loit Ainterica
To:

Jarnes T. Beall, Jr., Chairperson, Board of Sgperyjsors

From:

Josh Richrnan, Ion Amohca Corporation, Sunnyvfaie. GA

Re:

Santa Ciara Fuel Cell Demonstration Project

-01/

(W

Ion America, a Santa^lera based olean energy technology company^

Santa Clara County to demonstrate its planar solid oxide fuel cell technology by the rail of 2006
at no cost to the county; In order to estpedlte the installation ofthe Ion Anierica planaf solid

oxide fuei cell, the company is offering to absorb 1d0?/6 of the County'^ post ^snng

responsibilHy as mandated by the US Department of Energy for this demonstration
project

Fuel Cell Project Overview

Qn Februaty 18,-2006 the Banta Ciaia County Bpahl of Supervisors conceptuallj^apprgred the.
use of thefinar$1.5 million Williams Settlement payment as matching funds for

earmarked stationary planar solid o>(lde fuel cell deirionstratipn project, loii America, a San
Clara based company, is offering toiabsorb 100%ypf the County's cost sharing;
Order to ihstail a fuel eel! by BeFrtember^^
lf;the Gpuhty accepts this prop^ the Williams
Settlement;money wili be freed to be spent elsewhere.

Ion America is ihterested In accelerating the installatioh timelineifor this fuel cell demonstfation.
Because rapid deployment is critical to the company's Business plait, the (^nipany prupos^
that the County bypass the RFP process and install an Ion America fuel cell at no wst to the
County. This insfaliafion, to be located at the County 911 Cpmmgnications Gehter, offers Santa
Clara the opportunity to demonstrate pioheering leadership by supporting the deyelop^^^ of a
revolutionary alternative energy technology. With the support of Congressman Mike Honda. Ion
America seeks to advance the demonstration of Its technology as a critical step towards

commercial success.

Ion America has devefoped a clear pipiJo high-volume. fowrCOsJfuel cell production, leyer^
many of the same tfediniques and processes of Santa Clara's significant sernicondua^^
industry. The company now seeks b begin large-scale ccmmefcial deployment and expanded

manufacturing of this teiphnology In early 2007. IVIany of t^c^mpanj^ fir^

customer candidates have asked; fer field ppefational proof tfig bo

advertised. A Santa Clara County installation.will servetes.a loeal,:h!gh-profile demojjstrati|on or
the company's technology and as a reference casefor future customers, such, Santa c^ra

can play an Integral role In the company's path to. commercialization while bringing positive
attention to the County.

Benefits to Santa Clara County
ion America IS a Sunriyvale-based company developing a

has the pbtentiai b solve be key energy problems pf the ai pentery; The benefits to Santa
Clara County of supporting this technClogy and;company inciudei

1252 Orleans Drive •Sunnyvale,Californiia 94089-1137

phone (408)543-1500 'fax (408)543-1501

No Cost to the County. In order to expedite the awarding of the Departmeht of Erie^y
funding earmarked for this projeot. Ion Ameripa is offering to absorb the 100% of fte
County's eost-sharing respohsibijity. If the County agrees,to fast track approya for this
demonstration project, it will be under no obligation to use County fonds and will instead
be:able to pursue other energy efficiency projects with the Williams settlernent jog^^
v/Hhthe Department of Energy, Ion America will cover all ofthe cp^s associated wim the
design and installation of the fuel cell, as well as all system testing and ongoing
maintenance expenses.

Results by September, 2006^ If the couhty accepts tftis offer, an Ion America planar
solid oxide fuel cell will be producing clean, reliable electricity for the County 911 Cent^
within the next couple rnpnm A fall competitive solicitation would mean the project

Would not operational until 2007.

Local Job Grovfvth. ion America Is growing rapidly and expects to double its staff by the

end of the year. Ion America's success and continued growth will positively impact Santa
Clara County's economy. Additionally, because planar,solid oxide foel cell technology
shares many properties of semiconductar manufacturing and design, this technology
may prove to be a leader In the next generation' of SillGon yailey growth, leveraging
existing industry know-how into a major inviestment-area for the next.decade,

Environmental Leadership and Education. Clean energy technology has become a

national priority,, Santa Clara County has the opporturiity with this high-profile
demonstration project to lead the; state and the country in promptirig environmental
stewardship, educating the next generation of leaders, and champipriing clean
technologies.

Sole Sburcing this Demdnsiratioh Prbject to Ion America is CbrisSsient wn the
County's Contracting Guidelines. Section 5.3^11 of the Couhfy Board Policy Nfanual

states that, "It is the policy of the County to soiiclt bids or prbposals for a commodity or

service from the rriost reievaht market and to select: vendors and _provide'rs on a

competitive basis.'The Department of Energy funding for thjs project is for a planar solid

oxide fuel ceil demonstration. Since the project's purpose is to demonsfrate a fuel ^11
technology, it should not be considered a commodity and therefore does not fall under
the Gourity'policy mandating a competitive bid process.

Ion America would like to extend an open invitation to the Board of Supervisors and thdj- steffe

to visit ion America's Sunnyvale corporate headquarters and manufadunng facility, we took
forward to showing you.burworking fuel cells and answering any questions you may have about
the technology or the company.

cc:

Supervisor Blanca Alvarado
Supervisor Don Gage
Supervisor Liz Kniss

Supervisor Pete McHugh

County Executive Peter Kutras

Clerk of the Board Phyllis Perez