AGTIONMEMO

ACTRANSIT DISTRICT GMMemo No. 05'161 Boardof Directors ExecutiveSummary MeetingDate: July20, 2005 Gommittees: PlanningCommittee D FinanceCommittee n ExternalAffairsCommittee E OperationsCommittee tr Boardof Directors tr FinancingGorporation tr

SUBJECT:ADOPT RESOLUTION NO. 05-028 $UPPORTING THE DISTRICT'S PROPOSALSFOR FUNDING FROM THE BAY AREA AIR QUALIW MANAGEMENT DISTRICT'$TRANSPORTATION FUND FOR CLEAN AIR PROGRAM

:

E Information Only tr Briefing ltem B RecommendedMotion APPROVERESOTUTION NO. 05.028 SUPPORTING THE DI$TRICT'S PROPO$ALS FORFUNDING FROM THE BAY AREA AIR QUALITYMANAGEMENT DISTRICT'S TRANSPORTATIONFUND FOR CLEAN AIR PROGRAM

BOARDAGTION: Approvedas Recommended t I Other t I Approvedwith Modification(e)t 4 DirectorPeeples outlined his concemswith the proposalconceming the bus purchaseand requestedbifurcation of the two issues.

MoT|oN:JAQUEz|BlScHoFBERGERadoptWandapprovethe recommendationto submitan applicationto purchaseand demonstratea HybridHydrogen IntemalCombustion Engine Transit Bus with TFCS funds (4-2-1-0). Ayes: DirectorsJaquez, Bischofberger, Hayashi, Kaplan - 4 Noes: DirectorPeeples, Vice PresidentHarper - 2 Abstain: FresidentWallace - 1 Absent None-0

MOTION: PEEPLES/HARPERto adopt Resolution No. 05-028 and approve the "Green-Powered' recommendationto submit an application for the demonstrationof a HydrogenElectrolyzer Fueling $tation with TFCA funds (7-0-0-0). Ayes: Director Peeples, Vice President Harper, Directors Jaquez, Hayashi, Bischofberger;Kaplan; President Wallace - 7 Noes. None-0 Abstain: None* 0 Absent: None- 0 Theabove orderwas passed on August17,2005.

RoseMartinez,District Secretary tsy* GM MemoNo. 05-161 $ubject:ADOPT RHSOLUTION NO. 05-028 $UPPORTING THE DISTRICT'S PROPO$ALSFOR FUNDING FROM THE BAY AREA AIR QUALITY MANAGEMENT DISTRICT'STRAN$PORTATION FUND FOR CLEAN AIR PROGRAM Date: July20, 2005 Page2 of 3

Fiscal lmpack $1,235,000in TFCA/Bay Area Air Quality ManagementDistrict (BAAQMD),FY 2005Funds.

@: In June 2005,the Districtsubmitted two proposalsfor $1,?35,000in fundingunder the Bay Area Air QualityManagement District's (BAAQMD) Transportation Fund for Clean Air (TFCA)program. These applications are for: r The purchaseand demonstrationof a Hybrid HydrogenIntemal Combustion Engine(HHICE) Transit Bus for $1,070,000in TFCA funds. The Districtwill demonstrateand test a Van Hool40' transitbus propelledby a hydrogenintemal combustionengine in a hybrid-electricvehicle (HEV) configuration (HHICE). A successfuldemonstration of this technologycould result in a commerciallyviable HHICE transit bus within a few years. The National RenewableEnergy Laboratorywill work closely with the District to monitor and evaluate the performanceof this vehicleover the next 18 monthsto two years. CalStarUFTA will provide $130,000 in matching funds, making the Total Project Cost $1,200,000. r The demonstrationof a .Green-Powered"Hydrogen Electrollzer Fueling Station for $165.000in TFCAfunds. In partnershipwith Avalence,LLC of Milford,CT., the Districtwould build an energy-efficient,solar-powered electrolyzer at the D-2 OperatingDivision in Emeryville,to demonstratethat this electrolyzerproduces hydrogenunder pressurevia photovoltaicsolar panels('green-powered"). This stationwould complementthe hydrogenfueling facility at the OaklandDivision, and the electrolyzerat the RichmondDivision, and wouldprovide fueling support for the District'sfleet of light-dutyvehicles. Avalencerecently applied for, and received,a $750,000grant from the U.S. Dept. of Energy (DOE) which will enablethem to design,build, and installthis "green-powered"electrolyzer for the Districtat the EmeryvilleDivision. These additionalfunds from D0E/Avalence makethe TotalProject Cost $915,000.

Prior Relevent Board ActionslPallgies: fn June 2004,the Districtapplied for, and re@ived,$1 millionin grantfunds from the BAAQMDfor the purchaseof 10 GasolineHybrid Drive Systems (engines) to replace old,diesel engines on 30' buses. GMMemo No. 05-161 Subject ADOPTRESOLUTION NO. 05-028 SUPPORTING THE DISTRICT'S PROPOSALSFOR FUNDING FROM THE BAY AREA AIR QUALIW MANAGEMENT DISTRICT'STRANSPORTATION FUND FOR CLEAN AIR PROGRAM Date: July20, 2005 Page3 of 3

Attaeltments: 1" ResolutionNo. 05{28 A Resolution$upporting the Distict'sProposals for Fundingfrom the BayArea Air QualityManagement District's Transportation Fund for CleanAir Program

Approved by: RickFernandez, General Manager DeborahMc0lain, Chief Financial Officer

Preparedby: LionelVera, $enior Grants Administrator JoanP. Martin,Manager, Capital Planning & GrantsAdministration

DatePrepared: June27,2005 GM h/lemo05-16'l Attachment'l

ALAMBDA-CONTRACOSTA TRANSIT DISTRICT

A RESOLUTION STIPPORTING THE DISTRICT'S PROPOSALS FOR FUNI}XNG Ff,tOFI THE BAY AREA AIR QU'ALITY MANAGEMENT DISTRICT'S TRAI\TSPORTATION FUND FOR CLEAN AIR PROGRAM

WHEREAS, the Bay Area Air Quality trvlan4gementDistrict (BAAQN{D) has madefunds availablevia the TrarrsportationFund For CtreanAir (TFCA) Frogramfor public ager,rciesto implementprojects to reduceair pollution from rnotor vehiclesin "Bay accordancewith the requirementsof StateLaw andBAAQMD's fuea 2000 Clean Air F[an]'andithe *2001 OzoneAttainment Plan".

WHEREA$, the Alameda-ContraCosta Transit District (the District) has submittedproposals for thesefunds to supportthe projectsdescribed in AttachmentA of this resolution.

WHEREAS, the District will provide matchingfunds from non-TFCA sources for eachof the submittedproposals which equalor exceed20% of the total projectcosts.

NOW THEREFORS, the Bsard of Directors of the Alarneda-ContraCosta TransitDistrict doesresolve as f,ollows:

Section l. The General Manager of the Alameda-Cor,rtraCosta Transit District, or his designatedrepresentative, is authorizedto file any necessarysupporting documentsunder this resolution and to executethe Fund Transfer Agreement{s)"and revisions,if any arerequired, to receivethe TF"CAfunds.

Section2" The Projectreceiving TFCA fundswill be availableto the general publicand will not benefita privateentity or individuals.

Section 3. Upon allocationof fundsby the tsAAQMD, the Distrjct will have the authority to expendthese funds forthe purpo$esfor which they havebeen authorized-

Section 4. Shouldthe Projectunder this grant applicationexceed BAAQMD fundsavailable, the District will use other funds to absorbthe cost insreaseto complete theFroject"

Section 5. The District will comply with the BAAQMD's requirementsfor timely expenditureof,funds, upon receipt of funding.

Section 6, This resolution shall becorne effective immediately upon its passageiby fourr affrrmative votes of the BoardofDirectors- GMMemo 05-161 Attachment1

PASSEDAI{D ADOPTEDThis 2005.

JoeWallace, President

Attest.

RoseManinez, District Secretary

tr, Rose hlantine4 Distriat Sec.retaryfor the Alameda-Contra Costa Transit District, do hereby certify that the foregoing Resolution was passedand adopted at a Regular Meeting of the Board of Directors held on 2004,by the following roll call vote:

AYES: DIRECTORS:

NOES: DIRECTORS:

ABSENT: DIRECTORS:

ABSTAIN: DtrRECTOR.S:

Roselvfartinez, District SecrEtary

Approvedas to Form:

Kenneth C. Scheidig GeneralCounsel ALAMEDA-CONTRACOSTA TRANSIT DISTRICT

RE$OLUTTONNO. 05-028

A RESOLUTION SUPPORTING THE DI$TRICT'S PROPOSALS FOR FUNDINGFROM THE BAY AREA AIR QUALITYMANAGEMENT DISTRICT'$ TRANSPORTATIONFUND FOR CLEAN AIR PROGRAM

VITHEREA$,the BayArea Air QualityManagement District (BAAQMD) has madefunds available via the TransportationFund For CleanAir (TFCA)Program for public agenciesto implementprojects to reduce air pollutionfrom motor vehiclesin accordancewith the requirementsof $tate Law and BMQMD's "Bay Area2000 Clean Air Plan"and the .2001Ozone Attainment Plan".

WHEREA$,the Alameda-ContraCosta Transit District (the District)has submittedproposals for these funds to support the projects described in AttachmentA of this resolution.

WHEREA$, the District will provide matchingfunds from non-TFCA sourcesfor each of the submittedproposals which equal or exceed21olo of the total projectcosts.

NOWTHEREFORE, the Boardof Directorsof the Alameda-ContraCosta TransitDistrict does re$olve as follows.

Section 1. The GeneralManager of the Alameda-ContraCosta Transit District,or his designatedrepresentative, is authorizedto file any nece$sary supportingdocuments under this resolutionand to executethe Fund Transfer Agreement(s),and revisions,if any are required,to receivethe TFCAfunds.

$ection 2. The Projectreceiving TFCA funds will be availableto the generalpublic and will not benefita privateentity or individuals.

$ection 3. Uponallocation of fundsby the BAAQMD,the Districtwill have the authorityto expendthese funds for the purpo$e$for whichthey have beenauthorized.

Section4. $hould the Project under this grant applicationexceed BAAQMD funds available,the Districtwill use other funds to absorlrthe cost increaseto completethe Project.

$ection 5. The Districtwill complywith the BAAQMD'srequirements for timelyexpenditure of funds,upon receipt of funding.

$ection 6, This resolutionshall becomeeffective immediately upon its pa$sageby four affirmativevotes of the Boardof Directors. PASSEDAND ADOPTED this 17hday of August,2005.

/s/ Joe L. Wallace Joe L. Wallace,President

Attest.

/s/ Rose Martinez RoseMartinez, District $ecretary

l, Rose Martinez,District Secretary for the Alameda-ContraCosta Transit District,do herebycertify that the foregoingResolution wa$ pa$s6dand adopted at a RegularMeeting of the Boardof Directorsheld on August17, 2005,by the foflowingroll callvote:

Ayes: Director Peeples, Vice President Harper, Directors Jaquez, Hayashi, Bischofberger;Kaplan; President Wallace - 7 Noes: None-0 Abstain: None- 0 Absent: None- 0

/s/ RoseMartinez RoseMartinez, District Secretary

Approvedas to Form:

/s/ KennethC. Scheidio KennethC. Scheidig,General Counsel AFPLICATIOJ{FOR. TRANSFORTAT'IOFiFTIND FOR CLEAI.{AIR' REGIOI'{AL FT]NI}S FY 2005106

Grant ProPosal

AC TRAI'{STT Denuonstnationof Hybn'idtrIydrogen Internal combustion Engine(HIflICE) Transit Bus

ALAMENA-CONTRA COST.A.TRAFISTT DISTRICT (AC TRAI{SIT)

,fune30, 2005 FUNDS APPLICATIONFORM FOR TRANSPORTATION FUND FOR CI-EAN AIR REGIONAL FY ?005106

INSTRUCTIONS supplementaryproject info'rmation Gompleteparts 1 through7 for all apptic_ations.Also completethe appropriate sheeils)for yourprojec[ type (seeParts I through15)'

SUBMITTAL Submittwo (2) hardcopies of thisapplication form to:

Juan Ortellado GrantPrograms Manager BAAOMD 939 EllisStreet San Francisco,CA 94109 p.m"Thursday, June 30,2005' A1 applicationsmust be fgceryed by the Air Districtno laterthan4:00 aboveaddress. Applications will Hand-delivereoappric*iorns snoura be deliveredto the TFCA,7th flooi, at the not be acceptedvia fax or e-mail'

FART1. SUMMARYINFORMATION Dateof APPlication:June 27, 2005 AgencyName: Alamecla-ContraGosta Transit District JobTitle: Grants Manager PrimaryContact Person: JoanMartin

jmartin@actransit'org Phone# (510)891-7253 Fax # (510)891-713s E-mail: MailinsAdrlress ofFrimary contact: l-r??JrtiEfr?ffit

SecondaryContact Person: LionelVera [email protected] Phone# (510)891-7282 Fa}# (510)891-713s E-rnail:

GeneralManager Name& Title of PersonAuthorized to sign FundingAgreement Rick Femandez,

MailingAddress (if differentfrom PrimaryContact above):

and zero+mission projectType (seep- 2 of the ApplicationGuidanoe): lrnplernentation of low-ernission vehicleproiects (HHlcE)Transit Eus projectTiile: Demonstrationof Hybrid HyctrogenInternatr Gombustion Engine

TotalProjed Gost:$'i,200'000

Amountof TFGARegionalFunding Requested: $1,070,000 PART2. PROJECl'DESCRIFTION:

A. Frovidea concisedescription (who, what, when, where, etc'): f propelled.by-ahydrogen int.emal. AC Transit(District) intends to demonstrateand test a 40'transit bus . - (HH!qE)-The Ford rriton v-10 6'8 combustionengine (ilci) i,t * hybrid-eleciricvehicle (HEV) configuraiion - generator, tum willworkin parallel literengine - fueledwith gaseoushydrogen will powir_a120kw which..in sevel'alhybrid electric wiih nickelsociium chloride batieries to frowerelectric drive motors. The bus will utitize of the HHIGEwill drivecomponents *o*ron to the Distri'ct'sfuel cell buses.The performance ch.ara.ciedstics an operatingrange in enableit to operateat ipeeos of 65 milesper hourand up-gradesin excessof 17o/o,with the Disrict'sservice area, excessof 200 miles,allbwing it to be testedon a varietyof transitroutes throughout bothfuel cell and diesel Extenslvedsta will be csllecfedand an+!y,aed, enabling a compaiisonof this busto pistrict's gasolinehy,bri_d buses. The District busesof the samevinhfe and model,as weltas the newfleet of Catrifomia,and is hasalreacly installeci a h-ydrogenfueling station at its operatingdivision in Richmond, oaklanddivision. The bus developinga secondand targer hydrogen fueling and maintenlncestation at its East otherthree wouto operateout of its oaktandrtivisidn, but couldalso operate fromthe.District's iririlarily Thebus would serve op*rrtingdiviiions, with fuelingsupport from the District'smobile hydrogen fueler- environrientatjusticeneighborhoods throughout the District'sservice area' HHICEtransit bus A successfuldemonstration of this technologycould readily result in a commerciallyviable avai[ableto withina few years,as FordMotor company-has already begun making their hydrogen engines developersal pricescomparable to heavy-dutydiesel engines' andevaluate the NationalRenewebie Energy !-aboratory !s worklngclosely vuith AC Transltto monitor The years- Department p"rfo*"n"* or its fuel ceil buJes and light duty vehiclesovei the next 18 monthsto two The withNREL staff of Energyhas committed funding ror rufrEl to'conductthis evaluation. Preliminary discussions activitiesto includeAC indicatea very=trong interest on-tneir p"rt to expandtheir data collection and research Transit'sproposed hydrogen ICE demonstnationbus' expandedhydrogen fueling AC Transitis atsoworking with severalprospective investors on thedevelopment o{ progresswith its fleetof fuel facilitiesto supportan antiaipatedgrowth in lts fleet of hydrogenvehicles. steady provideadditional ineentives cellbuses, as welt,i tnu intioctuutonoi a demonstrationhydrogen tGE bus, could the useof these forthese investoirto suppoii,in part,an expansionof Ac TranEit'sfieet in ordei-to maximize newfacilities.

B. Explain how this proiectwil! reduce emlssionsfrorn motorvehiclesl potellqlly eliminateharmful Hydrogenfuel celttechnology offers considerable promise to significantlyreduce _and AGThas recognized the emissions,while leading the"i""v towarda sustainableenergy and transfortation future' hydrogenas a sourceof fuel and-committeditself to the developmentof a.$20,million long-te'n valueof utilizing tBiserrori. il;i#t';-#;trrtil;;e;ffi;;;artnersnip withpubticasencies and private industry- Nohr4thsianciins manvf nYir=onmentaladvantaoes 0f vs.-- fuelCel/s"- ^t A^rl^t byL.. C.E.^ E Thomas,Tk^lff^^ FhD;alsoElhff. see bus).fheinitiil"!.*i_tl_1lll9.=-H1':flP??]:g"to -L -r - I tl ll^- L,,- ir nrrn^a*o-l {n b^ehe lesslocC ^|JHerrvr^Appendix D,H' lsE,s'vEv r-*p'ort'vt to scAailflD inout the HHIcE ICE than1/B the costofdemonstration fuel cell buses, whilethe emission benefiisfronr a hydrogen hybridare qo $incethere is no carbonin hydrogen,l:,:?1b^t:j':i}l' nearlyI lHill ly thetl.lE sameDal I lE as zero-emission4r fuel cell vehicles. producenoco2, voc;,;; co. rheFord hydrosen rriton enginei: d-:'g.Tgj_t:::,:ff-:.-.;.v*?: "(t*l*=1"?,'.:nt-' ;;;-',gtiU ,-riL"=io*."niv.*r*rinan a standardinlernal combustion engine, resulting in significantlv ;iffi* :- ---:..^-ri^-..'i+k a hvbridhrrhri il#'ti6i il#d:;ih"..tffi;ili;any after+reatmentdevices. using this engine in conjunction with.a hour,easily falling electricclrive system, Nox levelsare expectedto approach0.07 grams fier brake horsepower in 2007' withinthe g.z-gramregulatory standard established by CARBfor urbantransit vehicles beginning 'ro quiiefavtrably the Theernissions reduciion assoclated wiih this HHICEengine is significeni,comparing dieselengines- +gtnnp-r,rof Nox anJ o.rglunphr of pM emittedby pre-october2002 urban transit bus

Dona ? TFCARegional Fund Application Form FY 2005/06 Morethan 2.4 tons of NOx and 125 lbs.of PM reductionwill be realizedannually, resulting in a combined . emissionsreduetion of almost15 tons overthe five-to-sixyear llfe of the engine.Taking into account that over the 1Z-yearlife of the busit is anticipatedthat engine upgrades could amount to $400,000for a secondengine andnew energy storage devices, the resultingcost-effectiveness amounts io approximately$49,8'17 perton 1f (seeAppendix B: HHICEEmissions Formula). -

C. Nameany other participating agenciesand describetheir role in implementingthe project:

None

D. Descrihethe implementationarea forthe project (i.e.,specific neighborhood or conidor, city, county, ete.):

Thehybrid buses will be utilizedthroughout the AC Transitservice area, comprised of 13 citiesin the EaslBay andthe unincorporatedareas of westemAlameda and ContraCosta Counties. They will be assignedto feeder routesin the citiesof SanPablo, Richmond, El Cenito,Albany, Berkeley, Emeryville, Oakland, Piedmsnt, Alameda,San Leandro,as well as unincorporatedareas of westernAlameda and Contra Costa Counties.

PART3. IMPLEMENTATION$CHEDULE: Providea detailedimplementation schedule, including pfoject siart date, completion date, and key milestones. Yourimplementation schedule must complywith the TFCAproject-readiness policy; see Policy#11 in AppendixA o'fthe ApplicationGuidance.

Activitv or Mile-stone EstirnatedComoletion Date

AwardPurchase Contracts October2005 DeliverVan Hool Gllderto ISE July2006 DeliverFinished Bus to AC Transit* January2007 BeginService and Demonstration January2007 AssessPeformance and Prepare Report January2008

(*SeeAppendix C: ISH HHICE Development Plan)

FART4. EUDGET Providetotal project budget, broken out by majorcategories of costs:i.e., capitalcosts, operating expenses, personnel,etc. Capitalcosts and operaiingcosts must be sepereltelyidentified. Any indirectcosts or TFCAgrant administrativecosts must be specificallyidentified as a separateline item. $ee AppendixC in the TFGA ApplicationGuidance document for explanationof eligibleTFCA costs- (Budgetrnay be submittedon a separate sheet.)

Line ltem EstimatedCost Fundinq $ource

VanHool40'Hybrid Bus Glider $450,000 BAAOMD FordHydrogen Engine $ 25,000 BAAOMD HybridDrive Components $210,000 EAAOMD Vehiclelntegration $200,000 BAAQMD VehicleTesting and Support $165,000 BMQMD AC TransitProject Management $ 20,000 BAAOMD AC TransitProject tuianagement $130,000 CalStarUFT-A TFCARegional Fund Application Form FY 2005/06

PART5" FUNDING

Fundinq$ource Amount of Funds Status{Secured, Approval Pending, etc.) TFCARegional Funds reguested $t,070,000 TFCA Piogi"aml*'lanagei- Funds CalStart/FTA $130.000 Subiectto TFCAFundinq Approval

Total Funds $1.120.000

Listeach funding source above. Attachdocumentaiion for all matchingfunds in the forn of a resolution,adopted budget,letter of fundingcsmmiin'reni, or contractfrom fundingagency. li thisdocumentation is not availableto be inciudedwith the applicaiion,indicate when you will provideit to the Air District.

Pleasenote that AC Transit has no capitalfunds at its dispasalto purchaseany new 40' buses until 2008, Our only means of funding this demonstrationproject is to receivegrants for the entire projectfrom the Air Districtand GalStarUFTA,not just incrementalcosts, ; TFCAmatching funds requirement:Project sponsors requesting more than $150,000 in TFCARegional Funds mustprovide matching funds from non-TFGAsources that equal or exceed10% of the totalproject cost. ffFCA CountyPrograrn Manager Funds do notcount towat"d fulfillinrg this reguirement.)See Folicy #7 !n,Appendix A of the ApplicationGuidance.

Fana 'l ffCA n"gionet Fund AP

.PART 6. CLEANAtR FOLtctEs ANDPROGRAMS (EVALUATION CRITERION #3) ihe Thepurpose of Evaluationcriterion f_3- it .to .encourase aolcles Jg_ lgtti.ttJi--i-=-1ni^p^i3s-l1T:,:tiTlJement 'A r Tl,"!lHxTJt=J#',:?"fr1fl::l"dJ$li-ll,-,,T8:fff"T3lJ;.#FH,i'fBl#lii'&l'fiiliTdilHiTEffor10 points will be awarded. checkthe box for each rcM tJl llEl lur I Fer wr I !Hrs!! i#A;;-il;;1 maximum ;'ril"r't#'#;,;"dili- *- -a! !..J t!.*'fEi^A projeetnmiqa your isimplemeniing- This applies to s!!TCMs your as_enry_is--'.Tg:T:*lg**!-iTlt5Tff that asenoy paragraphon the in"rulr"u"j. pirt otliis appli"alion.For'each oox ttrat you check, provide a brief poticiesarrd actions that your agency is planningin orderto jmplement ffi;ff;ilil;ffi'r"il r f irt* 'fl+[/lc poiiciesind actions.submissionr,,h+iacian ofaf TGMs withoutrrrilhnt tf grrY impl"*untinsthose lllg I vrlrt ffi;)-, i']i,uf,i.es' in ffi *ffi i*gre;; !r tL^ A l- t1l+lFi^t web.n'ah siteeilo ataf thedescription wit!n.t qlriiv?or points. io ontaina,r1l1ge9drig5"l,llll:J?Ylt"fit_th^*':oj*Io the followingaddress: htlP;

tr TOM 1 SupportVolrrntary Trjp ReductionP'rograms

TransitService fi fcfvl 3 lmproveArea wide

tr TGM4 lmproveregional rail service

to Rail andFenies fi fcm 5 lmproveAccess

tr TcM 6 lrnprovelntet'regionalRail$eruice

tr TCM7 lrnProveFenY $ervice

trTcMsConsiructcarpool/ExpressBusLanesonFreeways

tr TCMI lmproveBicycle Access and facilities

E fcu d0 YsuthTransPortation

B TCM tl lnstallFreeway/Arteriattraffio operations systems

fi fcnn'[2 lrnproveArterial Traffic Managernent

fi rcm'!3 Transituse Inaentives

Et TGMrtr4 Trip ReduationServices

andPrograms S fCU t5 LocalGleanAir Plans,Folicies,

tr TCM 16 lnteffnittentGontrol Measurc / PublicEducation

Frojects fi fcrul 17 ConductDemonstration

B TcM 18 lmplernentTransportation Pricing Reform

H TCM :t9 PedestrianTravel

B TGM20 PromoteTraffic Calming Measures TFCAnegiqrrql|qnd Application Fonn FY 2005/06

(EVA!-UATIO[{CRITERION #3) (cohtT.) PAR.T6. CLEANAtR poltstEs AND FROGRAMS previouspage, desoribing: 1) thepolicies and actions that lprouiou a brief paragraphfor eachbox checked on the progressin implementingthose policies and youragenoy is planningin oderto implernentthe TcM; and2) current you documentationis required) actions.(provide a descriptiononly; Air Districtstaff will notify if supporiing

TCM3. lmprove Area-WideTransit Service' its'route system via projectsand serviee Beginningin the 1gg0,s,Ac TRAN$lr hascontinued efforts to modernize service(additional trips added to changessystem-wide. These projects/ohanges include, among others: Transbay "welfare-To-work'projects providing addiiional bus services to assistlow-inoome AM & pM peakperiods); "owl" jobs,pariicularly via latenight and service;and residentsand welfarerecipients in seekinganci getting to pablo (improvementsin passengeFGonvenience, travel the "RapidBus" project along the san Avenuecorridor timeand reliabilitY)'

TCM5. lmprove Accessto Rait and Ferries' a WarmSprings/A'GE Feeder *FeederBus Service"projects, originally funded via regionalTFCA funds, include period),and the $ervicewhich addedtwo routesrneeting two trips(four trips in eachpeak peakperiod trips and a mid-daytrip. Also,AC Ardenwood/Gateway/BARTproject which added two additional in theircommon seruice areas' TRAI{SITancl FART entered into an agreemenito provideparatransit services

TCM10. Youth TransPortation. developed,implernented, and Beginningin August2002. AC TRAi\tSlT,!n coniunctionwith school adrninistrators, in its servicearea' This promotedthe annuatstuclent pass progfam for publicmiclclle and high sahool studenis gualifiedfor thefree or subsidizedlunch initialprogram provided free monthlybus passes to thosestudents who passfor (a 45%reduation from the pr.gramat theirschools, with otherstudents eligible to purchasea monthly $15 FlexibleTransportation previousprice of $27). This programwas fnnded prinrarily by $1 millionin Lowlncorne funding,this programwas (LiFTlfunds from the MTC,District funds, and othersources. Due to a reductionin purchase monthlypass for $15,eliminating the free modifiedtfre followingyear so that all studentswere able to the pass.

TGM12. lmproveArterial Traffic Management' alongsan PabloAvenue, which AC TRANSITreceived fundS (via TEA-21and $TlP)for severalimprovements "irnprovements" include:newef' low-floored buses to operatesfrom oaklandto Richmond.These in busservice traffic to helpspeed trips; facilitaieboarciing; iransit priority aapa-nilities that give busesgreen lights at signals "choke" coordinatingmore than ,.bypass,,lanes that help speed buses through traffic points;signal interconnections andre-paved lanes designed to 60 trafflclights to improvetraffic movement; upgraded streetscapes, with medians for passengersat busstops' improvetraffic flow and pedestriansafety; and electronictrip-arrival displays

TCM'!3. TransitUse lncentives. servicedistrict, five of themat Ac rRANSlr hasreceived funding to constructup to ninetransit centers within its' be preseniat onceso that patronsuan BARTstations. These centers aliorr,,sevei'a! buses from different routes to stationsaccommodate intermodal transferwith minimumwaiting periods. The transitcenters located at BART to promotethe TRANSLINKuniversal transfersto facilitateboth regionaland locattravel. Ac TRANSITcontinues "smart paymentsystern), the usegeof its si'udentpess ticketingsystern (equipping ail new buseswith the card"fare 'bike-iriendly" of the advantagesof usingtransit' 1| prggram,anci busesas some examples -

Fona A ApplicationForm FY 2005/OG . TFCARegionatr Fund

TCM15. Loa.alGlean Alr Flans, Folicies, Programs' Thesebuses' engines are designed to reduce AC TRANSIThas added three hydrogen fuel cell busesto its'fleet. the cornbinationof hydrogenand oxygen yll?*l emissionsto zers by dischargingoniy water vapoFinto the air via - Area'sfirst hydrogen fueling station was installed combustion)to generateelectriaity. In November2002, the Bay californiafuel cell Partnership,to expandthe atAC TRAN$ITsRichmond Division, built in eonjunctionwith the sacrarnentoand enabling them to regularlytrsvel to the travel rangeof the partnenship,sfuel celi vehicle basedin "four-stroke" program ""two-stFoke"diesel engines with BayArea. Ac rRANslr has also implennenteda to replace Ac rRANSlr is replacing10 to 15,30'diesel engineswith reducedpollution. Ma a TFCA granitunded in 2004, andare more energy-efficient buseswith heavy-dutygasoline hybrid engines which burn cleaner

TCM 'i7. Conduct DemonstrationFrojects' projectin 2002to help raisestudent The student pass programwas originallyconducted as a demonstration errivalinformaiion pernranently along the $an attendance.The NexiBusdernons-traiion provldes real-time bus alongthis conidor, while planning pabloAvenue corricior. An additionals0 bus stopdisplays are being installed FruitvateBART station is underway' exDansionof the systernto all Ac TRAtttStr trunk linesand at the

Danp 7 TFGARegional Fund Application Form FY 2005/06...... -. NOTED} YE$ Ne IJA PART7. PROJEC bCUMETTRTIOI\IAS Board x_ A. Haveyou attached the requiredResolution from your Goveming authorized authorizingthe submiftalof your applicationand identifyingthe individual to subrlit ind carryout the proposal?Resolution Forthcoming' appliedio the project? X B. Haveyou attached documentation for all matchingfunds that will be ($eeApplioation Guidance' x Willthe projectdirectly benefit Disadvantaged Communities? Evaluationbriterion *+.1 fo receivepoinis, you mustexplain which yourapplicafion' communitieswi1 henefit and provide documentation as an attachmentto X D. For bicycleprojects, provide documentation that the projectis included in a countywidabioycie plan or countyGongestion Management Program? ($ee Policy#35 in ApplicationGuidance) G below: Applicantsfor shuttle proiects mustcomplete questions E through potentially E. ls yourshuttle applicaiion accornpanied by lettersof supportfrom all affectedpublic transit agencies? (see Policy#34 in lhe ApplicationGuidance')

F. Americanswith DisabilitiesAct (ADA)Requirements: standardsfor 1. Doesthe shutfleifeeder'busproviding the servicemeet the ADA vehicle wheelchairaccessibilltY? persons disabitities? Z. ls therecomparable paratransit service providecl to eligible with in Policy#34 (a - d)? G. wilt servicebe providedby one of the shuttle/feederbus vehicle types

fornn'cornplete and attach supplementaryFroject Informationsheets followon pages7-16 of this appliaation onlytheappropriatesheet(s)foryourprojecttype,asfollows:

RidesharingProjects - PartI - $hutfleand Feeder Bus Projects,vanpool Projects PartI & PartI

RegionalTransit lnformaiion Projecis - Fart8

Rail-BusI nteg ration P rojects PartI

SmartGrowth & TrafficOalming Projects PartI - ArterialManagement & signal TimingProjects Part10 (SeciionsA-G)

TransitBus Traffic Signal Prioritization Projects - Part10 (SectionD only)

BlcycleFaths, Lanes and Routes - Farl11

BicycleRacks and Lockers - Part12 - Transit,Shuttle, and $chool Bus Replacements Pafi13

Heavy-DutyClean Air Vehicles- Part13

Repowersto ExisiingEngirtes' Parti4 I Retrofitsto ExistingEngines - Part15

Dana Q . TFCARegional Fund ApplicationForm FY 2005/06 SUPPLEMH,NTARYPROJECT INFORMATION SHEET

PART13. CLEANAtR VEHTCLES(HEAVY-DUTY A BUSES)GREATER THAN 10,000 LBs GVW providethe followinginformation for schoolor transitbuses, or cleanair vehicles greater than 10,000 lbs' gross vehicleweight (GVW Vehiclesrnust comply with TFCA Policy#29 (seethe ApplicationGuidance, AppendixA). gas, Note:Applioants must complete a separateapplication form for each fuel type (i.e.,all vehiclesare natural all u*nicr"i areelectric) and for each of the followingcaiegories of vehicles:1) transitbuses; 2) shuttlebuses; 3) schoolbuses; a) heavy+utyvehicles (other than buses), and 5) othervehicle types (e.9., parking enforcement vehicles,small utillty verricies etc.). Forexample, a projectsponsor seeking funding for a medium-dutyelectric vehicle,a medium-dutyshutile, and a heavy-dutynatural gas vehicle will needto submitthree sepanate applications.

Vehiclesto be Purchased 1. Listone vehicle in eachcolumn. Providethe vehiclemake and model, fuel type,engine maker, engine size, GVW,estimated vehicle life, estimatedengine life, NO* + NMHCcertification level (eligible levels are_ 1.8, 1.5, 1.2,D.g, and 0.6 glbhehr), cosl of equivalentdiesel vehicle, cost of the vehicle,snd estimated annual mileage. lf estirilateiotiife anOannual mileage are different than the actualmileage and life of similsr vehicle(s)in the currentfleet, explain why.

1 ? 3 I 2 3 Vehicle EstimatedEngine 5-O Make Van Hool Llfe (year$)

Vehicle 4330 NOx+ NMHG .07g; NOxto Model Hybrid certificationLevel be certifiedby /n/hhn-hr\ CARB Cost of Hydrogen $300,000 FuslType EquivalentDiesel \/chlele Cost of Vehicle Engine Ford $1,?00,000 Maker

Engine 6.8 EstimatedAnnual 45,000 Size (liters) Mileage

Gross 40.000lbs. Vehicle Weioht - Estimaied 12 Estimated s,000 Vehlcle AnnualFuel Use kilograms* Llfe (vrs) {oal/w)

. * Basedon an estimateof 5 milesper kilogram of hydrogen.One kilogram of hydrogenis approximately equivalentto the eneruyvalue in onegallon of dieselfuel.

Z. Indicatewhere you ptanto refuel/rechargethe vehiclesidentified in this grantapplication. Indicate whetherthe refueling/recfrargindfacility is newor existing.lf it is a newfacility, indicate how the facilitywill be financed. ls tnefaiility (wittit-ne) aclessibte to ths public? tr YEs E ruo lf yes,describe the publicaccess'

Refuelingwill be condudedat AC Transit'shydrogen fueling stations in Oaldandand Richmond, and occasionallywith hydrogenfrom ihe District'smobile fueler' TFOARegional Fund ApplicationForm FY 2005/06 SUPPLE.IMENTARYPRSJECT INFORMATISN SI-IEET

(HEAvy-Dury GREATERTt-tAN 10,000 lE$ Gv* I to"*t.) FART1s. *LEAN ArRvEHlcLE$ & EuSEs)

3. TFGAPolicy #31 requiresthat an equivalentexisiing vehicle must be either 1) removedfrom service and destroyedor, 2) retrofittedwith a GARB-verifieddiesel emission oontrol strategy to reduceemissions and appr.ovedfor use in the relevantengine. lndicate how you plan to complywith this requirement. (Note:lf choosingto retrofitan equivalentexisting vehicle with a CARFverifieddiesel emission control strategy,also complete Part 15.)

AC Transitwill destroythe followingten busesin compliancewith TFCA Policy #31:

No VehicleNumber VIN 1 2854 15GCD091eP1084703

4. Submitone of the followingdocuments indicating the proposedengine's NOx + NMHCcertificaiion level: a copy of theCARB Executive Order or the pagefrom the CaliforniaAir ResourcesBoard's (CARB) website (rnlury.arb,Ea.qov/mspragim0ve ). lf applyingfor fundson behalfof a non-publicentiiy, as outlinedin TFGAPolicy #5 ($ee ApplicationGuidance, AppendixA), providea copyof thecontract or agreementbetween the public agency and non-public eniity, includinglanguage indicaiing contract duration. N/A

A UnderTFCA Evaluaiion Criteria #2 (OtherProject Attributes), applications may recelveadditional points if the projectwill reduce exposure of sensitivepopulations (i.e. children, elderly, people with lung problems) to diesel exhaust.To qualifyfor points,explain how your project will reduceexposure of sensitivepopulations to diesel exhaust,and provide a map that iclentifieslocations of sensitivepopulations such as schools,hospitals, and similarsites.

AC Transitcarries 230,000 passengers each weekday, of which60,000 are school children. Of our 68 million passeiigers year, 12a/oare seniorciiizens anci peopie wiih ciisabilities.We operateour buses in populated Fer "Environmental areas,many of whichare classifiedas Justice"neighborhoods according to TitleVl of the federallaw. This hybrid buses will operateon any oneof 105 routesthroughout the AC Transitservice area servingdensely populated urban centers and carrying tens of thousandsof peoplewho are considered at risk to eir contarninants.

Fcno 'l f1 Hydrogen-FueledVehicles:Hybridsvs'FuelCells By C.E. (SandY)Thtmas, Ph-D. HzGe,nInnovations, Inc. Alexandria Yirginia 22304 www.hZgen.com

(FCV) and The Bush adrninistration FreedomCarproglam to develop fuel cell vehicles fuel are the related FreedomFuet project to spur the use of hyfuoge'n as a transportation both laudable. Direct hydrogenrFcvs have the potortial to: gas (GHG) . Signrfieant$ reduceand in time virfually eliminate greenhouse emissionsfrom the transportationsector, r Eliminate local air pollution from motor vehicles'and t Eliminate dependenceon imported oil' FCVs to begin But we do not have to wait for the developme,ntof reliable and affordable describesthe t*pi"* the benefi.ts of hydrogen * u tt*tportation fuel- This paper (Ic-E)vehicles' and' aAo'*iuges of u.singhydtoge,nTodayin intemal combustion engine lrydrogenICE *"* piti.ularly, il tybti-d elecnii vehicles GryV)l._We show that the at lower cost. ffEV can achieve all oi the three key beneflts of the FCV much soonerand and reduce oil ln fact, the hydrogen IIEV will artually reduce criteria air pollutants penetration consumption*ore-thuothe hydrogenFCV, dueto the expectedearlier market 'ihe allowing of the nyorogen ICE HEV. hydrogen IIEV can pave the way for thejcJ, perfecting many of tt e *troAudon of a distribrrtedhyttrogen ffiastruotrne qystemwhile stoffige, electric the components of the FCV inclurling onboard hydrogen systems and motor/generatof, power conffol electfonics, peak pOwer battery storage regenerativebraking sYstems. FCV. The FIEV Some attributes of the hydrogenICE IIEV are inferior comparedto the but this is less will have 1.25 to 1.? times d***t fuel economythau a conventionalcar, the hydrogen fhan the 2 tn 2.5 tirnes incre,Leexpected from advancedF'cvs. As a resull the Fcv, or less fIEV wilt require more hydrogenitorage volume for a given rangethan acceptance. range for a fixea tank voiumJ shorter rangemay translate into less market to The FtrV still includes a small ICE, which may increasethe maintenancecosts relative HEV will ge'lrerate a lTlahrrefuel cell povversystem with fewer movlng parts. .And the pollutants very low quantities of criteria pollutants, most notably NOxz- However, these are expectedto be below the most stingent Catttomia SULEV standards'

connected I There are f,Eny differerrt IIEV configurations such as serieshybritls (vrherethe ICE is comesfrom m oot*i r*ty to an elecg.ical generatorto recbarge a battery bank and all tactionporuer canbe coupletlto drive the *i""ti" motor; and paraltel-hybrids (raihereboththclCE anil the electric moton ofhybridizatkmeud difftre,lrt load-sharing *U""t ;. Within eacb category there are various degrees parallel generallv have the ntgoritb-r, We consider oldy parallel hybrids in this report, siqce hybrids highestfuel economies. carton ftom tili""- Uya*gen c,ontainsuo carbon,the fuel itself cannotcreate my VOCs or CO' Howwq' the lubricating oil can produce minute guantities of thesetwo criteria pollutants' C.E. Thomas Hydrogen-FueledVehicles : Hybri ds vs' Fuel Cells

GreenhouseGas Emissions GHG emissionsfrom We havepreviously developedcomputer progfams to-estimate. the conditions3'These variousaltemative fueled vehiclesop"tutiig tl"de, real worid driving well*to-r'vheelsbasis' all calcuiatic,nsinclude utt ttt* majoi gre*r,housegases on a dwell time' Typical oonvertedto C0z-equivalentvaluls b*ed on a 100-yearatmospheric ICEV'} and gasoiine results are shovtrr i" gigute 1, comparing existing cars {"gasgline t#Vs such as the and dieselIIEVs wrflrf,ydrogen-powered-IlEVs and FCVs. Gasoline

Grams/mileof CO2Equivalent 450

150

100

(NG) Renewable Gasoline Gasoline/ HZtNG) Hz H2 ICEV DieselHEV ICE HEV FCV

electric and fucl cell vehicles Figure 1. Estimated greenhousegas emissionsfor selectedhybrid fuel economyand ToyotaPrius and F{onda'slnsight and Civic [#Vs do have improved pathwal'to.Iower hencelower GHGs as shoumin figure l. However,there is no future shgw estimated GHG with gasoline or diesel urvs. The three bars on the right -!re 'TI2 FIEV" refers to an GHGSfor hydrogen-poweredcars. The bar labeLed {NG) ICE hydrogenwere used ffeV po*oiA UV nyitog* derivedfrom naturalgas. If this same to the conventional in a FCV, GtIGs wouli be reduced approximately 45% relative the gasolineor ICEV. Note that the hydrogenF#v tras nigher GHG emissionsthan leading to near zero particularly a diesel I{EV. But the hydrogen pathway has a future

AnalysisofHydr'ryen . C. E. Tho-as, B. D. James,F.D. LomaY' Jr.,and I. F. Kuln, h,Integrated RenesrableEnergy Laboratory" Passenget'VehicleTrorrpornnon Patlzv'ays,prepareclfor the National March 1998. US UEpurUr'nt of Energy rrnclerBubcontraciUo. eXf-e-l6685-01,

Paee2 of ll Hydrogen-FueledVehicles : Hybridsvs' Fuel Cells C. E. Thomas

GHCrs. That is, GHCrswould be negligible for either the hydrogenIIEV orE |w{togen This is the FCV when ttri ryarogen is derived from renewable enerry sources. promising long-term potential of the hydroge'nvehicles.

Hydrogen can be made from a broad range of fuel feedstocksother ihan fossil fuels. Sustainablehydrogen production optionsinclude:

" Electrolysisof waterusingelecticity from: o Photovoltaics (PV) or solar cells o Solar thermal elecftic generato$ o Windturbines o Geothermal energy o HYdroelectric trrrbines . Hydrogen generatedby flre gasification of sustainablearerry $ourcessuch as: o Biomass {agricultural residue$,energy crops such as switchgrass or fast growing trees, etc.) o MuniciPal solid waste 'o Landfillgas

To illustrate the long-term potential of the hydrogen vehicles, rve postulateda series of logistic curve markJt pettetration scenaf,iosover the 21st centtlry for each vehiple' as

0li 2100 2000 2010 ?o70

HzGTil FMSI TS tHG'XA?E NE EDX

Figure ?. Loglsttc curve market penefrat{on scenariosfor altenrative vehiclesand for renewable/sustafuable hydrogen sources Page3 of 11 C- E. Thomas Hydrogen-FueledVehicles: Hybrids vs' Fuel Cells

new carssold in the us depictedin Figrne 2- I]r the first crrvg we assrmefhat 50% of all emissions over the are gasoline sr nevs by"treated 2a2fr. we ttren estimatethe total GHG hydrogenIIEV reaches "*ntilry for each venide selafately. We asmmethg the a crudejudgment 50% market salesby 2028, arrd trte rrvarogen FCV by 2035, reflecting curve indicates a of when eachtechnology might be marketieady. Finally' the right-most indicating possiblemarket p**nutioo of all renewabletrydrogen options listed above' or sustainableresou'ces ihat S0% of all hydrogen generafedwor.rld come from renewable gas. by 2050. All othlrhydrogenis assumedtocomefromnatural curve shoinathe The results of these simulations are sunmadzed in Figwe 3. The upper continue to rise brsiness-as-usualcase with conventional gasoline ICEVS, The GHCrs vehicle miles due to a combination of increasing .r** "ut sales and also increasing GFIG5in the 2020' "-"ri"O -.rft-V-J- Intoductiot of-th* gasolinellEVs would reduce ClimateChange Gases (metrictonnes CoZYear) 4.0F09

J_OrU5

a nEdo

2.5E+09

2.0E+os

1.5E+09

1.0E+0s

5.0E{{8

2000

F'igureJ. simulationof total transportationgreenhouse gases for *o- -"n*t'ol"l";" scenarios dePicfed in X'igure 2 fuel esonom)/ 2030 tirne f,rarne,but the GHG ernissionsbegin rising again once the production will benefits of the IfiVs level off. This projectioo ignot*s the fact that oil implicit in Figure cerrainlypeak inthe 2015-2025rime period, andobtaininglhe gasoline tflr sands,with the 3 wodd undoubted\,require the de'e]lopmentof synfuelsfrom coalor of, synfuels Iikelihood of even gr*ufu. GHG5 for both gasolinecases. The economics

much roore dramatically ut a We used a linear fit (not exponeiatial,vrhich would have hcreased the GI{Gs (LD$ salesfrom 1970 the last half of the centuy) to tu" hitt"ti" us data for total Iight duty vehicle time period. througb 2001, and a linear fit to flre aYeragevMT over the sane

Page4ofll Hydrogen-FueledVehicles : Hybridsvs. FuelCells C.E. Thomas combined vyith the mititary costs to defend oil sotrces in the Persian Gulf worrld add more incentiveto switch frbmgasoline to hydrogenas the main tansportationfuel.

There is a lz-year l*g between large scale market introduction of each new vehicle technology andGHG rlductions in Figure 3, dueto the assumedl}-yeat life of vehicles on the "#d. ,+ttUoughthe hydrogen vehicle emissionreductions kick in later in time u'ith the assumptionsmade herg they continue to decreaseas renewable hydrogensources b*gi" to be deployed by mid-Century, gradually displacing the hyrlrogen made from outod gas previously. Note thal the hydrogenI{EV GIIG tr.ajectoryis very closeto the hyilrogil f-CV cutve. The hydrogen HEV beginssooner with our assumptions,but the nyarolen FCV has a slight advantageafter 2048 dueto lower GHG emissionsper vehicle as shown in Figrrre I. bnce most h1'drogenis madeby renewable or sustainableenerry sources,however, the type of hydrogen vehiclehasnegligibte impact on GH$ emissions- Averaged over the "*frrty, ttre totat GHGs from the two hydrogen vehicles is nearly equal, representedby ttre areatmder the two cuwes-

Local Air Pollution

Sincehydrogen has no carbon,buming hydrogenin * IqP will produceno VOCs.or CO from the nret itsem. Carhon from the lubricating oil wilt generateminute quantitiesof VOCs arrdCO, but they shouldbe well belowthemost stringentproposed standmds'

The hydrogen ICE will gerrerateNOx from the nitogen in air combined with the high much ICE temperdures. Howlever, measufed NOx from hydrogen ICE tests are also Iower nran from gasoline or diesel engines,assuming that the hydrogen ICE is operated NOx rmder lean burn conditions with equivalenceratios less than 0-4. Furflreffitore, low ;p;.;d;;ls possible without a catalytic convefiet', remaving failed emissionscontrol ilevicesas amajot causeof increasedemissions overthelife ofthe car.

The hydrogen ICE will not qualfy as a zero emission vehicle (ZEV), Horvever' the of emissions [f "ritoia pollutanG a.reso low t]rat onehydrogen ]IEV may achieve99% the tocal air pollution-benefits of,one FCV. Brf total societal benef,tswill dependon ttre number of gasoline cars displaced in addition to ihe net pollution reductions pervehicle. Since the hydrogenI{EV will cost much lessthar the FCV initially, md sincelhe IIEV much technologyis much nrore mafure, the hydroge;nIIEV shor-rldpenetrate thg ryarket sooner *a *uy seII nrore vehicles than ihe FCV. Thus the net criteria pollrrtant reductionsdue to the hydrogen HEV may very well exceedthose of the FCV'

Considerthe crjteria effrissionslisted in Table1. Thesevalues rcpresent an estimatedof real-world emissionsaveraged over the life of thecar, not the mea,surementsmade on a

must 5 Hydrogeir-porused ICEs for non-hybrid crs do produceconsidera_b.le NOrf since these engines power generally proviae*hieh peak power for acceldting a conventionalICEV. Achiwine high peak ICE howwer, the i"q"it"r-"frti"alEnie mtios above 0.5, wbere Nox increaseszubstantially' For the IIEV, lower ele"tic motor prwides extra peak power, allowing theICE to opsrate at lower power and he'lrce equivale'nceratio end lower NOx emissions.

Page5 of l1 E. Thomas Hydrogen-FueledVehicles: Hybrids vs' Fuel Cells C.

from a d-r,namonreteru,hen the car is neuf. We har,eincluded estimatesof enrissions operationat higher po\\rer wanned-upcar, fronr colcl start. fuel eYaporation,-off-cycle and upstream flran the tist cscles. fronr malfrurctioningof the pollution control devices eruissions.as anal)-zeclb)'Ross et al. We emissionsin have estimated hou' each emission Table 1. Esfimated retl-world grnms/nnile catego4' t'ill be affected bv IIEV VOC NOx We assutrle no off-c]'cle operation. CEV 0.7553 0.704c sincethe ICE in operation,for example. SasolineSl HEV 0.365S 2.024t 0.292e au IIEV is net'er reqrrired to provide rtz (NG)HEV 0.0200 0.0188 0.0314 high peakpo\\'er. fr2(NG) FcV 0.0039 0.0029 0.0010 SULEV 0 01c 1.000 U,Ultl For the h1'drogen vehicles. tve hat'e HS€d PN$i TStre':N ?1 z2BE00l included the upstrea.nremissions fron these the lrtdrooen pioductiou operationusing on-sitestearn rnethaue refornring. Since reforurers-are'i'tendedto be in the local fireling stationssithin the ruban airshed.rve ha'e includecltheir emissionsTin Table I. Thus all of the enrissionsshotn for the h1'drogen hJ,dro**,,FCV are due to emissionsper vehiclemile traseledfronr flre on-site glrr*rutor. As renerr.ableh,vdrogen llegins to replacelrl'dlogen made frorn nahual gas" ilreseFCV emissionsa" '*dttt*d accordingll'' The last ron'lists the Califonria SULEV standardfor reference. The lr.vdrugenFIEV rueetsflre VOC arid CO SULEV standard' in ouJmodel' but lrould sliglrt\, erceed the SULEV NOs standardNitli flre assrurrptions NOx E'en so, Uris llbx ler,el is a, glVo reduction fronr our estitnatesof real-rl'orld to the enrissiogsfrom a gasoline ICEV In addition a catal,r'ticconverter could be added h-vdrogenFIEV to easill' reachthe SULEVNOs standar-d'

We have simulated the total criteria pollutants overthe 21't cenhrry with the sarnevehicle to the market puretation scenariosof Figure 2. The resultsfor VOCs are quite similar initi'ally as GHG trajectories,as shown in Figrrre4. The gasolineFIEV cun'e dips down more vehicles enter the inventoty, U*ttincreased VMT taLe over, driving VOCs upwards again. The hydrogen vehicles tontinue to cut VOCs as renewable hydrogen replaces in hl6rog*o madefro-m natural gas. Sincethe hydrogenFIEVs enterthe nation's cm fleet than t!1t of the advanceof the FCvs, the netlontribution of the hydrogentr{EV is greater 5, hydrogen FCV. tne total fraction of pollutants sver the century are shoumin Figr:re normalizedby the emissionsfrom the gasolineICEV'

Wang-(Argonne 6 Seefor exanrpleM. Ross, R. Goodwin, & R. Walliins (Llniversig' of Michigad' M. Q 'Wenzel Emissions from Moclel National Laboiatory) and T. (Lautence Berkeley Laboratory)" Real-World for an Enrgy-Efficiernt Year 1993, 2000 aad 2O1OPassenger Cars, disttibuted by the American Council Economy,November 1995. of natural trc nu" ".t included ihe upstreamenrissions resrrlting from the production ancltansrnission power plzurtto power thc gas to the fueling statio4 ooihuo* *," included the emissionsfrom the electric the urban airshed' hytlrogen cornpressor,rrnder the assumptiontbat theseenission rvill be outside Ho*"iur, all theseupstream emissionsare includeil inthe GHG calcrrlations.

Page6 of 1l Hydrogen-FueledVehicles: Hybrids vs' FuelCells C. E. Thomas

The gasoline HEV would Voc EmisElon6 criteria {Metic toh$e8/yEdr) reduce total 6,000.000 pollutants bY aborrt 50o/a over the century comPared to business-as-usual witl gasoline ICEVs. The 4,000.000 hydrogen vehicles would cut criteria Pollutants bY about 80%. Under these 2,000,000 scenarios, the hYdroge'n

IfiV would Produce lower 1,000.000 total emissions of VOCs, CO and NOx than a direct 2050 20€o 2070 2080 2090 2100 hydrogen FCV. This 2000 2010 2020 2030 2040 advantageof the hYdrogen IIEV is stricflY due to its f igure 4- Total annual VOC emisrionsfrom the US car ;;;; earlier market entrY- years Note that the GHG providing a 690/o reductions are almost equalfor the two hydroge,nvehicles, with both reduction over tbe cortury.

100-Yeer Rflis5lonE Relaliveto ICEY 1.0

0.9

0.8

0.7

0.2

0.1

GHGs VOC CO NOx

the-three alternative veblcle market x,igure I Fraction of pollutants emifted over 100 years under gasoline cars' peietration scenarigs, a|J normalized by the emissionsfrom conveutional In reality The previoussimglations are basedon infioducing just one altemative vehicle- IIEVs are in all three would urdoubtedly be sold over the next 100 years. Thus gasolinrc if there was the the fleet today, nyotog; r+gv* could be intoduced in the next few years

PageTof11 C. E. Thornas Hydrogen-FueledVehicles : Hybrids vs' Fuel Cells

yehiclesmay become will andthe resources to startdown the hydrogen path, and fuel cell affordablewithin thenext l0 to 15years'

Oil lmport Reduction imporledoil for Theproposed hydrogen pathway would totally eiiminate dependence on

GasolineConsumPiion (BillionBarrels/Year) 7.4

o.u

ffi-f iG*ii'*st r- 4_0 \./ l,**o

2090 2100

E6€fi PAXE TsD'EHG'IBH2? ror2001

Figurc6.Gasolineconsumptionovertimeforthefourvehideoptions be made initially from either the IIEV or the FCV. ln either case,hydrogen would from indigenousfuel domesticnatural gas,transitioning over time to renewablehydrogen in oil dependenceas **ru*. Thus ilre hydroge*rllgV wiU achieve {he same reduction pollutant emissions,the the hydrogur FCV ier g;ofine vehicle displaced.Unllke the HEV commandsa uCV pr""tdes no aa'oaot*ageover the,I{EV. Thereforettre hydrogen greaterand ear-lier-market significant advantagein oiT"ontu*ption reduction by virfue of would peletr"ationas depiited in Figure 6. Over the next six decadeslli hv,111{:t-I# ILIV"' iedrrc*oil consumplionby over 36 bitlion barrelscompared to the hydrogen

Vehicle Costs gsrnpan|has shown their HydrogenFIEVs rely on proYentechnology. The Ford Motor tr'itersupercharged' four- Model U hydrogenIIEV conceptcar, and-hasdeveloped a 2'3 300-mile range for the "vfinO*t fin optirmzedto nffr on h)'drogen' TheS' sgtiiltatea

assumesthat all light duty I Acnral gasoline consumption is greater than reporteil in this model rt*'Hch savings will be lar-gerthanshorT'n vehicles (cars and tnrcfts)Lchiw"*:O -pg fuel economy, so the actual with IIEVs and FCVs' l"*. in* pntpos" of tbi* simulation is to show relative imprwements

PageSofll Hydrogen-FueledVehicles : Hybrids vs. Fuel Cells C. E. Thomas

SUV-s'tyleModel U nrnning on sevenHlogarry of cospressedhydrogen wIL a fuei ,oooo*y of 45 mpgof gasolineequivalent. While Ford has not announoeda price or any prod,rcdonplans io:rthitvtod*t U;this vehiclewould certai:rly cost much less than a fuel cell vehicle,and worrtdprobably have much grcater reliability initially' 'We haveestimated the costsof bothHEVs andFCVs in largescale production (300'000 ueni"t*rper year), andhave also attemptedto estimatethe costsfor initial vehiclesin of the drive train very mod^est[uantities neededfor earlyde'rnonstations. Ow estimates ,ori, *, summarizedin Tabte2- Giventhe enor:rtouscost differentialbetween initial hydrogenl#V cos$ andinitial hydrogenFCV costs,we believethat the hydrogm I#V canbJintroduced much earlier than the FCV in reasonablylarge numbers'

Suppose,for example,that the govemmentdeemed it worftrwhileto introduce10,000 htd;d;+o**, oJhi"les to juip-start the hydrogenecononry. The hydrogenT:IEV t'O,OO6-ratptoject would to*i*ty g2Q!million, while thehydrogen FCV fr-o;1t Pght in ,ort upto Si.S Uittion.Of aor.rrsethe FCV costswould probably be less than $350,000 qu*titi*, of 10,000,br$, more importantly'builiting 10,000FCVs wittr the cr:rrentfuel cell technolorywogtd not be beneficial. Rafter,fuel cell firndingshould concmtrate on reducingcosts attd improving reliabiliq" not producingthoruands of cars'

Table 2. Estimated aostforvehicle drive tralns Initial Costs MassProduction Costs GasolineICEV $2.42s fia.42s GasolineHEr/ $14,800 $3.080 HvdrosenIIEV $20"200 $4.250 HvdroEenFCV $350.000 $4.730

Hydrogen Gost

We havepreviously demsnstratedthat the costof lrydrogenproduced locally fromnatural producing by on-site steam methane reformers would be less than the cost of # trailer' frVdroge" ar a cenfial facility and shipping the hydrogen by tanker ftuck or hrhe iiyOto?* costs are illustradd in Figufe 7 for three different options; n.Jod_u;tion' 9n;sit3 All tnrcked-inliquid hydt;g.-t *A tti.f.tA-in conrpressedhydrogmr in tu-!e trailers'e psi tanks costsfutclude variable *ip*n**= including compressionto 7,000 psi to fill 5,00-0 rate on the cax,as well as *pitut recoYelyof all equipmgf assrtmingaL1% real, after-tax gasolineon of retum. We estimatethat hydrogencarr beprotlucetl at $1.15per gallonof a range-equivalentbasis using thJHzGen ltGlvt hydrogerr generationmodrrle, assunring fuel fhat n*afuralgas costs $4.50/I;[BTU. This estimateincludes a 2.2 improvernent in next economyprojected for direct hydrogenFCVs comparedto gasolineICEVs' The

of delivering n Tub* tuilers are listed for the delivery of compressedhydrogeq the orly likel]'method hydrogen fuel compressedhydrogen in the early days of hyarogenvetricte market penetation' In a mafire crra total delivered cost markeqpipetines c]ou6reduce tJretrmsporlation costto approximately-$0.25/gge, justified, we expect tlrat of approximut*ty $1.34/gge. By the timi inveltmlnts in hydrogen pipelines are ooriG hyarogen pmduction costswill drop to the $0'90/ggerange'

Page9 of 11 C. E. Thomas Hydrogen-FueledVehicles: Ilybrids vs' Fuel Cells

i it,,if.nl ,li;r,ilt, n{tsrxl 9Ft -...+: ,: l:irl:ii drt€r .45n '"ffiffi.

hsturll lci + $bi'4' ffiffi Wffi $1,1o/gge + $0.56/996

neruftl 061 4 tube t-siler drliver', wrcr+ nffi

$0.67igge + $0.97/gge days of market F,igure ?. Estimated costs of provinding 7,000 psi hydrogen to vehicles in the early aud pe:netrationby threc aiffercni delivery methodi: onrite production, trucked-in tiquid hydrogen = CSM = irucketl-in cokpressed hydrogen by tube trailer; HGM hydrogen generator module; cornpressionand storage module

and two rows in Figure 7 show the cost componentsfor tiquid hydrogendelivered"stored vaporized at ftr*efueling station, and the estimatedcost of shipping compressedfV{rogen UVtuUe trailer to the siation, both of which cost almost twice as rnuch as the hydrogen madeon-site fromnatwal gas.

For the hydrogen ImV, the effective cost per mile for thg on-sitehydrogen would be to approximatetySt.gflgge due tqpe HEV's lower projecteclfuel economycompated *i fCV (55.1 r,s. eSlE mpggeto.) We assumethat hydrogen would be exemptfrom federal and state highway taxes initially as a superclean fuel, so this price is conrpetitive wi.fh taxed gasolin-e. Eventually, when a large fraction of vehicles are powered by hydrogen,presurnably fuel taxeswill be added.

Hydrogen Infnastructure Gosts

We estimatethat the cost of on-sitefueling equipmentto convertnah:ral gas (or LPG) to hydrogur will be approximately $760,000for an initial systemthat can support 1,440 f'"CVs]oncethe fuefing appliancesare in low-scaleproduction. This capitalcost amounts harre to $sjO for eachtt**FCV soid, assurningthat the FCV and the fueling equipment

r0AI fuel cconomies are bascclon a Ford S-passengeraluminum inte,lrsivevehicle (AIV) Sable,modffied as either FIEV or FCV, operating on the 1.25times acceleratedEPA combined driving cvcle'

Page10 of11 Hydrogen-Fue1edVetricles: Hybrids vs. Fuel Cells C. E. Thomas

the the sarnelifetime. To the degreethat any of ihe fueling equipmentlasts longer than vehicle, then this societal ooi p*r vehicll would be less. From the perspectiveof early of demonsfiationprojects, the cosi of a fueling stationwould be-lowcompared to the,cost the the vetricles. itte ioitiut c.ostof 1,000 hydrogenHEVs might be $25 million' while fi,reling equipment for one station to ien'iCe those vehicles would be less tran $1 millionll.

Gonclusions

Hydrogen-powered hybrid electric vehicles with small onboard intemal combustion and at *g*"i can provide "irntafy ail ofthe societal benefitsof fuel cell vehicles sooner the loirer cost, iue to the lower initial cost of tIEVs comparedto FCVs, coupledwifh more mature technolory statrs of the HE\/. In particular, over the ne>rtce'ntury hydrogen HEYs can:

. reduce local air Pollution more than FCVs due to earlier market Penehation, . reduce greenhousegas emissionsto virnrally the samedegree as FCVs, snd . reduce our dependenceon imported oil to a gteater degtee than FCVs, again due to earlier market penetation.

ar-ea ll A realistic demonstratiorr progra1nnright include 5 to 10 fueiing statiotrsto provide rnorg qov:rage, rmits, but and {re inifial fireling syste.nrsmay be more expensiveuntil production reachesa few hundred even il this casettre vehcles are expectedto cost more than the fueting equipment'

Pagell of11 AppendixB:EmissionsCalculationofHH|CEBus in Gomparisonto pre-2002Diesel Bus

* (hp-hrimi)* # miles Bus Emissions(g) = Engineemissions (g/hehr) Busefficiency * derrsity(hp-hr/gallon) Bus Efficiency(hp-hr/rni ) = 1/fueteconomy(mi/gallon) Fuel energy

For a 2900diesel bus ('1997Eral: (diesel) Bus Efficiency= 1 {divicted)by 4 mi/gallon(times} 129,000 BTU/gallon {times) 1/2560BTU/hP-hr = 12-6hP'hr/rni thBn = 2,268kg = 4.0 g/hp.hr(ttmes) 12.6 hp-hrimi {times) 45,000 mf (OiviUeU}by 10009/kg NOx = (tirnes)z.2ibdkg = 4,990lbs {divicled}by 2,000lbs/ton 2'49tons = 56'7kg (times} FM = .1g/hp-hr(times) 12.6 hp-hr/rni (times! 45,000 mi{divided) by 10009/kg 2'Zlbs/kg= 125lbs of operation-) 1#Assumes12mph average speed and 3,750 hours/year

ISEHvdroqen ICE l{vbrid: " (divided)by 2'560 Bus Efficiency= 1 (divided)S mi/kg s1,532BTU/lb (times) 2.2 lbs./kg BTU/hp-hr= 8.86hP-hr/rni then = 28 kg(times} Z'2lbs/kg litox = .o7g/hp-hr(times) 8.86 hp-hr/mi (times) 45,000 mi {dividecl}by 1000g/kg = 61.6lbs (divided)by 2'000/ton= .031tons PM=O

Cost per Ton of NOxEmissions Reduction years= 29'508tons 2.49tons (minus) .031 tons = 2.459tons of reductionper year (times) 12 overthe lifeof thevehicle. (dividedby) 29'508tons = $1,070,000(TFCA lnvestrnent) (plus) $400,000 in lifetime upgrades $49,8{7Per toll of NOx reduction. Appendix c: lsE's Hyhrid Hydrogen IGE Bus Integration Plan

The fust suchengine hasbeen shipped and received at ISE. To producelheworld's base first conamercially-oiubt* hybrid bus using a hydrogenICE, ISE plansto-utilize the the hybrid drive system deveioped for ttre Omnitrans gasoline hybrid buses, add fuel cetl buses,and incorporate the t Varog*" fuet and safety systemsdeveloped for ISE's new Ford V10 hydrog*tt engine. A preliminary conceptof the integration of the the majority hydrogentCn hyUrid *!*t** is shown in the following diagrlm- t-tlryq hybrid oi tt *iyUrid system iJ assembledon a cradle,which is similar to rSE s gasoline electronics cooling system afe integration concept. The hydrogen fuel system and "diesel" mountedon the roof. The enirgy itotage ryJt** can be mountedin the standard The tarrk location or c+-lscated on the roof with the electronics cooling radiator. installation in a van l{ool bus will require a substantialredesign of the systembeing in a New Flyer bus. The desiga developmentand installation of all drive installed "integration-" systemcomponeats is termed

Test and Ilemonstration Program This hydrogenhybrid drivi systemwitl be assembledand instatledinto a Van Hool bus by ISE in 5* ui*go. Upon completionof the bus,ISE andFord will performinitial roadiestingof the vehi--cleon * rSE iest loop in SanDiego. Followingthis initial testing plu**, the"buswill be placedinto simulatedrevenue service in SanDiego at ISE or other approvedlocation for one month. The bus will then be demonstratedand subjectedto *aAitionuttesting at AC Transit.High and cold temperafuretesting will be performedat AC Transit u, * purt of the twelve rnonth revefluelit;*rvice demenstration. At a convenient time durine the demonstration,conditional upon ARB approva! the bus will be testedon the achralemissions under the ARB chassisdynamometer in Los Angelesto determine pnnS, Courrtycycles)' variousstandard Uurcytles (likely CBD, andOrange

STATEMENT OF WORK is divided into eleven The Statementof Work for the Hybrid HydrogenICE Program the desigtl development, major TasksMilestones.The first six Taskstlvlilistonescover The next three milestones and optimizationof tft* Hybrid HydrogenICE drive system' demonstrationat AC (7-9) addresste$ting of the vehicle and-anextended revenue service the CARB dynamometer, Transit. Task tpis the emissionstesting of the vehicle on The firal task (I l) is to write a final subjectto CARB approvaland availlbl* sJh*duling. viability of the Hybrid report which ,,r*riuri"*s the perfornranceand commercial HydrogenlCEbus.

TasftlMilestone1 .- Order T'ongLead Components systemdesign r C0NIRACTOR shall defrneand specifiiconceptual hybrid drive drive system ' CONTRACTORshall order drivernotor and other long iead componeffs

TasktlVlilestone2 - Dnive SystemDesign r G0NIRACTOR. shall designthe Hybrid ltrydrogenICE drive system r CONTR*ACTORshall releasecornponent drawings for production

TaskMilestone 3 * Drive SystemKit Construction major components i CONTRACTORshall receiveall drive system ICE Drive systemkit' o C0NTRACTOR shall assembleHybrid Hydrogen

Task/JVfilestone4 - Construct Bus Chassis bus CONTRACTOR shall subcontractwith New Flyer or othef approved manufacturerto producethe bus chassis' CONTRACTORshall receiveand inspect bus'

Task/Milestone5 - Drive SystemInstallation components o CONTRACTORshall integrateall drive system operation t CONTRACTORshatltest electricbus drive system irydrogenengine r CONTRACTORshall test h5'drogenstorage/deiivery system and

Task/I\{ilestone6 * Drive systemTestioptimization drive system o CONTRACTORoptimize the performanceofthe HHICE miies prior to delivery o C0NTRACTORshall complete500 fault free

Task/Nlilestone? - Initial Operation . CONTRACTORshall operate the bus in SanDiegoat ISE Researchor other approvedlocation for a 1-2months to confirmvehicle operation.

Task/lVlilestoneI - Cold Weather Testing r CONTRACTOR shatl operatethe bus at AC Transit for a minimum of two months during the winter to evaluatecold weatherperformance

TasyMilestone 9 * HotWeather Testingand RevenueService Ilemonstration months " CONTRACTOR shall operatethe bus at AC Transit for a minimum of two during the summerto evaluatehot weatherperformance . COIi-IRACTOR demonstratethe bus in revenueservice for twelve months

Task/lVlilestone10 - EnnissionsTesting CARB . CONTRACTORshall test the emissionsof theIIHICE drive systemusing-the system Jynamorneter(subject to CARB approvaland availability) or otherequivalent during the program.

Tasl*/Ililestone 11 - Final Report and Management r CONTRACTOR shatl submit quarterlyprogress reports the . CONTRACTORshall submit a final repofiwhich summarizesthe resultsof HHICE designand demonstration program' tlydrogen Hyhrid Internel comhustiCIn Engine $il{ICE} Bus

-- Final Report --

South CoastAir QuatrifyManagement District Contract il4fi27

Feriod of PerfonmflnceeOctober 2003 through May 2005

ISE CorPorntion ?345Mission Gorge Road, Suite K SanDiego,CA92120 6 19-287:8785,x140 pscottfEisecorpconi

6123/2005 1 of 1l HHICE Ftual Pe. Summary: to powera 40' A hydrogenfueled engine and series hybrid elecuicdrive systernis used buses i-f*# ffy} U*. thisius is similarin manyways t? the gasolinehybrid electric engineand hydrogen which I-SEproduces but for the useof hydrigenfuel, the hydrogen tanla on thi roof replacing the liquid nrltea iystem' Thereare less visiblebut control software' zubstantialdifferences in lhe eleitric vehicle iontrot systemand engine 30, 2004)and put Thebus was delivered tothe customer,Sunline Transit,(onNovember "unveiling" In Jaruarythe into revenuesewice December1d following an ceremony. M-a'itoba'suoh revefluesemice at Sunline wasintemrptedL shipthe bus to Winnipeg, Transit' The that winter restingof the bus couldbe done in partnershiPyith Winnipeg of bus retr.fnedto Sunline Transitat the beginningof April fotlowing a series DC' demonstrationsin Michigarq New Yorb New Jerseyand washington performanceof ttre bus has met and exceedede,xpectations: drive , Drivers appreciatethe improved acceleratioqas comparedto conventional buses, rangeof well . Fuel consumptionof the bus has beenin the riilrge of 4-6 mpeg, 6nd over?00 miles hasbeen demonstrated' . passengersnote the busis exceptionaliyquiet, and appreciatethe environmental advantagesofuse ofhydrogenfirel' some . Despitethe internrptionsficr travel andshows, the bus hasaccumulated and 6000miles in revenueservice. Sunline Transit is an enthusiasticoustomer, hasindicated interest in adding to its hydrogenfleet'

1. Design and Developrilent Productsand A prototypeFord v10, 6.8 liter enginewas zuppliedby Ford Power an earlyp8finer, receivedat the ISE Mission Gorge-facilityin early2003. Fordwas Management j"i"i"S with the Califor'ia Energycommissioq the So*th CoastAir Quality asthe funding District and sunline transit atongwittt the FederalTransit fiflministrntion placedon order in partnersthat madethe tr{HICE bus developmer_rtpossible. The buswas ioog, andarrived at the SanDiego facilities of ISE June14, 2004. with the This engineand the hybrid electricdrive train componentswere integrated drive motorsand the Siernensdrive train *o*porr*ots (encompassingthi generator'the 'tfadld'. cradleis designedto inverters)and the auxiliary driveelements onto the The engineand slide into the rear of the bus, servingin lieu ofthe conventionaldrive transmission.

The cradleis illustratedbelow.

6t2312005 HHICE Fimi Pg.?0f11 Photosofthe cradle- the engineis easilyseen in the photofrom the rear (upperteft) with radiatorat left and inverlersat right. Upperright is a photo takenfrom forward streetside, ihowing the intercoolerand radiator at right, the turbochargeris evidentat top left andthe generatorbelow left' The left photois from curbside forward and showsthe inverterswith the [orange]power cables,the black gearbox(lower righfl combiningthe torque from the two motors,and the generatoris just behindthe blue hoses usedfor coolingwater circulation. for the gasoline The cradledesign is similar in many respectsto that developedearligr cooler,a pair of enginebut thatThefrydrogen engirre has a turbocharger, a specialoil ecir modulesand specialoperations software'

Figure 4, at lower right, showsthe cradleinstalled in the rear of the bus, A specialinstrumentation package,allowing for temPerature andpressure measurements at critical pointswas includedto enabledata logging of critical operations.Although there was F-orddata onthe engineand there hadbeen low PoweroPeration of the enginebY ISE in house,the enginehad never before been installedor oPeratedin a bus.

6123l200s Pg.3 of11 HHICE FiE6l Figure 5, at right, showsthefuel tank assemblyinstallation process,and the followilg illustration showsthe eighttanks in position. The fuel tan}s are of t5rpethree (aluminum liner with full wrap of carbonfibed constructionand rated for filling to 5000psi (350bar).

Electrical energystor4ge on this busis by use of ultra- capacitors.A pair of ultra-caP packsis locatedjust behind the fuel storage,and forward ofthe aft escapehatch (as :r showninthe following Figure 7). Eachof thetwo ultra-capacitorpagks contains 144 drgflttgll, suchthat each packis capableto 340 volts andone megajoule. The two capacitors togetherhave enough energyto lift the bus about10 meters (30 feet), or accelerateitto 30 mph. In practicewe note good acceleration from the stop up to near 30 mph,at which speed the enginemust speed up asit mustprovide the power for further acceleration.The orangecables are the highvoltage cables capable of conducting currentsof over 200 amperesto or from the invertersand engine cradle package'

The electronicscooling radiator,fans and reservoirare mounted atop the aft end of the bus,just abovethe enginecradle and behindthe emergencyescape hatch' (Illustratedin Figure I at right.) The enginecooling loop is separatefrom the

HHICE Ftual Pg.4ofll electronicscooling loop, andboth havefans that areindependently and thermostatically controlled

2. Drive SystemTest and Optimization The drive systemis cornplexand involves use of softwareto controland interface several sy$ems: l. Thefuel supply systemincludes provisions for fail-safershutoffof fuel whenbus key is off. An STW (SystemTecturik Wiedemann) controller allorvs electronic monitoringand selectionaf fuel tanks. 2. Theengine is controlledby Ford PowerProducts software. 3. Siadissoftware, provided by Siemens,serves to monitor andcontrol the generator,charging of the ultra*capacitors,and to providepower oommands to the engine. 4. A:r electrical vehicle control unit (EVCU, ISE software) 5. Thebus has a PLC systemwhich monitorscritical parameters and provides inforrnationand warningsto the driver-

The initial focus,beginniflg in August2004, Eas on gettingtle Siemens,Ford andISE softlvareto worktogether to the point of providingfulI enginepower and vehicle drivabiliry. The first visit to the ChulaVista fuelingfacility occurredSeptember 23, 2004, follouring which the drive testingbecarne more aggressiveand more rnileagewas accumulatedon the bus- The drive testingled to significantchanges to the induction and exhaustsystems and to operationalchanges inthe engineand vehicle software. Even following the delivery of the bus November30, therehave been continuing improvementsresulting from the continuingtest and optiinization program.

2.1 Delivery to Sunr,iner lnitial RevenueService The fust half ofMonth of DecemberSuriline focused on familiarizationand trairring, which culminated in the "Rollout" ceremolry December16. (IllustratedbY Figure 9 at right.)

Following the Rollout the bus imrnediatelywent into service on Route50 in Palm Desert. The buswas in servicefrom dawn throughths sYsningfor the following threeweeks, accumulatingover 200 miles in serviceevery day. The

I Each tank lras a shutoffvalrre open only with key on, and a secondaryshutoff solenoidI'alve neat the engine shutsofffuel flow at keYoff

6123t2005 I{HICE Tinat Pg.5 of 11 only serviceinterruptions were for plannedmaintenance and upgrades.At the endof the yearthe bus had accumulatedover 4000miles, wffi 80 percentof the mileagehaving beenaccumulated in revenuesenzice.

2.2 -Cold Weather Testing in Manitoba The winter testingprogram beganwith deliveryto Winnipeg,Manitoba January16, 'C 2005 at a nighttimeternperature of nearly-30 (equivalentlo -?7F). The Canadian Tear\ led by Dr. Allister Hickson,and Eob Parsonsarranged for storageof thebus, and worked with StuartEnerg:yto provide fuel for the test progmm.

The most significantchallenges inwinter testingwerein obtainingfuel of suffrcient qualfy and quantity. Following replacements*f injectorsand the fuel solenoid?,the bus was reliable in serviceand was a favorite of driversand riders.

The bus first ran in Winnipeg fevenue service February16, but did not return to servicefor a coupleweeks due to problemswith fi,relgeneration * the hydrogen was not adequatelydry, and the water plugged the lines coming out from the electrolyser. March 3 the bus Figure l0 - WintertestinginWinnipeg refirrned to service- and sawdaily servicefor a week.

One of the key questionswas: Will the bus heatingbe adequate?Conventionally the Winnipeg Transitbuses have a dieselfired supplementalheater, absent from this bus designedf,or service in the Californiadesert. TheHHICE usesengine coolan! expected to be at temperaturesto 150tto 190lF, to heatair using a pair of heatexchangers. A-fter

? The irjectors, an early issueof uihat is now usedin the brrs,hed dweloped leakagefrom 4000miles of use. The firel solenoidhad been toublesome" and was replacedwith a different make $'hich hasprcven ftlly reliable.

HHICE Fhal Pg.6of11 6t23t2005 the first day of operationall were relieved and a bit surprisedthat the bus was very comfortable.

Another key questionwas whetherthe electroniccontrol systernswould work at the very lorv morning temperatures(as low as1l "Cj. Therewas flo indicationof sucha problem in Manitobq but we did have somebrief indicationof mal-fl:nctionduring warmup in NewarkN.f., (seebelow) whereit wasjust belowfrsszing and we hadleft the bus overnight during a snowstorm. More likely the problemwas causedby water leakage into the programmable,controller located aft in tfte bus

Bus servicewas liriited by the capabilitiesof the electrolyzer(capable of generationat most of I kg/hr), and of limited storagecapability. The bus operationwas limited to four hoursper day, donejust after the fueiing in the morning.

2.3 The University of Manitoba Ridership Suruey3 The riders perceptionof the bus was measuredby a suwey of ridersdone by the UM Vehicle TechnologyCentre. The HHICE buswas run in regularfor-fare serviceon a routerunning approxirrately 30 kilometers,from theRed River Collegecampus in Northwestliliruripeg to the Southeastparts of Winnipeg. The objectiveof the studywas "experience", to obtainriderJevel feedbaok regarding the HHICE bus with particular ennphasison: o Comfort aspectsthe IIHICE bus (ride quahfyand temperaturecomfort, in particular) " Responseto the conceptofhydrogen fuels and their r.rsein this application. Universityof ManitobaTransport Institute interviewers were onboardthe bus, distributedblank surveyforms andserved to aid asneeded and to collectthe surveyform beforethe respondentdisembarked. The questionnairewas developedincorporating feedbackfrom a rangeof Vehicle TechnologyCenter members and survey e4perts witlun The respondentswere supplieda complementarypen, stamped WinnipegTransit. 'Winter "Vehicle TechnologyCenter, Hydrogen Bus Test2005", to usein filling out the forn aswell as an exXlressionof appreciationfor participation.

As the bus operatedfrom the Collegecampus, it is nat surprisingthat nearlyhalf the participantswere under the ageof 35, with an additional26o/o inthe 35-54age group. Femalerespondents outnumbered male respondents by someB9/o. Over half of the respondents'wereriding eitherto or from worh orto or from school.

Key resultsincluded: . Ride cornfort- 47%found the ride muchmore cornfortable as compared to the regularbus, 360lo reported "sotnewhat better"

,t We sau,a ferv drips rvhich stoppeddrrriug later operation.although the problen did rot reocclrr$hen r'r'e had sinilar lerrkagedrniuga laterbus $'ash. Leakage paflu lur.e srrbsequentlS'beensealecl nsing a double barrierof ruastic, 3 l. Ptllttils anclA. Hiclisorr Hldrogel H1'bridInter:ral CorubrrstionEnghe Bns - WiruripegRidership Sun.e1'.Vehicle Teclruologl'Centre. Uuitercib' of lv{a-uitobaTransporl Instihrte lrtl'rv.trrttti.ca. Iitf;uch 2005

HHiCE Tinal Pg.7 of 1l 61231200s Temperaturecomfort - 69%of the respondentsreported zuperior tsmperature comfort Smoothacceleration - 80%of respondentsconsidered the HHICE busto be superiorin tenns of smoothaoceleration SmoothStopping -76% of respondentsthoughtthe bus was better, 18% said it wasthe same. Noiselevel - ?lYo foundthe HHICE busquieter than the regularbus, 180/o said it wasthe same. When askedto describethe best and worstfeatures ofthe HHICE bus, a variety of responsesresulted:

Bed Feattrres-*i---*-* of the HHIGEbus PercentTf

iAopearance 10.6 ! ii--f5:::-;:..-"--- i$eats ! 10 I isOacious t 7 I E$ronmentaieenefiisi- 6'8 -i iNo i 3-5 : iJ-----*-q-':oull cordsr--- --*-.--l ,NenvaModem t 2-7 L--- 2-7 iHydiogentuel ------*-+ 1 i 'Clean. 2.2 r--+--- neat '-1..-----*-"--- iTemperaturecomfott i "Worst r Thebalanced request for the featureof the HHICE bus" resultedin 39% responseof "NothingA{o badfeatures", 5.7% did not like the seating,S-IVo protestedthe noisy heater,and from Lto 4Volisted -- windowstoo darh no pull "still cords,bright interior colors, signagenot in Frenctr,temperature, haveto "aisle pay'',seating, windows can't open,and spacetoo narrod". oomueh The overall assessmentwas that the HHICE buswas either better" (487o)or somewhatbetter (33W.

Theriders perception of hydrogenfuel was largelyfavorable, with62a/othinking it a very goodide4 andanother 29% thoughtit a goodidea. Respondents taking the bus5 to 10 timesthe weekwere the mostpositive about the technology ('very good idea",TZYI)and maleswere predominately favorable (75W.

In responseto a questionaboutthe positive feafirres of hydrogenfuel, 51% citedthe environrnentalbenefits of hydrogenfuel, while only 6% citedthe ability to savefossil fuels or to provide an altemativgto gasoline.a

a T1e readershould recollect that this sun'ey was taken in Canad4an ail expoting county!

6/23/2005 HHICE FimI Pg.8of11 Negativeaspects of hydrogenfuel were almosta non-issue,43Voof respondents indicatingthere were no badpoints, 39% did not respond,Soh e4pressed concern about cost,and 2.7Vswereconcerned about safety'

2.4 The HHICE Bus Tour$ the Enst for Demonstrations-March 17-31

As Ford Power Products(FPP) has provided the enginefor the HHICE Bus, and bothF?P andFord Scientific Laboratories haveprovided essential technical support,the bus was brought directly to Dearbornfor demon-strations following the completionofwinter testingin Manitoba. The bus was transportedfrom Winnipeg toDearborn, MichiganMarchtr 5-17" Fig. tr1 -- AFord poweredbus in frontofWorld,El4q#g{* andwas shownto Ford, andthen in the cities of Buf[a]o, Albany,Montclair Nl NewarkNJ, and WashingtonDC

Figure 12 showsthe bus refuelingat the Shell station on BenningAvenue in NortheastWashington. This is the first facility to havea hydrogendispenser sideby sidewith gasoline dispensersand even a conveniencestore kiosk.

As the US GovernmentFederal Transit Adrninstration was a major contributor,the bus was shownin front ofFTA headquartersMarch28 (in a downpour!)and a demonstration drive was donefor interestedDOT personnel.The bus stayedin Washingtonseveral (WMATA), refueled days,-Shell-was drivenby severalof the driversof the host transitagency at andserved as a shuttlebus for theNationalllydrogen Associationconvention.

6t23n005 HHICE Fiffl Pg.9 ofll 2.5 Return to Sunline and RevenueSerryice The bus was trucked back to the west coa$tin earlyApril andhas subsequently re-entered revenueservice. As the bus returnedto servicethe weatherhas warmed, and the hot weatherservice testing has commenced.s The fan speedsare prograilrmed, and increased fan speedswere introducedfollowing someindications of excessivetemperature. Another stepin copirg with summertemperatures has beento replacethe 190 degree thermostat#th an open flow 160 degreethermostat. Preserfi engine compartment temperaturesappear in the rangeof 180degrees F.

3. Next Steps- Further improvementsin control & emissionsreduction Although ttretUUCg bus offers promise of extremelylow emissions,it doesnot offer the full potentialof hydrogenfuel unlessits emissionsare reduced to neadyzero, below parts per million level, atlowing the systemto be ratedas an EquivalentZero Emission Vehicle. HenceISE has beencontracted by CalStartfor continuingwork with the goal of testing advancedenhaust gas treatment solutions.In discussionsat the Ford Scientific ResearchLaboratories March 17-I I Ford staffvolunteered that they were usingNOx absorptionin their laboratory enging with excellentresults. Theyvolunteered to share information ifwe could find a way to test anabsorption package on a bus. Thuswe are encouragedto implement NOx removal on boarda vehicle, with the goal of providing a bus with qualities similar to that of a fuel cell vehicle. "cutaway" Ford hasseparately done dwelopment of a smaller bus using an engineof similar (V10, 6.8 liter) proportions. Howwerthe Ford busis a conventionaldrive-trairL not a hybrid, and hencethe needfor rapid engineresponse to accelerationcommand has led to useof a supercharger(as comparedto the turbochargerused in the HHICE bus). The Ford teamhas put considerableeffort into dwelopment of new control systemsusing the new "SpanishOak" proces$ors.

ISE will work in concertwithFord to developimproved sy$tsms. There is room for considerableimprovennent in control strategiesand engine control software. The system presentlyhas a tendencyto have excessivetlrottle openingand oscillation, which is expectedto have adverseeffects on emissionsand fuel consumption.A specificationfor improvedsoftware has been written andsubmitted to possiblevendors, and ISE is looking for funding to $upportsuoh further development.

ISE hasplans to proceedto California certificationwhen an appropriateconfiguration has beenfinalized to meetEZEV requirements.

5 An ambienttemperahrre of 112 degrees(44.4C) was reported as the bus was in senricemi&day May 22, ?005.

HHICE Ftunl Pg.l0 of11 Presentations: It is the policy of I$E to periodicallyreport progress at appropriatetechnical symposia' The following presentationshave described the HHICE developments: r David M. Maeaikaand Paul B. Scott,Hydrogen Fueled Buses:Demonstratiott mzdoutlook, Zfro3Fuelcell Seminar,Miami Beac[ Nov. 6, 2003 . David M. Mazaikaand Paul B. Scott,ZEV andnearZEV HearytDu$ Hltdrogen Hybrid Electrics,EVS 20, Long Boac[ Nov' 18,2003 r paul B. Scott,Hydrogen: Exampleson theRoad to the ForeverFuel, SanDiego EnergySeminar, Nov. 20,2003 . panl B. Scott,Tavin Tyler andDavid M. Mazaika,Hydrogen Fueled Hybrid AssociatioqLos Angeles,April 2'7,2004 Elecyic Busis,NationalHydrogen "oil" r PaulB. Scott,Utility ScaleWind Hydrogen - Whatwill Horne-Grown Cort?,Windsor Workshop, Toronto, fune 17, 2004 . paul B. ScoEAltetnatite Fuel HybridElectric.Ba,ses,Windsor Workshop, Toronto,June 16,2004 . paul B. Scott,HHICE - Hybrid Electrtullydrogen ICE Buses,California HydrogenBusinessCouncil, Sacramento, 17 Sept' 2004 . PaulB. Scott, Progressin HydrogenFueled Buses, Canadian Hydrogen Assooiation,Toronto, 27 September2004 c paulB. Scott"T. Tyler mrdC. Copeland,Hydt'ogen FueledHybtidElech"ic Buses Cell * and.fromwhenci theirfuel;presentation to CanadianTransportation Fuel Alliancg 18 January2005 Paul B. Scottand Tavin Tyler, IIybridICEs or Fuel Cells: Comparingthe 30 nyar.ogrn BusTechnologies, National Hydrogen Association' Washingtorl March 2005 PaulB. Scott,presentation to DOE CleanCities HZ-CNG workshop,3 May 2005

6t2312ffi5 HHICE lhal Pg.11ofll AFFLTCATNOHF'ilR TR,AHSPORTATI#I{F'[ND FOR.CLEAIq AIH. RTGIONAT F'IINBS FY ?0ft5/fi6

Granf Froposatr

AC TRAI{STT Demonsfrationof Green-Fowered f{ydnogen Electro}yzer F'uelingStafion

ATAMEDA-COhTTRACOST,{ TRANSIT DNSTRICT {AC TRANSTT)

June30" ZS0S . APFLICATIONFORII/I FOR TR,A.NSPORT'ATICIN FUND FOR CLEANAIR REGIONALFUNDS FY 2005/06 INSTRUCTIONS t CompletePads 1 through7 for allapplications. Also complete the appropriate supplementary project infor maiion sheet(s)for yourproject type (seeparts I through15).

SUEMITTAL Submitiwo {2) hardcopies of thisapplicaiion form io:

JuanOrtellado GrantFrograms Manager BAAQMD 939 EllisStreet SanFrancisco, CA 94109

Allapplicaiions must be.received by theAir District no laterthan 4100 p.m. Thursday, June 30, 2008. Hand-deliveredapplications should be deliveredto ihe TFCA,7th flooi, at the abovsaddress.Applicaiions will lot be acceptedvia fax or e-rnail.

PARTT. SUMilIARYINFORMATICN . AgencyName: Alameda-ConiraCosta Transit Districi Dateof Application: June 27, 20As

PrimaryGontact Person: JoanMartin JobTitle: Grants Manager

Phone# (510) 891-7253 Fax# (S10) Bg1-71 ge E-mail;[email protected]

MailingAddress of PrimaryContacL 1600 Franklin Street Oakland,CA 94612

SecondaryContact Person: LionelVera

Phone# (510)8s1-7262 Fa# (810)Be1-7139 E-mail:[email protected]

Name& Titleof PersonAuthorized to SignFunding Agreement: Rick Fernandez, General Manager

MailingAddress (if different frorn Primary Contact above):

ProjectType (see p. 2 of the ApplicationGuidance); lmplementation of low-emissionand zero-emission vehicte projects

ProjectTitle: Demonstration of Green-poweredHydrogen Electrolyzer Fueling Station

TotalProject Cost $915,000

Amountof TFCA Regional Funding Requested: ${68,000 Page1 TFCARegional Fund Application Forrn FY2005/06

PART2. PROJECTDESCRIPTICN:

4,.Provide a concisedescription {who, what, when, where, etc.}:

AC Transithas raisedover $20 miflionto buildone of themost comprehensive hydrogen demonstraiion programsin theworld. Three 40' hybrid-electricfuel cell buses - thernost advanled buses in the world - tlvo hydrogenstations (a grid-poweredelectrolyzei and a largenaiural gas steamreformer) producing 174 kilograms of fuelper day, a fleetof nineorten Hyundailighi-duty fuel cellcarJ, and an extensiveevaluation and education prc9ram,define the broadscoPe of AC Transit'sprogram. Over ihe nextfive years AC Transit'sfleet of hyorogen vehiclesand fueling faciliiies will demonstrateto the worldthe benefitsof a trinspoftationand energy future besedon hydrogen

FerliarrhicLr rrv rraar vsr joined partnership J , AC Transit in withAvalence, LLC of lviiliord,Connecticut (see Appendix D), to submita secondstage proposal to the,U.S.Department of Energyio buildan enefgy-efficieni,solar-powered electrolyzerat AC Transit'sD-2 operating division in Emeryville(iee AppendicesA ind B).The purpose of this project is to demonsiratean energy-efficientelectrolyzer that produces hydrogen under piessure, with the aid of photovoltaicsolar panels. A pressurizedproduction system would eliminite ihL needto useenergy-consuming externalcompressors to pressurizehydrogen after production.The Avalence electrolyzer system offers the potentialof a green-orientedand energyefficient solution to hydrogenproduction. Thi A.vallnceelectrolyzer wouldproduce between 1Okg anC 201<9 of hydrogenperday, primarily powered by solarpanels(seeApfendixA). We thinka small-scaledemonstraiion of theAvalence technology at AC Transitwouldrbe of considerable value in two ways'Firs.t, it wouldallow us to expanciour hydrogen fueling opiions to ourHrneryville ciperating division, wherewe don'tcurrently have a hydrogenfueling facility. Ttris wouid nicely complement.,our:primary steam reforminghydrogen staiion at ourOal

Avalencehas applied for a $750,000stage ll grantunder the Department of Energy,sSBIR grant program (see ,,i' AppendixC)' Thefunds from this program will enable Avalence to design,build, an-d installJgreen-plwered electrolyzerfor AC Transit.AG Transit, in turn,would be responsiblefoi obtainingpermits and instaliing necessary utilitiesand foundations, which are estimated to cost approximatety $ids,ooo. AC Transit wLutd also be responsiblefor ongoing maintenance and operation of the elecirolyzer and photovoltaic cells. An estirnate of theselatter expenses is approximately910,000 per year.

Avalenceis expectingto hearfrom DOE in the next month, if theirgrant application has been accepied.

E, Explainhow this projectwill reduceemissions from moforvehicles: proposal "well-to-wheel," Tlris is an excellentexample of a zero-emissiontransportation project. Not only would thevehicles be zero-emission, but the productionof hydrogenwould be freeof airpollutanti and global-warming CO,emissions,

G.Name any otherpafticipating agencies and describe thelr role in irnplementingthe project: None

Fano ? TFCA FundAppllcation Form FY2008/06 the implementation areatorffi or corridor, , county,etc.); The hybrid buseswill be utilizedthroughout the AC Transitservice area, comprised of 13 citiesin the EastBay and unincorporated the areas of westernAlameda and Contra Costa Counties. rfrey witfne;J;;;; ilf*rd.,. routesin the citiesof SanPablo, Richrnond, El Cerrito,Albany, Berkeley, Emeryville, oakland, piedmont, Alameda, San Leandro,as well as unincorporatedareas of w,-siernAlameda and Contra Gosta Counties.

FART3. IMPLEMENTATIONSGHEDUI.E: Providea detailedimplementaiion schedule, including project start date, completion date, and key milestones. Yourimplementation schedulemusi complywith ttre lrCR project-readiness'policy;seepolicy *i t inAppendix A of the ApplicationGuidance.

Activity or Mllesione* EstimatedGompletion Date

AwardPurchase and Service Contract December2005 DetailedDesign of System July2006 GomponentDemonstration September2008 UnitFabrication March2007 UnitInstallation and Commissioning September2007 (*See.AppendixA)

: rj' PART'4. BUDGET

Provide'totalpqjec!.budge[,broken.put by majorcaiegories of costs:i.e., capital,costs;operating expens.qsi ,] ,.i,-r : , -personnql,'-etc.,,Capital:costsand.operaiing coEts.must be separately identifieO. ,Any indir:ectcosts Dr.fF6A,rqrant, . .,;- adrninistrativecosts rnust be specificallyid.entified as a sepafateline item, SeeApplndix'G iin ,the ;TFCA AppTicationf '- Guidancedocurneni,forexplanaiion o{ qfigible TFCA costs. (Budget may be submitted,qn;a;separate-sfredt.l;l ;

Line ltern EstimatedGost FundingSource

Utilityand Foundation lmprovements $165,000 BAAQMD Fabricaiionand Installation $750,000 U.S.DOE

PART5. FUNDING

FundingSource Amountof Funds Status(Secured, Approval Pending, etcJ TFCARegional Funds requested $165,000 TFCAProgram Manager Funds U.S.Department of Enersv $750.000

Total Funds $915,000

Page3 TFSARegional Fund Application Form FY 2005/06 Listeach funding source above. Attach documentation for all matching funds in theform of a resolution,adopted budget,letter of fundingcommitment, or contractfrom funding agency. lf thisdocumentation is not available to be includedwith the applicaiion, indicate when you will provideitto theAir District.

Pleasenote that Avalenceexpects an announcementfrom DOE regarding project award by earlyAugust anda contractto proceedby September30, 2005. 1) TFCArnatching funds reguirerneni:Project spon$ors requesiing more than $150,000 in TFCA Regional Funds mustprovide matching funds from non-TFCAsources that equal or exceed10% of ihe totalprojeci cost. (TFCA CountyProgram Manager Funds do notcount toward fulfilling this requirement.) See Policy #7 in AppendixA ofthe ApplicationGuidance.

Page4 TFCARegional Fund Application Form Fy 2005/06

FART6. CLEANAfR FOL|CIESAND PROGRAMS (EVALUATTON CRtrTER|ON #3)

Thepurpose of EvaluationCriterion #3 is to encourageagencies to adoptpolicies and programs to irnplementthe TransportationControl Measures flcMs) in the Eay Area GleanAir Plan(cAP), To apptyfor pointsfor TFCA 1| Crtterion#3, completethe sectionbelow. A maximumof 10points will be awarded.Check the boxfor eachTCM U thatyour agency is irnplernenting.This applies to all TCMsyour agency is implementing,not just the TFCAproject ineludedas a part of this appiication.For each box that you check,provide a brief paragraphon the following page describing: {} the policies and actionsthat your agenayis planningin orderts implement the TGM;and 2) current progress in implementingthose policias and actions. Submissionof TCMswithout thedescription will notgualify for points.To obtaina full descriptionof the TCMs,visit the Air Districtweb site at thefollowingaddressr http://www.baaqmd.qov/plniplans/clean air planll997/1997 cap app e.doc tr TAIUI SupportVoluntary Trip ReductionPrograms fi fCU 3 lmproveArea wide Transit$ervice tr TCM4 lmpr:overegional rail service fi fCm 5 lmproveAccess to RailandFerries tr TOM6 lmprovelnterregionalRail$ei'vice tr TCM7 lmproveFerryr Serulce

EI TCMI ConstructCarpool/Fxpress Bus Laneson Freeways tr TcM g lmproveBicycle Access and facilities fi fcfvl 10 YouthTrenspoftation

H TCM1'! InstallFreeway/Arterialtraftic Operations Systems ft fCnnlt lmproveArterial Traffic Management fi lCfril13 TransitUse lncentives tr TCM14 TripReduction Services fi fArul15 LocalClean Air Ftans,Polisies, and Programs

H TCM16 lntermittentControl Measure / Fublic Eclucation fi fCnrlf 7 ConcluctDemonsiration Projects tr TGM18 lrnplementTransportationPricing Reforrn

D TCM19 PedestrianTravel tr TGM20 PromoteTraffia Galming Measures TFC,A-Regional Fund Application Form Ff 2005/06

{cohtT.} PARTG. CLEAr\rAIR POL|CIESAND PRSGRAM$(EVA!-['ATION CF.[TERlOhl #3)

providea bniefparagraph ior each boxchecked on the previouspage, describing: 1) the policies and actions that youragency is planningin orderto impienrentthe TCM;and 2) curentprogress in implemeniingthose policies and actions.(Provide a descriptiononly; Air Districtstaff will notiflryou if supportingdocumeniation is reguired.)

TCM3. lrnproveArea*Wide Tr:ansit $enviae. Beginningin the 1980's,AC TP-ANSIThas continued efforts to modernizeits' routesysiem via projectsand service chango**system-wide. These project-Rlchanges inclucle, among othens: Transbay Seruice {additiona! tr-lps added to .Welfare-To-Work" AM & PM pealtperiods); projectsproviding actditionat bus services to assistlow-incorne "OWL" residentsand welfare recipients in seekingand getting to jobs,particularly via late nightand service;and the"Rapid Bus" project along the San PabloAvenue coridor (improvements in passengerconvenience, travel timeand reliability).

TcM 5, lmproveAccess to Rai! and Ferries. *Feedei"Bus Service"projects, oiiginallir funded via regionalTFCAfunds, include a',Iu'aim $pi'lngs/A0E Feedei Servicewhich added two routesmeeting two trips(four trips in eachpeak period), and the Ardenwood/Gateway/FARTproject which aclcleci two additional peak period tnips and a mid-daytrip. Also,AC TP,ANSITand,DART entered into an agreementto provideparatransit services in thelrcorfliTlon service areas,

TCM10. Youth Tnaneportation. Beginningin August20A2. AG TRANS|T,in conjunctionwith school admlnistraiors, developed, implernented, and prornotedthe annualstudent pass progfam for publicmiddle and high schoolstudenis in itsservice area. This ;initialprogram provided free monthlybus passes to thosestudents who qualified for thefree or subsidizedlunch programat theirschools, with othensiudents eligible to purchasea monthlypass for $i5 (a45% reduation from the previor-lsprice of $24. This programwas iunded prinrarily by $'l millionin [-owIncome Flexible Transportation (LIFT)funds from the ttlTG,District funds, and othensources. Due to a reduationin funding,this prograrn was modifiedthe followingyear so that all siudentswere able to purchasethe monthlypass for $15, eliminating the free pass.

TCM12. lnnproveArtenial Traffic Management. ACTRANSIT received funcls (via TEA-21and STIP)for severalimprovements along $an Fablo Avenue, which operatesfrorn Oakland io Richmond.These *improvements" in bus service includer newer, low-floored buses to facilitateboading; transit priority capabiliiies that givebuses green lights at trafficsignals to helpspeed trips; "bypass"lanes that helpspeed buses through traffic 'chol(e" points; signaI inierconnections coordinating more than 60traffic lights to irnprovetraffic rnovement;upgraded streetscapes, with medians and re-paved lanes designed to improvetraffic flow and pedestrian safety; and electronictrip-arrival displays for passengersat busstops,

TCM'!3. Transit UseIncentives- ACTRANSIT has received funding to sonstructup to ninetransit centers within its'service district, five of themat BARTstatisns. These centers €llow severalbuses from different routes to be presentat onceso that patrons can transferwith minimumwaiting periods. The transitcenters located at BARTstations accomrnodate intermodal transfersto facilitateboth regional and local travel. AC TRANSITcontinues to promotethe TMNSLINK universal 'smari ticketing$ysieffi (equipping ali new buseswith the card.fare paymenisystem), the usage of i'rssiudent pass program,and "bike-fr:ienclly"buses as some examples of the advantagesof usingtransit.

Dcno A TFCARegional Fund

TCM15. Loca! CleanAir Flans, Policies,Frograms. AC TRANSIThas addedthree hydrogen fuel cellbuses ts lts'fleet.These buses' engines are designed to reduce emissionsto zero by dischargingonly watef vepor into the airvia the combinationof hydrogenand oxygen (withoull combustion)io generateelectricity. In November2002, the BayArea's first hydrogenfueling siation was installed J at AC TRANSIT'sRichmond Division, built in conjunctionwith the Calitomiafuel Cell Fartnership, to expandthe travelrange of the Partnership'$fuel cell vehiclebased in Sacramentoand enablingthem to regularlytravel to the ""two-s"troke" BayArea. AC TRANSIThas also implernenteda progrumto replace dieselengines with 'foup-s1gkg" engineswith reducedpollution. Via a TFCAgrant funcled in 2004,AC TRANSITis replacing10 to 1S,30'diesel buseswith heavy-duiy gasoline hybrid engines which bum cleaner and are moreenergy-efficient

TCMf 7. Sonduct DemonstrationProjects. The StudentPass Program was originallyconducted as a demonstrationproject in 2002to helpraise student attendance.The NextBusdemonstraiion provides reaLtime bus anival information permanenily along the $an PabloAvenue corridor. An additional50 busstop displays are being installed along this corTidor, while planning expansionof the systemto all AC TRAN$ITirunk lines and at the FruitvaleBART slation is underway. TFCARegional Fund Application Form FY 2005/06 PART7, PROJEGTINFORMATIoN (PRoVIDE DOSUMENTATION AS NOTED) YEs No N/A A: Haveyou attached the required Resolution from your Governing Board I -- authorizingthe submittal of yourapplicaiion and identifuing the individual authorized to submitand carry out the proposal? Resolution Forthcoming.

B. Haveyou attached documentation for all matchingfunds that will be appliedto theproject? I I C, \Afillthe projectdirectly benefit Disadvantaged Communiiies? (See Anplication Guidance, X_ _ EvaluationCriterion #4.) To receivepoints, you mustexplain which comrnuniiieswill benefit and providedocumentation as an attachment to yourapplicaiion.

D. Forbicycle projects, provide docurnentaiion that the project is included in e countyvridebicycle plan or countSrCong+stion Menagemen'r Pi'ogram? (SeePolicy #35 in ApplicationGuidance.)

Applicanisfor shuttle pro.iects must compleie questions E throughG below:

E, ls yourshuttle application accompanied by lettersof supportfronr all potentially affectedpublic transit agencies? (See Policy #34 in the ApplicationGuidance.)

F. Ameiicansr,vith Disabilities Aci (ADA)Requirements: 1. Doesthe shuttle/feederbus providingthe service meet the ADA vehicle standards for wheelchair accessibility? 2. ls iherecomparable paratransit service provided to eligiblepersons with disabilities?

G. Willservice be providedby one of the shuttle/feederbus vehicle types in Policy#34 (a - d)?

$upplementaryFroject lnformation Sheets follow on pages7-16 of thisapplication form. Compleieand attach ontVthe appropriate sheet(s) for yourproject type, as follows: I RidesharingProjects - PartB

Shuttleand Feeder Bus Projects, Vanpool Projects - PartB & PartI

RegionalTransit lnformation Projects PartB

Rail-Buslntegraiion Projects - PartB

SmartGrowth & TrafficCalming Projects PariB

ArterialManagement & Signal Timing Projects - Part10 (Sections A-G)

TransitBus Traffrc Signal Prioritization Projects - Parl10 (Section D only)

BicyclePaths, Lanes and Routes- Part11

BicvcleRacks and Lockers - Pad12

Transit,Shutile, and School Bus Replacements- Part13

Heavy-DutyClean Air Vehicles - Patt13

Repowersto ExistingEngines - Part14

I Rekofitsio ExistingEngines - Part15

PageI IFCA RegionalFund Application Form Fy 2005/06

SUFFLEMENTARYPROJECT INFSRMATIOI{ SFIEET

PART't3. CLEANAIR VEHICLES(HEAVY-DUTY & BUSES)GREATER THAN 10,000 !_Es cw Providethe foltowinginformation - fot schoolor transitbuses, or cleanair vehiclesgreater than 10,000 lbs. gross vehicleweight (GV\4' Vehiclesmust comply with TFCAPolicy #P9 (see tne eppiimiionGuidance,Rppen-aix n;. Note:Applicants must completea separateapplication form for each fueltype (i.e., all vehicles are natural gas, all vehiclesare electric) andftrr each of ihe followingcategories of vehicles:fl'traiisit'nuses; Z) shutlebuses; 3) school buses;4) heavydutyvehicles (other tnarinuseJ;, ano C1 othar vehicle types parningenforcement vehicles, 1e.g., smallutility vehicles etc.). Forexample, a projectsponsorseekingtunAing'toia medium-duty electric vehicle, a medium-dutyshuftle, and a heavy-dutynaturil gas vehicle will need to subrnitihree sepaiate applications

Vehiclesto be Furchased 1. one List vehiclein eachcolumn. Provide the vehiclemake and model, fueltype, engine maker, engine size, G\Aru,esiimated vehiclelife, estirnaiecl_engine life,NO"+ NMHC certificaiion ievetletiginte levels aie 1.g,1.S, g/bhp-hr), 1.2,0'9, and0.6 costof equivalentdiesel vehicle, cost of thevehicle, and eitimated annual mireage. lf estimatesof lifeand annual mileage are differentthan the actual miteage anO tite of simitarvehicle(s) in the currentfleet, explain why. ilA

1 2 3 2 3 Vehicle tssttmated Make EngineLite (years) Vehicle NOX+ NMHC Model' Certlfication Level /o/hhn-hr\ Costof FuelType tl Equivalent DieselVehicle Engine coBtof vehicle Maker (each)

tsngrne Esiimated Size AnnualMileage Ilitprr\ Gross Vehicle Weinht Estimaied * Estimated Vehicle AnnualFuel Use Life (vrs) {qal/vr) " Basedon an estimateof 5 milesper kilogram of hydrogen,One kilogram of hydrogenis approximately equivalentto theenergy value in onegallon of dieselfuel,

plan lndicatewhere you to refuellrechargethe vehiclesidentified in thisgrant apptication. lndicate whether the refuelingirechargingfacilitl is newor existing, lf it is a newfacility, inAiclte now ihe facilitywill be financed. ls the fucility(will it be)accessible to the public? tr YESI NO tf yes,describe the public access,

Flna O TFCARegional Fund Application Form FY 2005106

SUPPLEMENTARYPRTJECT INFORMATION SI.IEET

(coNr.)PARr't3. 0LEANAIR VEHIGLES(HEAVY-DI.JTY A BUSES) GREATER THAN 10,000 LBS Gvl/tf | TFCAPolicy #31 requires that an eguivalentexisiing vehicle must be either1) removed from seruice and destroyedot, 2) retrofiitedwith a CARB-verifieddjesel emissicn control strategy to reduceemissions and approvedfor usein therelevant engine. lndicate how you plan to complywiih this requirement. (Note:lf choosingto retrofitan equivalentexisting vehicle with a CARB-verifieddiesel emission control strategy, alsocornplete Paft 15.)

AC Transitwillciestroy the followingten busesin compliancewith TFCA Policy #31;

No, VehicleNumber VIN 1

Submitone of thefollowing documenis indicating the proposedengine's NOx + NMHCcertification level: a copy of theCARB Executive Crder or thepage from the CaliforniaAir ResourcesBoard's (CARB) website (www.a rb. ca, g ov/ms p ro g/ moy erlce rte n g. htm ). iI,:; lf applyingfor funds on behalfof a non-publiceniiiy, as outlined in TFCAPolicy f5 (SeeAppiicatian Guidance, AppendixA), providea copyof thecontract of agreementbeiween ihe publicagency;and non-public entity, includinglanguage indicating contract duraiion. N/A

UnderTFCA Evaluation Criteria #2 (OtherProject Attributes), applications may receive addiiional,points ifthe projectwill reduce exposufe of sensitivepopulations (i.e, children, elderly, people with lung problems) to diesel exhaust.To qualifyfor points,explain how your project will reduee exposure of sensitivepopulations to diesel exhaust,and provide a mapthat identifies locations of sensiiivepopulaiions sltch as Fchools, hospitals, and similarsites.

AC Transitcarries 230,000 passengers each weekday, of which 60,000 are school children. Of our 68 million passengerspef year,17Yo are senior citizens and people with disabiliiies. We operate our buses in populaied "EnvironmentalJustice" areas,many of whichare classified as neighborhoodsaccording to Title Vl of the federallaw. This hybrid buses will operate on any oneof 105routes throughout the AC Transit service area seruingdensely populated urban centers and carrying tens of thousands of peoplewho are considered at ilslcto aircontaminants.

Page10 Avalence/ACTransit PhotovoltaicDriverq High-hessure Hydrogen Fi[ing Station

fdentifieation and $isnifieance of tlre Problem or Opuortunitv. and Technical Apnroach

There is a huge pote,ntialto produce hydroge,nfuel from renewableresources such as solar and wind in distributed-generation,small-scale applications. Distributed generation witt be a critical cornponent of achieving an environrnortally-benign, tuly sustainabie transportation firel supply through the use of hydrogen fuel for a broad range of transportation applications. Electroiysis is the best existing way to use renewably generatedelectricity to produce hydrogen firet. Eut to make this distributed gareration approach practical, Frydrogot generating slecftolys s slsterns rlilrst achieve reliabiliS' levels equivalent to home appliances such as cenfal air conditioning or fumace units (requiring only arurual maintenance). Elimiuation of the separate mechanical compressor,conventionally required to supply high pressurehydrogen for portable and automotive applications, is crifical to achievingthis goal as it is the primary sowce of retriability issuesand mainte,nancerequirements in existing elecrolysis systernssuppiving higlr presstrrestorage scenar-ios. Avd,lenceis developing 41 innorratirreelectrohrsis technologythat produceshydrogen direutly at pressuresup to 7000 psi, as requiredfor dispensingto 5000 psi onboardhydrogen fuel storage. There is also potential for significant energy savings realiusd by eliminating the inefficiencies associatedwitb mechanicalcompressi on.

PhaseII Froiect Description

In flris Phase tr project we will derrnonstatethe ke5, syst€nrs related to safety and successfii commerciai manr.faaiureof a Hydrofilier system that proriuces 175 scft {i0 lcdday) of hydrogen fuel. At the begirrningof the program we will coordinatewith AC Trwrsit ow PhaseII and III partrer on this pro.lect,to e$swe that the Hydrofllier fueling station will meet ttre physical, operaticnral,regulatoq, constraints of ttre proposed installatic'n site at their faciliS in Eme4ndlle, CA. The remainder of the firsf year will be devoted to the system detailed desgn md componentqualification testing required to verifi' the rigorous safety and reliability expectationsof customers like AC Transit, typical of the corrnrercial market that we will initialiy be pursuing rvith ow innovative technology. In the first half of the secondyear we will fabrisate arrd test the Hydrofiller 175 fueling station. In the secondhalf of flrat year we will install the fueling station and the PV array in Emeryvillg train AC transit personneland ftIly commissionthe system. The final months of the project will allow initial revenue sen'ice operaf,on prior to transfening the operating and mainteuanceresponsibilities to AC Transit for PhaseIII operation Antieiuated Fublic Beneflits

Appiication of hydrogen-basedpower systemsin tansportation or portablepower applicationsrequire that a volurne and weight optimizedhydrogen storagesystem be used. Bv eliminating flre needfor a conrpressor"flte Avdlencetecirnology' elinrinates both the noise ftaditionallj' associatedwith the productionof high-pressuregaseous hydrogen, as well as the capital cost and maintenancecosts associated with mechanical compressors.h additi+n, only the Eydraf;ller technology presents the opportuniq' to produce tvrc high-pr€ssure product Streams- bsth hydrogar end oxygen gas, r*rith associatedcomlrercial value. The Hydrofiller rystern o\Iercsutesthese barriers to comrnercialization associatedwith all other electrolysis systems, and thereby expands potential adoptionof point-of-useh5rflrsoen production systems.

The present goal of almost aII autornahersdeveloping hydrogen vehiclesis to store the hydrogen fuel in high-pressure composite cyiinders capable of containing 10,000psi gas.The cornnrercialapplication of this technologytanscends the substantial market for distributed hydrogen fueI generationfor vehicies (both intemal combustion and fuel cell powei-edflEei and agricultrir-alapplications in the near tenx, generalfuel cell powered transportation in tre long term). Sr:rall-scale.renewableEnerry stor4e f,or241'l availability, peali shaving, and load leveiing is also enabied by the successful commerciaiizationof, this technology.

At present there are no cofirmerciall5'available electrolysis systemsin mass production that produce hydrogen fuel at pressrresgreater than ?000 to 3000 psi, Ar'SlenceLtr C has producedlaboratory units flrathave produced h]'d"o*un *el directh,at 10,000 psi and is presentl5'buildfurg custom designedurits that deliver 15 scft of hyCr+gerrat pressuresup t$ 5000 psi. lmplemendngmess prod.uction technic'rues to fabricate theseunits is not yet possibledue to the iimited demandfor units this size. Thouglr we expect the dennandfor distributed hydroge,rrproduction units to increaseover time as flre use of fueI cells and hydrogenfueled intemal combusticmengines grows, the most immediate use for electrolysis is for energy storage and supplyidemand curve matching when linlied to renewableen€rgy sourcessuch as solar,hydroeiectric andwind-

Successfirliy completing the proposed worlc will develop and de,monstrate Ar,filence'srrnique ultraJrigh pressurehvdrogen production systenrs. Our s1'stemscan easily meet mrd erceed DOE's talgets for bolh hydrogenproduction ($2.00/kg)aud compressionto 10,000 psi ($0-1a/kg)with a si:rgleunit ftathas virtually no movingparts excepta circulator and solenoidor pneumaticaliyactuated valves. Thesehigh reliability units can be mass-producedefficiently and reduceboth initial capital and O&M costsof hydrogen production ard storage s5'stems. It is anticipatedthat mass production techniqueswill bring the cosf of our systernsdorm to the $300AtWtmget statedin the solicitation. Eligh-Fressure Hvdrofiller Fueline Stfltion Design

In PhaseI (firnded e;ntirelyby the Deparhnentof Energy) we laid out a conceptualdesign of a PV driven fueling station and perfonned a preliminary design of an appropriatell, 'We sized Hydrofiller fueI generator. then identified key componentsthat need to be developed to enable successfir] commercialization of the PV driven system, This preliminar;' design was used to develop a FhaseII implementationplan with orrrPhase tr and trtr patrrer AC Transit of Oakland, CA The basic blosk diagrnm of the systemis shown in the figure below, The specificationsfor ttre Hydrofiller are shournin tabie on the following page.

Cxygen

lnEfument Povwr,100W 110VAc

UltE.High Pressum Elecfic"lPower Electrolyzer Inpul25 kW 480V AC,30

WaterInput 30spd, TapWater

Block Iliagram of the Fueling Station Hvih'rifiIler 175 -7000iSpecification' iHydrogen Gutpltt il Z;,scft (S;tEm:Ytu*85:slpnr; ilO,k-qi.JaI') EIectroll,te l28o/;IKOH,tr\r sreifr t llvla.riliitrlDeliyefit,F'reszut*, . .,, : i r;7000p SiE, {400: bar) UntreatedGasPruitc >99%,qr iTreated:GasPuiit\",,. i99;999o/o', Tnrpurities: ',r. .,,., ;I.I5rdro_qen Deqi,Fointr +:5oF(".--i2.qf.).,'.,,;1r,,,::i:rr, .. .;1.:.,1 . ., .1.:1,... 0p eratil,g ;Env,ironurent tOtrtaoorlEnCtosure ;@reeze Protectionlnilucletl ) water,Ouafb' Requirea Tap,or;antr'Potable ::Suppl,r' ,,,Water,iTnletEosition,., ,Eutedng,fromilfuder.Unit @asilj Modifi edl S/ater Usage (at rl 009'o:,Dnt-r4 Ily'+eph-r(4;YrrVhfJ ,InputPorl'er ;,, 48 I/ DdlPlldtorroltaicArratiror35;ksl, 480V.'3 phase;60,Il2, 'r ': '.,, IubtrumentrPolver' +:50W.ilil0v=,:I?.hase,{0HZ : Ac ceptaUt.'e ltrlf' ;+ete :0to.l009jo.r(?4i7).,:'i.,,t,:'t'i..'',rtt.;,,':'.il,r,;',riit,,i",;I il'i;.;r:1::i:'1i1,,,t"ii'1, :O=OOoZqOfDeslgnPO$'qr.i..:'...j....'..!'.:'.'..:':,; :: . ,.. -.: ..:,.*.;..:,r:ii ..-..,. i I ,Dirner:sions'i, Rouglrh;5'ftrlbeps9.ft,rvicte xilOfthigh r-: ;' ;'' 'U/elshti ;lnsirillatiou,'r lfppi,qpdateiGrouud nupport,tolPio t".t;p- iprug,Cunn-eCtionsfiomMotiOn

We also specifiedthe flreiing anristorage c1'linr.ier ven'iors 'rhat rve plan to use for the PhaseII svstem. Figure 14 shou-,sa t-r,picalFueling TechnologiesInc. h1'drogenftiel dispenserof the brpe r\re afe elr'isioning for tliis station. FTI $'ill also suppil' tire vah'ing required to flll and dispenseusing a thr-ee- tier cascade apptoach that elinrinates flre need for a flll co$Ipressor. We have also identified Lincoll Conrpositesas ou preferreclln'drooen c]'linder t'endor. Theil pol-r'nrer-lined. 7000 psi conrpositestap r,esselsare ideal for oru storage requirenrerrtsand are conrpletel-r,colrpatible u'ilir KOH. We n'ill iderrlifi' a PV arral' supplier and installer lgorl;ing n'ith oru PhaseII partner AC Transit at flre begiruringof flre PhaseII proiect. AJI of flrese specificationsu'ill be revisitedin the detaileddesign phase ofthe proposedPhase II project.

id rff Fueling TechnologiesInc. Elydrogen Fuel Dispenser The figure beiow is a renderingof the Flydrofiller lT5 wift inte$ated hydrogenstorage. At this point we feel it is likely that a separatestorage eflrcloswe will be usedallowing a larger affrount of hydrogen to be stored in anticipation of very unevenfueling evetrteirl support ofthe tl1'rrndai Fuel Cell Car Fleet that this station will be supporting.

Render:ingof a Elydrofiller L75 wift rntegrated FuenStorage Cytinder-s Froiect TVork Flan

To achievethe goals listed abovewe have brokerrthe work plan into six tasks.These are listed in the table below with a brief descriptionof the u'ork planned. Thefigure on the next pageshows flre proposedschedule for completingthese tasks. We areanticipating a projectstart-up of October2005.

PhaseII Froiect Tasks i) Cooidinatewit*h AC Transit Define Specific Requiremrrrisfor Sititg, Ins-r.alling and Operating'rheFueling Station and the PV Arra5', This includesphysical constraints, safety concems,

2) CompieteHydroflller Design Completethe PreliminaryDesigrr for integratingthe PV Array into the fuel producer mrd then producethe complete fabricationpackage of detailed drarvings

3) PerfonrrComponant Build and demonstratethe key componentsthai arG Demor:slration Testins unique to this systernand identi_fied to be critical toward achievingthe safeff, reliability, or cost effective nranufacturingnecessary for a commerciallj'

4) FuelingStation Fabrication The hydrogenfueting stationwiII be fabricated,proof tested, andpaokaged for 'We shipping to AC Transitin California" anticipatethat the fuei producer,the H2 storagg andthe fuel dispenser-will behoused in separateencloslres. The PV ar:ay will bebroken dqwn andryafied for shippingto AC Transit. 5) FuehngStation Installation The Flydroflller fueling stationand FV aoayrviil be- ald Cornmissioning instaliedat AC Transit,transit persorulel will be trained, andstart'up operalions will be supervised. Significant efforr on ltre part of AC transit will be

6) ProjectMarragernent and Technicalprogress and spending wilt be monitore{ Reporting project meetingsheid, progress reports written,DOE revie\a'meeting_singsheld. anda final report written Phrue II Pmject Scheilule ?005 2006 ?007 FmjcEtMonth Ehdlng8 ld/l'ld )rf/Jdn iel/Mtr AglvtEy DtyJl! crJgb+ ).t/Nov JCor'JU redMfi cp/May E/JDl $+/E+ I lrqiact Tash

Cmrdinrts wfth AC Trarult

Delatled DeriEn

:om ponent DrFohrtretldbs

UnItFabrlcotion

Jilt lnstallation and Comm iEBioRinE

Leporting a nd Mnnlgrbent * s REDorts * # *

I

t Avalence Information:

CorTorateHeritage

Sister companiesGas Eqrupment Engineering Corporation (GEECO) and Electdc Heating EquipnrentCornparr, (EHECO) have teamedto fonrr and support a liruited liabili[, corporation. Ar,SlenceLLC. to bring to r:rarket electrolysis procincts baseci oll our r:nique co-adal con-frguration.Tire pdruq' prodrrct addlesses tire need for a product that produceshl'drogan fliel f'or frrel celi aud interna] courbustionengine vehicle use. The basis for flre Avdlence HydrofiHer teclurologf is an adaptation of a proven desi*anfor lor'-pressure electrol]'zers used Il' Eleotric Heating Equipruart CornparrJ' (EHE) (one of Avd.lence=sfounding cornpanies) for industnal applioations. since 195-5. Upon incorporation.Ar-dlence assutled all rights to the EIm ehctroll'zer product lirres. and prcceededto subrnit patent applicationsfol its innovative ultra-high pressure electrolltic process. The f,grrre at riglrt is a photographof a [,-piaal EIIE svstenr.in ttris casefl.l6q;-pressute eleatrolvsisunit nnanufactured[r1' EIIE built for supph,iuglrtdrogerr to fill u'eatherballoons for tire Taiu'atreseAir Force. Electric I{eating Equipment Company Electrolysis System

Gas Equiprnent Engineering Cotp. (GEECO) designs and manufactures gas processing equipmentcomponents and systems- The companywas incorporatedin 1921"and during its early yearswas active in the developmentof plants for the commercialproduction of carbon dio:ride. Later, the product line was expandedto include plants for the generation of other industrialgases, such as ox1tgen,nitrogen and hydrogen. More recently,GEECO has developed and produceds}'stems for the pwification of gases. Another specialq' is equipmentfor the transfer and temperature conditioning of gases. Many of the gas separationand puriflcation systemsthat have been prodtrcedinvolve operationat cryogenictemperatures. . Irr addition, GEECO has estabiished a long iristorS'of suppl5'inghigh qualiS' and externely reliable cryogenic plants f,or flre U.S. Departmentof Defense, The figures on the next page are a photographof one of GEECOs Nzi0z plants for use on aircraft ca:riers, a diagram showing tJre location of GEECO oxygen and nitrogen plants on US carriers. There have been no s5rslsm failwes in orrer40 years of active senricedemonstraling the reliabiiiq, of our products. GEECOUg NAV}' INSTALL*TIONS ACTIVE IILEET

sHEh#rilEl

GEECO Nz/02 Plant Installation Lo cations

Avdlence Infonr:ation

Oru facilit5' (shonn at right) has roughll' 12.000 sqrrare foot mzurufactuing areq py6lridingtJre capabili[. for machining. metal forrniug. n'eldirrg, braeing. ruechanical assemblv and performance testing of our equipnrent. The quatitl,- control center ocoupies 670 squarefeet, and tlre test area about I.050 squarefeet, The shop operation fircludes fiiro ftve-tott or.erlreadcrarres and t$o for-klifts. AvElence's sister cornpanr,. GEECO. is Photographof Facility in Milforrl, CT certified for the production of ASME codedpressure vessels. The shophas all flrenecessa_r1. facilities for testingflie q,stemsit manufactures. AvElencehas produced three complete high-pressrue electrolvzer E'stenrs to date. Our Alpira rrnit is a srnall FV or grid driven rurit that produces15 scflr at up to 2000 psi. The resultsof testingthese cells driven directh' frour theran' output from n nonrirral12 Volt solzuis Iatgeh' reportedin the resultssection (2.1.3) of flris proposal.In addition$,e ha1,e fabricated zurd testedflvo oflrersvstenrs, a t? scft/2500 psi q'stemused in*house for conrponentald subsysteni testing and a 15 scflr/Z5t)0psi svster:rfor the CheuonkiEnvironnrental Institute in Wiscasset. Maine. AII Ar.rElencemanagefiIent has extensivemanufacturing espefiise, Mr'.Jacl+onhas over 40 r'ears of eriperiencein rnanufactlring of elecbicaland electroll'tic equiprnent.His detailed lurorvledgeof lvelding. machining,sand-blasting and other production processesoontribute to iris abilig'to streanrlinethe rnanufacturingprocesses- rcduce lead tinres andirrprove profltabiiih',

Mr. Shiffiko has a stong backgroundin mecharicaldesign and oftensewes as prlnciple shakedowntest engineer. IIe was intimately involvedin the fuftial bench-topand prototype udts fabricated during the l{ydrofilier deveiopment progranr- ,tfter compieting the resting of the initial bench-top ':ni! he refined fhe s5'g1smdesign based on tle perfonnance md operathg results. He l*,'asresponsible for the process,corrhol andinsturnent designof thefirst-generadon rurit presently in fabrication.

Mr. Seven Weiss, orr plant engineer, leads mechanical and overall ptant design effort. IIe has over 15 years of experiencein the fuel cell and process equipmmt iniiustries. He personall5'performed the majoritv of the design worlc and fabrication supervisionon the successfullab unit and Chewonlii unit efforfs.

Ttre shop personnei have been manufactr:nngindustnal equipmeni at this facilify day ur and day out since 1962. ShopForeraan Mr. NelsonCurtis has over 30 yearsof er*periencein the fabrication and operation of gas processingplants, with a broad and rrariedbacicgrorrnd irr the field of cryogenics rnmrufactwing. He is lhoroughly familiar with the arts and skills of machining, metal forming brazing, welding and pipef,ttings, and also with the applicationof theseslcills to the fabrication of equipmentcomponents and their assemblyinto completeprocess systsms,

In addition to those describedabove, we have accessto office staff, urgineers, flre.l.r{technic.ianE_. and shop staff'n,ith many j/ears of experiencein the fubncatisn tnd tesfug of gas generatingequipment- I.IYtrRFEEN ENEFGY TEME

Mr. StephenCnnlk April lt, 2005 HydrogenFrogram Mamger U. S.Departnent of Energy EE-2H 1000hdependence Ave." SW Washingto4DC

Re: DE+G0244ER83905 PhaseIII Comrdtment

Dearlvfr.Chalh

As AvElence.LLc i$ tlre prinra4' applicautof flre techuologldenolstration pro*eFamfor the above referenceclgpant. and inmy capacifi'ssCEO arid ma.iorih'shareholclerof Avalence. LLC. I rvorrldlilie 16 eqlress6111 gsmrrritnreut of fimrcial support.nnd enthusiasurfor tlre PhaseIII technolog'clemomtation progmtnfhat evohIEEfrour thePhase I (completed;nud Phase tr plrasesof thispro*egalr.

Our Phasetr progam will euble us to design,build andinsull a Hydrofillel fusling statiotrto supportthe AC Transit @mer5ville, CA) fleet of tight-duty vehiclesrmder the Deparment of Enerry's (DOE) Technolog' Validation prog:um This hydrogenfireling stationis likely to be a candidatestation designatedas pafi of Califomia Govemor Schwarzenegger'sHydrogen Higfuwaynets,orh

Upou tbe succesffirl completiol cf this Phasetr progralr Ar'filence,LLC rvill erpend a mininruruof $375I{ of AvElenceiuternalfrrrrds overseveral I'eals inthe Frocess0f commercializingtliis teclurologl'. The effort invested1s ssnrnrertialize tlis teclurologl'r'ill be pacedto be consistentn'ith tlregrowing opportuuitiesarisingfrom the developneolsucl inTleruertatiotr of the lrydlogerr-flielecltansportation uradiet.

Frnm its imeption-AvEleuce lms beeu conuuifted to theadvaucement of strstailabtetrarupoftntion- and \$e areproud to offer a tnrll'unique teclrrrologl,advarfiage tlrat can acceleratethe trauitiol to a cleal trar:sportatiotrfufiastnctnre in flris natiou.

Sincerelv. (lJl"J'-r/lr^^,

DeborahI{. Moss CtsO

| 24O Oronoque Road' PO Box 2?-46. Milford, Connecticut06460-1 146 . Tel: I0&7OI.OOEA . Faxr2O3'878-41 23 unnnry.Avalence,com ffiEE-rffi*'r, ffiffiffi{trffi Alsmedo-Confro CoshoTro nsit Disfrict Rick Fernsndez,Generol Monoger

April 11,20Os

Mr. Manin Shimlco g4ealrtive Vice President Avalence LLC 1240 Oronoque Road Milford" CT 05460

Dear Mr. Shimko,

well I woutd like to ihadc you for hosting Doug Byrne and Stuart Thorxpson at your production facility ln Con-u.ecticut, sE as 6sslinEl with. Jaimis lsvin and Mr" Thompsos during the NFiA conference in Washington, to discrrss your dual solar and grid*powered, high-pressure electrolyzer technology.

AIl ttrree of my staff are of th.e opinion that your electrolyzer system design offers t}e potential of a green-oriented and energy efficient solution ts hydrogelt pr+duction. We tii-nl; e smal}-slale deroonsFation of yorrr techrology at AC Transit would serve us in turo very irnPorrant v.rays.

First, it would allow us to expand o1r hydrogen fueling optioos to our Emeryville operating division, where we don t cumenti5' have a bydrogen fueling faciliry. This would nicely compltrrrent ouf, prinEry steam reforming hydroge+ station at our Oaldand rr4lbile d.ivision and our elecuolyaer at our Richmond division, your proposed station dosign would not be large enough to (DOE) service our fue1 cell bus fleet. it would Eerve to supFort our fleet of light-duty vehicles r:nder the Dryartme[t of Energy s Technolory Validation prograrn, and it would aLso be a likeiy canilidate as a station on California Gove.mor Schwarzenneger s Hydro gen }trJgbwaY nerQvorlL

Secondly, arrd of considerable interest to us, is rhe c,ppomrnity to test rhe prod.uction of errvironnentally groen hydrogen production utilizing your proprietary, energy-efEcient production technology'

grant Aocordingly, AC Transit worrld lilce to join with Avalence in submitting a final pmposal, to the DOE for a Phase ll SBIR gra-nt' to buitd u',d turt yo* plotovoltaic electrolyeing Eysterr at rrlrr operarirg faciliry. We understand thar should you receive this AC Transit would be responsible for obtaining perrnits and installing flecessarJ/ utilities and f,oundations, whic;h could cost as tbat wil mucih as $ 165,000" aIId would be done indepe,n-dently of the 99111 6arling. We believe there are local firndirg sources support this share of the project. AC Transit woukl also be resporufule for ongoing main1sa3a66 and operation of the electrolyzer ard photovoltaic cells. An estimate of these laner expenses is approximatell $ 10,000 petr year. please nore, that should you be suc,cessful in receiving an awa.rd from DOE, our abiliry m proceed with this project will be entirely conditioned on us negotiating a contra.ct and obtaining approvd frou- or:r Eoard of Directors.

Tlis is a very interesling project and one that fifs wel-l with our other hydrogen fue1 cell development activities. We wisb you urell in your ptrsuit of g:rant finrling, and loolc forward to an oppornrnity to worlr wifhAvalence.

SincerelS'. ftrt+ jf Riclc Fernand*z ./ General lv{anagei

RF4I

, I6O0 FronklinSrreer.Ookland, CA 94612 'TELt5'lO) B+1-4753 FAXtSIO)B9l-7 157 r{ernond@actronsit'org