1.

FUNDING DISTRIBUTION FOR SCHOOL BUS PROJECTS

(4 VOTES)

APCB1.

SUBJECT:

FUNDING DISTRIBUTION FOR SCHOOL BUS PROJECTS (DISTRICTS: ALL)

OVERVIEW:

School bus emission reduction projects help protect school children from harmful diesel emissions.  On May 23, 2001 (APCB #3), your Board appropriated Vehicle Registration funds totaling $713,465 for school bus emission reduction projects and, on December 12, 2001 (APCB #1), your Board appropriated $102,000 in Vehicle Registration fund for the 10 percent required local match to participate in the pre-1987 diesel school bus replacement portion of the state’s Lower Emission School Bus Program (School Bus Program).

In February 2002, the District received $1,360,000 in state funding for the School Bus Program.  This included $1,020,000 for the school bus replacement portion of the program (for which the 10 percent local match was appropriated on December 12, 2001) and $340,000 for the school bus retrofit portion of the program.

Finally, on December 12, 2001 (APCB #1), your Board directed that power generation mitigation fees being paid by the South Bay power plant (Duke) and countywide peaking turbines (Cabrillo) and 50 percent of power generator mitigation fees being paid by the Encina power plant (Cabrillo) be allocated for school bus projects.  Mitigation funds available for school bus projects in FY 2001-02 total $5,260,209 ($278,135 for South Bay, $4,920,424 for North County, and $61,650 countywide).

A total of $7,435,674 from the three sources above (Vehicle Registration, State funding, and mitigation funds) has been authorized by your Board for distribution to school bus projects in San Diego County.  This amount is sufficient to fund all timely requests to replace older (pre-1987) diesel school buses with new buses (27 new Compressed Natural Gas (CNG) school buses and 36 intermediate diesel buses) and to retrofit 163 existing diesel buses with Particulate Matter (PM) filters.  Intermediate diesel buses have cleaner oxides of nitrogen (NOx) and PM emissions than currently required by law.

This is a request to approve the equitable distribution of previously authorized funds as indicated below, and shown in table format in Attachment II and to appropriate $1,360,000 in state School Bus Program funds and $5,260,209 in power plant mitigation funds.  It is also a request to appropriate up to $1,900,000 for the possible receipt of additional state school bus retrofit funds and authorize the Air Pollution Control District to apply for, accept, and distribute such funds as they become available to the San Diego Unified School District for school bus retrofit projects.  Lastly, this is a request to appropriate up to  $710,486 of additional mitigation fees paid by the Encina power plant to fund projects requested by the San Dieguito Transportation Cooperative.  These projects were not included in the recommended project funding distribution (Attachment 2) due to late application submittal.  However, they are being recommended because your Board has historically given high priority to school bus projects because they directly impact and help protect the health of school children.  These recommended actions meet the requirements of AB 1390 (Firebaugh) and the Governor’s FY 2001-02 budget language requiring that 50 percent of state school bus replacement funds be distributed to directly benefit low income communities and communities of color that are disproportionately impacted by air pollution.

The recommended allocation (Attachment II) of previously authorized funds ($7,435,674) would fund school districts as follows: Escondido Union, $493,098; Fallbrook Elementary, $855,232; Grossmont Union High, $91,000; Lemon Grove Elementary, $113,476; Mountain Empire Unified, $430,098; Oceanside Unified, $118,441; Poway Unified, $1,378,152; Ramona City Unified, $1,227,294; San Diego Unified, $819,000; San Marcos Unified, $680,854; South Bay Union Elementary, $278,135; Valley Center-Pauma Elementary, $228,040; Vista Unified, $722,854.

FISCAL IMPACT:

These recommendations have no fiscal impact on District operations.  Appropriations of $1,360,000 in the School Bus Program fund and $5,260,209 in the Mitigation fund are requested to fund projects that protect school children from harmful diesel emissions.  Appropriations of up to $710,486 in additional mitigation funds for the San Dieguito Transportation Cooperative and $1,900,000 in additional state funds for retrofits may also be appropriated. Detailed fiscal impact statements for the School Bus Program, previously authorized Mitigation funds, and additional funds that may be approved are attached.

RECOMMENDATION:

AIR POLLUTION CONTROL OFFICER

1.      Establish appropriations of $1,360,000 in the Air Quality School Bus Program Fund based on unanticipated revenue from the state FY 01-02 Lower Emission School Bus Program. (4 VOTES)

2.      Establish appropriations of $5,260,209 for school bus projects in the Air Quality Mitigation Fund based on unappropriated mitigation fees from power generators.  (4 VOTES)

3.      Establish appropriations of up to $1,900,000 for retrofit projects in the Air Quality School Bus Program Fund based on unanticipated revenue from the state FY 01-02 Lower Emission School Bus Program. (4 VOTES)

4.      Approve the allocation of previously authorized funds for school bus projects as set forth above and the table in Attachment II, and authorize the Air Pollution Control Officer to contract for payment of those funds.

5.      Authorize the Air Pollution Control Officer to apply for, accept, and contract for payment of additional FY 2001-02 state school bus retrofit funds to San Diego Unified School District as they become available.

6.      Establish appropriations of up to $710,486 for San Dieguito Transportation Cooperative projects in the Air Quality Mitigation Fund based on unappropriated North County mitigation fees from the Encina power plant.  (4 VOTES)

7.      Approve the distribution of up to $710,486 to the San Dieguito Transportation Cooperative for their requested projects (three CNG buses, three intermediate diesel buses, and 16 PM filter retrofits), and authorize the Air Pollution Control Officer to contract for payment of those funds.

AYES: Cox, Jacob, Slater, Roberts, Horn