Loma Linda council hears pitch from First Public Hydrogen for regional hydrogen joint powers authority

Mayor Duper presided as city staff introduced Jason Cottle, chief executive officer of First Public Hydrogen, who presented a proposal for a joint powers authority (JPA) to aggregate demand for hydrogen across cities and transit agencies.

Cottle said the JPA would vet suppliers, run transparent procurement and help cities collectively buy hydrogen molecules at scale so prices fall. "It's easy. It's free. There's no legal responsibilities," Cottle said of membership as he described the JPA's design to limit up-front legal and fiscal exposure for joining cities. He described potential partners and board members and said the authority would pursue both fleet fuel and stationary power uses that could support resilience for large facilities.

Council members pressed Cottle on costs and federal funding. He said a production subsidy referenced in the presentation (described in the meeting as a roughly $3-per-kilogram subsidy tied to a "45" provision) and a proposed California hydrogen hub funded at about $1.2 billion were both uncertain, and that reduced federal incentives would raise costs for producers and, by extension, municipalities. Cottle said current retail hydrogen prices discussed during the presentation were about $32 per kilogram and that collective procurement could push prices down: "By collectively operating in the system, we can lower it... and actually be cheaper than diesel," he said.

Council member Ron, the city's Omnitrans representative, asked how hydrogen compares with battery-electric and CNG for meeting zero-emission transit mandates; Cottle said both battery electric and hydrogen have roles and that hydrogen can be preferable for heavier, longer-range transit uses. Council member Rhonda, who identified herself as an environmental epidemiologist, asked that staff return with an assessment of adverse environmental and community-health impacts from hydrogen production and use in addition to the benefits.

City staff recommended a two-step approach: return with more detail and a draft joint-powers agreement. After discussion multiple council members signaled support for staff bringing back a written draft and fuller analysis for consideration at a later meeting. The council did not vote to join the JPA at this meeting; staff will prepare the draft agreement and additional information for a future agenda.

The council requested that staff coordinate follow-up briefings with transit agencies such as Omnitrans and provide cost estimates, procurement terms and environmental-impact assessments when the draft agreement is returned.