Low and Zero Emission Public Transportation Funding

The Department of Transportation’s Federal Transit Administration (FTA) offers grants through the Low or No Emission Grant (Low No) Program to local and state government entities for the purchase or lease of low- or zero-emission transit buses, in addition to the acquisition, construction, or lease of supporting facilities. Additionally, funding may be requested for workforce development training or training at the National Transit Institute. Eligible vehicles must be designated for public transportation use and significantly reduce energy consumption or harmful emissions compared to a comparable standard or low emission vehicle. Applicants with projects that include zero-emission vehicles (ZEVs) are required to submit a ZEV fleet transition plan. The plan must include:

  • A long-term fleet management plan that includes a strategy for how Low No Program funds will be used for resources and acquisitions;
  • A discussion on the availability of current and future resources for ZEV transition and implementation;
  • An assessment of policy and legislation impacting relevant technologies;
  • An evaluation of existing and future facilities;
  • A description the applicant’s relationship with the utility or alternative fuel provider; and
  • An assessment on how ZEVs will impact the applicant’s workforce.

For more information, including details about the current round of funding, see the FTA Low No Program website.

(Reference 49 U.S. Code 5312 and 5339 and Public Law 117-58)

Jurisdiction: Federal

Type: Incentives

Agency: U.S. Department of Transportation

Enacted: Jul 6, 2012

Amended: Nov 15, 2021

Technologies: Aftermarket Conversions, Biodiesel, Ethanol, EVs, HEVs, Hydrogen Fuel Cells, Natural Gas, NEVs, PHEVs, Propane (LPG)

See all Federal Laws and Incentives.