South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: October 19, 2001 AGENDA NO. 11
Authorize Submittal of Application to CARB to Receive Funds for Implementation of Lower-Emission School Bus Retrofit and Replacement Program for FY 2001-02
SYNOPSIS:
In the State’s FY 2001-02 Budget, $16 million has been allocated for the Lower-Emission School Bus Replacement & Retrofit Program. AQMD must apply to CARB to receive funds for the local implementation of this program. AQMD can request funds in the amounts of $5.31 million for the replacement, and $1.77 million for the retrofit components of the program. CARB requires ten percent in match funding from local air districts that will be implementing the school bus replacement component of the program. Staff recommends the approval of $531,000 in match funding towards the school bus replacement program.
COMMITTEE:
Administrative, October 12, 2001, Recommended for Approval
RECOMMENDED ACTION:
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Exhaust emissions from high emitting diesel-fueled school buses are harmful to children and are a key source of public exposure to toxic diesel particulate matter. There are thousands of older school buses on the road that have remained in service simply because school districts lack funds to replace them. To reduce emissions from these vehicles, Governor Gray Davis allocated $50 million to CARB in the FY 2000-01 State Budget for the implementation of a Lower-Emission School Bus Program. The AQMD received $21.9 million to implement the Program, which has a replacement and retrofit component. So far, about $16.3 million were awarded to public school districts in the South Coast Air Basin to replace high emitting older buses with 102 compressed natural gas (CNG), and 67 lower-emitting diesel school buses. Awards for the retrofit component of the program is to be conducted in December 2001, pending verification of particulate trap units by CARB. In addition to the Program, the AQMD has allocated $1.66 million from the Clean Fuels Fund to assist in the development of infrastructure to support the Program.
In the State’s FY 2001-02 Budget, $16 million has been allocated again for the continuation of the Lower-Emission School Bus Program. The program guidelines remain the same, as adopted by CARB’s Board at its December 7, 2000 meeting.
Proposal
Air districts would again have to apply to CARB for FY 2001-02 funds for local implementation of the Lower-Emission School Program. For the South Coast Air Basin, CARB has allocated $5.31 million for the replacement of in-use older school buses owned by public school districts, and $1.77 million for retrofitting in-use school buses with particulate traps owned by public school districts and private operators. According to the adopted guidelines, the AQMD must contribute $531,000, equal to ten percent in match funding for the school bus replacement component of the program.
For the school bus replacement component $4.071 million including the AQMD’s contribution will be used to purchase alternative fuel buses. The remaining $1.77 million will be used to purchase lower-emitting intermediate diesel buses operating on low-sulfur diesel fuel. The NOx and PM emissions would be certified at 2.5 and 0.03 g/bhp-hr respectively for the alternative fuel buses, and at 3.0 and 0.01 g/bhp-hr respectively for the lower-emitting diesel buses. For the school bus retrofit component, funds in the amount of $1.77 million will be used to pay for the full cost and installation of the particulate traps, and to provide $500 for each bus for the increased cost of low-sulfur fuel.
Staff recommends the Board’s approval to request funds from CARB in the amount of $7.08 million for the local administration of the Lower-Emission School Bus Replacement & Retrofit Program.
Benefits to AQMD
The proposed local match funding is included in the March 2001 update of the Technology Advancement Plan under Project 2001CFM1-2, "School Bus Implementation Assistance Program – Infrastructure Development and Facilities Modifications." The recently adopted Rule 1195 Clean On-Road School Buses relies on the availability of external funding to assist school bus operators in offsetting the differential costs associated with the purchase of alternative-fueled school buses. Expeditious implementation of Rule 1195 will provide additional air quality benefits to the region by reducing exposure to diesel emissions earlier.
Resource Impacts
The AQMD is expected to receive $5.31 million for the School Bus Replacement and $1.77 million for the School Bus Retrofit Programs from CARB. The AQMD is required to provide $531,000 in local match funds for the school bus replacement component of the program.
Monies received from the ARB will be placed in the Lower-Emission School Bus Fund, only to be used for the replacement and retrofit of school buses in the South Coast Air Basin, according to the guidelines adopted by the CARB Governing Board on December 7, 2000.
Sufficient funds for the $531,000 match are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.
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