Clean Fuels

To assist in financing the acquisition of clean fuel buses and related facilities for agencies providing public transportation and operating in an urbanized area designated as a non-attainment or maintenance area for ozone or carbon monoxide.

Examples of Funded Projects

Projects receiving funding under the program include the replacement of existing diesel buses with hybrid diesel-electric and other alternative fuel buses, as well as the construction of facilities to support vehicles utilizing clean fuel technology.

Agency - Department of Transportation

The Department of Transportation's mission is to ensure fast, safe, efficient, accessible and convenient transportation that meets vital national interests and enhances the quality of life of the American people, today and into the future.

Office - See list of region contacts listed in Appendix IV.
Website Address

Program Accomplishments

The program has provided funding for clean fuel projects as directed by Congress.

Uses and Use Restrictions

Eligible projects include the purchase or lease of clean fuel buses, the construction or lease of clean fuel buses or electrical recharging facilities and related equipment for such buses, and construction or improvement of public transportation facilities to accommodate clean fuel buses.

A clean fuel bus is a passenger vehicle used to provide public transportation that is powered by compressed natural gas, liquefied natural gas, biodiesel fuels, batteries, alcohol-based fuels, hybrid electric systems, fuel cells, clean diesel (to the extent allowed by law), or another low or zero emissions technology.

Buses that employ lightweight composite primary structure may also be eligible.

Eligibility Requirements

Applicant Eligibility

Public agencies, including States; municipalities and other subdivisions of States; public agencies and instrumentalities of one or more States; and public corporations, boards, and commissions established under State law.

Applicant must have legal, financial, and technical capacity to carry out proposed project and maintain facilities and equipment purchased with Federal assistance.

Applicant must also operate in an urbanized area designated as a non-attainment or maintenance area for ozone or carbon monoxide.

If the urbanized area is less than 200,000 in population, the State in which the area is located will act as the recipient.

Beneficiary Eligibility

The general public, both users and non-users of public transportation.


Resolution by an authorized public body approving the filing for an application; projects must be included in an urbanized area's transportation improvement program (TIP), and in the Statewide transportation improvement program (STIP) approved by FTA and FHWA. Information must be provided on labor agreements and relocation planning; environmental impact; legal capacity; coordinated regional planning; and compliance with certifications and assurances as compiled in FTA's Annual List of Certifications and Assurances.

Aplication and Award Process

Preapplication Coordination

Pursuant to the National Environmental Policy Act (NEPA), an environmental impact assessment and/or environmental impact statement may be required.

An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process to be followed in applying for assistance under this program.

This program is excluded from coverage under E.O.


Application Procedures

Project funds may be allocated by Congress for specific projects. When applicable, a Notice of Funding Availability is published to announce the availability of discretionary funds and application process. The notification and application are also available at

Award Procedures

An FTA grant award obligating Federal funds is reflected in a grant agreement. Grants are awarded electronically using FTA's Transportation Electronic Award Management (TEAM) system, In order to access this system, a user name and password are needed and can be obtained by contacting the regional offices. Once the funds are reserved in TEAM and the project information has been reviewed and approved by Headquarters, the recipient must execute the grant agreement to access the funds.


Applications may be submitted throughout the fiscal year. Funds are available for obligation for three fiscal years including the year of appropriation.


49 U.S.C 5308.

Range of Approval/Disapproval Time

It is a goal of the Federal Transit Administration to obligate grants within an average of 36 days of the submission of a complete grant application.


None. Award recipients are chosen by Congress during the appropriations process.


Funds are appropriated annually. Grants may be amended to add newly available funds for a continuing project.

Assistance Considerations

Formula and Matching Requirements

Funding is apportioned on a discretionary basis. The Federal share is not to exceed 80 percent of the net project cost. The Federal share may be 90 percent for the cost of vehicle-related equipment or facilities attributable to compliance with the American with Disabilities Act and the Clear Air Act.

Length and Time Phasing of Assistance

Terms and conditions are delineated in the grant agreement.

Post Assistance Requirements


(1) Progress reports, (2) Financial status reports, (3) construction reports where applicable.


Pursuant to requirements established by the Office of Management and Budget (OMB), nonfederal entities that expend $500,000 or more in a year in Federal awards shall have a single or program specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year with certain exceptions as determined by the OMB. The Federal Transit Administration may also conduct its own audits.


Recipient is required to retain intact, for 3 years following submission of final expenditure report, pending resolution of audit findings, all project contract documents, financial records, and supporting documents.

Financial Information

Account Identification



(Grants) FY 07 $15,920,000; FY 08 est $46,538,470; and FY 09 est $60,663,470 not available.

Range and Average of Financial Assistance

$160,000 - $5,250,000. Average $1,112,000.

Regulations, Guidelines, and Literature

Please visit the Federal Transit Administration (FTA) website or contact the appropriate FTA Region office for more information. See Federal Register/ Vol.70, No. 229/ Wednesday, November 30, 2005/ Notices.

Information Contacts

Regional or Local Office

See list of region contacts listed in Appendix IV.

Headquarters Office

Department of Transportation, Federal Transit Administration-Office of Program Management, 1200 New Jersey Avenue, S.E., Washington, DC 20590. Telephone: (202)366-2053 Contact: Kimberly Sledge, E-mail:

Criteria for Selecting Proposals

Per Congressional designation.

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