Grant Application - Low or No Emission Replacement Vehicles
Consent Agenda
Authorizing the submission of a grant application to the Federal Transit Administration Notice of Funding: Low or No Emission Program.
The Federal Transit Administration (FTA) has released a Notice of Funding Opportunity (NOFO) for approximately $589 million in competitive grant funding through its Fiscal Year 2026 Low or No Emission Grant Program (Low-No Program) under Federal Assistance Listing Number 20.526. The program supports the purchase or lease of buses that use low- or no- emission propulsion technologies, including related equipment or facilities.
Rochester Public Transit proposes to submit an application utilizing this grant funding to support replacement fleet needs already included in the draft 2027-2029 Transportation Improvement Program (TIP) and the Statewide Transportation Improvement Program (STIP). These replacement vehicles are currently projected to be funded through MnDOT's replacement fleet funding; however, if awarded, this grant would free up those MnDOT funds for use by other transit agencies across the state.
FTA generally limits the federal share to 80 percent of total project costs, requiring a local match of at least 20 percent. This is consistent with Minnesota capital grant requirements as well. However, there are two exceptions, one being that if the transit buses comply with the Clean Air Act or are accessible for people with disabilities, the federal share may be up to 85 percent. The proposed replacement vehicles would meet this eligibility.
Additional program details:
Study Session: Rochester Public Transit - August 24, 2026
These replacement vehicles are already reflected within the City Budget and STIP and TIP.
No alternative actions are proposed at this time.