Title
Request Retroactive Authorization to Apply for Federal Transit Administration Low or No Emission Grant Program and Grants for Buses and Bus Facilities Competitive Program Grant Opportunity for Federal Fiscal Year 2023-24 - Federal Bipartisan Infrastructure Law Funding (Ordinance S-50874)
Description
Request to retroactively authorize the City Manager, or his designee, to apply for, accept and, if awarded, enter into agreement(s) for Federal funding from the Federal Transit Administration (FTA) through the Federal Fiscal Year (FFY) 2023-24 Low or No Emission Grant Program and Grants for Buses and Bus Facilities Program grant opportunity and enter into an agreement(s) with agencies receiving a pass-through share of the awarded grant funds. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. Funding for this grant opportunity is available through the Federal Bipartisan Infrastructure Law. The total grant funds applied for will not exceed $73,584,276.
Report
Summary
On Feb. 8, 2024, the FTA issued a combined Notice of Funding Opportunities for more than $1 billion in competitive grant funds for the Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program to support the transition of the nation’s transit fleet to the lowest polluting and most energy efficient transit vehicles.
The City of Phoenix and Valley Metro have partnered to apply for funding through these programs. Phoenix would use grant funds to further the Council-approved Zero Emission Fleet Transition Plan to replace, rehabilitate, purchase, or lease zero-emission and low-emission buses and related equipment. The funds would also be used to rehabilitate, purchase, construct, or lease bus-related facilities and infrastructure to support the new vehicles and fuel types. Further, additional funding for workforce development initiatives is included in the application. These federal programs support the City’s and Valley Metro’s initiatives to build modern infrastructure and an equitable, clean-energy future for the region’s transit system.
The grant submission is a scalable request to allow the FTA an opportunity to award funding based on total funding availability.
Financial Impact
The maximum Federal participation rate is between 85 and 90 percent, with a minimum local match between 10 and 15 percent of the total eligible project cost, depending on scope as defined by FTA. If awarded, the Federal and local matches are detailed below, based upon full award and two scalable options.
Full Request
The estimated total cost for the project is $84,109,952. If awarded, the Federal match would not exceed $73,584,276 (87 percent) and the local match would be approximately $10,525,676 (13 percent).
- Phoenix Portion: Approximately $47,797,178 Federal and $6,374,399 Local.
- Valley Metro Portion: Approximately $25,787,098 Federal and $4,151,277 Local.
Scalable Option A
The estimated total cost for the project is $67,793,957. If awarded, the Federal match would not exceed $59,376,201 (88 percent) and the local match would be approximately $8,417,756 (12 percent).
- Phoenix Portion: Approximately $45,298,297 Federal and $5,933,420 Local.
- Valley Metro Portion: Approximately $14,077,904 Federal and $2,484,336 Local.
Scalable Option B
The estimated total cost for the project is $39,478,154. If awarded, the Federal match would not exceed $34,084,314 (86 percent) and the local match would be approximately $5,393,840 (14 percent).
- Phoenix Portion: Approximately $20,006,410 Federal and $2,909,504 Local.
- Valley Metro Portion: Approximately $14,077,904 Federal and $2,484,336 Local.
Funding for the Phoenix portion of the local match is available in the Public Transit Department’s budget. There are no Phoenix funds in the Valley Metro portion of the pass-through funding. Potential grant funding received is available through the Federal Bipartisan Infrastructure Law, from the FTA through the FFY 2023-24 Low or No Emission Grant Program and Grants for Buses and Bus Facilities Program grant opportunity.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.