Select an FAQ Category to browse all questions and answers in that category.
            


Eligible Applicants

Direct recipients receive funding directly from FTA.  Designated recipients have been designated by the state governor or their designee to receive and/or sub-allocate.  Both direct and designated recipients may be eligible to apply directly to the Low-No Program and the Bus Competitive Program.

Eligible applicants include designated recipients, states, local governmental authorities, and Indian tribes.  Eligible subrecipients may partner with eligible recipients but cannot be the primary applicant.

Only designated recipients of FTA funds, states, local governmental authorities, and Indian tribes are eligible to apply for funds.  Airports that only provide transportation services on airport property are not eligible.  State universities that provide public transportation service that is open to the general public are eligible.  If you are unsure about whether you can apply for funding, please contact your FTA Regional Office or your state’s Department of Transportation.

A local government authority includes: (1) a political subdivision of a state, (2) an authority of at least one state or political subdivision of a state, (3) an Indian tribe, or (4) a public corporation, board, or commission established under the laws of a state.

Eligible recipients under the Bus Competitive Program include designated recipients that allocate funds to fixed-route bus operators, States (including territories and Washington, DC) or local governmental authorities that operate fixed-route bus service, and Indian tribes.  Eligible subrecipients and Indian tribes are not required to allocate funds to fixed-route bus operators or operate fixed-route bus service.

The Low-No Program does not have a fixed-route service provision for eligible recipients or subrecipients.

Bus Competitive Program funding may support otherwise eligible demand-response and paratransit projects.  Low-No Program funding may also be used to support demand response and paratransit projects, as long as the projects involve the provision or direct support of low-no buses.

Eligible Projects

The Low-No Program and the Bus Competitive Program only support public transportation projects. Public transportation means regular, continuing shared-ride surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income (49 U.S.C. § 5302(15)(A)). Transportation services that are restricted to any other segment of the population outside of the three exceptions above are not considered public transportation and are not eligible.

Transportation service that operates solely for patrons of a specific establishment or within a facility is not considered public transportation and is not eligible.  If a transportation service is open to the general public and makes meaningful connections in the community outside of a facility or specific establishment, it may be considered public transportation.

No.  School bus service is not considered public transportation and is not eligible.

Both types of facilities are eligible under the Low-No Program and Bus Competitive Program.  However, for the Low-No Program, facility projects must directly support low-no buses.

Administrative costs must be directly related to implementing or overseeing a project.  For examples of eligible administrative costs, refer to 2 CFR Part 225, Appendix B to Part 225 - Selected Items of Cost.

Planning studies are not eligible for Low-No or Bus Competitive funds. However, data collection and analysis directly related to the implementation of the proposed project is eligible as an incidental project management expense. Applicants would need to define how these expenses are a part of the project implementation strategy and are directly associated with acquiring these vehicles and deploying them in regular service.

No. Both the Low-No Program and the Bus Competitive Program are for capital projects only. Studies and planning efforts are not eligible expenses.  However, a project proposal may include project administration costs directly related to the deployment of eligible vehicles in revenue service.

CNG-powered, propane-powered, and hybrid vehicles are considered low-emission vehicles and are eligible under both the Low-No Program and the Bus Competitive Program. However, buses powered by biodiesel or clean diesel are not eligible under the Low-No Program and are only eligible under the Bus Competitive Program. 

For the Low-No Program, eligible buses must make greater reductions in energy consumption and harmful emissions, including direct carbon emissions, than comparable standard buses or other low- or no-emission buses (49 U.S.C. § 5339(c)(5)(A)). Eligibility is tied to the bus’s engine/propulsion type. As buses that use biodiesel or clean diesel are still capable of operating on standard diesel fuel, the buses are not eligible under the program.

For the Bus Competitive Program, all vehicles used in the provision of public transportation services, regardless of propulsion type, are eligible for funding. Please refer to the Eligible Projects section in the NOFO.

The Bipartisan Infrastructure Law requires that at least 25% of Low-No funding be awarded to low-emission vehicles.  Please refer to the Eligible Projects section in the NOFO.

All vehicles must complete Altoona testing prior to receiving FTA funds.  Applicants should specify whether their intended bus models have already completed testing, and if not, provide a proposed timeline for completing FTA’s Bus Testing requirements and provide assurance that the proposed model will successfully complete testing prior to deployment.  This information should be included in the Project Implementation Strategy section. FTA will not reimburse an agency for costs associated with vehicles that have not completed testing.

Lease payments are considered a capital expense and are eligible under both the Low-No Program and the Bus Competitive Program. If an applicant proposes a capital lease in the application, the grantee will be required to provide the local match at the time of each payment under the lease agreement.  Lease payments follow the same local match requirements as purchased vehicles, e.g., local funds must comprise at least 15% of each lease payment for CAA- and ADA-compliant vehicles.

For the Low-No Program, funds cannot be used to retrofit an existing facility with solar panels unless the panels are necessary for the operation of electric vehicles. An agency can use Low-No funds to build a maintenance facility that uses solar panels if the facility is incidental to the direct operation of low- or no-emission vehicles. For the Bus Competitive Program, solar panels can be incorporated into a facility project to power the building or other bus-related resources without a direct connection to the operations of the low- or no-emission vehicles.

No.  The only required reports are Federal Financial and Milestone Progress Reports. These reports are submitted electronically using FTA’s electronic grants management system.  FTA encourages recipients to continually evaluate performance of electric vehicles and to share information on their operation and performance within the transit industry.

Low-No Program and Bus Competitive Program funds cannot be used to reimburse applicants for otherwise eligible expenses incurred prior to execution of a grant agreement unless FTA has issued pre-award authority for selected projects. Costs incurred on or after the pre-award authority date may be eligible for reimbursement. Pre-award authority starts on the day project selections are announced by FTA.  Costs are considered incurred when a third-party contract is executed.

Yes. Remanufactured vehicles are vehicles that have undergone substantial structural, mechanical, or electrical rebuilding; restoration; or updating by a third party and are then sold or leased to a transit agency. For the purposes of these programs, remanufactured vehicles include vehicles that have been converted from a diesel/gas power source to a low- or no-emission power source.

If an applicant includes remanufactured vehicles in the application, whether as a partnership with a remanufacturer or through a proposed competitive procurement, the application must address how the project will meet the remanufactured vehicle requirements identified in FTA Circular C.5010.1E -- Award Management Requirements. This information should be addressed as a part of the project implementation plan and includes the following:

  1. Procurement. The recipient must identify in their application and procurement their intent to purchase previously owned and/or remanufactured vehicles. As part of the bid or proposal the recipient must obtain certification and documentation ascertaining that applicable Bus Testing and Buy America requirements have been met by the original owner or remanufacturer.
  2. Useful Life. The grant application and procurement of a previously owned vehicle must identify the applicable useful life for the vehicle.
  3. Bus Testing. The original vehicles must have met the Bus Testing Requirements in place at the time of acquisition by the original owner.
  4. Buy America. The original vehicles must have met the Buy America requirements in place at the time of acquisition by the original owner. Remanufactured vehicles must meet the applicable Buy America requirements for rolling stock for all new components and subcomponents added or replaced on the vehicle.
  5. DBE Requirements. When a remanufacturer responds to a solicitation for new, or remanufactured vehicles with a vehicle that has post-production alterations or retrofitting to provide a “like new” vehicle, the remanufacturer is considered a transit vehicle manufacturer and must comply with the DOT DBE regulations.

Yes. If the project is not in the TIP and/or the STIP at the time of application, the proposal should indicate the timeframe under which the TIP and/or STIP can be amended to include the proposed project.  Projects proposed by Indian tribes are not required to be included in the TIP or STIP.

No. Both the Low-No Program and the Bus Competitive Program are for capital projects only and general studies or planning efforts are not eligible expenses. The cost of developing a transition plan is eligible under the planning programs (49 U.S.C. § 5305) as well as under the urbanized area formula (49 U.S.C. § 5307) and rural area formula programs (49 U.S.C. § 5311).

Yes. If the previously prepared or adopted Plan meets the requirements as stated in the Bipartisan Infrastructure Law (BIL), Pub. L. 117-58f, then it can be included in the application. Applicants can provide a Cover Letter or Addendum to provide information required by the BIL that is not included in the previously adopted Fleet Transition Plan.

Not necessarily.  A State submitting a consolidated application for zero-emission vehicles may submit a statewide Fleet Transition Plan, plans the State develops for each of the individual subrecipients included in the application, plans the subrecipients develop and provide to the State for inclusion in the application, or any combination of these three options.

General

No, if you have registered and are up to date, you should be able to apply for these opportunities.

Yes, this is allowable.  Projects will be evaluated on a project-by-project basis regardless of how they are submitted to Grants.gov.

Both the SF-424 and the supplemental form can be downloaded from Grants.gov under the program opportunity tab.

An applicant must use the fillable PDF supplemental form that is provided at Grants.gov or on FTA’s website.  Other formats, including non-fillable PDFs, will not be accepted.

An applicant can choose either option; however, we recommend separate submissions for multiple urban agencies.

Grants.gov will allow you to upload supporting documents.  Supporting documents may be helpful to reviewers, as they may confirm what is stated in the narrative.  Up to 15 documents, including the Supplemental Form, may be attached and submitted with an application.  Zip files containing multiple documents should not be attached.

No. FTA will not review external links as part of the application process.  All documents you wish to be reviewed should be attached to your application in Grants.gov.

The appropriate documentation may vary depending on the source of local match.  Examples could include a city council or board resolution to provide local match for the project or a letter from the state attesting to the availability of state funding for the project.

The narrative should provide a complete explanation of the need for replacement buses, including any relevant supporting information.  Attachments, such as a fleet inventory, vehicle status report, or other documentation, may be used to support the statements in the narrative response.

Funds must be obligated within three fiscal years after the fiscal year that project selections are announced.  For example, project selections announced in June of 2023 must be obligated in a grant by September 30, 2026.

Applicants may provide a scalable option within their submission.  FTA may award less than the requested amount, provided that it will fund a project of independent utility.

No.  Operating expenses are not eligible under these programs and cannot be counted toward the total project cost in determining the local cost share.  Eligible sources of local match include the following: cash from non-government sources of revenues from providing public transportation services; revenues derived from the sale of advertising and concessions; amounts received under a service agreement with a state or local social service agency or private social service organization; revenues generated from value capture financing mechanisms; funds from an undistributed cash surplus; replacement or depreciation cash fund or reserve; new capital; or allowable in-kind contributions. Certain Federal funds may also be available for local match. Please see the CCAM Federal Fund Braiding Guide for more information.

There is no minimum application amount, though no single recipient under the Bus Competitive Program may be awarded more than 10% of the amount made available.  Depending on the applications received, FTA may cap awards at a particular amount to ensure a diversity of funded projects.

For letters that require an official response, address the letters to the Administrator at Federal Transit Administration 1200 New Jersey Ave., SE Washington, DC 20590.  For letters that you wish to have considered as part of the application, address the letters to the FTA Program Manager.

Applicants are able to partner with other agencies.  Each application can have only one lead agency who will be the grant recipient.  All other entities would then be a subrecipient to that agency.  The recipient is also responsible for ensuring that all subrecipients named in the application adhere to the federal and program requirements.  Please note, both the recipient and subrecipient(s) must be eligible applicants.

If an applicant is a direct recipient of FTA funds, then the application should be submitted to the FTA directly.  States may apply on behalf of urbanized areas and must apply on behalf of rural areas and, under the Bus Competitive Program, nonprofit organizations.  States do not review the applications once they are submitted to FTA.  If selected, the project will need to be added to the Statewide Transportation Improvement Program in cooperation with the MPO and/or state DOT.

The state may submit separate proposals on behalf of subrecipients or it may submit one or multiple consolidated proposals.

Multiple related activities can be considered as a single project or as multiple independent projects.  It is up to the applicant to decide how to submit these activities.  However, if the activities are dependent on one another (e.g., an applicant needs both buses and chargers, and does not want the possibility of receiving only buses or only chargers), then the related activities should be submitted in one application. For projects with multiple components, FTA encourages applicants to identify how the project can be scaled.

An applicant proposing a low- or no-emission project under both the Bus Competitive Program and the Low-No Program, or just under the Low-No Program may include partnerships with other entities that intend to participate in the implementation of the project. This includes, but is not limited to: specific vehicle manufacturers, equipment vendors, owners or operators of related facilities, and project consultants. If an application that includes a partnership is awarded, then the competitive selection process itself fulfills the competitive procurement requirement. Please refer to the Eligible Applicants and Project Implementation Strategy sections in the NOFO for additional information. All other requirements, such as Buy America and Bus Testing, remain in place regardless of whether an applicant uses the partnership provision to satisfy the competitive procurement requirement.

The NOFO states applicants can request Low-No or Bus Competitive funds for the incremental cost of low-no buses over standard vehicles. Applicants may choose to combine formula and Low-No or Bus Competitive funding. If an applicant chooses to include formula funding in an application that includes a partnership, the applicant will not have to go through the competitive procurement process if the project is submitted to both the Low-No Program and Bus Competitive Program, or just the Low-No Program. The competitive selection process satisfies the requirement for a competitive procurement. All other requirements, such as Buy America and Bus Testing, remain in place regardless of whether an applicant uses the partnership provision to satisfy the competitive procurement requirement.

Vouchers may be an eligible source of local match provided no costs are incurred prior to the issuance of pre-award authority. Costs are considered incurred when a third-party contract is executed, and pre-award authority of the Low-No Program and the Bus Competitive Program starts on the day that FTA announces project selections. HVIP’s previous requirement of a purchase order to receive a voucher would have made HVIP funding an ineligible source of local match. However, with the recent changes to the program, HVIP funds are now eligible to be used for local match as no purchase has been made prior to the pre-award authority date.

Low-No and Bus Competitive projects for low- or no-emission vehicles that used the partnership provision in their original competitive application are deemed to have satisfied the competitive procurement requirement for the project partnership named in the application. Recipients who named Proterra and whose Proterra contracts Phoenix assumed in the acquisition may carry out their awards using Phoenix without completing a competitive procurement. Recipients who named Proterra in their applications and are not proceeding with Phoenix will have to use standard competitive procurement procedures to find a new vendor.

Workforce Development

Workforce development includes activities related to employment or education with a direct linkage to the capital project.  Examples include developing apprenticeships, on-the-job training, and instructional training for public transportation maintenance and operations occupations.  Refer to FTA’s website for additional information.

Workforce development match for all projects, including CAA- and ADA-compliant projects, is 80 percent Federal and 20 percent local.

For low-emission and diesel/gas projects, applicants may optionally include up to 0.5 percent of their low-emission or diesel/gas Federal requested amount for workforce development activities and up to an additional 0.5 percent for costs associated with training at the National Transit Institute.

The percentage dedicated to workforce development activities is based on the Federal requested amount, not the total project budget.

For applicants proposing projects related to zero-emission vehicles and related facilities under either program, 5 percent of the requested Federal award must be used for workforce development activities. For example, if the Federal zero-emission request (not including any local share) for zero-emission vehicles/facilities is $3,000,000, divide that by 0.95 to obtain a total Federal request of $3,157,895 (please round up to the nearest whole dollar); of which $157,895 must be dedicated to workforce development activities.  Any project components that are not related to zero-emission vehicles or facilities (i.e., low-emission or diesel/gas vehicles and facilities) are not included in this calculation.

The Federal versus local match for workforce development training is 80% Federal and 20% local match. One way to determine the amount of local share required for workforce development activities is to multiply the Federal requested amount by 0.25. Continuing with the example from above, $157,895 x .25 = $39,474 (please round up to the nearest whole dollar). This leads to a total workforce development budget of $197,369 ($157,895 in Federal request + $39,474 in local match).