FY 2022 Competitive Funding Opportunity: Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program

FY 2022 Competitive Funding Opportunity: Low or No Emission Grant Program and the Grants for Buses and Bus Facilities Competitive Program

Publication: Federal Register
Agency: Federal Transit Administration
Byline: Nuria I. Fernandez
Date: 4 March 2022
Subjects: American Government

, Buses

[Federal Register Volume 87, Number 43 (Friday, March 4, 2022)]
[Notices]
[Pages 12528-12537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04621]

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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

FY 2022 Competitive Funding Opportunity: Low or No Emission Grant
Program and the Grants for Buses and Bus Facilities Competitive Program

AGENCY: Federal Transit Administration (FTA), Department of
Transportation (DOT).

ACTION: Notice of Funding Opportunity (NOFO).

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SUMMARY: The Federal Transit Administration (FTA) announces the
opportunity to apply for approximately $1.1 billion in competitive
grants under the fiscal year (FY) 2022 Low or No Emission Grant Program
(Low-No Program) (Federal Assistance Listing: 20.526) and approximately
$372 million in FY 2022 funds under the Grants for Buses and Bus
Facilities Program (Buses and Bus Facilities Program) (Federal
Assistance Listing 20.526), subject to availability of appropriated
funding.

DATES: Complete proposals must be submitted electronically through the
GRANTS.GOV ``APPLY'' function by 11:59 p.m. Eastern time on May 31,
2022. Prospective applicants should initiate the process by registering
on the GRANTS.GOV website promptly to ensure completion of the
application process before the submission deadline.

ADDRESSES: Instructions for applying can be found on FTA's website at
https://www.transit.dot.gov/howtoapply and in the ``FIND'' module of
GRANTS.GOV. The funding opportunity ID is FTA-2022-001-TPM-LWNO for
Low-No applications and FTA-2022-002-TPM-BUSC for Buses and Bus
Facilities applications. Please note, if an application is choosing to
apply to both programs, the applicant must submit a GRANTS.GOV package
to each opportunity ID. Mail and fax submissions will not be accepted.

FOR FURTHER INFORMATION CONTACT: For further information concerning
this notice, please contact the Low-No/Bus grant program staff via
email at ftalownobusnofo@dot.gov, or call Amy Volz at 202-366-7484.

SUPPLEMENTARY INFORMATION: As required by Federal public transportation
law, Low or No Emission Grant Program funds will be awarded
competitively for the purchase or lease of low or no emission vehicles
that use advanced technologies for transit revenue operations,
including related equipment or facilities. As required by Federal
public transportation law, Buses and Bus Facilities Program funds will
be

[[Page 12529]]

awarded competitively to assist in the financing of capital projects to
replace, rehabilitate, purchase or lease buses and related equipment,
and to rehabilitate, purchase, construct or lease bus-related
facilities. Zero-emission projects will include costs for workforce
development, unless the applicant certifies funds are not needed. In
general, projects may include costs incidental to the acquisition of
buses or to the construction of facilities, such as the costs of
related workforce development and training activities, and project
administration expenses. As these two programs have overlapping
eligibilities and must be implemented on the same timeline as required
by changes made by the Bipartisan Infrastructure Law (enacted as the
Infrastructure Investment and Jobs Act), FTA is publishing this joint
NOFO. Per Federal public transportation law, FTA will award grants for
these programs within 75 days after the date this solicitation expires
from funds available for award at that time. FTA may extend the
application deadline, and may award additional funding that is made
available to the programs prior to the announcement of project
selections. If during FY2022, additional funding is made available for
these programs after announcement of project selections, FTA may make
additional awards under a separate NOFO.

Table of Contents

A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration Information
G. Federal Awarding Agency Contacts
H. Other Information

A. Program Description

This is a combined NOFO and announces the availability of FY 2022
funding for both the Low-No and the Buses and Bus Facilities Program.
Federal public transportation law (49 U.S.C. 5339(c)) authorizes
FTA to award grants for low or no emission bus projects through a
competitive process, as described in this notice. The Low-No Program
provides funding to State (including territories and Washington DC),
local governmental authorities, and tribal governments for the purchase
or lease of zero-emission and low-emission transit buses, including
acquisition, construction, and leasing of required supporting
facilities such as recharging, refueling, and maintenance facilities.
Federal public transportation law (49 U.S.C. 5339(b)) authorizes
FTA to award grants for the Buses and Bus Facilities Program through a
competitive process, as described in this notice. Grants under this
program are for capital projects to replace, rehabilitate, purchase, or
lease buses and related equipment, or to rehabilitate, purchase,
construct, or lease bus-related facilities.
These programs support FTA's priorities and objectives through
investments that (1) renew our transit systems; (2) reduce greenhouse
gas emissions from public transportation, (3) advance racial equity,
(4) maintain and create good-paying jobs with a free and fair choice to
join a union, and (5) connect communities. These programs also support
the President's Building a Better America initiative to mobilize
American ingenuity to build a modern infrastructure and an equitable,
clean energy future. In addition, this NOFO will advance the goals of
the President's January 20, 2021, Executive Order 14008, Tackling the
Climate Crisis at Home and Abroad and Executive Order 13985, Advancing
Racial Equity and Support for Underserved Communities Through the
Federal Government.

B. Federal Award Information

Federal public transportation law (49 U.S.C. 5338(a)(2)(N))
authorizes $71,561,189 in FY 2022 for the Low-No Program. The 2021
Bipartisan Infrastructure Law (BIL) (enacted as the Infrastructure
Investment and Jobs Act, Pub. L. 117-58) appropriated an additional
$1,029,000,000 for FY 2022 grants, for a total of $1,100,561,189 for
grants under the Low-No program, subject to the availability of FY 2022
appropriated funding. Additional funds made available prior to project
selection may be allocated to eligible projects. If during FY2022,
additional funding is made available for this program after
announcement of project selections, FTA may issue another NOFO and make
additional awards.
As required by Federal public transportation law (49 U.S.C.
5339(c)(5)), a minimum of 25 percent of the amount awarded under the
Low-No Program will be awarded to low emission projects other than zero
emission vehicles and related facilities. In FY 2021, the program
received applications for 187 projects requesting a total of $917
million. Forty-nine projects were funded at a total of $182 million.
Federal public transportation law (49 U.S.C. 5338(a)(2)(N))
authorizes $375,696,244 in FY 2022 funds for the Buses and Bus
Facilities Program. After the oversight takedown of $3,354,431, FTA is
announcing the availability of $372,341,813 for the Buses and Bus
Facilities Program through this notice, subject to availability of FY
2022 appropriated funding. Additional funds made available prior to
project selection may be allocated to eligible projects. If during
FY2022, additional funding is made available for this program after
announcement of project selections, FTA may make additional awards
under a separate NOFO.
As required by Federal public transportation law at 49 U.S.C.
5339(b)(5), a minimum of 15 percent of the amount awarded under the
Buses and Bus Facilities Program will be awarded to projects located in
rural areas. As required by 49 U.S.C. 5339(b)(8), no single grant
recipient will be awarded more than 10 percent of the amount made
available. In FY 2020, the program received applications for 282
projects requesting a total of $1.8 billion. Ninety-six projects were
funded at a total of $464 million.
An applicant may submit a low or no emissions project to both the
Buses and Bus Facilities Program and the Low-No Program, or submit the
project only to the Low-No Program or only to the Buses and Bus
Facilities Program. If a project submitted for consideration under both
programs is selected for funding, FTA will exercise its discretion to
determine under which program the project will receive an award. Please
note if submitting to both programs, a separate application package
must be submitted to each opportunity ID for the respective program
listed on GRANTS.GOV.
FTA may cap the amount a single recipient or State may receive as
part of the selection process for either program.
FTA will grant pre-award authority to incur costs for selected
projects beginning on the date FY 2022 project selections are announced
on FTA's website. Funds are available for obligation for three fiscal
years after the fiscal year in which the competitive awards are
announced. Funds are available only for eligible costs incurred after
announcement of project selections. FTA intends to fund as many
meritorious projects as possible.

C. Eligibility Information

1. Eligible Applicants

Eligible applicants for the Low or No Emission Program include
designated recipients, States (including territories and Washington
DC), local governmental authorities, and Indian tribes. Proposals for
funding projects in rural (non-urbanized) areas, defined as an area
encompassing a population of less than 50,000 people that has not been
designated in the most recent decennial census as an ``urbanized area''

[[Page 12530]]

by the Secretary of Commerce may be submitted as part of a consolidated
State proposal. To be considered eligible, applicants must be able to
demonstrate the requisite legal, financial, and technical capabilities
to receive and administer Federal funds under this program. Assistance
on this requirement is available from FTA's Regional Offices.
Eligible applicants for the Buses and Bus Facilities Program
include designated recipients that allocate funds to fixed route bus
operators, States (including territories and Washington DC) or local
governmental entities that operate fixed route bus service, and Indian
tribes. Eligible subrecipients include all otherwise eligible
applicants and also private nonprofit organizations engaged in public
transportation.
Except for projects proposed by Indian tribes, all proposals for
projects in rural (non-urbanized) areas must be submitted by a State,
either individually or as a part of a statewide application. States and
other eligible applicants also may submit consolidated proposals for
projects in urbanized areas. The submission of a statewide or
consolidated urbanized area application does not preclude any other
eligible recipients in an urbanized area or in a State from also
submitting a separate application. Proposals may contain projects to be
implemented by the recipient or its subrecipients.
As permitted under Federal public transportation law (49 U.S.C.
5339(b)(10), (c)(8)), an applicant proposing a low or no emission
project under both the Buses and Bus Facilities Program and the Low-No
Program, or an applicant proposing only a low or no emission project
under the Low-No program, may include partnerships with other entities
that intend to participate in the implementation of the project,
including, but not limited to, specific vehicle manufacturers,
equipment vendors, owners or operators of related facilities, or
project consultants. If an application that involves such a partnership
is selected for funding, the project will be deemed to satisfy the
requirement for a competitive procurement under 49 U.S.C. 5325(a) for
the named entities. Applicants are advised that any changes to the
proposed partnership will require FTA written approval, must be
consistent with the scope of the approved project, and may necessitate
a competitive procurement.

2. Cost Sharing or Matching

The maximum Federal share for projects that involve leasing or
acquiring transit buses (including clean fuel or alternative fuel
vehicles) for purposes of complying with or maintaining compliance with
the Clean Air Act (CAA) or the Americans with Disabilities Act (ADA) of
1990 is 85 percent of the net project cost.
The maximum Federal share for the cost of acquiring, installing, or
constructing vehicle-related equipment or facilities (including clean
fuel or alternative fuel vehicle-related equipment or facilities) for
purposes of complying with or maintaining compliance with the CAA or
ADA is 90 percent of the net project cost of such equipment or
facilities that are attributable to compliance with the CAA or ADA. The
award recipient must itemize the cost of specific, discrete, vehicle-
related equipment associated with compliance with the CAA to be
eligible for the maximum 90 percent Federal share for these costs.
The Federal share of the cost of other projects shall not exceed 80
percent.
Eligible sources of match include the following: Cash from non-
Government sources other than revenues from providing public
transportation services; revenues derived from the sale of advertising
and concessions; amounts received under a service agreement with a
State or local social service agency or private social service
organization; revenues generated from value capture financing
mechanisms; funds from an undistributed cash surplus; replacement or
depreciation cash fund or reserve; new capital; or in-kind
contributions. Transportation development credits or in-kind match may
be used for local match if identified and documented in the
application.

3. Eligible Projects

Under the Low-No Program (49 U.S.C. 5339(c)), eligible projects
include projects or programs of projects in an eligible area for: (1)
Purchasing or leasing low or no emission buses; (2) acquiring low or no
emission buses with a leased power source; (3) constructing or leasing
facilities and related equipment for low or no emission buses; (4)
constructing new public transportation facilities to accommodate low or
no emission buses; or (5) rehabilitating or improving existing public
transportation facilities to accommodate low or no emission buses (49
U.S.C. 5339(c)(1)(B)). As required by Federal public transportation law
(49 U.S.C. 5339(c)(5)), FTA will consider only eligible projects
relating to the acquisition or leasing of low or no emission buses or
bus facilities that make greater reductions in energy consumption and
harmful emissions than comparable standard buses or other low or no
emission buses. A single application may include both vehicle and
facility components, along with associated equipment and workforce
development plans.
A low or no emission bus is defined as a passenger vehicle used to
provide public transportation that sufficiently reduces energy
consumption or harmful emissions, including direct carbon emissions,
when compared to a standard vehicle. The statutory definition includes
zero emission transit buses, which are defined as buses that produce no
direct carbon emissions and no particulate matter emissions under any
and all possible operational modes and conditions. Examples of zero
emission bus technologies include, but are not limited to, hydrogen
fuel-cell buses, battery-electric buses, and rubber tire trolley buses
powered by overhead catenaries. All new transit bus models must
successfully complete FTA bus testing for production transit buses
pursuant to FTA's Bus Testing regulation (49 CFR part 665) in order to
be procured with funds awarded under the Low-No Program. All transit
vehicles must be procured from certified transit vehicle manufacturers
in accordance with the Disadvantaged Business Enterprise (DBE)
regulations (49 CFR part 26). The development or deployment of
prototype vehicles is not eligible for funding under the Low-No
Program.
Eligible projects for the Buses and Bus Facilities Program include
capital projects to replace, rehabilitate, purchase, or lease buses,
vans, or related equipment; or to rehabilitate, purchase, construct, or
lease bus-related facilities regardless of propulsion type or
emissions. A single application may include both vehicle and facility
components, along with associated equipment and workforce development
activities.
Recipients are permitted to use up to 0.5 percent of their
requested grant award for workforce development activities eligible
under Federal public transportation law (49 U.S.C. 5314(b)), including
on-the-job training, labor-management partnership training, and
registered apprenticeships, and an additional 0.5 percent for costs
associated with training at the National Transit Institute.
For applicants proposing projects related to zero-emission vehicles
for either program, 5 percent of the requested Federal award must be
used for workforce development to retrain the existing workforce and
develop the workforce of the future, including registered
apprenticeships and other joint labor-management training

[[Page 12531]]

programs, as outlined in the applicant's Zero-Emission Transition Plan
(see Section E(1)(c) of this notice), unless the applicant certifies
via the application that less funding is needed to carry out the Plan.
Applicants must identify the proposed use of funds for these activities
in the project proposal and identify them separately in the project
budget. These amounts are additional, not a take-down, from other
eligible project expenses. For example, if the total capital costs of
the vehicles and equipment was $95,000, an additional $5,000 should be
included in the budget for these expenses for a total project cost of
$100,000. Applicants are encouraged to discuss training needs with
their workforce and to develop training plans in collaboration with
unions and other workforce representatives, as well as with workforce
boards, community colleges, and other workforce organizations.
Applicants that propose not to use the full five percent available must
include an explanation as to why the funds are not needed. Absent an
explanation, a zero-emission application that does not include 5
percent of its project budget for workforce development will be deemed
ineligible.
If a single project proposal involves multiple public
transportation providers, such as when an agency acquires vehicles that
will be operated by another agency, the proposal must include a
detailed statement regarding the role of each public transportation
provider in the implementation of the project.

D. Application and Submission Information

1. Address To Request Application Package

Applications must be submitted electronically through GRANTS.GOV.
General information for accessing and submitting applications through
GRANTS.GOV can be found at www.fta.dot.gov/howtoapply along with
specific instructions for the forms and attachments required for
submission. Mail or fax submissions of completed proposals will not be
accepted. A complete proposal submission for each program consists of
two forms: The SF-424 Application for Federal Assistance (available at
GRANTS.GOV) and the supplemental form for the FY 2022 Low-No and Buses
and Bus Facilities Programs (downloaded from GRANTS.GOV or the FTA
website at https://www.transit.dot.gov/funding/grants/lowno). The same
supplemental form will be used to apply to either program or both
programs. However, please note that if an applicant is applying to both
programs they must submit the materials through each of the GRANTS.GOV
opportunity ID's listed for each program. Failure to submit the
information as requested can delay review or disqualify the
application.

2. Content and Form of Application Submission

a. Proposal Submission
A complete proposal submission for each program consists of two
forms: (1) The SF-424 Application for Federal Assistance; and (2) the
supplemental form for the FY 2022 Low-No and Buses and Bus Facilities
Programs. The supplemental form and any supporting documents must be
attached to the ``Attachments'' section of the SF-424. The application
must include responses to all sections of the SF-424 Application for
Federal Assistance and the supplemental form, unless indicated as
optional. The information on the supplemental form will be used to
determine applicant and project eligibility for the program, and to
evaluate the proposal against the selection criteria described in part
E of this notice.
FTA will accept only one supplemental form per SF-424 submission.
FTA encourages States and other applicants to consider submitting a
single supplemental form that includes multiple activities to be
evaluated as a consolidated proposal. If a State or other applicant
chooses to submit separate proposals for individual consideration by
FTA, each proposal must be submitted using a separate SF-424 and
supplemental form.
Applicants may attach additional supporting information to the SF-
424 submission, including but not limited to letters of support,
project budgets, fleet status reports, or excerpts from relevant
planning documents. Applicants for zero-emission projects must attach
the fleet transition plan. Any supporting documentation must be
described and referenced by file name in the appropriate response
section of the supplemental form, or it may not be reviewed.
Information such as applicant name, Federal amount requested, local
match amount, description of areas served, etc. may be requested in
varying degrees of detail on both the SF-424 and supplemental form.
Applicants must fill in all fields unless stated otherwise on the
forms. If information is copied into the supplemental form from another
source, applicants should verify that pasted text is fully captured on
the supplemental form and has not been truncated by the character
limits built into the form. Applicants should use both the ``Check
Package for Errors'' and the ``Validate Form'' validation buttons on
both forms to check all required fields on the forms, and ensure that
the Federal and local amounts specified are consistent. Applicants
should enter their information in the supplemental form (fillable PDF)
that is made available on FTA's website or through the GRANTS.GOV
application package, and should attach this to the application in its
original format. Applicants should not use scanned versions of the
form, ``print'' the form to PDF, convert or create a version using
another text editor, etc.
b. Application Content
The SF-424 Application for Federal Assistance and the supplemental
form will prompt applicants for the required information, including:

i. Applicant name
ii. Dun and Bradstreet (D&B) Data Universal Numbering System (DUNS)
number
iii. Key contact information (including contact name, address, email
address, and phone)
iv. Congressional district(s) where project will take place
v. Project information (including title, an executive summary, and
type)
vi. A detailed description of the need for the project
vii. A detailed description on how the project will support either
Program's objectives
viii. Evidence that the project is consistent with local and regional
planning documents
ix. Evidence that the applicant can provide the local cost share
x. A description of the technical, legal, and financial capacity of the
applicant
xi. A detailed project budget
xii. An explanation of the scalability of the project
xiii. Details on the local matching funds
xiv. A detailed project timeline

3. Unique Entity Identifier and System for Award Management (SAM)

Each applicant is required to: (1) Be registered in SAM before
submitting an application; (2) provide a valid unique entity identifier
in its application; and (3) continue to maintain an active SAM
registration with current information at all times during which the
applicant has an active Federal award or an application or plan under
consideration by FTA. These requirements do not apply if the applicant
has an exemption approved by FTA pursuant to 2 CFR 25.110(c), or is
otherwise excepted from registration requirements. FTA may not

[[Page 12532]]

make an award until the applicant has complied with all applicable
unique entity identifier and SAM requirements. If an applicant has not
fully complied with the requirements by the time FTA is ready to make
an award, FTA may determine that the applicant is not qualified to
receive an award and use that determination as a basis for making a
Federal award to another applicant.
All applicants must provide a unique entity identifier provided by
SAM. Registration in SAM may take as little as 3-5 business days, but
since there could be unexpected steps or delays (for example, if there
is a need to obtain an Employer Identification Number), FTA recommends
allowing ample time, up to several weeks, for completion of all steps.
For additional information on obtaining a unique entity identifier,
please visit www.sam.gov.

4. Submission Dates and Times

Project proposals must be submitted electronically through
GRANTS.GOV by 11:59 p.m. Eastern time on May 31, 2022. GRANTS.GOV
attaches a time stamp to each application at the time of submission.
Proposals submitted after the deadline will only be considered under
extraordinary circumstances not under the applicant's control. Mail and
fax submissions will not be accepted.
Within 48 hours after submitting an electronic application, the
applicant should receive an email message from GRANTS.GOV with
confirmation of successful transmission to GRANTS.GOV. If a notice of
failed validation or incomplete materials is received, the applicant
must address the reason for the failed validation, as described in the
email notice, and resubmit before the submission deadline. If making a
resubmission for any reason, include all original attachments
regardless of which attachments were updated and check the box on the
supplemental form indicating this is a resubmission.
FTA urges applicants to submit applications at least 72 hours prior
to the due date to allow time to receive the validation messages and to
correct any problems that may have caused a rejection notification.
GRANTS.GOV scheduled maintenance and outage times are announced on the
GRANTS.GOV website. Deadlines will not be extended due to scheduled
website maintenance.
Applicants are encouraged to begin the process of registration on
the GRANTS.GOV site well in advance of the submission deadline.
Registration is a multi-step process, which may take several weeks to
complete before an application can be submitted. Registered applicants
may still be required to take steps to keep their registrations up to
date before submissions can be made successfully. For example, (1)
registration in SAM is renewed annually, and (2) persons making
submissions on behalf of the Authorized Organization Representative
(AOR) must be authorized in GRANTS.GOV by the AOR to make submissions.

5. Funding Restrictions

Funds under this NOFO cannot be used to reimburse applicants for
otherwise eligible expenses incurred prior to FTA award of a grant
agreement until FTA has issued pre-award authority for selected
projects. FTA will issue pre-award authority to incur costs for
selected projects beginning on the date that project selections are
announced. FTA does not provide pre-award authority for competitive
funds until projects are selected, and even then, there are Federal
requirements that must be met before costs are incurred. FTA will issue
specific guidance to awardees regarding pre-award authority at the time
of selection. For more information about FTA's policy on pre-award
authority, please see the most recent Apportionment Notice on FTA's
website. Refer to Section C.3., Eligible Projects, for information on
activities that are allowable in this grant program. Allowable direct
and indirect expenses must be consistent with the Governmentwide
Uniform Administrative Requirements and Cost Principles (2 CFR part
200) and FTA Circular 5010.1E. Funds may not be used to support or
oppose union organizing.

6. Other Submission Requirements

All applications must be submitted via the GRANTS.GOV website. FTA
does not accept applications on paper, by fax machine, email, or other
means. For information on application submission requirements, please
see Section D.1. of this notice, Address to Request Application.

E. Application Review Information

1. Criteria

Projects will be evaluated primarily on the responses provided in
the supplemental form. Additional information may be provided to
support the responses; however, any additional documentation must be
directly referenced on the supplemental form, including the file name
where the additional information can be found. FTA will evaluate
proposals based on the criteria described in this notice.
Applicants are encouraged to identify scaled funding options in
case insufficient funding is available to fund a project at the full
requested amount. If an applicant indicates that a project is scalable,
the applicant must provide an appropriate minimum funding amount that
will fund an eligible project that achieves the objectives of the
program and meets all relevant program requirements. The applicant must
provide a clear explanation of how the project budget would be affected
by a reduced award. FTA may award a lesser amount regardless of whether
a scalable option is provided.
If an applicant is proposing to deploy autonomous vehicles or other
innovative motor vehicle technology, the application should demonstrate
that all vehicles will comply with applicable safety requirements,
including those administered by the National Highway Traffic Safety
Administration (NHTSA) and Federal Motor Carrier Safety Administration
(FMCSA). Specifically, the application should show that vehicles
acquired for the proposed project will comply with applicable Federal
Motor Vehicle Safety Standards (FMVSS) and Federal Motor Carrier Safety
Regulations (FMCSR). If the vehicles may not comply, the application
should either (1) show that the vehicles and their proposed operations
are within the scope of an exemption or waiver that has already been
granted by NHTSA, FMCSA, or both agencies or (2) directly address
whether the project will require exemptions or waivers from the FMVSS,
FMCSR, or any other regulation and, if the project will require
exemptions or waivers, present a plan for obtaining them. FTA will also
consider the extent to which the application presents a plan to address
workforce impacts of autonomous vehicles or other innovative motor
vehicle technology.
a. Demonstration of Need
Since the purpose of these programs is to fund vehicles and
facilities, applications will be evaluated based on the quality and
extent to which they demonstrate how the proposed project will address
an unmet need for capital investment in vehicles and/or supporting
facilities. For example, an applicant may demonstrate that it requires
additional or improved charging or maintenance facilities for low or no
emission vehicles, that it intends to replace existing vehicles that
have exceeded their minimum useful life, or that it requires additional
vehicles to meet current ridership demands or expand services to better
connect underserved communities.

[[Page 12533]]

FTA will consider an applicant's responses to the following
criteria when assessing the need for capital investment underlying the
proposed project:
For bus projects (replacement or expansion): For replacement
requests, applicants must provide information on the age, condition,
and performance of the vehicles to be replaced by the proposed project.
Vehicles to be replaced must have met their minimum useful life at the
time of project completion. For service expansion requests, applicants
must provide information on the proposed service expansion and the
benefits for transit riders and the community from the new service. For
all vehicle projects, the proposal must address whether the project
conforms to FTA's spare ratio guidelines. Vehicles funded under these
programs are not exempt from FTA's standard spare ratio requirements,
which apply to and are calculated based on the agency's entire fleet.
Applicants that are introducing zero emission vehicles into their fleet
may consider including vehicles that have already met their minimum
useful life in a contingency fleet, which is not included in the spare
ratio calculation. Additionally, applicants who may need to exceed the
spare ratio for a temporary period are encouraged to work with their
FTA Regional Office to determine what flexibilities may be afforded to
them and include reference to that in their application.
For bus facility and equipment projects (replacement,
rehabilitation, or expansion): For replacement requests, applicants
must provide information on the age and condition of the asset to be
rehabilitated or replaced relative to its minimum useful life. For
expansion requests, applicants must provide information on the proposed
expansion and the reason that transit riders and the community need the
expansion.
b. Demonstration of Benefits
i. Low or No Emissions Program
Applicants to the Low-No Program must demonstrate how the proposed
project will support the statutory requirements of the Low-No Program
(See 49 U.S.C. 5339(c)(5)(A)). In particular, FTA will consider the
quality and extent to which applications demonstrate how the proposed
project will: (1) Reduce Energy Consumption; (2) Reduce Harmful
Emissions; and (3) Reduce Direct Carbon Emissions.
Reduce Energy Consumption: Applicants must describe how the
proposed project will reduce energy consumption. FTA will evaluate
applications based on the degree to which the proposed technology
reduces energy consumption as compared to comparable standard vehicle
propulsion technologies.
Reduce Harmful Emissions: Applicants must demonstrate how the
proposed vehicles or facility will reduce the emission of particulates
that create local air pollution, which leads to local environmental
health concerns, smog, and unhealthy ozone concentrations. FTA will
evaluate the rate of particulate emissions by the proposed vehicles or
vehicles to be supported by the proposed facility, compared to the
emissions from the vehicles that will be replaced or moved to the
contingency fleet as a result of the proposed project, as well as
comparable standard buses.
Reduce Direct Carbon Emissions: Applicants should demonstrate how
the proposed vehicles or facility will reduce emissions of greenhouse
gases from transit vehicle operations. FTA will evaluate the rate of
direct carbon emissions by the proposed vehicles or vehicles to be
supported by the proposed facility, compared to the emissions from the
vehicles that will be replaced or moved to the contingency fleet as a
result of the proposed project, as well as comparable standard buses.
ii. Grants for Buses and Bus Facilities Program
Applicants to the Buses and Bus Facilities Program will be
evaluated based on how well they describe how the proposed project will
improve the condition of, or otherwise modernize, the transit system;
improve the reliability of transit service for its riders; improve the
resilience of transit facilities, enhance access and mobility within
the service area, particularly for low-income or underserved
communities; and expand accessibility for people with disabilities.
System Condition: FTA will evaluate the potential for replacement
projects to improve the condition of the transit system by repairing or
replacing assets that are in poor condition or have surpassed their
minimum or intended useful life benchmarks. Applicants may describe the
benefits of reducing breakdowns and service interruptions, mitigating
safety risks, increasing service performance, improving resilience,
and/or reducing the cost of maintaining outdated vehicles, facilities
and equipment.
Enhanced Access and Mobility: FTA will evaluate the potential for
expansion projects to improve access and mobility for the transit
riding public, particularly for low-income and underserved communities
and people with disabilities, including improved headways, creation of
new transportation choices, or eliminating gaps in the current route
network. Proposed benefits should be based on documented ridership
demand, based on indicators like area population density, employment
served, and existing and planned affordable housing in the corridor,
and be well-described or documented through a study or route planning
proposal.
Applicants that intend to apply to both programs must submit
information that addresses the requirements of both programs as
described above.
c. Planning and Local or Regional Prioritization
Applicants must demonstrate how the proposed project is consistent
with local and regional long-range planning documents and local
government priorities. FTA will evaluate applications based on the
quality and extent to which they assess whether the project is
consistent with the transit priorities identified in the long-range
plan for all proposals; contingency or illustrative projects included
in that plan; or the locally developed human services public
transportation coordinated plan. Applicants may submit copies of the
relevant pages of such plans to support their application. FTA will
consider how the project will support regional goals and applicants may
submit support letters from local and regional planning organizations
attesting to the consistency of the proposed project with these plans.
Evidence of additional local or regional prioritization may include
letters of support for the project from local government officials,
public agencies, and non-profit or private sector supporters.
Applicants may also address how the proposed project will impact
overall system performance, asset management performance, or specific
performance measures tracked and monitored by the applying entity to
demonstrate how the proposed project will address local and regional
planning priorities.
For applications related to zero-emission vehicles under either the
Low-No or Buses and Bus Facilities programs, applicants are required by
law (49 U.S.C. 5339(c)(3)(D)) to submit a Zero-Emission Fleet
Transition Plan. This plan must be a separate document from other local
or regional planning documents and must: (1) Demonstrate a long-term
fleet management plan with a strategy for how the applicant intends to
use the current application and future acquisitions; (2) address the
availability of current and future resources to meet

[[Page 12534]]

costs for the transition and implementation; (3) consider policy and
legislation impacting relevant technologies; (4) include an evaluation
of existing and future facilities and their relationship to the
technology transition; (5) describe the partnership of the applicant
with the utility or alternative fuel provider; and (6) examine the
impact of the transition on the applicant's current workforce by
identifying skill gaps, training needs, and retraining needs of the
existing workers of the applicant to operate and maintain zero emission
vehicles and related infrastructure and avoid the displacement of the
existing workforce. FTA intends to continue to develop technical
assistance resources to assist transit agencies in developing fleet
transition plans. As a first step, FTA has worked with the Transit
Workforce Center to develop a template that transit agencies may use
related to the workforce section of the fleet transition plan. That
template will be available at: https://www.transit.dot.gov/funding/grants/lowno. For agencies with smaller fleets, a fleet transition plan
need not be complex and should be tailored as applicable, but it still
must address all six elements. For applications from State departments
of transportation, the state may either provide a fleet transition plan
that covers some or all of the subrecipients, attach individual plans
developed by the subrecipients, or a combination of both. FTA will rate
a zero-emission project higher than other zero-emission projects if the
applicant is able to demonstrate how the proposed project and fleet
transition plan support the conversion of the agency's overall fleet to
zero emissions.
d. Local Financial Commitment
Applicants must identify the source of the local cost share and
describe whether such funds are currently available for the project or
will need to be secured if the project is selected for funding. FTA
will consider the availability of the local cost share as evidence of
local financial commitment to the project. Applicants should submit
evidence of the availability of funds for the project; for example, by
including a board resolution, letter of support from the State, a
budget document highlighting the line item or section committing funds
to the proposed project, or other documentation of the source of local
funds. FTA will favorably view an applicant that proposes to use grant
funds only for the incremental cost of new technologies over the cost
of replacing vehicles with standard propulsion technologies.
e. Project Implementation Strategy
FTA will rate projects higher if grant funds can be obligated
within 12 months of selection and the project can be implemented within
a reasonable time frame. In assessing when funds can be obligated, FTA
will consider whether the project qualifies for a Categorical Exclusion
(CE), or whether the required environmental work has been initiated or
completed for projects that require an Environmental Assessment (EA) or
Environmental Impact Statement (EIS) under the National Environmental
Policy Act of 1969 (NEPA). As such, applicants should submit
information describing the project's anticipated path and timeline
through the environmental review process for all proposals. The
proposal must state when grant funds can be obligated and indicate the
timeframe under which the Metropolitan Transportation Improvement
Program (TIP) and Statewide Transportation Improvement Program (STIP)
can be amended to include the proposed project.
In assessing whether the proposed implementation plans are
reasonable and complete, FTA will review the proposed project
implementation plan, including all necessary project milestones and the
overall project timeline. For projects that will require formal
coordination, approvals, or permits from other agencies or project
partners, the applicant must demonstrate coordination with these
organizations and their support for the project, such as through
letters of support.
Applicants that have identified a cooperative procurement strategy
listed in Section 3019 of the Fixing America's Surface Transportation
Act (49 U.S.C. 5325), are encouraged to describe the method chosen as
part of their implementation plans and how such a cooperative
procurement will reduce costs.
For proposals that involve a partnership with a manufacturer,
vendor, consultant, or other third party, applicants must identify by
name any project partners, including, but not limited to, other transit
agencies, bus manufacturers, owners or operators of related facilities,
or any expert consultants. Such partnerships are permitted under
Federal public transportation law (49 U.S.C. 5339(b)(10), (c)(8)) only
for applicants proposing a low or no emission project under both the
Buses and Bus Facilities Program and the Low-No Program, or for
applicants proposing only a low or no emission project under the Low-No
program. FTA will evaluate the experience and capacity of the named
project partners to successfully implement the proposed project based
on the partners' experience and qualifications. Applicants are advised
to submit information on the partners' qualifications and experience as
a part of the application. Entities to be involved in the project that
are not named in the application must be selected through ordinary
procurement processes.
f. Technical, Legal, and Financial Capacity
Applicants must demonstrate that they have the technical, legal,
and financial capacity to undertake the project.
FTA will review relevant oversight assessments and records to
determine whether there are any outstanding legal, technical, or
financial issues with the applicant that would affect the outcome of
the proposed project. Applicants with outstanding legal, technical, or
financial compliance issues from an FTA compliance review or Federal
Transit grant-related Single Audit finding must explain how corrective
actions taken will mitigate negative impacts on the proposed project.

2. Review and Selection Process

A technical evaluation committee will evaluate proposals based on
the published evaluation criteria. FTA may request additional
information from applicants, if necessary. Based on the review of the
technical evaluation committee, the FTA Administrator will determine
the final selection of projects for program funding. In determining the
allocation of program funds, FTA may consider geographic diversity,
diversity in the size of the transit systems receiving funding, and the
applicant's receipt of other competitive awards. FTA may also consider
capping the amount a single applicant may receive.
After applying the above criteria, and in support of Executive
Order 14008, Tackling the Climate Crisis at Home and Abroad, and
Executive Order 14052, Implementation of the Infrastructure Investment
and Jobs Act, FTA will give priority to additional considerations.
In further support of Executive Order 14008, FTA will give priority
consideration to applications under the Buses and Bus Facilities
Program that are expected to create significant community benefits
relating to the environment, including those projects that incorporate
low or no emission technology or specific elements to address
greenhouse gas emissions and climate change impacts. FTA encourages
applicants to demonstrate

[[Page 12535]]

whether they have considered climate change and environmental justice
in terms of the transportation planning process or anticipated design
components with outcomes that address climate change (e.g., resilience
or adaptation measures). The application should describe what specific
climate change or environmental justice activities have been
incorporated, including whether a project supports a Climate Action
Plan, whether an equitable development plan has been prepared, and
whether tools such as EPA's EJSCREEN at: https://www.epa.gov/ejscreen
or DOT's Historically Disadvantaged Community tool at Transportation
Disadvantaged Census Tracts (arcgis.com) have been applied in project
planning. Applicants could also address how a project is related to
housing or land use reforms to increase density to reduce climate
impacts. The application should also describe specific and direct ways
the project will mitigate or reduce climate change impacts including
any components that reduce emissions, promote energy efficiency,
incorporate electrification or low emission or zero emission vehicle
infrastructure, increase resiliency, recycle or redevelop existing
infrastructure, or if located in a floodplain be constructed or
upgraded consistent with the Federal Flood Risk Management Standard, to
the extent consistent with current law.
FTA also will give priority consideration to applications that
advance racial equity in two areas: (1) Planning and policies related
to racial equity and overcoming barriers to opportunity; and (2)
project investments that either proactively address racial equity and
barriers to opportunity, including automobile dependence as a form of
barrier, or redress prior inequities and barriers to opportunity.
Applicants could also address how a project is related to housing or
land use reforms to address historic barriers to opportunity. This
objective has the potential to enhance environmental stewardship and
community partnerships, and reflects Executive Order 13985, Advancing
Racial Equity and Support for Underserved Communities Through the
Federal Government. FTA encourages the applicant to include sufficient
information to evaluate how the applicant will advance racial equity
and address barriers to opportunity. The applicant should describe any
transportation plans or policies related to equity and barriers to
opportunity they are implementing or have implemented in relation to
the proposed project, along with the specific project investment
details necessary for FTA to evaluate if the investments are being made
either proactively to advance racial equity and address barriers to
opportunity or redress prior inequities and barriers to opportunity.
All project investment costs for the project that are related to racial
equity and barriers to opportunity should be summarized.
Applicants for facility projects should also describe whether and
how project delivery and implementation create good-paying jobs with
the free and fair choice to join a union to the greatest extent
possible, the use of demonstrated strong labor standards, practices and
policies (including for direct employees, contractors, and sub-
contractors); distribution of workplace rights notices; the use of
local and economic hiring provisions; registered apprenticeships; or
other similar standards or practices; or, for facility projects over
$35 million, the use of Project Labor Agreements. Applicants should
describe how planned methods of project delivery and implementation
(for example, use of Project Labor Agreements and/or local and economic
hiring provisions, and training and placement programs for
underrepresented workers) provides opportunities for all workers,
including workers underrepresented in construction jobs to be trained
and placed in good-paying jobs directly related to the project. FTA
will give priority consideration to projects that create good paying
jobs with the free and fair choice to join a union and these strong
labor protections.
Amongst zero-emission applications, FTA will give priority
consideration to zero-emission applicants that in the development of
the workforce section of the fleet transition plan have consulted with
workforce representatives AND identify the use of at least one of the
following in their plan (1) use of labor-management partnerships for
training; (2) use of registered apprenticeship training to support
skilling of incumbent and entry-level workers with focus on using
registered apprenticeship to advance Black, Hispanic, Asian American
Native Hawaiian and Pacific Islanders, tribal, women, and other groups
facing systemic barriers to employment that may be underrepresented in
the current workforce, especially in higher-paying jobs; or (3)
identification of how reskilling workers for new fleets advances
broader strategy to retain, retrain and recruit employees into good
paying jobs, with the choice to join a union and equitable access to
training and support that helps workers to stay retained in jobs.
In support of Executive Order 14008, DOT has been developing a
geographic definition of Historically Disadvantaged Communities as part
of its implementation of the Justice40 Initiative. Consistent with
OMB's Interim Guidance for the Justice40 Initiative, Historically
Disadvantaged Communities include (a) certain qualifying census tracts,
(b) any Tribal land, or (c) any territory or possession of the United
States. DOT is providing a mapping tool to assist applicants in
identifying whether a project is located in a Historically
Disadvantaged Community Transportation Disadvantaged Census Tracts
(arcgis.com). Use of this map tool is optional; applicants may provide
an image of the map tool outputs, or alternatively, consistent with
OMB's Interim Guidance, applicants can supply quantitative, demographic
data of their ridership demonstrating the percentage of their ridership
that meets the criteria described in Executive Order 14008 for
disadvantage. Examples of Historically Disadvantaged Communities that
an applicant could address using geographic or demographic information
include low income, high and/or persistent poverty, high unemployment
and underemployment, racial and ethnic residential segregation,
linguistic isolation, or high housing cost burden and substandard
housing. Additionally, in support of the Justice40 Initiative, the
applicant also should provide evidence of strategies that the applicant
has used in the planning process to seek out and consider the needs of
those historically disadvantaged and underserved by existing
transportation systems. For technical assistance using the mapping
tool, please contact GMO@dot.gov.
Due to funding limitations, projects that are selected for funding
may receive less than the amount originally requested, even if an
application did not present a scaled project option. In those cases,
applicants must be able to demonstrate that the proposed projects are
still viable and can be completed with the amount awarded.

3. Integrity and Performance Review

Prior to making an award with a total amount of Federal share
greater than the simplified acquisition threshold (currently $10,000),
FTA is required to review and consider any information about the
applicant that is in the Federal Awardee Performance and Integrity
Information Systems (FAPIIS) accessible through SAM. An applicant may
review and comment on information about itself that a Federal awarding
agency previously entered. FTA will consider

[[Page 12536]]

any comments by the applicant, in addition to the other information in
FAPIIS, in making a judgment about the applicant's integrity, business
ethics, and record of performance under Federal awards when completing
the review of risk posed by applicants as described in 2 CFR 200.206.

F. Federal Award Administration Information

1. Federal Award Notices

FTA will announce the final project selections on the FTA website.
Selectees should contact their FTA Regional Offices for additional
information regarding allocations for projects. At the time the project
selections are announced, FTA will extend pre-award authority for the
selected projects (see Section D.5 of this notice for more
information). There is no blanket pre-award authority for these
projects before announcement.

2. Administrative and National Policy Requirements

a. Grant Requirements
If selected, awardees will apply for a grant through FTA's Transit
Award Management System (TrAMS). Recipients of funding in urban areas
are subject to the grant requirements of the Urbanized Area Formula
Grants program (49 U.S.C. 5307), including those of FTA Circular
``Urbanized Area Formula Program: Program Guidance and Application
Instructions'' (FTA.C.9030.1E). Recipients of funding in rural areas
are subject to the grant requirements of the Formula Grants for Rural
Areas Program (49 U.S.C. 5311), including those of FTA Circular
``Formula Grants for Rural Areas: Program Guidance and Application
Instructions'' (FTA.C.9040.1G). All recipients must accept the FTA
Master Agreement and follow FTA Circular ``Award Management
Requirements'' (FTA.C.5010.1E) and the labor protections required by
Federal public transportation law (49 U.S.C. 5333(b)). Technical
assistance regarding these requirements is available from each FTA
regional office.
By submitting a grant application, the applicant assures that it
will comply with all applicable Federal statutes, regulations,
executive orders, directives, FTA circulars and other Federal
administrative requirements in carrying out any project supported by
the FTA grant, including the Davis-Bacon Act (40 U.S.C. 3141-3144, and
3146-3148) as supplemented by Department of Labor regulations (29 CFR
part 5, ``Labor Standards Provisions Applicable to Contracts Covering
Federally Financed and Assisted Construction''). Further, the applicant
acknowledges that it is under a continuing obligation to comply with
the terms and conditions of the grant agreement issued for its project
with FTA. The applicant understands that Federal laws, regulations,
policies, and administrative practices might be modified from time to
time and may affect the implementation of the project. The applicant
agrees that the most recent Federal requirements will apply to the
project, unless FTA issues a written determination otherwise. The
applicant must submit the Certifications and Assurances before
receiving a grant if it does not have current certifications on file.
Applicants for the Buses and Bus Facilities Program are encouraged
to utilize the innovative procurement practices found in Section 3019
of the Fixing America's Surface Transportation Act (49 U.S.C. 5325).
Please see details at https://www.transit.dot.gov/funding/grants/innovative-procurement-leasing-fact-sheet-section-3019. If selected for
funding, any project that purchases fewer than five buses through a
standalone procurement must provide a written explanation why the tools
authorized under Section 3019 were not utilized.
As authorized by Section 25019 of the BIL, applicants are
encouraged to implement a local or other geographical or economic
hiring preference relating to the use of labor for construction of a
project funded by the grant, including prehire agreements, subject to
any applicable State and local laws, policies, and procedures.
b. Buy America and Domestic Preferences for Infrastructure Projects
All capital procurements must comply with FTA's Buy America
requirements (49 U.S.C. 5323(j)), which require that all iron, steel,
and manufactured products be produced in the United States, and imposes
minimum domestic content and final assembly requirements for rolling
stock. The cost of rolling stock components and subcomponents produced
in the United States must be more than 70 percent of the cost of all
components, and final assembly of rolling stock must occur in the
United States. Any proposal that will require a waiver must identify
the items for which a waiver will be sought in the application.
Applicants should not proceed with the expectation that waivers will be
granted.
c. Disadvantaged Business Enterprise
Recipients of planning, capital, or operating assistance that will
award prime contracts (excluding transit vehicle purchases), the
cumulative total of which exceeds $250,000 in FTA funds in a Federal
fiscal year, must comply with the Disadvantaged Business Enterprise
(DBE) program regulations (49 CFR part 26).
To be eligible to bid on any FTA-assisted vehicle procurement,
entities that manufacture transit vehicles or perform post-production
alterations or retrofitting must be certified Transit Vehicle
Manufacturers (TVM). If a vehicle remanufacturer is responding to a
solicitation for new or remanufactured vehicles with a vehicle to which
the remanufacturer has provided post-production alterations or retro-
fitting (e.g., replacing major components such as engine to provide a
``like new'' vehicle), the vehicle remanufacturer must be a certified
TVM.
The TVM rule requires that, prior to bidding on any FTA-assisted
vehicle procurement, manufacturers of transit vehicles submit a DBE
Program plan and annual goal methodology to FTA. FTA then will issue a
TVM concurrence and certification letter. Grant recipients must verify
each manufacturer's TVM status before accepting its bid. A list of
compliant, certified TVMs is posted on FTA's website at
www.transit.dot.gov/TVM. Recipients should contact FTA before accepting
a bid from a manufacturer not on this list. In lieu of using a
certified TVM, a recipient may establish project-specific DBE goals for
its vehicle procurement. FTA will provide additional guidance as grants
are awarded. For more information on DBE requirements, please contact
Monica McCallum, FTA Office of Civil Rights, 206-220-7519,
Monica.McCallum@dot.gov.
d. Planning
FTA encourages applicants to notify the appropriate State
Departments of Transportation and Metropolitan Planning Organizations
(MPOs) in areas likely to be served by the project funds made available
under this program. Selected projects must be incorporated into the
long-range plans and transportation improvement programs of States and
metropolitan areas before they are eligible for FTA funding.

3. Reporting

Post-award reporting requirements include the electronic submission
of Federal Financial Reports and Milestone Progress Reports in FTA's
electronic grants management system. Recipients of funds made available
through this NOFO are also required to regularly submit data to the
National Transit Database. Recipients should include any goals,
targets, and indicators referenced

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in their applications in the Executive Summary of the TrAMS
application.
FTA is committed to making evidence-based decisions guided by the
best available science and data. In accordance with the Foundations for
Evidence-based Policymaking Act of 2018 (Evidence Act), FTA may use
information submitted in discretionary funding applications;
information in FTA's Transit Award Management System (TrAMS), including
grant applications, Milestone Progress Reports (MPRs), Federal
Financial Reports (FFRs); transit service, ridership and operational
data submitted in FTA's National Transit Database; documentation and
results of FTA oversight reviews, including triennial and state
management reviews; and other publicly available sources of data to
build evidence to support policy, budget, operational, regulatory, and
management processes and decisions affecting FTA's grant programs.
As part of completing the annual certifications and assurances
required of FTA grant recipients, a successful applicant must report on
the suspension or debarment status of itself and its principals. If the
award recipient's active grants, cooperative agreements, and
procurement contracts from all Federal awarding agencies exceeds
$10,000,000 for any period of time during the period of performance of
an award made pursuant to this Notice, the recipient must comply with
the Recipient Integrity and Performance Matters reporting requirements
described in Appendix XII to 2 CFR part 200.

G. Federal Awarding Agency Contacts

For further information concerning this notice, please contact the
Low-No/Bus grant program staff via email at ftalownobusnofo@dot.gov, or
call Amy Volz, by phone at 202-366-7484. A TDD is available for
individuals who are deaf or hard of hearing at 800-877-8339. In
addition, FTA will post answers to questions and requests for
clarifications on FTA's website at https://www.transit.dot.gov. To
ensure applicants receive accurate information about eligibility or the
program, applicants are encouraged to contact FTA with questions
directly, rather than through intermediaries or third parties.
For issues with GRANTS.GOV, please contact GRANTS.GOV by phone at
1-800-518-4726 or by email at support@grants.gov. Contact information
for FTA's regional offices can be found on FTA's website at
www.fta.dot.gov.

H. Other Information

User-friendly information and resources regarding DOT's
discretionary grant programs relevant to rural applicants can be found
on the Rural Opportunities to Use Transportation for Economic Success
(ROUTES) website at www.transportation.gov/rural.
This program is not subject to Executive Order 12372,
``Intergovernmental Review of Federal Programs.''

Nuria I. Fernandez,
Administrator.
[FR Doc. 2022-04621 Filed 3-3-22; 8:45 am]
BILLING CODE 4910-57-P