Notice of Funding Availability-Zero Emission Transit Transition Program

ZERO-EMISSION TRANSIT TRANSITION (ZETT) PROGRAM

NOTICE OF FUNDING AVAILABILITY

AND APPLICATION GUIDANCE

Background
The New York State Department of Transportation (NYSDOT) is pleased to announce the availability of $100 million in funding through the Zero-Emission Transit Transition Program (ZETT). This initiative promotes the adoption of zero-emission solutions by non-MTA transit providers throughout New York State. The program will support projects that include the acquisition of zero-emission transit vehicles, construction of facilities and utility infrastructure for charging and fueling, and the necessary planning and design phases for zero-emission capital projects.
ZETT will be administered in conjunction with programs/initiatives overseen by the New York Power Authority (NYPA), NYS Energy and Research Development Authority (NYSERDA), NYS Office of General Services (OGS), and NYS Department of Environmental Conservation (NYSDEC).
This program will prioritize leveraging these state funds to attract additional local, regional, and federal sources.

Eligible Applicants, Funding Limitation, and Match Requirements
Eligible applicants include non-MTA transit authorities, counties, municipalities, and other entities receiving or eligible to receive New York Statewide Mass Transportation Operating Assistance (STOA).1 The Metropolitan Transportation Authority (MTA) and intercity bus operators are not eligible. Eligible applicants are divided into two categories:
Affected Entities under Executive Order No.222 – Non-MTA transit authorities required to have zero-emission fleets by 2040, including the Capital District Transportation Authority (CDTA), Central New York Regional Transportation Authority (CNYRTA/Centro), Niagara Frontier Transportation Authority (NFTA), and Rochester Genesee Regional Transportation Authority (RGRTA/RTS). These entities may apply for up to $17.5 million and are required to provide a minimum of 10% non-state match towards the project cost (excluding other state sources).
Other STOA-Eligible Entities – These entities may apply for up to $5 million and are required to provide a minimum of 10% non-state match towards the project cost (excluding other state sources).

1 More information on STOA and eligibility requirements can be found at www.dot.ny.gov/divisions/policy-and-strategy/public-transportation/funding-sources/STOA
2 More information on the requirements of Executive Order No.22 can be found at www.governor.ny.gov/executive-order/no-22-leading-example-directing-state-agencies-adopt-sustainability-and

Applicants are highly encouraged to contribute more than the minimum required non-state match. Projects with a higher proportion of non-state funding will receive greater consideration during the competitive scoring process.
The minimum grant request under this program is $500,000 for eligible applicants under either category.
Upon award, the amount of the grant is fixed and the applicant will be responsible for any and all costs in excess of the grant amount. Applicants may request to adjust the scope of their project to fit within the funding available (including committed matching funds). NYSDOT reserves the right to approve or deny such requests at its sole discretion.

Eligible Projects:
Funding opportunities are available for projects that support transition to zero-emission transit solutions, and include one or more of the following phases/components:
• Development of a Zero-Emission Fleet Transition Plan to determine feasibility of battery-electric vs hydrogen-electric and associated capital/operating costs. If neither is determined to be feasible, plans can evaluate other low-emission propulsion alternatives.
• All other planning and conceptual design activities.
• All phases of design/engineering (preliminary/advanced/final) and related project development activities (ex. NEPA/SEQRA).
• Acquisition of transit fleet buses featuring zero-emission propulsion systems (hydrogen-electric and battery-electric). Note: Funds cannot be used for replacement of existing zero-emission or low-emission (ex. hybrid, CNG, propane) vehicles.
• Construction of new transit facilities or enhancement of existing facilities for the express purpose of transit operations to house and maintain zero-emission fleets.
• Construction of utility infrastructure and equipment to connect transit facilities to power/fuel networks (ex. sub-stations, chargers, hydrogen fuel pumps) for the express purpose of propulsion of zero-emission fleets. This includes related upfront costs such as charge management systems, warranties, and network / communication packages.
• Construction support/administration/inspection costs related to proposed capital construction.

The following project activities are not eligible for reimbursement under the ZETT program, but can be used towards the non-state match requirement:
• Land acquisition or donation of existing land
• Fleet/yard maintenance software
• Other in-kind documented services

Applications must be for a new zero-emission project, or expansion of an existing project with a new phase/component that was not previously funded. ZETT program funding is NOT intended to replace, offset, or reimburse existing committed local, state, or federal funding. For an expansion project, applicants must include detailed description of previously funded phases/components.
Note: For clarification on questions of project eligibility, applicants are strongly encouraged to contact NYSDOT Public Transportation Bureau at zett@dot.ny.gov prior to submission.

Strategic Objectives
Proposed projects will need to address how the overall project is a zero-emission transit solution through the following key objectives:
Zero-Emission Transition – Replacement of diesel buses with zero-emission vehicles towards a goal of a 100% zero-emission fleet.
Reduction of Greenhouse Gas Emissions – Reduced carbon emissions, contributing to climate change mitigation and improve public health and quality of life.
Encourage Transit Usage and Reduction in Vehicle Miles Traveled – Increase transit ridership with a corresponding reduction in travel by single-occupant automobiles.
Serve Disadvantaged Communities (DACs) – Prioritize DACs, defined under the Climate Leadership and Community Protection Act (CLCPA), in air pollution and climate-altering greenhouse gas emissions reductions and targeting clean energy and energy efficiency. More information on the CLCPA and defined DACs can be found at www.climate.ny.gov and the https://www.nyserda.ny.gov/ny/Disadvantaged-Communities).
Implementation of Zero Emission Technologies and Infrastructure – Deploy new or cutting edge zero-emission technologies and invest in the regional infrastructure to support widespread adoption.
Implementation of Strategic Plans – Align projects with environmental goals, recommendations, and objectives of local, regional, and state strategic plans.
If applicable, include supporting documentation from related initiatives by NYSERDA, NYSDEC, NYPA (ex. Bus Electrification Master Plans, NYSOGS (ex. E.O. No.22 ZEV conversion plans), FTA (ex. Zero-Emission Fleet Transition Plans)
Economic Growth – Stimulate economic growth by creating new job opportunities and investment in New York’s transportation and clean energy sectors.

Financial Objectives
The program intends to maximize use of its funds for the greatest influence on climate change by leveraging other sources and increasing projects’ overall scope and impact.
Applications must demonstrate:
Local Funding Support – Show local commitment to zero-emission transit through the amount of project funding from applicants and their local/regional partners.
Leveraged Federal Funds – Describe how program funds will enable applicants access to additional federal funds administered by the Federal Transit Administration, Federal Highway Administration, Department of Energy, and other federal entities. Provide evidence with documentation on feasibility of obtaining these funds.
Note: NYSDOT reserves the right to retract the award of funds under this program if the anticipated federal or other local non-state match sources do not materialize.
Zero-Emission Program Progression and Competitiveness – Demonstrate how funds will progress the applicant’s overall zero-emission program and the specific need for these funds that could not be obtained by other sources. Describe how this project will improve competitiveness for future funding programs whether they be local/regional, federal, or state (including NYSDOT, NYPA, NYSDEC, and NYSERDA).
Financial Capacity – Provide a project budget that sufficiently supports completion of the proposed project and identifies all verifiable sources of the required non-state match.

Implementation Objectives
The program seeks to fund projects that make tangible progress towards zero-emission transit. Applications are to address:
Project Readiness – Demonstrate the ability to expedite project implementation based on completion of prerequisite activities.
Practicality – Provide evidence of functionality of proposed projects, either by the applicant themselves or elsewhere in New York State or North America.
Scalability – Demonstrate project’s potential for future expansion of applicant’s zero-emission transition as well as independent utility of individual components if provided partial award.
Organizational Capacity – Describe previous experience with similar projects and organizational capacity for implementation. Identify key team members and their experience with such projects. Specify any involvement with NYSDOT, NYPA, NYSERDA, NYSOGS, NYSDEC or other agencies with expertise to provide technical assistance. Demonstrate capacity to continue long-term operations after the contract period has ended.

Application Format and Requirements
Applications will be provided in two sections – a project budget and written narrative.

Project Budget and Fund Sources
NYSDOT is providing a template excel file to be used to document the project’s budget, request from the ZETT program, anticipated funding sources, level of commitment demonstrated for these sources, and applicant description. Detailed instructions can be found in the “Instructions” worksheet of the file. Applicants are strongly encouraged to send any budget related questions to zett@dot.ny.gov .

Project Narrative
The narrative will describe the proposed project, the applicant’s zero-emission program, how the project advances the overall program, and how it meets the Strategic / Financial / Implementation objectives of the ZETT program. The narrative does not include a standard format as applicants are encouraged to provide the necessary information in any means (written and visual) that best describes their project. Narratives must be provided as .doc or .pdf.
In addition to addressing ZETT objectives, narratives must include details regarding the following requirements, which funded projects will be obligated to meet:
• Community Engagement – Projects must include public outreach to engage local communities and stakeholders throughout development and implementation.
• State Agency Coordination – Applicants must maintain consistent communication with other New York State entities responsible for decarbonizing the transportation system. Affected entities must ensure compliance with Executive Order No. 22.
• Proposed Project Completion – Projects must be comprehensively completed by the approximate timeframes based on project type. Expected completion dates from contract execution will be determined by project based on individual scopes:
o Planning, design, and project development: 2–5 years
o Vehicle acquisition: 3–5 years
o Capital construction: 3–10 years
• Staffing Plan – Applications must describe all staff responsible for project development, management during the contract period, and post-contract operations.
• Project Schedule and Monitoring/Reporting – Applications must include a detailed project schedule with milestones, key deliverables, and an expected completion date. Award recipients will be required to submit quarterly progress reports as part of their funding contract.
• Post-Implementation Accomplishments – Applicants must outline how they will track and report annual metrics such as increases in transit ridership, reduction in single-occupant vehicle miles traveled (VMT), and reduction in carbon GHG emissions.
o Include the methodology for calculating and monitoring these metrics.

Other Requirements
For full consideration, all projects must:
? Conform to all Federal and State requirements for transit operations.
? Have a completed narrative and Project Budget and Fund Sources (Excel) worksheet submitted with application.
? Have an eligible Applicant/Sponsor who has a New York Statewide Financial System (SFS) vendor ID which may be obtained at http://www.osc.state.ny.us/vendors.
? Application submitted by the deadline with all supporting documentation included.

Project Review Process / Evaluation Criteria
Projects will be evaluated on eligibility and a competitive scoring process by a selection committee based on the following criteria:

Strategic Objectives - 30 Points
Contribution to zero-emission transit goals to reduce carbon emissions and single occupancy vehicle miles traveled, serve DACs as well as other state/local strategic, environmental, economic objectives.

Implementation Objectives - 30 Points
Feasibility of implementing the proposed project based on organizational capacity and experiences as well as project readiness and designated timeframe. Ability for project to both be expanded upon in the future to further increase a zero-emission fleet, as well as to be scaled back if partial award provided.

Financial Objectives - 40 Points
Overall project budget proposal that supports implementation, including the degree project will leverage additional local and federal funds beyond the mandatory minimum non-state match. Demonstrate how funds are currently accessible and/or will be expected in the future.

Total Points
100

In addition to the formal evaluation criteria, project selection is permitted to incorporate geographic balance into the final selection of eligible projects.

Questions and Submission Deadline Instructions
Questions concerning this competitive solicitation can be submitted by February 21, 2025 to the Public Transportation Bureau at zett@dot.ny.gov. Responses will be sent to the Applicant Notice List as an update to the Frequently Asked Questions and posted to the NYS Contract Reporter notice/advertisement. Complete applications are due no later than April 4, 2025 and must be submitted to zett@dot.ny.gov .

Additional information can be found at:
www.dot.ny.gov/divisions/policy-and-strategy/public-transportation/funding-sources

Protest Procedure
Applicants who submitted a proposal for this competitive solicitation who are not selected for award may file a written protest within four (4) business days of the delivery/receipt of the Funding Notice Letter utilizing NYSDOT’s Competitive Grant Protest Procedure.

Frequently Asked Questions (FAQ)
Can funds be used to support transition of non-revenue fleet to zero-emissions?
The Zero-Emission Transit Transition Program was created only for transit revenue vehicles. Applications should document if a project allows opportunity for future transition of non-revenue fleet – but related costs should not be included as part of the total requested funding amount under this program and/or non-state match.
Will partial awards be provided?
Partial funding of application requests will be an option under this program. Whether partial awards are provided is dependent upon the overall response to this NOFA from eligible applicants, total funds available for award, and the total funding amounts requested. Partial awards will be at the discretion of NYSDOT during the evaluation process.
Can applications be for a phase of project development, or do they require a capital component? Is there a minimum funding request required?
NYSDOT encourages entities, particularly those in rural areas, to apply for the planning, design, and project development phases of their zero-emission transition. Projects do not require a capital component, but each application must request at least $500,000.
Can expenses related to professional training and/or recruitment programs be included in the project cost?
No, only eligible non-capital expenses include planning, engineering/design, and other related project development activities.
Can ATC/MEP and other New York State capital program funds be used as match funding?
All New York State funding sources can be used toward the total project cost but these will not count towards match funding – see “Project Budget and Fund Sources” worksheet
Is funding from the Volkswagen Clean Air Act Civil Settlement that is administered by NYSDEC and NYSDERA considered state funds?
These funds can be considered non-state funds and used as match for the ZETT program.