TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Application for Volkswagen (VW) Environmental Mitigation Trust Funds
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 23-045 authorizing the General Manager, or his designee, to file and execute applications and funding/contract agreements with the Volkswagen Environmental Mitigation Trust Fund for the purchases of zero-emission transit buses.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Applying for the funds supports the District's Transit Asset Management (TAM) policy and plan, Zero-Emission Bus fleet transition plan and maintains operations. The application for these trust funds for the purchase of zero-emission buses will help the District in replacing buses that have reached the end of their useful lives.
BUDGETARY/FISCAL IMPACT:
The District has several bus purchases in the coming years with an approximate total cost of $154 million. The District has so far been able to secure $105 million. The secured funds are a mix of federal, state and local dollars. The details are provided in Table 1.
The District needs approximately an additional $49 million in funding to complete these bus purchase projects.
BACKGROUND/RATIONALE:
The Volkswagen (VW) Environmental Mitigation Trust (Trust) provides about $423 million for California to mitigate the excess nitrogen oxide (NOx) emissions caused by VW's use of illegal emissions testing defect devices in certain VW vehicles. The Trust is a component of partial settlements with VW and is enumerated in the first Partial Consent Decree.
The Consent Decree provides funding opportunities for specified eligible actions that are focused mostly on "scrap and replace" projects for heavy-duty sector, including o...
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