BOARD MEETING DATE: May 2, 2008
AGENDA NO. 7

RECOMMENDED ACTIONS:

1. Authorize the Chairman to execute an agreement with AeroCoach Transportation in an amount not to exceed $60,000 from MSRC Fund 23 for the cost differential to purchase one (1) CNG school bus to be used in the South Coast Basin; and
2. Authorize the Chairman to execute an agreement with First Student in an amount not to exceed $183,000 from MSRC Fund 23 for the cost differential to purchase five (5) CNG school buses to be used in the South Coast 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 in its efforts to achieve compliance with Rule 1195. On January 18, 2007, the MSRC approved an additional allocation of $2 million for this work program category which was approved by the Board on February 2, 2007.

Following approval by the MSRC, 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. On June 1, 2007, this award was amended as the private school bus transportation provider only needed ten CNG school buses to satisfy its contractual obligations. The amount of the award was reduced to $600,000 and the remaining balance of $537,580 was reverted to the MSRC Discretionary Fund. On March 2, 2007, and following MSRC approval, the Board approved a second funding award in the amount of $1,875,049 to purchase up to 42 CNG school buses to a private school bus transportation provider. This school bus transportation provider later declined this funding award. On July 13, 2007, the Board approved an additional funding award in the amount of $60,000 to a private school bus transportation provider to purchase one CNG school bus. On August 23, 2007, action was taken by the MSRC to reallocate $265,000 to another work program category. Finally, after MSRC approval on January 17, 2008, on February 1, 2008, the Board approved funding in the amount of $480,000 for various private transportation providers to purchase five CNG and three propane school buses; however, funding for the three propane buses was later declined. Currently, a remaining balance of $2,237,420 is available on a first-come, first-served basis.
 

Proposal

This action is to approve an award to AeroCoach Transportation in an amount not to exceed $60,000 from the MSRC for CNG school bus incentives under the MSRC FY 2006-07 Work Program for the cost differential to purchase one CNG school bus to be used in the South Coast Basin. In addition, this action is to approve an award to First Student in an amount not to exceed $193,000 from the MSRC for CNG school bus incentives under the MSRC FY 2006-07 Work Program for the cost differential to purchase five CNG school buses to be used in the South Coast Basin. These two awards were approved by the MSRC at their April 17, 2008 meeting.
 

Benefits to AQMD

This project will reduce exhaust emissions from higher emitting diesel school buses and exposure of school children and others to toxic diesel particulate matter 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 AeroCoach Transportation and First Student shall not exceed $60,000 and $183,000, respectively. Subsequent to Board approval of these funding awards, a remaining balance of $1,994,420 in this MSRC work program category would be available to other private school bus transportation service providers on a first come, first-served basis.