PURPOSE   

The purpose of this report is to request City Council authorize the execution of an agreement with Mobile Energy Solutions for the construction and demonstration of a Hydrogen Hybrid Fuel Cell Transit Bus. 

BACKGROUND

In April of 2007, the City of Burbank along with Mobile Energy Solutions (MES) and their partners Hydrogenics Corporation and Martin Marietta Composites submitted an application to the California Air Resources Board (CARB) as a public-private partnership to fund the development and demonstration of a zero emission transit bus that will be owned and operated by the City of Burbank.

On May 24, 2007, staff received notification from CARB that the City was awarded a grant in the amount of $1,370,000 with a local match of $615,982 to construct and operate a hydrogen hybrid bus. On June 26, 2006, City Council adopted a resolution authorizing staff to enter into an agreement with California Air Resource Board (CARB) to accept grant funds in the amount of $1,370,000 under the Alternative Fuel Incentive Program for the purchase and demonstration of a Hydrogen Hybrid Fuel Cell Transit bus; and to amend the Fiscal Year 2006-2007 Budget. 

ANALYSIS

As the City of Burbank continues its commitment to furthering clean air technologies and to be a leader in implementing alternative fueled vehicles and technologies, staff has made an effort to partner with qualified and well respected leading edge companies engaged in the commercialization of hydrogen and fuel cell technology. 

MES, headquartered in Golden, Colorado, is a leading edge entrepreneurial company that consistently works �outside the box� in the emerging industry of high technology, ultra low emission, commercial, hybrid-electric, battery-powered and fuel cell vehicles. Founded in 2004, the principals designed, engineered and manufactured the CNG-fueled hybrid-electric shuttle buses for the Denver 16th St. Mall which over seven years of successful revenue service have transported 130,000,000 passengers at a daily rate of 65,000.  MES will be responsible for the design, integration and fabrication of the transit bus, as well as maintenance and training.

Hydrogenics is a clean power generation company engaged in the commercialization of hydrogen and fuel cell technology and test stations for fuel cells. With an unrivalled experience in fuel cell test systems and relationships with key industry partners, Hydrogenics is creating innovative clean energy solutions for transportation. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in British Columbia, Canada, Japan, the United States in California, and Germany. Hydrogenics will provide the fuel cell system to MES.

Martin Marietta manufactures structural composite products used in transportation, construction and military applications.  Specialty products for truck bodies and rail car components have been developed. The composite rail car technology helps build lighter weight cars with increased thermal efficiency. TRANSONITE has also been used to develop composite matting and protective panels for military and commercial applications. Martin Marietta will support MES to complete the tooling required and supply the final composite body for the proposed bus.

The hydrogen bus is designed to be 35 feet in length and will be able to carry the same number of passengers as a conventional 40 foot bus. The bus is designed to perform as well as or better than a commercial diesel bus. With the typical commercial buses averaging between three to four miles per gallon, MES estimates that its vehicle will cover in excess of ten miles per kilogram of hydrogen (gas gallon equivalent); tripling the mileage per gallon currently available by today�s commercial buses. It should be noted that the comparison is slightly skewed in that the hydrogen bus is additionally powered by energy stored in its batteries which are regenerated. It is estimated that commercial diesel vehicles cost $0.69 per mile and the proposed bus will cost $0.42 per mile to operate.  

Staff plans to utilize the bus on each of the BurbankBus�s current five fixed routes: Media District; North Hollywood Media District Shuttle; North Hollywood Empire Shuttle; Downtown Burbank Shuttle; and Empire Downtown Shuttle to maximize the demonstration of this unique technology. Essentially, the hydrogen bus will be used in a rotation for a regular Compressed Natural Gas (CNG) bus, and will not be used to provide additional services at this time.

MES is estimating that it will take approximately one year to complete the construction and testing of the hydrogen hybrid bus. Staff has estimated that the hydrogen bus will be in service by summer 2008.

FISCAL IMPACT

The total estimated project costs of the Hydrogen Fuel Cell Transit Bus, including fabricating, assembly, routine maintenance, operation, and administration is $1,985,982. Of this amount, $1,370,000 is funded through the Alternative Fuel Incentive Program. The remaining cost of $615,982 will be shared in this public-private partnership. Martin Marietta Composites will be providing $250,000 and MES will be providing $226,982 to construct and test the hydrogen bus. The City will be responsible for covering the remaining 23% of the shared costs or $139,000 as a local match to fund a portion of the one year operational costs, to include fuel, marketing, maintenance and driver costs. 

There is no fiscal impact as a result of this action.  There are available funds in the Hydrogen Fuel Cell Transit Bus project account 127.CD32A.70010.0000.17787. 

RECOMMENDATION

Staff recommends that Council adopt the proposed resolution authorizing staff to enter into an agreement with Mobile Energy Solutions for the construction and demonstration of a Hydrogen Hybrid Fuel Cell Transit bus. 

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