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 Program - Authorization for the City Manager to submit applications in partnership with the National Park Service to the FTA Low or No Emission Grant Program (Resolution No. 2026-64 required) and the FTA Grants for Buses and Bus Facilities Program (Resolution No. 2026-65 required) for the purchase of twelve (12) clean diesel cutaways, ten (10) diesel hybrid buses, and rehabilitation of eight (8) diesel hybrid buses for an estimated total amount of $16,120,000 pending further analysis of the responsibilities and impacts to the City.
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Agenda Date: 09/08/2026
Prepared by:
David Chang, Financial Analyst, David.Chang@visalia.gov , (559)713-4526
Angelina Baker, Transit Manager, Angelina.Baker@visalia.gov, (559)713-4591
John Lollis, Assistant City Manager, John.Lollis@visalia.gov, (559)713-4323
Department Recommendation:
Staff recommends that the City Council authorize the submission of applications to the Federal Transit Administration (FTA) Low or No Emission Grant Program (Resolution No. 2026-64 required) and FTA Grants for Buses and Bus Facilities Program (Resolution No. 2026-65 required) for the purchase of twelve (12) clean diesel cutaways, ten (10) diesel hybrid buses, and rehabilitation of eight (8) diesel hybrid buses for an estimated amount of $16,120,000. Due to the application deadline, staff is requesting to authorize the City Manager authority to cancel the grant application if it is determined that the grant responsibilities and impacts are not in the best interest of the City.
Summary:
On July 27, 2026, the FTA announced the opportunity to apply for $589 million in competitive grants for the Fiscal Year (FY) 2026 Low or No Emission Grant Program (Low-No Program) and approximately $21 million in competitive grants for the FY 2026 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 September 21, 2026.
Given the National Park Service (NPS) is not an eligible applicant under the guidelines of the federal grant opportunity, NPS has requested to partner with the City on applications with the City as the applicant to both the Low-No Program and Bus Program. This application would be for the purchase of twelve (12) clean diesel cutaways, ten (10) diesel hybrid buses, and the rehabilitation of eight (8) diesel hybrids. The buses purchased will replace cutaways that have exceeded useful life and buses disposed of in prior years that did not meet California Air Resource Bords (CARB) emissions standards and were no longer allowed to operate within California. The intent of these buses is to operate the internal park shuttle in Sequoia National Park during the tourism season (Memorial Day to Labor Day). Outside of the tourism season, the buses would operate in local Fixed Route and V-Line service to Fresno to keep from degrading due to non-operation during the offseason. The NPS staff and its grants writers are assisting in writing the grant application with Transit Division staff, and will provide the required twenty percent (20%) match for the grant and any other cost responsibilities associated with the application. Transit does charge NPS for the depreciation of the vehicles through a Capital Lease each season which is used to fund bus repairs and any remaining funds is to be used for bus replacement. Funds available to date are approximately $1.4 million. The additional matching funds needed will come from NPS
Staff is currently working with NPS and researching the details of the grant. Due to the grant deadline of September 21st and the next Council meeting, staff is requesting authorization to apply for the grant this meeting. In addition, staff is requesting to authorize the City Manager authority to cancel the grant application if it has been determined that it is not in the City’s best interest.
Background Discussion:
In FY 2025 with approximately $2.03 billion available, the Low-No and Bus Programs received 479 eligible project proposals requesting more than $6.8 billion, of which the FTA selected 165 projects for award. The Council had authorized a City application last year in partnership with NPS, which involved the application for the purchase of ten (10) battery-electric buses and twenty-four (24) Level 3 electric chargers at an estimated amount of $15 million. Although the application scored well on its merits, the FTA did not award any funding in support of battery-electric bus applications. Recognizing the FTA will not fund the purchase of battery-electric buses in the current grant opportunity, Transit and NPS staff are proposing the purchase of diesel hybrid buses and cutaways.
Staff follows the fleet replacement plan approved by the City Council in 2023 as part of the Zero Emission Rollout Plan, which outlines annual bus replacements and additions needed to maintain compliance with the Innovative Clean Transit (ICT) regulation. The ICT regulation requires that twenty-five percent (25%) of vehicles over 14,000 Gross Vehicle Weight Rating (GVWR) purchased each calendar year shall be zero-emission. For calendar year 2027, Transit is scheduled to replace three (3) buses and add two (2) additional buses to the fleet for a total of five (5) battery-electric buses (BEB). Transit staff will be requesting an ICT exemption on the Sequoia Shuttle vehicle purchase due to the lack of infrastructure and resources for zero-emission buses within the Sequoia National Park. Given this grant application is anticipated to be awarded at the end of 2026, staff will remain on schedule to replace vehicles that have reached useful life while also accommodating the new fleet additions identified in the rollout plan.
Fiscal Impact including annual maintenance and operating costs:
If awarded, staff will return to Council to accept the grant and appropriate the funds. NPS has committed to funding the required twenty percent (20%) share of the cost through Sequoia Shuttle Capital Lease funds and any additional funds required. The City will not be required to fund the match, although the grant and vehicles would be managed by the City.
Prior Council Action:
June 16, 2025: Authorization to apply for the Federal Transit Administration Low or No
Emission Grant Program and the Grants for Buses and Bus Facilities Competitive
Program (25-0223)
Alternatives:
Council can elect not to authorize the application which will delay the fleet replacement schedule and increase dependency on City Local Transportation Funds for vehicle replacement.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the submission of applications to the FTA Low or No Emission Grant Program and the Buses and Bus Facilities Program for the purchase and rehabilitation of Sequoia Shuttle fleet vehicles in the estimated total amount of $16,120,000 and authorize the City Manager authority to cancel the grant application.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 09/21/2026
Attachments:
1. Draft Resolution No. 2026-64 - FTA Grants for Buses and Bus Facilities
2. Draft Resolution No. 2026-65 - FTA Low or No Emission Grant Program
3. Federal Register Notice: FY 2026 Competitive Funding Opportunity
4. City Council Agenda Report: June 16, 2025 (25-0223)
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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