TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: FTA 5339b/c Competitive Funding Application(s)
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager or his designee to submit application(s) and execute funding agreements for the FTA 5339b/c Competitive Programs (Bus and Bus Facilities/Low and No Emissions) for diesel-electric hybrid bus purchases.
Staff Contact:
Paul Kincaid, Interim Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
AC Transit needs to replace its aging buses to sustain safe, reliable service across the District’s service area. An FTA 5339b/c discretionary grant would fund the replacement of diesel buses that have reached or are approaching the end of their useful life with new diesel-electric hybrid 40-foot buses.
BUDGETARY/FISCAL IMPACT:
Staff recommends applying for approximately $32 million in FTA 5339b/c discretionary funds towards diesel-electric hybrid buses.
FTA 5339b Buses and Bus Facilities funds require a 20% local match; FTA 5339c Low or No Emission funds require a 15% local match for low-emission buses. A $32 million application would require a non-Federal match of approximately $5.6 million. The required match will be from the State Transit Assistance (STA) State of Good Repair (SGR) program and cost savings from closing projects. Staff will continue to pursue supplemental grant funding where available to further reduce reliance on STA SGR dollars.
BACKGROUND/RATIONALE:
On July 27, 2026, FTA announced the availability of $589 million under the FY26 Notice of Funding Opportunity (NOFO) for the Low or No Emission Program and $21 million under the Buses and Bus Facilities Grant Program (which limits a single award to a maximum of 10 percent of the total grant pool, equal to $2.1 million per appl...
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