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FY24 Lo/No Vehicles - Bus Facilities FTA Grant Application
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DESCRIPTION: Application for financing the infrastructure, training, and purchase of low or zero-emissions vehicles. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to apply for federal funds not to exceed the amount of $27,500,000 for the purchase of low-zero emissions vehicles and resilient modernization of the ENO bus maintenance facility. The total project amount is estimated at $32,600,000; the local match for vehicles is 15% and for facilities and training is 20%, resulting in an RTA share not to exceed $5,300,000.
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ISSUE/BACKGROUND:
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The RTA had an aging fleet crisis as an aftershock of 81 vehicles purchased in 2007-2009 to replace the total loss of fleet in the 2005 Katrina levee failure. Of the 59 buses still in service, now well past their useful life, 29 will be replaced this year. RTA was awarded a major FY23 Low/No Emission Vehicle grant of $73.4 million to significantly accelerate its transition to a zero-emission fleet with 20 battery-electric buses and resilient charging infrastructure including a 5MW solar-based microgrid. That work is now underway; however, the significant infrastructure and workforce development required means vehicles will not be in service until 2027.
An interim step is needed to complete the urgent replacement of aged vehicles and support the transition to reduced emissions and resilient infrastructure.
For FY2024 the FTA has announced its second joint funding opportunity to apply for approximately $1.10 billion in competitive grants under the Low/No Emission Vehicle Grant program and $390 million in competitive grants under the Bus and Bus Facilities program. This year’s grant program also has many unique features to incentivize and accelerate the adoption of low and zero-emission vehicles. These incentives include reducing match requirements for low/no emission vehicles, priorities for reducing vehicle production costs, priorities for progress payments to vendors, and priorities for applications that include elements to improve community resilience. The FTA also includes streamlined procurement requirements to reduce the timeline to implement by allowing applicants to identify partners and vendors as a combined competitive selection process through the grant application.
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DISCUSSION:
The RTA is applying for funding to purchase 25 hybrid fixed-route buses. These vehicles will allow the agency to retire its remaining aging fleet and expand its total low-emission vehicles to 40. Hybrid buses have some of the same or similar high-voltage components and technology as battery electric buses, supporting the transition to electric vehicle propulsion. This component has a 15% local match requirement. For this component, RTA has named its current vendor for all fixed-route bus vehicles, New Flyer of America, as its partner.
The other major component is renovation and resilience improvements to its ENO bus maintenance facility. In addition to basic rehabilitation needs, the building site requires stormwater/flood mitigation improvements to prevent future damage. The scope also includes insulating and conditioning the space to create a unique facility that can greatly support the retention and recruiting of the vehicle maintenance workforce - an industry-wide challenge. This component has a 20% local match requirement.
FINANCIAL IMPACT:
The total project estimated cost is $32.6 million. RTA will be responsible for the local match not to exceed $5,300,000 which will be paid out of its capital budget in 2025 and 2026 and included in the current 5-year Capital Investment Program for 2024-2029.
NEXT STEPS:
The grant application is due by 11:59 pm Eastern time on April 25, 2024.
ATTACHMENTS:
1. Resolution FY24 Low/No Emission Vehicles Grant
Prepared By: Dwight Norton
Title: Chief Planning & Capital Projects Officer
Reviewed By: Ryan Moser
Title: Chief Asset Management Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
4/16/2024
Lona Edwards Hankins Date
Chief Executive Officer