Title
El Dorado County Air Quality Management District (AQMD) recommending the Board, acting as the AQMD Board of Directors, award seven (7) eligible grant projects for the replacement of eleven (11) public school buses, and authorize the Air Pollution Control Officer to execute agreements with school districts, contingent upon approvals by County Counsel and Risk Management, which do not increase the funding amounts in excess of the awards.
FUNDING: AB923 DMV Surcharge Funds.
Body
DISCUSSION / BACKGROUND
On March 21, 2006, the AQMD Board approved a two-dollar ($2) DMV registration surcharge and the acceptance of AB923 funding (Legistar 06-0463 / Resolution #079-2006). The AB 923 legislation stipulates that the funding may be used by air districts for projects in four different clean air categories, including the purchase of new cleaner school buses. AQMD receives approximately $400,000 of AB923 funding annually.
On September 5, 2022, AQMD issued a Request for Proposals (RFP) for El Dorado County public school districts to apply for FY 2022-23 & FY 2023-24 AB923 funds to replace old high polluting buses with new lower emission buses. The application period closed November 11, 2022. After these proposals were received, it was determined by AQMD staff that the original RFP was too restrictive, disallowing proposals for previously retrofitted busses which are now allowed to be funded by AB923 grant funding.
A revised RFP was re-released on January 13, 2023, with the application period closing on January 27, 2023. Twenty-one (21) applications from seven (7) school districts were received, requesting a total of $3,465,000. AQMD evaluated and ranked the applications (Attachment E) pursuant to 2008 Lower-Emission School Bus Program (LESBP) Guidelines. One application was withdrawn from consideration by the school district as all required documentation could not be provided to AQMD. Cost effectiveness (grant dollars per pound of emissions reduced) ranged from $39.73 to $1,070.71, and three buses had no effective emission reduction due to being repowered previously with new (2013) engines.
AQMD funding is limited to a maximum of $165,000 per diesel powered bus. School districts are required to provide a minimum match of $25,000 per bus. AQMD is recommending approval of AB923 funding for the following seven (7) eligible bus projects, which will replace a total of eleven (11) buses:
• Camino Union Elementary School District Bus #1 $165,000.00
• El Dorado Union High School District Buses #34, 40, 41, & 42 $660,000.00
• Gold Oak Union School District Buses #1 & 2 $330,000.00
• Pioneer Union School District Bus #1 $165,000.00
• Placerville Union Elementary School District Bus #47 $165,000.00
• Pollock Pines Elementary School District Bus #1 $165,000.00
• Rescue Union School District Bus #13 $165,000.00
Total: 11 buses $1,815,000.00
The recommended replacements all have a cost effectiveness under $100/lb. The average cost effectiveness for the recommended replacements is $59.25/lb. Total annual emission reductions are anticipated to be a minimum of 66.915 lbs of Reactive Organic Gases (ROG), 2,190.82 lbs of nitrogen oxides (NOx), and 8.3 lbs of particulate matter (PM2.5). These reductions are based on the historic three-year annual average mileage of the old buses. This is a conservative estimate as these new buses will likely become the most heavily used buses in the school districts' fleets, resulting in greater emission reductions due to reduced use of the other older, higher emitting buses.
To date AQMD has awarded a total of $5,921,732 for the replacement of 33 buses and for the retrofit/repower of 18 buses. School districts Countywide have benefited from the replacements, retrofits and repowers.
In the FY 2022-23 AQMD adopted budget, the Board allocated a total of $1,200,000 of AB923 funds for school bus replacement projects. Because most of these buses have estimated delivery dates after July 1, 2023, the remaining $615,000 plus any carryover of unexpended FY 2022-23 allocation will be budgeted in FY 2023-24.
ALTERNATIVES
The Board may decide to fund all, some, or none of the recommended diesel bus replacement projects. If only some or none of the projects are awarded, the Board could direct AQMD to award the AB923 funding using different criteria than the dollar/pound of emissions cost effectiveness standard or to solicit for different types of projects.
PRIOR BOARD ACTION
3/21/2006 - Board approved two-dollar ($2) DMV registration surcharge and acceptance of AB923 funding (Legistar 06-0463). Resolution #079-2006 was signed by the Board Chair.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
Funding for $1,200,000, a portion of the proposed school bus replacements is included in the adopted FY 2022-23 AQMD budget. Because most of the buses are not anticipated to be delivered until the third or fourth quarter of calendar year 2023, AQMD will include the remaining $615,000 plus any carryover grant amount not expended in FY 2022-23 in the proposed FY 2023-24 budget. There is no impact to Net County cost.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk to forward signed Minute Order to AQMD.
STRATEGIC PLAN COMPONENT
Healthy Communities
CONTACT
Dave Johnston, Air Pollution Control Officer