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The Metropolitan Transportation Commission (MTC) and its partners
in the Zero Emission Bay Area (ZEBA) Advanced Demonstration
Project support and appreciate the staff recommendation for
$630,000 in Alternative Fuel Incentives Program (AFIP) funding for
the project, with additional support up to $2 million if funds are
available.  We also appreciate the additional funding provided by
the Air Resources Board from the Hydrogen Highway program.

As the transportation planning, financing and coordinating agency
for the Bay Area, MTC submitted an application to the Air
Resources Board for $2 million in AFIP funding for the ZEBA
project.  MTC submitted the application on behalf of the four Bay
Area transit operators that are subject to the Board’s zero
emission bus (ZEB) regulation and are implementing the Advanced
Demonstration Project, AC Transit, Santa Clara Valley
Transportation Authority, Golden Gate Transit and SamTrans.  The
funding would support the capital costs of procuring nine new ZEBs
and upgrading AC Transit’s three existing ZEBs with next-generation
technology, currently estimated to total $25.1 million.  Associated
fueling and maintenance infrastructure would bring the total
capital costs of the project to an estimated $37 million.  

As the only multi-vehicle fuel cell bus project in the state, the
ZEBA Advanced Demonstration offers a vision for the future that
builds on the opportunities and momentum from first-stage
demonstration programs to quickly reach the next major threshold
of development of commercially viable hydrogen fuel cell
technology for the public transit industry.  MTC and the affected
transit operators fully support the goals of the Board’s ZEB
regulation and are committed to implementation of a successful
demonstration project.  Nonetheless, the Advanced Demonstration is
a costly project.  MTC and the operators have been working to pull
together the required funding from a variety of sources, including
federal Surface Transportation Program, National Fuel Cell Bus
Program, Section 5309 Bus Discretionary Program and Section 5307
Urbanized Area Formula funds, state Proposition 1B infrastructure
bond transit funds, and Transportation Fund for Clean Air funds
awarded by the Bay Area Air Quality Management District.  The Bay
Area has enormous transit capital investment needs that compete
with the ZEB project for these funding sources.  At this point,
approximately $23.4 million has been committed to the project,
with proposals for the remainder at various stages of
development.

Given the challenges we face in funding the costs of the ZEB
project, MTC and its partners respectfully request that the Board
consider increasing the award of AFIP funding to the $2 million
level originally requested.  Thank you for your consideration.

Glen Tepke
Transit Capital Priorities Manager
Metropolitan Transportation Commission