Title
Authorization to Submit Applications for the Federal Transit Administration Low or No Emission Grant Program and Enter into Grant Agreements (Ordinance S-53183) - Citywide
Description
Request to authorize the City Manager, or the City Manager's designee, to apply for and accept funding from the Federal Transit Administration (FTA) for grant assistance from the Fiscal Year 2026 Low or No Emission Grant Program and enter into agreements with the FTA for the purpose of accepting any grants awarded and enter into an agreement with Valley Metro/Regional Public Transportation Authority (RPTA) to receive a pass-through share of the awarded grant funds. Further request the City Council to grant an exception to Phoenix City Code 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise should be prohibited by Phoenix City Code 42-18. Additionally request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item in an amount not to exceed $46,665,000.
Report
Summary
On July 27, 2026, the FTA released a Notice of Funding Opportunity for the Low or No Emission Grant Program. The Public Transit Department has collaborated with Valley Metro/RPTA on a combined grant application for compressed natural gas (CNG) buses. The agencies are submitting a scalable request to make the application as competitive as possible. Public Transit’s full request is for 30 40-foot CNG buses and the scaled request is for 20 buses. Valley Metro/RPTA’s full request is for 24 40-foot and six 35-foot CNG buses and their scaled request is for 14 40-foot and six 35-foot CNG buses.
Phoenix is the designated recipient of FTA grant funds for the Phoenix-Mesa-Scottsdale Urbanized Area and therefore submits FTA grant applications on behalf of all local governments and agencies in the region. All projects are in the Maricopa Association of Governments’ approved Transportation Improvement Plan and the Arizona Department of Transportation’s approved State Transportation Improvement Plan.
The FTA application deadline is September 21, 2026.
Financial Impact
The total amount of grant funds sought in the combined application is $46,665,000, with approximately $23,345,250 for Phoenix and $23,319,750 for Valley Metro/RPTA. The grant requires a 15 percent match with local funds, which equals a maximum of $4,119,750 from Phoenix.
Funds are available in the Public Transit Department’s budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Cynthia Aguilar and the Public Transit Department.