FTA's Low-No Emission Bus Program Award Funding Increases Exponentially

Now here’s a grant program that is ripe for continued future growth, particularly under the current administration. The Department of Transportation Federal Transit Administration recently awarded about $182 million in federal fiscal year (FY) 2021 financial assistance to 49 recipients under the Low- or No-Emission (Low-No) Grant program, which funds the deployment of zero-emission and low-emission transit buses and supporting equipment and facilities.
The program has seen a significant jump in funds awarded in recent years. This year’s total compares to about $130 million awarded in FY 2020, $84 million in FYs 2019 and 2018 and only about $55 million in FYs 2017 and 2016. With the Biden administration’s emphasis on clean energy and reducing climate change, it’s expected that the dollars committed to this program may increase in future years.
Among this year’s recipients include the Chicago Transit Authority (CTA), which will receive some $7 million to purchase battery electric buses and charging equipment, upgrade its Southside bus depot and provide workforce training. The electric buses will replace CTA's oldest diesel buses and reduce greenhouse gases in communities that have experienced air pollution and other environmental health hazards, improving public health and quality of life. Another recipient is the Port Authority of Allegheny County in Pittsburgh, which will receive $5.1 million to purchase electric chargers and make improvements at its East Liberty Garage to support future electric buses as part of its planned bus rapid transit system. By retrofitting the garage to service electric buses, the agency aims to lower pollution in the surrounding community.
As part of another one of the president’s goals to encourage equity, this year’s funding opportunity prioritized applications with an environmental justice component as well as those that support workforce development to help America’s transit workers succeed even as their jobs change along with technology.
Eligible applicants under this program are public transit agencies, state transportation departments and Indian tribes. Projects were evaluated based on criteria defined in federal law and by FTA’s notice of funding opportunity, including the applicant's demonstration of need, project benefits and implementation strategies, and capacity for completing the project. After issuing funds in FY 2021 that were about $100 million more than the amount provided just two year’s prior, it will be interesting to see how much this program awards over the next few years.
Join us for our following Thompson Grants event:
Federal Grants Forum for Institutions of Higher Education | July 21 - 22, 2021
Federal Grants Forum For Tribal Nations | August 11 - 12, 2021