USD1.5bn announced by U.S. government for “low- to no-emission” bus fleet renewal, closing April 2024

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By Bradley Osborne - 19th February 2024

USD1.5bn announced by U.S. government for “low- to no-emission” bus fleet renewal, closing April 2024

The Cabinet Room in the White House

USA – The U.S. government has announced that it has made a further USD1.5bn in grant money available to applicants who are looking to replace their diesel buses with lower emission alternatives and/or install infrastructure for charging/refuelling at their bus depots. 

Through the ‘Low- or No-Emission Program’, public transportation companies and agencies can apply for federal grants to support replacements of diesel buses. Eligible models for replacement include buses with electric and natural gas drivelines. USD1.1m is being made available for purchasing such buses along with the necessary infrastructure to recharge or refuel them. 

The ‘Grants for Buses and Bus Facilities Program’ overlaps somewhat with the Low- or No-Emission Program: its purpose is to provide finance for buses and bus facilities capital projects, including replacement, rehabilitation, purchase, or lease of buses and facilities such as depots. USD390,000 is being offered through this fund. 

The announcement was made during a roundtable at the White House on the subject of “clean bus” manufacturing. Attendees included Paul Soubry, President and CEO of NFI Group, and Jennifer McNeill, Vice President of Public Sales and Marketing for NFI subsidiaries New Flyer and MCI. The Federal Transit Agency (FTA) states that it wants to help U.S. manufacturers to bring down production costs, reduce manufacturing timelines, and keep domestic production at pace with growing demand for low- and no-emission buses. 

Applications for this round of federal funding closes on 25 April.1 The FTA says that, through the Bipartisan Infrastructure Law, approximately USD5bn will be awarded to bus operators over the next three years. 

1 https://www.transit.dot.gov/notices-funding/low-or-no-emission-and-grants-buses-and-bus-facilities-competitive-programs-fy2024