EL MONTE, Calif. — The California Air Resources Board (ARB) this week informed air districts, school districts and new school bus and diesel particulate filter vendors that ARB has been instructed to freeze all new disbursements of funds that support the Lower-Emission School Bus Program.

Due to California's current budget crisis, the State Treasurer’s Office has been unable to access the bond market to generate funds for programs such as the Lower-Emission School Bus Program. As a result, until there is a resolution to the budget, all state agencies and departments have been instructed to cease entering into new grants or agreements and freeze disbursements on existing grants.

Additional disbursements of program funds will not be issued until the Treasurer’s Office has access to the bond market and the ability to reestablish the disbursement process.

Lower-Emission School Bus Program staff will be extending the Feb. 1, 2009, deadline for executed contracts and school bus ordering for pre-1977 school bus replacement, as well as other program milestones as needed to accommodate the disruption in the disbursement process.

All implementation deadlines currently outlined in the 2008 Lower-Emission School Bus Program guidelines are on hold until further notice.