The Federal Transit Administration announced on July 9 that it awarded Pace $30.9 million in grant funding that will greatly help Pace advance its Project Zero commitment and accelerate the ongoing transition to a zero-emissions fleet.
“Today’s funding is a major investment in Illinois’ future. Our state’s communities will be better connected and breathe cleaner air because of this federal support for Pace and its electric-based future,” said U.S. Senate Majority Whip Dick Durbin (D-IL) “Senator Duckworth and I will continue working to ensure our state has the federal resources to build a stronger, cleaner transportation system.”
“Increasing the number of zero-emission and low-emission Pace buses protects the health of our communities and our state,” said U.S. Senator Tammy Duckworth (D-IL). “I’m proud to see this funding help support a cleaner, safer future for Illinoisans and the next generation. I will continue working alongside Senator Durbin and our local officials to ensure our communities receive the much-needed federal resources they deserve.”
The grant funding will go toward the purchase of new hybrid buses and help Pace upgrade its maintenance facilities to better support a greener fleet. As part of its Driving Innovation strategic vision plan, Pace committed to the goal of operating 100 percent zero-emissions vehicles by the year 2040. The agency has been acquiring zero-emissions vehicles ever since as funding, resources, and manufacturing demands allow.
"We are thrilled to receive this funding, which will allow us to purchase approximately 25 hybrid-electric buses, reducing greenhouse gas emissions by nearly 6 tons, while keeping us on track to meet our commitment to reaching a fully zero-emission fleet by 2040," said Pace Executive Director Melinda Metzger.
"We are grateful for this new funding. With these new buses, Pace can save money at a time when cost savings for transit agencies are at a premium. Replacing 25 diesel buses with 25 hybrids saves nearly $2 million in fuel costs over the next 12 years, while we prepare our infrastructure to accommodate fully zero-emissions buses," said Pace Chairman Rick Kwasneski.
In recent months, Pace has made tremendous progress on its Project Zero commitment. The agency launched its first-ever, battery-electric bus into service in January 2024 along Route 381 in the southwest suburbs. The agency also recently started testing a new battery-electric paratransit bus, which will soon enter service.
Pace is also expecting to receive 22 battery-electric buses by the end of the year. Thanks to Northeastern Illinois’ Congressional delegation, Pace also recently was awarded Community Project Funding grants to purchase even more battery-electric buses and paratransit vehicles.
Federal support over the last several years for Pace’s Project Zero commitment and other agencies’ bus projects has been instrumental in helping communities advance their climate goals.
Today’s announcement is part of approximately $1.5 billion in funding to support 117 projects that will improve public transportation in 47 states. Over the past three years, the Federal Transit Administration has sent nearly $5 billion to replace and modernize transit buses on America’s roadways, building new technology with American workers. U.S. factories will produce more than 3,650 new buses.
This funding continues the Biden-Harris Administration’s historic federal investment in the nation’s bus systems, as well as the transit workforce. Approximately 80 percent of the buses being funded will run on zero and low-emission technology, reducing air pollution and helping meet the President’s goal of zero emissions by 2050.
The projects announced today are supported by FTA’s Grants for Buses and Bus Facilities and Low-and No-Emission (Low-No) Vehicle programs.
The Grants for Buses and Bus Facilities program provides federal funding for transit agencies to buy and rehabilitate buses and vans and build and modernize bus facilities. The Bipartisan Infrastructure Law provides nearly $2 billion through 2026 for the program. For Fiscal Year 2024, approximately $390 million for grants was available under this program.
FTA’s Low-and No-Emission program makes funding available to help transit agencies buy or lease U.S.-built low- or no-emission vehicles, including buses and vans, make facility and station upgrades to accommodate low- or no-emission vehicles, and buy supporting equipment like battery electric charging. The Bipartisan Infrastructure Law provides $5.6 billion through 2026 for the Low-No Program — more than six times greater than the previous five years of funding. For Fiscal Year 2024, approximately $1.1 billion was available for grants under this program.
