Agenda Item No: N.1
AGENDA REPORT
DATE: May 19, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-73 PW EnergIIZE Transit Set -Aside Funding Lane for Phase 1A – Corporation Yard Fleet Electrification Project
Authorizing the City Manager to Execute the Incentive Recipient Terms and Conditions for CALSTART’s EnergIIZE Transit Set -Aside Funding Lane for the Phase 1A – Corporation Yard Fleet Electrification Project
Funding Source: N/A
Contact: Melissa Minton, (707) 434-3804
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
On March 4, 2026, the City of Fairfield received a notice of conditional award for its Energ y Infrastructure Incentives for Zero-Emission (EnergIIZE) Transit Set-Aside funding lane application.
The proposed resolution would authorize the city manager to execute CALSTART’s EnergIIZE Incentive Recipient Terms and Conditions (Terms and Conditions) and do all things necessary to complete the steps required to receive up to $2,137,650 in EnergIIZE Transit Set -Aside funding for the Phase 1A - Corporation Yard Fleet Electrification Project (Project).
DISCUSSION
The California Air Resource Board adopted the Innovat ive Clean Transit Act (ICT) on December 14, 2018, which requires all public transit agencies in California to gradually transition their bus fleets to zero-emission fleets by 2040. The ICT requires 50% of all new bus fleet purchases to be zero-emission in 2026, with the requirement increasing to 100% by 2029.
City staff have designed the initial infrastructure needed to comply with the ICT and support the City’s first electric vehicle procurement. On September 16, 2025, staff received bids for the Project, which will install ten level 3 chargers, four level 2 chargers , and supporting electrical
infrastructure needed to provide fast charging for medium - and heavy-duty City vehicles and battery-electric buses. On December 16, 2025, the City Council awarded the contract for the Project in the amount of $3,165,800 to Bockmon & Woody Electric Company, Inc. through Resolution 2025-257.
While t he Project was originally intended to be funded by a $12.016 million Federal Transit Administration (FTA) grant under the Fi scal Year 2022 Bus and Bus Facilities Program, a federal policy shift directing agencies to prioritize low emission projects instead of zero emission projects affected both new and unobligated grants, including Fairfield’s. To retain this funding source and obligate the grant by the September 29, 2025, deadline , the City revised the grant’s scope to eliminate all zero-emission components, which included all electrical infrastructure upgrades at the City’s Corporation Yard.
In October 2025, City staff applied for the EnergIIZE Transit Set -Aside funding lane under CALSTART’s EnergIIZE Commercial Vehicles Project block grant created for electric vehicle charging and hydrogen fueling infrastructure for ICT compliant public transit agencies to offset the loss of the FTA grant funding source for the Project and received notice of a conditional award in the amount of $2,137,650 on March 4, 2026. To remain eligible to receive this conditional funding, the City must execute the Terms and Conditions and submit all other supporting documentation within 90 days of its notice of conditional award.
Funding received through CALSTART’s EnergIIZE Transit Set-Aside funding lane will be used for all transit-specific components of the Project that was to be funded by the FTA grant and provide much needed financial assistance to complete the Project.
FINANCIAL IMPACT
The City anticipates receiving up to $2,137,650 from the EnergIIZE Transit Set-Aside funding lane for the Project. The program leverages C alifornia Energy Commission funding and requires no local match. There is no impact on the General Gund.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may reject the Terms and Conditions for the EnergIIZE Transit Set-Aside funding lane.
This is not recommended, however, as rejecting the Terms and Conditions would relinquish the $2,137,650 award.
COORDINATED WITH
N/A
STAFF CONTACT
Melissa Minton, Transportation Planner
(707) 434-3804
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Proposed Agreement