Committee Agenda Date: February 10,2005

Agetida item No.20

County of Santa Clara
Office of the County Executive

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Office of Budget and Analysis

FGOC-CE06 021005

Prepared by: Anne
Gendron-Thompson
Principal Budget and
Public Policy Analyst
DATE:

February 10, 2005

TO:

Supervisor Pete McHugh, Chairperson
Supervisor James T. Beall, Jr., Vice-Chairperson
Finance & Government Operations Committee

FROM:

Gary A. Graves

Chief Deputy County Executive
SUBJECT:

Fuel Cell Advancement Initiative Quarterly Report

RECOMMENDED ACTION

Accept quarterly report from the Administration regarding the Fuel Cell Advancement Initiative approved conceptually
by the Board on September 14, 2004.
FISCAL IMPLICATIONS

Board of Supervi'sprs; Donald F.d'age, Bianca'Alvarado, Pete McHugh,Jiifr Beall, LizKhlss

County Executive: Peter Kiitras Jr.

Committee Agenda Date:February 10,.2005^
Agenda Item No.20

There are no fiscal implieations that will impact the general fimd. It is anticipated that fimding to support this effort will
come fi-om grants and other forms of outside funding.
REASONS FOR RECOMMENDATION

On October 19, 2004, the Board directed the Administration to provide quarterly status reports to the Finance and
Government Operations Committee on progress related to the Santa Clara County Fuel Cell Advancement Initiative
established by the Board on September 14,2004.

On October 19, 2004, the Board also approved a workplan framework and tentative timelines.The Administration,

working with Supervisor Bead's staff submitted an application for a Caltrans Commumty Based Transportation Planmng
Grant(CBTPG)by its October 15 submission deadline. Announcements of grant awards will oecur in March, 2005. In
anticipation of receiving this grant, staff is in the process of developing an RFP to seleet a consultant to support our
efforts in the development of a detailed workplan for the Hydrogen Fuel Cell project.

Since the Administration's last report, there has been a change in the core workgroup. Dave Snow,the new Fleet
Manager, has joined the workgroup.

During the GSA Direetors Conference held on January 20 and 21, attended by Larry Jinkins and Dave Snow,the
California Fuel Partnership and Ford Motor Company gave presentations on fuel cell automotive technology including
the current status of fuel cell vehicle deployment, the technological difficulties of producing fuel cell vehicles, the

advantages and disadvantages offuel cell vehicles, and the importance of eonstrueting an adequate number of hydrogen
refueling stations before the public will start purchasing fuel eell vehicles. Ford Motor Company's earliest estimate for a
feasilble commercial deployment offuel cell demonstration vehicles is the year 2015. Meanwhile, a number of
automotive manufacturers are starting to offer fuel cell demonstration vehicles to government agencies as an early

advertising strategy. The difficulty in obtaining a demonstration vehicle is in having a hydrogen refueling station

available for the vehicle. Currently, there are thirteen hydrogen refueling stations in California, and Valley

Transportation Agency is constructing one in San Jose. Dave Snow has had informal discussions with VTA and is in the
process of arranging a formal meeting to determine the capacity of refueling light vehicles and the possibility of the
County using the VTA site for demonstration vehicles.

When counties asked the Califomia Fuel Partnership whether it could serve as a "clearing house" for government

agencies to obtain demonstration vehieles, there was no elear answer provided. The representative stated this process
needs to be developed. Additionally, when asked how Califomia Fuel Partnership was working with groups that are
sponsoring stationary fuel cell teehnology, the general answer appreared to be that this coordination had not been
initiated.

On January 28,2004, the core workgoup attended an information-sharing session with representatives fi-om
ChevronTexaco and FuelCell Energy,Ine. The session provided useful information about the technology and the best
applications for stationary fuel cells. The best applications for hydrogen fuel cell power plants are buildings with
constant energy loads over a 24 hour period such as hospitals,jails and other 24/7 operations. Alameda County is
eurrently constmcting a 1000 kW fuel cell generator using natural gas at their Santa Rita Jail campus. This project will
provide a great deal of information regarding the implementation ofstationary fuel cell technology in a public sector
environment.

'Board of SupetyisprsiDp.hajdF
:G6unty Executive/Pe^^^
.

Pete fclcHugh,JimiBeall,

Committee Agenda Date:February 10,2005
Agenda item No.20

We continue to collect information on fuel cell technology for deployment of vehicles and to power buildings. We are
also monitoring the availability of grants and other outside funding sources to support this effort.
ATTACHMENTS

Board of Supervisors: Donald F. Gage, Blanca Aivarado, Pete McHugh,Jim Beaii, Liz Kniss
Goiinty Executive: Peter Kutras'Jf.