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HomeMy WebLinkAboutCOM 0105.000 2022-2024 Mitchell D. Roth JM<r ...11 Deanna S. Sako Mayor < w �• Director �tiidry. Diane Nakagawa Deputy Director County of Hawai` 3 Finance Department 25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 3 (808)961-8234 Fax(808)961-8569 P.t F February 2, 2023 Heather Kimball, Council Chair and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 I 'i Re: Operating Budget The County of Hawaii has been awarded$1,765,000 from the State of Hawaii Department of Transportation, which derived from Volkswagen Settlement Funds received by the State of Hawaii Energy Office. These funds will be used to purchase battery electric buses. 'I Enclosed is a resolution to enter into an agreement to accept these funds. Also enclosed is a bill for an ordinance amending the Operating Budget by appropriating this $1,765,000 grant. If there are any questions,please do not hesitate to call John Andoh of the Mass Transit Agency at 961-8555. Deanna S. Sako Director of Finance Enc. c: Mass Transit Comm. ea Ref. o:— 0 Hawaii County is an Equal Opportunity Employer and Provideef. tete— - 6 2023 Form : B-52 7118191 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION 3 DEPARTMENT: Mass Transit Agency DATE: 113012023 STAFF CONTACT: John Andoh PHONE: 808-961-8555 A. REQUEST: To request a bill to appropriate $1,765,000 in Volkswagen Settlement Funds from the State of Hawai'i Energy Office passed through to the Hawai'i Department of Transportation to provide match funding to the Lo-No Emissions grant program (Section 5339 (c)) to cover to purchase replacement transit buses that are battery electric. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The County was successful in receiving Volkswagen Settlement Funds from the State of Hawai'i Energy Office passed through to the Hawai'i Department of Transportation to cover the purchase of replacement battery electric buses. The "Volkswagen (VW) Settlement" is a series of legal settlements between various United States agencies, the State of California, and six VW-related entities — including VW, Audi, and Porsche —to resolve multiple criminal and civil enforcement cases against VW stemming from violations to the Clean Air Act (CAA) and efforts to conceal these violations. VW was charged with selling approximately 590,000 model year 2009 to 2016 2.0-liter and 3.0-liter diesel motor vehicles equipped with computer "defeat devices" that falsified emissions testing results and enabled these vehicles to emit air pollution significantly in excess of CAR limits. A primary emission of concern produced by the non-compliant vehicles, nitrogen oxides (NOx), is a significant health concern that contributes to the formation of smog and is linked to numerous respiratory- and cardiovascular-related health effects. HDOT worked with the State Energy Office to allocate these funds to each County to be able to purchase battery electric buses, leveraging FTA Section 5339 funds that was awarded to HDOT and suballocated to the County. y SIGNED: _ DATE: 1/30/2023 Department Head i I SUMMARYGRANT i (Supplement to B-52,Request for Council Action) Type of Grant Appropriation bein requested: (New or an additional appropriation) ❑ New(for this fiscal year period). OR ® Additional appropriation(to an existing grant); Is a draft agreement attached? Has the original grant notification been transmitted to ❑ Yes ❑No Council? ® Yes ❑ No Name of Grant Program: VOLKSWAGEN SETTLEMENT -HAWAII ZERO EMISSION BUS PROGRAM Grantor: Hawai'i State Energy Office i County Grantee Department or Agency: Mass Transit Agency County Grantee Contact Person: John Andoh Phone Number: 808-961-8555 Amount of Grant: $1,765,000 f Grant Period (Commencement& Completion): 9-26-2022 to 12-31-2025 Purpose of Grant: Provides local funding for bus replacements -battery electric.. Funding Source: ❑Federal ❑Federal,passed-through state ®State *If Federal,passed-through state,provide Federal Agency: County Match required?: ❑ Yes ®No E If yes, Matching Amount? Budgeted in account# In-kind?Explain: None Explanation: These funds are part of a FTA Section 5339 (c)Low and No Emission Grant previously awarded to the County. County's personnel requirements: Amount of new position(s)? Qty: 0 Permanent: ❑ Temporary: ❑, Duration: Full-time: ❑ Part-time: ❑, Time Element: Qty: 0 Contractual: ❑ Explain: Explanation: Additional Comments about Grant: The"Volkswagen (VW) Settlement" is a series of legal settlements between various United States agencies, the State of California, and six VW-related entities—including VW, Audi, and Porsche—to resolve multiple criminal and civil enforcement cases against VW stemming from violations to the Clean Air Act(CAA) and efforts to conceal these violations. VW was charged with selling B-52 Grant Summary Form approximately 590,000 model year 2009 to 2016 2.0-liter and 3.0-liter diesel motor vehicles equipped with computer"defeat devices"that falsified emissions testing results and enabled these vehicles to emit air pollution significantly in excess of CAA limits. A primary emission of concern produced by the non- compliant vehicles, nitrogen oxides (NOx), is a significant health concern that contributes to the formation of smog and is linked to numerous respiratory- and cardiovascular-related health effects. HDOT worked with the State Energy Office to allocate these funds to each County to be able to purchase battery electric buses, leveraging FTA Section 5339 funds that was awarded to HDOT and suballocated to the County. B-52 Grant Summary Form