School Bus Retrofit and Replacement Account

This page last reviewed July 9, 2014

2014 Case-by-Case Determinations


Reference: #2014-SB05
Request: Allow LESB funding (AB 923) of one Moreland Unified School District bus by granting an extension of 6 days beyond the 60-day requirement to dispose of old bus #9 (VIN 1GBM6P1G6JV115442) after delivery of the new bus.
Air District: Bay Area AQMD
Guidelines Section(s): Appendix C, Section K; Mail-Out #MSC 11-16
Determination: LESBP Guidelines require that school districts ensure that the old school bus is dismantled within 60 days of the receipt of the new, replacement bus. Mail-Out #MSC 11-16 says that “dismantling is not required within 60 days if documentation shows that the old school bus was not driven after delivery of the new replacement bus.” Communications from the secretary to the Director of Facilities, Construction and Technology at the school district indicate that the old school bus was driven after delivery of the new bus due to a delay in California Highway Patrol (CHP) safety certification.  The new school bus was delivered with broken mirrors and, upon re-inspection, two more safety related issues were identified that took time to resolve.  In addition, the old school bus was not driven after the new school bus was certified by the CHP.  Finally, the old school bus was dismantled 66 days after delivery of the new bus.

ARB Action: Approved for funding.
Determination Date: July 9, 2014
Contact: Lisa Jennings (916) 322-6913

Reference: #2014-SB04
Request: The air district is requesting an exemption from the requirement for a school bus to be at least 14 years old to be eligible for a CNG tank replacement for three West County Transportation Agency school buses:   #71 (1BABNBMA01F096407), #72 (1BABNBMA21F096408), and #73 (1BABNBMA41F096409) and two Redwood City School District school buses:   #26 (1BABNBMA31F096417) and #27 (1BABNBMA31F096420).
Air District: Bay Area AQMD
Guidelines Section(s): Mail-Out #MSC 11-37
Determination: Mail-Out 11-37 requires school buses to be at least 14 years old but no older than 16 years to receive funding.  West County Transportation Agency school buses #71, #72, and #73 and Redwood City School District school buses #26 and #27 are 2001 model year vehicles with CNG tanks manufactured in 2/2000 and in 3/2000.  Documentation provided shows that the tanks will expire in 02-2015 and in 03-2015.  Performing necessary school bus maintenance during the summertime prevents out-of-service school buses during the school year when they are needed on a daily basis.  Furthermore, the air district will need time to execute contracts and proceed with projects prior to the bus reaching 14 years of age in order to ensure tank replacement prior to expiration.

ARB Action: Approved for funding with AB 923 funds.
Determination Date:  July 7, 2014
Contact: Lisa Jennings (916) 322-6913

Reference: #2014-SB03
Request: Allow delivery of a replacement bus, funded with Lower Emission School Bus (LESB) Program Proposition 1B funding within the $140,000 replacement funding cap for Apple Valley Unified School District, after the April 1, 2014, delivery deadline and also allow delivery of a replacement bus, funded with LESB Program Proposition 1B funding within the $140,000 replacement funding cap for Eastside Union School District, after the April 1, 2014, delivery deadline.
Air District: San Joaquin Valley Air Pollution Control District (APCD) [for Mojave Desert Air Quality Management District (AQMD) and for Antelope Valley APCD]
Guidelines Section(s): Chapter V, Section G and Section O; Mail-Out #MSC 10-11; Mail-Out #MSC 12-18

Determination: The LESB Program Guidelines state that replacement buses must be delivered by April 1, 2014, and that the $100 per day Liquidated Damages for the late delivery of school buses must be applied to replacement buses delivered to the school district after April 1, 2014. The air district is requesting the delivery deadline for these contracts to be changed from April 1, 2014, to May 29, 2014. 
 
The air district is funding a replacement school bus for Apple Valley Unified School District with remaining Proposition 1B funds.  These funds were obligated last year but are now available due to a cancelled contract.  The air district is also funding a replacement school bus for Eastside Union School District with a combination of remaining Proposition 1B funds and transferred Proposition 1B funds.

The air district has committed to include the following liquidated damages language in the school bus replacement grant contract to ensure the project funding will meet the June 30, 2014, liquidation deadline:

"Delivery of the new buses to Grantees must occur on or before May 29, 2014 (“Final Delivery Date”).  Time is of the essence in this contract for the purchase of new school buses to replace older, higher-polluting buses.  Failure to timely deliver the new school buses will result in harm to the Air District, school districts, school children, and air quality in the affected school district and Air District.  Further, every day in which delivery of a new school bus has been delayed may result in additional costs to the Air District and Grantee to rent or lease an equivalent bus or otherwise mitigate the damages from the delay; such costs are definite but unquantifiable at the time of the execution of this Agreement.  Therefore, the parties acknowledge and agree to pay liquidated damages for failure to timely deliver the new school buses, as specified below:

For every day after May 29, 2014, in which a bus has not been delivered as specified in this Agreement, Grantee shall be liable to the Air District for liquidated damages in the amount of $100 per day per bus purchased with funds from the Lower-Emission School Bus Program."

The air district has committed to include the following liquidated damages language in the contract/purchase agreement between the school district and the school bus distributor to ensure the project funding will meet the June 30, 2014, liquidation deadline:

"Time is of the essence in these contracts for the purchase of new school buses to replace older, higher-polluting buses.  Failure to timely deliver the new school buses will result in harm to the implementing air district, school districts, school children, and air quality in the affected school district and air district.  Further, every day in which delivery of a new school bus has been delayed may result in additional costs to the implementing air district and school district to rent or lease an equivalent bus or otherwise mitigate the damages from the delay; such costs are definite but unquantifiable at the time of the execution of the contract.  Therefore, the parties acknowledge and agree to pay liquidated damages for failure to timely deliver the new school buses, as specified below:

For every day after May 29, 2014, in which a bus has not been delivered as specified in the contract, the school bus distributor/vendor shall be liable to the school district for liquidated damages in the amount of $100 per day per bus purchased with funds from the Lower-Emission School Bus Program and this amount shall be offset from the payment that will be made to the school bus distributor/vendor."

Additionally, the funding grant agreement between the San Joaquin Valley APCD, implementing for Mojave Desert AQMD, and Apple Valley Unified School District must contain language that states that the agreement is terminated if the replacement bus is not delivered to the school district by June 30, 2014.  Also, the funding grant agreement between the San Joaquin Valley APCD, implementing for Antelope Valley APCD, and Eastside Union School District must contain language that states that the agreement is terminated if the replacement bus is not delivered to the school district by June 30, 2014. 

This request is consistent with the intent of the guidelines to ensure that every one of the new and retrofitted buses funded by the LESB Program will be in service transporting California’s school children no later than June 30, 2014, and all LESB State program funding will be paid out by June 30, 2014.

ARB Action: Approved for funding with LESB Program state funds.
Determination Date: April 29, 2014
Contact: Lisa Jennings (916) 322-6913

Reference: #2014-SB02
Request: Allow delivery of a replacement bus, funded with LESB Program Proposition 1B funding within the $140,000 replacement funding cap for Middletown Unified School District, after the April 1, 2014, delivery deadline.
Air District: San Joaquin Valley Air Pollution Control District (APCD) [for Lake County Air Quality Management District (AQMD)]
Guidelines Section(s): Chapter V, Section G and Section O; Mail-Out #MSC 10-11; Mail-Out #MSC 12-18

Determination: The LESB Program Guidelines state that replacement buses must be delivered by April 1, 2014, and that the $100 per day Liquidated Damages for the late delivery of school buses must be applied to replacement buses delivered to the school district after April 1, 2014. The air district is requesting the delivery deadline for this contract to be changed from April 1, 2014, to April 15, 2014.  The school bus vendor required placement of the purchase order by December 12, 2013, in order to ensure school bus delivery by April 1, 2014.  This school bus is being co-funded by Lake County AQMD (administered by San Joaquin Valley APCD) with remaining Proposition 1B funds and North Coast Unified AQMD with local AB 923 funds. 

The school district was not comfortable placing the school bus order until the North Coast Unified AQMD contract was executed as this contract represents the bulk of the funding.  The contract execution was delayed due to absences of both school district and air district staff over the holidays.  The North Coast Unified AQMD contract was executed on January 7, 2014.  The school bus vendor has indicated that the replacement bus is now in the manufacturing process and is slated to be finished on March 15th. The bus will then have to be shipped/driven from Georgia to California. The bus vendor will then need time to pass inspections and continue with whatever work they need to do before delivery. The bus will be in California, but not to the school district before the April 1, 2014, deadline. The vendor has indicated that they can deliver the bus by April 15, 2014.

The air district has committed to include the following liquidated damages language in the school bus replacement grant contract to ensure the project funding will meet the June 30, 2014, liquidation deadline:

Delivery of the new bus to Grantee must occur on or before April 15, 2014 (“Final Delivery Date”).  Time is of the essence in this contract for the purchase of new school buses to replace older, higher-polluting buses.  Failure to timely deliver the new school buses will result in harm to the Air District, school districts, school children, and air quality in the affected school district and Air District.  Further, every day in which delivery of a new school bus has been delayed may result in additional costs to the Air District and Grantee to rent or lease an equivalent bus or otherwise mitigate the damages from the delay; such costs are definite but unquantifiable at the time of the execution of this Agreement.  Therefore, the parties acknowledge and agree to pay liquidated damages for failure to timely deliver the new school buses, as specified below:
For every day after April 15, 2014, in which a bus has not been delivered as specified in this Agreement, Grantee shall be liable to the Air District for liquidated damages in the amount of $100 per day per bus purchased with funds from the LESB Program.

The air district has committed to include the following liquidated damages language in the contract/purchase agreement between the school district and the school bus distributor to ensure the project funding will meet the June 30, 2014, liquidation deadline:

Time is of the essence in these contracts for the purchase of new school buses to replace older, higher-polluting buses.  Failure to timely deliver the new school buses will result in harm to the implementing air district (either North Coast Unified AQMD or San Joaquin Valley Air APCD), school districts, school children, and air quality in the affected school district and air district.  Further, every day in which delivery of a new school bus has been delayed may result in additional costs to the implementing air district and school district to rent or lease an equivalent bus or otherwise mitigate the damages from the delay; such costs are definite but unquantifiable at the time of the execution of the contract.  Therefore, the parties acknowledge and agree to pay liquidated damages for failure to timely deliver the new school buses, as specified below:

For every day after April 15, 2014, in which a bus has not been delivered as specified in the contract, the school bus distributor/vendor shall be liable to the school district for liquidated damages in the amount of $100 per day per bus purchased with funds from the Lower-Emission School Bus Program and this amount shall be offset from the payment that will be made to the school bus distributor/vendor.

Additionally, the funding grant agreement between the Lake County AQMD and Middletown Unified School District must contain language that states that the agreement is terminated if the replacement bus is not delivered to the school district by June 30, 2014.

This request is consistent with the intent of the guidelines to ensure that every one of the new and retrofitted buses funded by the LESB Program will be in service transporting California’s school children no later than June 30, 2014, and all LESB State program funding will be paid out by June 30, 2014.

ARB Action: Approved for funding with LESB Program state funds.
Determination Date: February 6, 2014
Contact: Lisa Jennings (916) 322-6913

Reference:  2014-SB01
Request:  For two school buses owned by the Napa Valley Unified School District, the air district is requesting an exemption from the requirement for a school district to provide documentation of tank expiration dates and serial numbers for compressed natural gas tanks that are to be replaced (Vehicle Identification Numbers:  1BAANBMA5XF084130 and 1BAANBMA0XF084133; Bay Area Air Quality Management District Project Number:  12SBTR01).
Air District:  Bay Area Air Quality Management District
Guidelines Section(s): Mail-Out #MSC 11-37
ARB Action:  Approved.

Determination:   For Assembly Bill 923-funded compressed natural gas tank replacement projects, Mail-Out #MSC 11-37 requires school districts to provide documentation of tank expiration dates and serial numbers of tanks that are to be replaced.  Mail-Out #MSC 11-37 allows tank replacement requests to be accepted by an air district within 18 months of their expiration dates – this allows the contract process to begin while preventing funding from being used to replace tanks that have a significant amount of useful life remaining.  Documentation of tank expiration dates and serial numbers is often in the form of photos of the tanks’ labels.

At the time of application, the Napa Valley Unified School District was unable to provide clear photos of the old tank labels because there was not enough clearance for photography. Instead, the school district obtained the tank expiration dates and serial numbers through visual observation of the tank labels. Typically, in these situations, once the tanks are dropped and the tank labels are accessible for photography, the vendor takes photos of the old tank labels before disposing of the tanks.  In this case, the vendor provided inadequate photo documentation of the tank labels, and the vendor later acknowledged this via email.  In addition, the vendor indicated that the old tanks were disposed of directly after removal.

The inadequate documentation is described in the following table:

Bus # Vehicle Identification Number Description
15 1BAANBMA5XF084130 The tank label photograph for the tank at the front left location is missing.
20 1BAANBMA0XF084133 The tank label photographs for the tanks located at the front right, rear left, and rear right are illegible.

The school district made a good faith effort to obtain documentation of tank expiration dates and serial numbers of the old tank labels.  The inadequate documentation of the tank labels was the result of circumstances beyond the school district’s control.  However, the school district has affirmed the following information for both buses:

•    The buses were originally manufactured as compressed natural gas buses.
•    The tanks that were replaced were the original tanks that came with the buses.
•    The vehicle model year is 1999 and the engines were manufactured in 1998.
•    This is the first time that the tanks on the buses have been replaced.
•    They determined through visual observations that all of the tanks had expiration dates throughout 2013.

The aforementioned information does not serve as documentation of the expiration dates of the old tanks, but it provides a framework that indicates that the old tanks were close to the end of a typical manufacturer’s service life of 15 years.

Determination Date:  January 03, 2014
Contact:  Kimya Lambert (916) 323-2507

Case-by-Case Determinations by Year

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