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REQUEST FOR ACTION

Grant Application - Low or No Emission Replacement Vehicles

 
MEETING DATE:
September 9, 2026
ORIGINATING DEPT:
Transit & Parking Services
 
AGENDA SECTION:

Consent Agenda

PRESENTER:
Rachel Fautsch
 
Action Requested:

Authorizing the submission of a grant application to the Federal Transit Administration Notice of Funding: Low or No Emission Program.

Report Narrative:

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:

  • There is no minimum grant award amount.
  • There is no maximum award amount under the Low-No Program.
  • Projects may be awarded less than the amount requested.
  • Funds remain available for obligation for four fiscal years.
  • Applications are due September 21, 2026.
  • Funding is anticipated to be awarded within 75 days of the application deadline.
Priorities & Foundational Principles:
Fiscal Responsibility & Sustainability
Policy Considerations & DEI Impact:
By funding deployment of clean-energy buses the grant enhances the City's capacity to expand equitable transit service, aligning with the planning-by-plans direction from the 2017 Transit Development Plan and 2023 Active Transportation Plan. The Active Transportation Plan focuses on safety and accessibility for low-income residents, people with disabilities, and Black, Indigenous, and People of Color (BIPOC) communities, groups the Low-No grant is well positioned to benefit by funding cleaner, more reliable transit options.
Prior Legislative Actions & Community Engagement:

Study Session: Rochester Public Transit - August 24, 2026

Fiscal & Resource Impact:

These replacement vehicles are already reflected within the City Budget and STIP and TIP.

Alternative Action(s):

No alternative actions are proposed at this time.

Prepared By:
Rachel Fautsch
Attachments: