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U.S. Department of Transportation U.S. Department of Transportation Icon United States Department of Transportation United States Department of Transportation

Low or No Emission Grant Program - 5339(c)

People board a bus.

What's New

  • On February 8, 2024, FTA announced the availability of $1.5 billion in Fiscal Year 2024 funding to support state and local efforts to buy or modernize buses, improve bus facilities, and support workforce development.
    • Of this, $390 million in funding is authorized under the Grants for Buses and Bus Facilities Program.
    • The funding opportunity will advance FTA’s priorities of strengthening U.S. bus manufacturing, containing vehicle costs, and accelerating the delivery of new vehicles.
    • This funding opportunity also introduces streamlined application requirements for tribes requesting less than $1 million, making it easier for tribes with relatively small requests to apply. See this resource for more information.
  • FTA hosted two webinars to provide an overview of the programs, eligibility, evaluation criteria, selection considerations, and the submission process. View the presentation or watch one of the recordings below.

Overview

The Low or No Emission competitive program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses as well as acquisition, construction, and leasing of required supporting facilities.

Allocation of Funding

Funding is allocated to projects on a competitive basis, from proposals submitted to FTA in response to a Notice of Funding Opportunity (NOFO). Past project selections include:

Eligible Applicants

Eligible applicants include direct or designated recipients of FTA grants; States; local governmental authorities; and Indian Tribes. Except for projects proposed by Indian Tribes, proposals for funding eligible projects in rural (non-urbanized) areas must be submitted as part of a consolidated state proposal. States and other eligible applicants also may submit consolidated proposals for projects in urbanized areas.

Eligible Activities

Eligible projects include:

  • purchasing or leasing low- or no-emission buses
  • acquiring low- or no-emission buses with a leased power source
  • constructing or leasing facilities and related equipment (including intelligent technology and software) for low- or no-emission buses
  • constructing new public transportation facilities to accommodate low- or no-emission buses
  • rehabilitating or improving existing public transportation facilities to accommodate low- or no-emission buses
  • Additionally 0.5% of a request may be for workforce development training and an additional 0.5% may be for training at the National Transit Institute (NTI). Applicants proposing any project related to zero-emission vehicles must also spend 5% of their award on workforce development and training as outlined in their Zero-Emission Transition Plan, unless the applicant certifies that their financial need is less.

Statutory Reference

49 U.S.C. 5339 (c), IIJA § 30018, IIJA Division J

Funding Availability

Funds remain available for obligation for four fiscal years. This includes the fiscal year in which the amount is made available or appropriated plus three additional years.

Match

All eligible expenses under the Low-No Program are attributable to compliance with the Clean Air Act and/or the Americans with Disabilities Act.  Therefore, the Federal share of the cost of leasing or purchasing a transit bus is not to exceed 85 percent of the total transit bus cost. The federal share in the cost of leasing or acquiring low- or no-emission bus-related equipment and facilities is 90 percent of the net project cost.  Applicants must identify these specific activities in their application in order to receive this increased federal share.

Resources

Grant Type: Competitive