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Propane Grants Awarded: Federal Infrastructure Grants for Propane Buses, Facilities, and Medium-Duty Vehicles

Bottom line: More than $18 million in federal grants awarded for propane buses and facilities.

The Federal Transit Authority (FTA) announced FY22 awards for two combined grant opportunities detailed in the Infrastructure Investment and Jobs Act: the Buses and Bus Facility Program, and the Low or No Emission Grant Program. FTA awarded grants to at least five state and local projects to purchase propane vehicles, totaling more than $18 million. Grants were awarded to:

  • Massachusetts Department of Transportation – Replace diesel buses with electric and propane $4,143,750
  • Bois Forte Band of Chippewa, Minnesota – Purchase propane buses $739,500
  • City of Fayetteville, NC – Replaced diesel and gasoline vehicles with electric and propane $280,500
  • South Dakota Department of Transportation – Purchase propane vehicles $1,067,774
  • Michigan Department of Transportation – Traditional, zero emission, and propane replacement buses for small and rural transit agencies statewide – $12,000,000

More information on the grants is available online here.

Grants under the Buses and Bus Facility Program were 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 were 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.

Both grant programs solicit applications and make awards each year.  The grants are to replace, rehabilitate, purchase, or lease buses, related equipment, or facilities – a program funded from the 2021 Infrastructure Investment and Jobs Act that 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.  Visit the Fight Electrification tab on the NPGA Member Dashboard for more information.

Questions? Contact NPGA President and CEO Steve Kaminski.