South Coast Air Quality Management District

Approve Issuance of School Bus Program RFQ as Part of Conceptual FY 2002-03 AB 2766 Discretionary Fund Work Program

SYNOPSIS: 

Last month the Board approved the MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million. Of this $14.95 million, $2 million was set aside for CNG school bus incentives. At its October 24, 2002 meeting the MSRC allocated $2 million for an RFQ to solicit school bus vendors to participate in a CNG School Bus Buydown Program. The Program will provide funding under a tiered incentive for four classes of buses from traditional full-size school buses to compact cutaways. At this time the MSRC requests Board approval to issue the CNG School Bus Buydown Program RFQ as part of the Conceptual FY 2002-03 Work Program.

COMMITTEE: 

Mobile Source Air Pollution Reduction Review Committee,
October 24, 2002, Approved Unanimously

RECOMMENDED ACTION:

Approve the release of one Request for Qualifications, #Q2003-07, in the amount of $2 million for a CNG School Bus Buydown Program as part of the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept.

William G. Kleindienst
Chair, MSRC

Background

In September 1990 Assembly Bill 2766 was signed into law (Health & Safety Code Sections 44220-44247) authorizing the imposition of an annual $4 motor vehicle registration fee to fund the implementation of programs exclusively to reduce air pollution from motor vehicles. AB 2766 provides that 30 percent of the annual $4 vehicle registration fee subvened to the AQMD be placed into an account to be allocated pursuant to a work program developed and adopted by the MSRC and approved by the AQMD Governing Board. It is projected that at least $15 million will be available in the Discretionary Fund in FY 2002-03 from revenue and interest. This includes allocation of the prudent reserve typically maintained by the MSRC, recognizing that turn-back funds will provide sufficient revenue cushion.

Proposals

Last month the AQMD Board approved the MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million. Of this $14.95 million, $2 million was set aside for CNG school bus incentives. At its October 24, 2002 meeting the MSRC allocated $2 million for an RFQ to solicit school bus vendors to participate in a CNG School Bus Buydown Program. The Program will provide funding under a tiered incentive for four classes of buses, as follows:
 

	Full-Size Type D CNG School Bus (min. 60 seats)	- $60,000 incentive per bus
	Mid-Size CNG School Bus (min. 50-55 seats)	- $50,000 incentive per bus
	Compact Type A Cutaway (min. 23-30 seats)	- $25,000 incentive per bus
	Full-Size Van Bus (15 or less seats)	- $10,000 incentive per bus

The diesel buses being replaced must be scrapped or removed from the South Coast Air District. Qualified school bus vendors will administer the program so that school districts receive a reduced price per bus. Applications from eligible school bus vendors may be received up to 5:00 p.m. Tuesday, December 3, 2002. At this time the MSRC requests Board approval to issue the CNG School Bus Buydown Program RFQ as part of the Conceptual FY 2002-03 Work Program. Actual awards under the RFQ will be considered by the MSRC in December and by the AQMD Board in January 2003.

Outreach

In accordance with the AQMD's consulting and contracting policies, this RFQ will be advertised in a public notice each on two different days in 25 newspapers and publications, including several targeting minorities. In addition, the RFQ will be placed on both the MSRC's web site at "http://www.msrc-cleanair.org" and AQMD's web site under the "Business and Job Opportunities" icon. Information will be also included about the RFQ on the AQMD's bidder's 24-hour telephone message line (909) 396-2724.

In the South Coast Air District there are only two natural gas school bus vendors, California Bus Sales and A-Z Bus Sales. The RFQ will be sent directly to them and technical assistance will be offered to both as required by the MSRC's Technical Advisor. In addition, the AQMD will work with MSRC staff to send a notice to all school districts which failed to receive funding under the AQMD's recent Lower-Emission School Bus Program Announcement.

Proposal Evaluation and Panel Composition

Proposals received for the RFQ will be evaluated by members of the MSRC-TAC, a diverse group of individuals appointed by participating members as prescribed in the Health & Safety Code. Several evaluation teams will be formed to evaluate proposals in the various program solicitations under this Work Program, the membership of which will be identified in the Board letter recommending specific contract awards.

Resource Impacts

The AQMD acts as fiscal administrator for the AB 2766 Discretionary Fund Program (Health & Safety Code Section 44243). Money received for this program is recorded in a special revenue fund (Fund 23) and the contracts will be drawn from this fund. These contracts will have no fiscal impact on the AQMD’s operational budget.

Attachment

RFQ #Q2003-07: Compressed Natural Gas School Bus Buydown Program

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