If an agency plans to lease zero-emission buses, are the operating costs (e.g. lease payments) eligible?
Lease payments are considered a capital expense and are eligible under the Low-No Program. If an applicant proposes a capital lease in the application, the grantee will be required to provide the local match as the time of each payment under the lease agreement. In the case of the Low-No program, local funds must comprise 15% of each lease payment.