Federal Infrastructure Grants Now Available for Propane Buses, Facilities, and Medium-Duty Vehicles

Bottom line: $1.4 billion dollars in federal grants now available for propane buses and vans.

The Federal Transit Authority (FTA) is accepting grant applications to replace, rehabilitate, purchase, or lease buses, related equipment, or facilities. This program is funded by the 2021 Infrastructure Investment and Jobs Act, which set aside more than $1.4 billion dollars in grants for state and local governments to replace transit buses, equipment, and facilities with alternatives like propane autogas.  Contact your state and local governments to alert them that propane autogas transit, paratransit, and other medium-duty vehicles, equipment, and maintenance facilities are eligible for purchase or lease under the FTA grants.

FTA has combined two grant opportunities detailed in the Infrastructure Investment and Jobs Act: the Buses and Bus Facility Program, and the Low or No Emission Grant Program. Only states and local governments are eligible to apply for the grant dollars.  Grant applications are due by May 31. The grant announcement is available online here.

Grants under the Buses and Bus Facility Program will be awarded based on improved resiliency, reliability, and service.  Eligible projects include: replacing, rehabilitating, purchasing, or leasing buses, vans, or related equipment, or rehabilitating, purchasing, constructing, or leasing bus-related facilities regardless of propulsion type or emissions.

Grants under the Low or No Emission Grant Program will be awarded based on reductions to energy use and emissions.  Eligible projects include: purchasing or leasing low or no emission buses, acquiring low or no emission buses with leased power source, constructing or leasing facilities and related equipment, constructing new public transportation facilities to accommodate low or no emission buses, or rehabilitating or improving existing public transportation facilities to accommodate low or no emission buses.

Current government fleets can also apply for the grants to expand or improve their autogas fleets, fueling infrastructure, and maintenance facilities. Visit the Fight Electrification tab on the NPGA Member Dashboard for more information.

Questions? Contact NPGA Vice President of Regulatory & Industry Affairs Sarah Reboli.