunline) to demonstrate an advanced fuel cell transit bus. Sunline has been unable to come to an agreement with the original bus integrator. Sunline has contracted with a new bus integrator BAE Systems, bus manufacturer ElDorado National and fuel cell supplier Ballard Power Systems, Inc. Although the total project costs have increased, Federal Transit Administration will cover these costs, leaving the requested AQMD support unchanged. This action is to execute a contract with Sunline in an amount not to exceed $400,000 from the Clean Fuels Fund (31).

COMMITTEE:

Technology, February 19, 2010, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Sunline Transit Agency (Sunline) to demonstrate an advanced fuel cell transit bus in an amount not to exceed $400,000 from the Clean Fuels Fund (31).
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has long sponsored the development and deployment of fuel cell bus technologies because these heavy-duty vehicles have zero-tailpipe emissions, help establish hydrogen refueling infrastructure, and provide the greatest outreach potential through ridership. In line with this history, AQMD staff supports the Sunline proposal to the Federal Transit Administration (FTA) to develop the next generation fuel cell bus. In October 2006, Sunline and its original partners UTC Power, ISE Corporation, and New Flyer were selected for one of three FTA awards to develop and demonstrate fuel cell buses. Sunline has requested changes to the original proposal which was approved by the Board on September 7, 2007 for an amount not to exceed $400,000.

The current proposed project will achieve the original stated goals except with different partners. Sunline sought new partners as the original team failed to execute recommitment letters after the previous commitments had expired. Sunline changed project team partners for the bus to ElDorado National, the electronic drive system to BAE Systems and the fuel cell to Ballard Power Systems.

Proposal

The revised project will meet or exceed the goals of the original project. The proposed 150 kW Ballard fuel cell is more powerful than the previous 120 kW fuel cell. The new fuel cell will have a 5-year, 12,000-hour warranty and will be built in the United States. The lithium-ion battery system has improved lifecycle performance and BAE’s hybrid drive system is proven technology which has been used in transit buses for over a decade. Sunline will incorporate these technologies into a bus manufactured by ElDorado, a California based company. The FTA has committed to increasing its funding for the revised project and the newly assembled team. The bus will be demonstrated in revenue service for approximately one year at Sunline, especially during the hottest summer months to evaluate performance at elevated temperatures. The entire project is scheduled to span close to three years, concluding in 2013.

Benefits to the AQMD

This project furthers the development of fuel cell technology for transit applications with the goal of accelerating the deployment of a commercial product. If successful, this project will demonstrate a lower cost, reduced weight, and more attractive bus with a longer-lived fuel cell stack to enable an economically competitive, zero-tailpipe emission bus. This project also helps implement CARB’s Zero Emission Bus regulation, which requires urban bus fleets to transition to cleaner technologies over time.

This project is included in the Technology Advancement Office Draft 2010 Plan Update under “Hydrogen Technologies and Infrastructure.”

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. This request for a

sole source award is made under provision B.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: B.2.d.(1) Project involving cost sharing by multiple sponsors.

This project is cosponsored by other entities where AQMD’s contribution will be highly leveraged. The details of the cost-share are provided in the following section and include funding by the FTA (administered by CALSTART), CARB, BAE, ElDorado and Sunline.

Resource Impacts

The total cost for this project is approximately $10.2 million, with the requested AQMD cofunding not to exceed $400,000, or 4% of the total project costs. The following table summarizes the funding sources and amounts for this project:

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Cleans 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.