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2023 Low/No Grant Application
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DESCRIPTION: Application for grant funding for the funding of low or zero-emissions vehicles, infrastructure, and training |
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 $73,057,351 for the purchase of zero or near zero emissions vehicles, design, and construction of charging infrastructure, a resilient microgrid, and workforce development training. The total project amount is estimated at $83,300,784; the local match for vehicles is 15%, for infrastructure is 10%, and for workforce development is 20%, with the RTA total share not to exceed $10,243,433.
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ISSUE/BACKGROUND:
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The Agency was awarded funds for the FY2021 Low/No Grant. That grant award is helping the Agency create its EV bus pilot program which includes 3 battery electric buses (BEB) and charging infrastructure at the Canal St facility as well as for in-route charging at RTA’s interim New Orleans East hub.
For FY2023 the FTA has announced a joint funding opportunity to apply for approximately $1.22 billion in competitive grants under the Low/No Emission Vehicle Grant program and $469 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 zero-emission vehicles. These incentives include a large emphasis on workforce development and training. Larger and more ambitious projects have access to more funding and lower local match rates. The FTA has been extremely generous to include financing additional items such as infrastructure for the electric buses, related equipment, tooling, and other related resilient infrastructure for facilities. The FTA encourages applicants to apply for the FY2023 Low/No Emission Vehicle Grant and the FY2023 Grant for Bus and Bus Facilities. The FTA will then evaluate the project's scope and determine what grant to fund the project if awarded.
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DISCUSSION:
The RTA would like to apply for both grants and use the funding to significantly expand the low/no emissions bus fleet and resilient infrastructure by building on its pilot program currently underway. Staff is requesting federal funding not to exceed $83,300,784 over several years for the purchase, construction, equipment, and training related to the low/no vehicle plan.
A big part of this funding would be for infrastructure development. The FTA is willing to share the cost of these upgrades at 90%, leaving the Agency to cover only 10% of the costs. Building infrastructure will include in-route chargers, depot chargers, and a major focus on resilience. In light of power outages and storms facing the Gulf Coast, the Agency will use funds to build a 5MW micro-grid capable of charging EV buses in light of a power outage and improve resiliency.
Workforce Development is another focus of the grant. The Agency intends to use grant funding to grow our staff knowledge and to train them on newer technologies that the workforce is facing by partnering with local institutions to build an ongoing pipeline of retraining and new staff. Staff would also focus on needed equipment and tooling associated with the vehicles. FTA is covering 80% of these costs leaving the RTA responsible for the remaining 20%. The below table breaks down the proposed use of funds:
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Category |
Description |
Estimated Cost |
Federal Share |
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Electric Buses |
20 BEBs |
$31.22 million |
85% |
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Charging Infrastructure |
Depot chargers, in-route chargers substations |
$16.76 million |
90% |
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Microgrid |
5MW microgrid at Canal St depot with solar and battery storage |
$30.80 million |
90% |
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Workforce Development |
Develop training programs with local partners to maintain vehicles and equipment |
$3.53 million |
80% |
FINANCIAL IMPACT:
The RTA will be responsible for the local match not-to-exceed $10,243,432
NEXT STEPS:
The grant application is due by 11:59 pm Eastern time on April 13, 2023
ATTACHMENTS:
Resolution FY23 LOW/NO Grant
Prepared By: Ryan Moser
Title: Director of Fleet Advancement
Reviewed By: Dwight Norton
Title: Interim Chief of Planning & Infrastructure
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
3/24/2023
Lona Edwards Hankins Date
Chief Executive Officer