BOARD MEETING DATE: June 5, 2009
AGENDA NO. 7

PROPOSAL:

Adopt Resolution Recognizing the 2009 State DERA-Funded Lower-Emission School Bus Retrofit Program Funds, Approve Grants to Retrofit School Buses with Particulate Traps, and Approve Back-up Funds and List of Back-up Retrofit Projects for the DERA Funds

SYNOPSIS:

CARB has allocated $898,000 to the AQMD under the 2009 State DERA-Funded Lower-Emission School Bus Retrofit Program. In order to receive additional funds should they become available, the AQMD has requested from CARB up to $1,204,300. These actions are to adopt a resolution recognizing up to $1,204,300 for current and any future awards pursuant to this program, to approve grants to public school districts to retrofit school buses with Level 3 PM traps, and to approve back-up funds and list of back-up retrofit projects for the DERA funds.

COMMITTEE:

Technology, May 22, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

1. Adopt a resolution recognizing $898,000 for the current grant allocation and up to a total of $1,204,300 for any additional funds should they become available, under the 2009 State DERA-Funded Lower-Emission School Bus Retrofit Program and record the funding, upon receipt, in the Lower-Emission School Bus Program Fund.

2. Authorize the Chairman to execute contracts with the following school districts for the retrofit of 42 school buses in an amount not to exceed $840,000 from the Lower-Emission School Bus Program Fund:
   1. Moreno Valley Unified to retrofit 33 school buses in an amount not to exceed $660,000;
   2. West Covina Unified to retrofit 6 school buses in an amount not to exceed $120,000; and
   3. Ocean View Unified to retrofit 3 school buses in an amount not to exceed $60,000.

3. Should additional funds become available, authorize the Chairman to execute contracts with the following school districts for the retrofit of up to 14 school buses in an amount not to exceed $280,000 from the Lower-Emission School Bus Program Fund:
   1. Ocean View Unified to retrofit 4 school buses in an amount not to exceed $80,000; and
   2. Westminster Unified to retrofit 10 school buses in an amount not to exceed $200,000.

4. Approve the list of buses as set forth in Table 1, which was originally approved on December 5, 2008, under Proposition 1B to be used as backup if any of the projects recommended under Action #2 cannot be implemented.

5. Authorize the Executive Officer to approve the use of up to $10,000 from the Clean Fuels Fund, should it become necessary, to help support the expedited implementation logistics of the school bus retrofit projects.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD recently submitted an application to CARB for the 2009 State DERA-funded Lower-Emission School Bus solicitation. The DERA solicitation made $1.73 million available for installation of Level 3 PM traps on school buses operating in the state. AQMD requested up to $1,204,300 to retrofit 56 school buses with active PM traps. AQMD also submitted the names of four school districts along with the list of their school buses for which they had already applied for funding under the Proposition 1B-School Bus Program Announcement PA2009-01. At its December 5, 2008 meeting, the Board approved to award Proposition 1B funds, including these four applicants. Since then, the Proposition 1B-School Bus Program funds have been put on hold due to the state’s bond issuance situation.
 

Proposal

Under the 2009 State DERA Program, CARB awarded $898,000 to the AQMD comprised of $840,000 for the retrofit of 42 school buses and $58,000 for administrative costs. Staff recommends the Board approve the attached resolution recognizing $898,000 for the current grant allocation and up to a total of $1,204,300 for any additional funds should they become available under the 2009 State DERA-Funded Lower-Emission School Bus Retrofit Program.

CARB has approved to award the following public school districts for the retrofit of their buses:

• Moreno Valley Unified for 33 PM traps, in an amount not to exceed $660,000;
• West Covina Unified for 6 PM traps, in an amount not to exceed $120,000; and
• Ocean View Unified for 3 PM traps, in an amount not to exceed $60,000.

AQMD has also requested to award the following school districts for the retrofit of their buses, should additional funds become available:

• Ocean View Unified for 4 PM traps, in an amount not to exceed $80,000; and
• Westminster Unified for 10 PM traps in an amount not to exceed $200,000.

This action is to approve execution of contracts with all the above public school districts for the retrofit of their school buses with CARB verified Level 3 PM traps upon receipt of funds from CARB.

After the approval of this agenda item at the Technology Committee on May 15, 2009, staff became aware that it may be difficult to complete all the recommended projects within the extremely short time period allowed under this grant on time. Staff therefore recommends that the Board approve the list of buses as set forth in Table 1, which was originally approved on December 5, 2008, under Proposition 1B, to be used as backup if any of the projects recommended under Action #2 fall through, and to approve the use of up to $10,000 from the Clean Fuels Fund, should it become necessary, to help support the expedited implementation logistics of the school bus retrofit projects.

The AQMD had only a few days to apply for the funds under the 2009 State DERA-Funded Program. In order to be considered, it was required to provide a detailed list of school buses that would be retrofitted by September of 2009. Based on these requirements, the AQMD selected the above public school districts from the list of applicants that had applied in response to AQMD’s solicitation under the Proposition 1B-School Bus Program (PA2009-01). These school districts were selected for the CARB DERA funding because they applied to use the diesel particulate trap with lower than 20 percent NO2/NOx ratio in the exhaust, a desirable feature to further reduce ozone formation. All the other eligible public school districts that have applied under that program were already approved for funding by the Board in December 2008 and will be funded as soon as the Proposition 1B-School Bus Program funds become available in the near future.
 

Benefits to AQMD

The successful implementation of the 2009 State DERA Lower-Emission School Bus Retrofit Program provides safer and less polluting transportation for school children and reduces public exposure to toxic diesel particulate matter emissions. These retrofit projects also support the objectives of the Environmental Justice and Children’s Health Initiatives adopted by the AQMD Board.
 

Resource Impacts

Total funding for the retrofit of 42 school buses shall not exceed $840,000 from the Lower-Emission School Bus Program Fund upon receipt of State DERA funds from CARB.

Should more funds become available, total funding for the retrofit of additional 14 school buses shall not exceed $280,000 from the Lower-Emission School Bus Fund upon receipt of State DERA funds from CARB.
 

Attachment (DOC, ~86k)

Resolution

Table 1: Backup List of Level 3 PM Trap Awards Originally Approved on December 5, 2008