Commercial, Distributed Energy Resources, GHG Emissions  -  September 17, 2024

DOT Provides $300 Million in Grants to Modernize Ferries

The U.S. Department of Transportation’s Federal Transit Administration (FTA)  announced grants totaling nearly $300 million from President Biden's Bipartisan Infrastructure Law to expand and modernize the U.S. ferry systems. 

The funding for three FTA competitive grant programs will boost ferry service in rural areas, modernize urban ferry systems, and lower emissions by speeding the adoption of low- and zero-emission technology.

The FTA is awarding 18 grants in projects across 14 states. Federal funding will support projects such as replacing old vessels with electric ships that reduce GHG pollution and improve air quality, expanding fleets, and building new terminals and docks. Of the 18 projects, eight are receiving federal support for environmentally friendly propulsion technologies, such as electric ferries and charging equipment. 

FTA's ferry programs invest in improving ferry service in urban and rural communities by providing federal support to acquire modern, "greener" ferry boats and upgrading equipment to support high-quality, low-emission ferry service.

"This historic funding for FTA's Ferry Programs will enhance ways for people to travel by water," said FTA Acting Administrator Veronica Vanterpool in a statement. "We applaud ferry agencies for taking the big step toward electrification, increasing reliability, and bringing their aging ferry systems into a state of good repair."

FTA's Ferry Service for Rural Communities Program provides competitive funding to states for ferry service in rural areas. Under this program, the FTA is awarding $194 million to four projects in two states.

FTA's Passenger Ferry Grant Program supports capital projects to establish new ferry service and repair and modernize ferry vessels, terminals, and facilities in urban areas. Under this program, the FTA is awarding $56.3 million to eight projects in seven states.

FTA's Electric or Low Emitting Ferry Program supports the purchase of electric or low-emitting ferry vessels that reduce emissions by using alternative fuels or on-board energy storage systems. Under this program, the FTA is awarding $49 million to six projects in five states.

Selected Fiscal Year 2024 ferry projects include:

• The Alaska Department of Transportation & Public Facilities will receive $106.4 million to build a new ferry to replace a 60-year-old vessel. The new ferry, which will feature a diesel-electric propulsion system, will serve rural southwest Alaska, improving service and reducing GHG  emissions. 
   
• The San Francisco Bay Area Water Emergency Transportation Authority will receive $11.5 million to build two new electric ferries to support the agency's emission free ferry service between downtown San Francisco, Treasure Island and Mission Bay. 
   
• The Maine Department of Transportation will receive approximately $16.6 million to modernize rural ferry terminals in Lincolnville and Islesboro in northeast Maine, which were built in 1959. The project will improve safety and state of good repair, as well as support the future operation of a new hybrid ferry that will service these two communities.

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