Decision Details

Implemented

Clean Air Hydrogen Bus Pilot Procurement Strategy and FBC

Yes

No

No

003726/2017

No

Report of Corporate Director, Economy

Tue 24 Oct 2017

To outline the project that will deliver the first 22 hydrogen buses and associated infrastructure by March 2019 as part of the Air Quality Programme to reduce emissions to enable the city to reach air quality compliance by 2020.To outline grant funding received by Birmingham City Council, recommending the need for the Council to procure the hydrogen buses and procure a bus operator development partner and set up a legal funding agreement to pass funding to ITM Power to contribute towards the hydrogen refuelling infrastructure as part of the wider partnership based project.

Deputy Leader and Economy & Skills

Cabinet

3 Diamond

over £1m capital

Birmingham Development Plan Birmingham Connected Birmingham Blueprint West Midlands Low Emission Bus Delivery Plan Ronald Berger FC Bus Report A City Blueprint – For Low Carbon Fuel Refuelling Infrastructure

Committee

Cabinet

Birmingham Development Plan Birmingham Connected Birmingham Blueprint West Midlands Low Emission Bus Delivery Plan Ronald Berger FC Bus Report A City Blueprint – For Low Carbon Fuel Refuelling Infrastructure

On 24 October 2017, Cabinet:- (i) Approved the Full Business Case at Appendix A to the report, for the CAHB pilot at an estimated capital cost of up to £13.440m, funded from OLEV grant (£3.814m), FCHJU grant (£4.141m) GBSLEP Local Growth Fund (£2.156m), Bus Operator minimum contribution (£3.289m) and approved Future Council Programme resources of £0.040m, to procure and deploy up to 22 hydrogen fuelled buses for use by a procured Bus Operator and to provide grant aid towards the cost of providing hydrogen refuelling infrastructure. (ii) Approved the procurement strategy provided in the FBC to the report (Annex A to the report), that proposes firstly to use an ‘open tender’ approach to procure a Bus Operator and secondly, to utilise the Transport For London (TfL) Hydrogen Bus framework to purchase the proposed hydrogen buses; (iii) Approved the Council acting as Accountable Body for the Office for Low Emission Vehicles (OLEV) grant and accepts their offer of £3.814m capital grant; (iv) Authorised the Assistant Director – Transport and Connectivity to pass-port with conditions of grant, £1.340m of the OLEV grant funding to TfL, as joint applicant under the OLEV Grant scheme, to enable them to fund their own procurement of hydrogen buses; (v) Authorised the Assistant Director – Transport and Connectivity to make a grant of £1.0m to ITM Power, the hydrogen re-fuelling infrastructure partner, funded from the OLEV capital grant towards the cost for hydrogen re-fuelling infrastructure to be based at Tyseley Energy Park subject to the completion of a funding agreement; (vi) Accepted grant funding of £4.141m from the Hydrogen Fuel Cell Joint Undertaking (FCHJU) comprising £4.081m for capital and £0.060m for revenue expenditure; (vii) Approved the Council to act as Accountable Body for Local Growth Fund grant from the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) and accepts their offer of £2.156m capital grant, subject to receipt of a final offer letter; (viii) Authorised the Corporate Director, Economy, in conjunction with the Interim Chief Finance Officer, the Director of Commissioning and Procurement and the City Solicitor (or their delegates) to award a contract for the manufacture and delivery of up to 22 hydrogen buses subject to the values not exceeding pre-tender estimates; (ix) Authorised the Corporate Director, Economy, in conjunction with the Interim Chief Finance Officer, the Director of Commissioning and Procurement and the City Solicitor (or their delegates) to enter into a lease agreement for the use of the 22 hydrogen fuelled buses for a period of 7 years on the basis of the procurement process outlined in Annex A to the report; (x) Authorised the City Solicitor to negotiate, execute and complete any necessary legal documentation to give effect to the above decisions. THE DEADLINE FOR CALL IN IS 1600 HOURS ON MONDAY 30 OCTOBER 2017.

No