BOARD MEETING DATE: March 2, 2007
AGENDA NO. 10

Award Funding from MSRC for CNG School Buses to Private School Bus Transportation Provider

SYNOPSIS:

On September 8, 2006, the Board approved an MSRC allocation of $2 million for CNG school bus incentives to private school bus transportation service providers.  On January 18, 2007, the MSRC approved an additional $2 million, which was approved by the Board on February 2, 2007.  The AQMD will administer the program to implement District Rule 1195.  Awards from this allocation will be made on a first-come basis and individual awards will be brought before the Board for approval.  This action is to approve an award to First Student, a private school bus transportation service provider, in an amount not to exceed $1,875,048.80 to purchase up to 42 CNG school buses.

COMMITTEE:

Not Applicable

RECOMMENDED ACTION:

Approve an award amount not to exceed $1,875,048.80 from MSRC Fund 23 to First Student for the cost differential to purchase up to 42 CNG school buses to be used in the South Coast Air Basin.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At its August 17, 2006 meeting, the MSRC approved funding under the FY 2006-07 Work Program for CNG school bus incentives to private school bus transportation service providers.  Specifically, the MSRC approved an allocation of $2 million for CNG school bus incentives for private school bus transportation service providers.  Subsequently, the Board approved this action at its September 8, 2006 meeting.  In addition, the MSRC requested that the program be administered by AQMD staff.  At its January 5, 2007 meeting, the Board approved funding in the amount of $1,137,580 for a private school bus transportation provider to purchase 23 CNG school buses.  The remaining balance was $862,420.  On January 18, 2007 the MSRC approved an additional allocation of $2 million for this work program category. 

Proposal

This action is to approve an award to First Student in the amount not to exceed $1,875,048.80 from the MSRC for CNG school bus incentives under the MSRC FY 2006-07 Work Program for the cost differential to purchase 42 CNG school buses to be used in the South Coast Air District jurisdiction.

Benefits to AQMD

This project will reduce exhaust emissions from higher emitting diesel school buses and exposure of toxic diesel particulate matter to school children and others that work in or near diesel-powered school buses.  In addition, this project will further facilitate the implementation of Rule 1195.

Resource Impacts

The total amount of MSRC funding for First Student shall not exceed $1,875,048.80   Subsequent to Board approval of funding award, a remaining balance of $987,371.20 would be available to other private school bus transportation service providers on a first-come, first-served basis.