TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Purchase of Thirteen (13) Zero-Emission Buses
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager, or his designee, to execute documents through the State of Washington Transit Bus Cooperative Contract, to purchase up to thirteen forty-foot hydrogen buses from New Flyer America.
Staff Contact:
Aaron Vogel, Chief Operating Officer
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Service Quality
These new zero-emission buses will enhance service quality by replacing older and higher-polluting diesel buses currently in the fleet that have exceeded their useful life. Purchasing additional new zero-emission buses is part of the District’s Zero Emission Bus (ZEB) Transition Plan, provided to the California Air Resources Board (CARB), as required by the Innovative Clean Transit (ICT) Regulation and the Federal Transit Administration (FTA).
BUDGETARY/FISCAL IMPACT:
The purchase of the thirteen (13) zero-emission buses is expected to cost approximately $23.4 million. The purchase is funded by $13.2 million from the Federal Transit Administration (FTA) and $6.2 million from the Volkswagen (VW) Environmental Mitigation Trust Program. Staff will be submitting for approximately $4.0 million in Hybrid and Zero Emission Truck and Bus Voucher Incentive Project (HVIP) funds. An application for HVIP funds cannot be submitted until the project is within six months of a purchase order and staff will work with the vendor to submit for HVIP.
BACKGROUND/RATIONALE:
In July 2026, AC Transit received notice of an award from the VW Environmental Mitigation Trust Program, for applications submitted in February and March 2024. Given the amount of time since application, and reports that the VW Mitigation Trust was exhausted, staff had not anticipated an award. The funds awarded allow the District to add 13 hydrogen buses to its existing order of 47, which had been reduced due to previous funding limitations. This award enables the full purchase of 13 hydrogen buses with no District capital contribution required.
The District currently has 122 buses beyond their useful life. The purchase of these thirteen (13) forty-foot (40’) zero-emission hydrogen buses will:
• Replace outdated buses with modern, technologically advanced units;
• Enhance fleet efficiency and reliability;
• Reduce operating and maintenance costs; and
• Lower pollutants through the latest advancements in exhaust emissions control systems.
Staff has reviewed the State of Washington Transit Bus Cooperative Contract (04824) and finds it to be an appropriate means of purchasing zero emission buses. The District has conducted its due diligence in ensuring the contract was competitively sourced to meet Federal Transit Administration (FTA) required fair and reasonableness pricing standards and proper contracting procedures were undertaken during the original contracting process. In particular, the resulting master contract has been reviewed to ensure it incorporates the terms, conditions, and certifications necessary to meet all relevant FTA guidelines and requirements. AC Transit’s Board Policy 465 section IV.C.4 allows for cooperative purchasing, and states in relevant part “to foster greater economy and efficiency, the District may avail itself of federal, state, and local intergovernmental agreements for the procurement of Goods or Services. Joint procurements, cooperative purchasing programs, piggybacking or lists of bidders/proposers that have been pre-qualified by another public agency, may be used when consistent with applicable state and federal statutory or grant requirements”.
ADVANTAGES/DISADVANTAGES:
The purchase of thirteen (13) zero-emission buses will allow the District to replace aging diesel buses in the fleet and move the District closer to achieving the FTA Transit Asset Management (TAM) established performance targets, requiring that buses are replaced when they reach the useful life benchmark. Not purchasing the new buses means the District will have to continue operation of higher polluting diesel buses. Operating older buses beyond their useful life impacts operating costs and service reliability. Further, the District would create a larger gap in achieving the TAM-established targets.
ALTERNATIVES ANALYSIS:
An alternative to purchasing these buses through the State of Washington Transit Bus Cooperative Contract is to issue a Request for Proposal (RFP). This alternative is not recommended as it would require considerable District resources and time to issue the solicitation, review the proposals, award the contract(s), and prepare the contracts. Furthermore, issuing an RFP is not likely to result in more favorable pricing and/or contract terms, especially with the current economic environment.
PRIOR RELEVANT BOARD ACTION/POLICIES:
25-436 Purchase of Fifty-Seven (57) Zero-Emission Buses
26-075 State of District's Fleet
Board Policy 465: Procurement Policy
ATTACHMENTS:
None
Prepared by:
Richard Barbé, Technical Services Supervisor
In Collaboration with:
Chris Durant, Assistant Director of Maintenance
Emily Heard, Capital Planning and Grants Manager
Approved/Reviewed by:
Cecil Blandon, Director of Maintenance
Aaron Vogel, Chief Operating Officer
Michael Silk, Acting Director of Procurement & Materials
Paul Kincaid, Assistant General Manager/Chief Executive Officer