Agenda Item Wording:
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Authorization to apply for the Federal Transit Administration Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program - Authorization to submit an application in partnership with the National Park Service to the FTA Low or No Emission Grant Program for ten (10) battery-electric buses and twenty-four (24) Level 3 electric chargers for an estimated amount of $15 million (Resolution No. 2025-45 required), and an application to the FTA Grants for Buses and Bus Facilities Competitive Program for the development of a parking structure on Transit property near the Transit Center for an estimated amount of $15 million (Resolution No. 2025-46 required).
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Deadline for Action: 6/16/2025
Submitting Department: Administration - Transit Division
Contact Name and Phone Number:
Angelina DeRossett, Transit Manager, Angelina.DeRossett@Visalia.City, (559)713-4591;John Lollis, Assistant City Manager, John.Lollis@Visalia.City, (559)713-4323
Department Recommendation:
Authorize staff to submit an application in partnership with the National Park Service to the Federal Transit Administration (FTA) Low or No Emission Grant Program for ten (10) battery-electric buses and twenty-four (24) Level 3 electric chargers for an estimated amount of $15 million (Resolution No. 2025-45 required), and an application to the FTA Grants for Buses and Bus Facilities Competitive Program for the development of a parking structure on Transit property near the Transit Center for an estimated amount of $15 million (Resolution No. 2025-46 required).
Summary:
On May 14, 2025, the Federal Transit Administration (FTA) announced the opportunity to apply for $1.1 billion in competitive grants for the fiscal year (FY) 2025 Low or No Emission Grant Program (Low-No Program) and approximately $398 million in competitive grants for the FY 2025 Grants for Buses and Bus Facilities Program (Bus Program). Eligible applicants are states (including territories and Washington, D.C.) local government entities, and federally recognized Indian tribes. Applications are due July 14, 2025.
Given it is not an eligible applicant, the National Park Service (NPS) has requested to partner with the City on an application to the Low-No Program for the purchase of ten (10) battery-electric buses and twenty-four (24) Level 3 chargers, with the intent of the buses to operate the internal park shuttle in Sequoia and Kings Canyon National Parks (SEKI) during the tourism season (Memorial Day to Labor Day), supported by twelve (12) chargers to be constructed in the Park. Outside of the tourism season, the buses would operate in the city, supported by twelve (12) chargers to be constructed at the City’s Corporation Yard. The NPS proposes to employ a consultant to complete the grant application on behalf of the City, and to be financially responsible for the required twenty percent (20%) cost share for the grant and any other cost responsibilities associated with the application.
With the planning for the development of the Cross Valley Express between Porterville and Naval Air Station (NAS) Lemoore underway with the City’s Transit Center to serve as the central regional hub of the proposed new service, it is becoming apparent that an expansion of one of the Transit Downtown parking lots would be necessary to serve as a park and ride for the Express. City Transit owns the parking lot directly west of the Transit Center, as well as the parking lot one (1) block to the northeast on the northeast corner of Oak Avenue and Tipton Street. The parking lot west of the Transit Center generally remains full during the day, which the development of a multi-level parking structure at that location would provide additional parking to support the Express park and ride, or the same at the northeast parking lot as the City begins construction of the new Civic Center due east of the parking lot. The City would have a twenty percent (20%) share of the cost for the grant, which can be applied from other federal and State grants (e.g. Senate Bill 125 State Transit funds).
It should be noted that the Tulare County Association of Governments (TCAG) is also preparing an application to the Low-No Program on behalf and to benefit the regional transit agencies estimated at $30 million, including six (6) battery-electric buses, six (6) compressed natural gas (CNG), twelve (12) Level 3 electric chargers, and $1 million toward the development of a new transfer station in the Visalia Industrial Park. This grant application would be complementary to the $59 million State grant that TCAG has received for the development of the Cross Valley Express (Porterville and NAS Lemoore) and Bus Rapid Transit (Tulare and Visalia).
Background Discussion:
In FY 2024, the Low-No Program received 214 eligible applications requesting $4.7 billion, of which sixty-two (62) applications were funded totaling $1.1 billion, with award sizes ranging from $1.2 million to $99.5 million. The Bus Program received 263 eligible applications requesting $4.4 billion, of which fifty-five (55) applications were funded totaling $390 million, with award sizes ranging from $131,000 to $26.8 million. The FY 2025 Low-No Program and Bus Program are expected to see similar results.
Eligible projects under the Low-No Program include:
1) the purchase or leasing of zero-emission buses, including hydrogen fuel-cell buses, battery-electric buses, and rubber tire trolley buses powered by overhead catenaries;
2) the purchase or leasing of low-emission buses, including propane buses, CNG buses, and hybrid-electric buses;
3) acquiring low- or no-emission buses with a leased power source; and
4) leasing, constructing, or rehabilitating pubic transportation facilities and related equipment to accommodate low- or no-emission buses.
There is a set aside of twenty-five (25%) of the $1.1 billion of funding available, or $275 million, for low-emission buses, with the remaining seventy-five percent (75%), or $825 million, for zero-emission buses.
Eligible projects under the Bus Program include:
1) the purchase, leasing or rehabilitating buses regardless of propulsion type or emissions; and
2) the purchase, leasing, rehabilitating, or constructing bus-related facilities and equipment, regardless of propulsion type or emissions.
Fiscal Impact: If awarded the Bus Program grant, the City would have a twenty percent (20%) share of the cost, which staff would have to identify an appropriate funding source and return to the City Council to appropriate funds. If awarded the Low-No Program grant, the NPS has committed to funding the required twenty percent (20%) share of the cost and would not require appropriation by the City.
Prior Council Action: None
Other: N/A
Alternatives: Do not authorize the City’s application to the FTA Low-No Program in partnership with the NPS and/or the FTA Bus Program.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize staff to submit an application, in partnership with the National Park Service, to the Federal Transit Administration (FTA) Low or No Emission Grant Program for ten (10) battery-electric buses and twenty-four (24) Level 3 electric chargers for an estimated amount of $15 million through the adoption of Resolution 2025-45, and an application to the FTA Grants for Buses and Bus Facilities Competitive Program for the development of a parking structure on Transit property near the Transit Center for an estimated amount of $15 million through the adoption of Resolution 2025-46..end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
Draft Resolution No. 2025-45 - FTA Low or No Emission Grant Program
Draft Resolution No. 2025-46 - FTA Grants for Buses and Bus Facilities Competitive Program
Federal Register - May 15, 2025; Notice of Funding Opportunity