Agenda Item Wording:
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Federal Aviation Administration Airport Terminal Program Grant and California Jobs First Grant Application Authorization - Authorize staff to apply for the Federal Aviation Administration Airport Terminal Program for up to $4,000,000 for the Airport Terminal Replacement Project, and the California Jobs First Grant for up to $5,000,000 for the Hydrogen Plant and Bus Fueling Station Project; and appropriate $20,000 for grant writing services.
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Deadline for Action: 12/15/2025
Submitting Department: Administration - Airport and Transit Divisions
Prepared by:
John Lollis, Assistant City Manager, John.Lollis@visalia.gov, (559) 713-4323
Department Recommendation:
Staff recommends that the City Council authorize staff to apply for the Federal Aviation Administration (FAA) Airport Terminal Program for up to $4,000,000 for the Airport Terminal Replacement Project by the application deadline of January 15, 2026, and the California Jobs First Regional Investment Initiative Program for up to $5,000,000 for the Hydrogen Plant and Bus Fueling Station Project by the application deadline of January 16, 2026. In order to meet the tight deadline, staff also recommends to appropriate $20,000 for grant writing services.
Summary:
Staff is requesting authorization to apply for the FAA Airport Terminal Program for up to $4,000,000 for the Airport Terminal Replacement Project by the application deadline of January 16, 2025. The U.S. Department of Transportation announced on December 8, 2025, the fifth and final round of the Infrastructure Investment and Jobs Act - Airport Terminals Program, providing notice of funding available of $1 billion to provide competitive grants for airport terminal development projects that address the aging infrastructure of the nation’s airports. The grants will fund projects across the country allowing airports to build, modernize and upgrade airport facilities and to develop intermodal connections between the airport and other transportation modes to better serve passengers and communities to make travel more family friendly. The City’s application would seek funding for the demolition and reconstruction of the former terminal at the Visalia Municipal Airport.
Staff is also requesting authorization to apply for the California Jobs First Regional Investment Initiative Program for up to $5,000,000 for the Hydrogen Plant and Bus Fueling Station Project by the application deadline of January 16, 2026. The City was notified by the State on December 11, 2025, that it had been selected in the Central San Joaquin region to apply for funding in the zero-emission vehicle (ZEV) cluster as part of the State’s development and implementation of a comprehensive approach to advancing California’s economy by investing in key sectors to drive sustainable economic growth, innovation, and access to good-paying jobs. The City’s application would seek funding for the development of a hydrogen generation plant at the City’s Water Reclamation Facility (WRF) to produce hydrogen to in turn fuel zero-emission hydrogen fuel cell buses.
Background Discussion:
At its Planning Workshop Special Meeting on January 11, 2025, the City Council established goals and objectives for the City, including the development of a new terminal at the Visalia Municipal Airport to replace the former terminal constructed in 1985 and currently utilized by Enterprise Rent-A-Car, as well as the pursuit of alternative zero-emission vehicle technologies as an alternative to battery-electric to meet State vehicle fleet transition regulations and given the City’s past challenges with battery-electric buses. Over the past year, staff has been working diligently with its Federal and State representatives and the City’s respective lobbyists on these priorities and to pursue potential grant funding opportunities.
Fiscal Impact:
The demolition and reconstruction of the former terminal at the Airport is currently estimated at $3.5 million, which should the City be successful in being selected for funding under the announced FAA Airport Terminal Program, the Airport would have a five percent (5%) cost share in the cost of the project of approximately $175,000 that would come from Airport fund balance.
The development of the hydrogen generation plant and bus fueling station is currently estimated at $12 million, which the Tulare County Association of Governments (TCAG) has committed up to $1 million in funding toward the project, and has received a commitment from the San Joaquin Valley Air Pollution Control District for match funding to grant funding received, raising the potential for $12 million in project funding.
If the City is awarded the grants, staff will return to award and appropriate the grant and any matching funds required. At this time, staff is only requesting to appropriate $20,000 for grant writing services which will be funded by the Airport Fund ($10,000 ) and Transit Fund ($10,000 LTF funds).
Prior Council Action:
1. January 11, 2025: Visalia City Council 2025 Planning Workshop
Other: N/A
Alternatives:
The Council could not authorize the submission of one or both of the grant applications.
Recommended Motion (and Alternative Motions if expected):
recommendation
That the City Council authorize staff to apply for the FAA Airport Terminal Program for up to $4,000,000 for the Airport Terminal Replacement Project, and the California Jobs First Regional Investment Initiative Program for up to $5,000,000 for the Hydrogen Plant and Bus Fueling Station Project; and appropriate $20,000 for grant writing services as outlined in the report.
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
1. FAA Airport Terminal Program Notice of Funding Opportunity
2. California Jobs First Regional Investment Initiative Application