Funding Your Autonomous Vehicle Deployment

Autonomous vehicles (AV) have started making the transition from experimental to useful—tackling access needs, addressing driver shortages, and simplifying operations. While there are many applications for autonomous driving technology, May Mobility specifically develops AVs for transit, cities, business and university campuses. Bringing in new and innovative technology can be intimidating, but it doesn’t have to be. AV services can be procured and funded in a variety of ways. Here’s how to get started:

First things first: Build a use case

AVs are very exciting, but for a robust, purposeful deployment, you start by understanding your needs. What prevents your transportation services from being truly useful to your communities? Establishing a solid use case provides a strong foundation with your community, funders, and leadership.

Take our Detroit Accessibili-D service as an example. The City of Detroit saw a need for improved access to transportation for people with disabilities and residents over the age of 62. They worked with us and those communities to develop a cost-free service that takes them where they need to go and includes a couple of wheelchair-accessible AVs for those who need them.

Funding an AV Deployment

Autonomous vehicles are similar to other transportation options in that they can be funded in a wide variety of ways. With a path to simpler operations and costs, building out an AV service today builds a sustainable network for the future. Some of the most common funding sources include:

Local Operating funds

If available, using funds directly from your local budget is straightforward. Include an AV line item or use line items you may already have (e.g. Innovation, Microtransit, Dial-a-Ride, etc).

Regional/State Programs and Grants

Several regions and states have autonomous vehicle and/or innovation programs. And some metropolitan planning organizations (MPO) are very innovative and can be excellent partners and funders. If your state or region doesn’t have a program, consider asking your MPO, Council of Government (COG), Department of Transportation (DOT) or local University to start one.

Federal Formula Funds

If your organization is eligible for federal formula transit funds, they can be used for public autonomous transportation services and associated capital costs. Some funds will even cover operating expenses.

May Mobilty’s AV services are capital-heavy, so federal formula funds can help relieve the cost burden on your operating budget. Vehicle leases, software licenses, and mapping are all considered capital expenses.

In addition, May Mobility AVs are often operated as a turnkey service. Turnkey services are eligible for Capital Cost of Contracting with 50% of a transit agency’s expenses considered capital (See FTA Policy (p. II-5) for more information).

For small urban and rural agencies, formula funds can be used to cover operating costs at a 50% local match.

Key sources include:

• Urbanized Area Formula Grants for capital and planning costs

• 5310 Grants for services that improve mobility for seniors and people with disabilities

• Rural Area Formula Grants for capital, planning, and operating costs

• Tribal Transit Formula Grants

Federal Discretionary Grants for Transportation

AVs are innovative! Several transportation innovation-focused grants such as ATTAIN, RAV and SMART are eligible for transit agency, state, MPO and city applications. In many states, May Mobility can be directly named as a partner. However, in some states, a competitive procurement process may be required.

May Mobility AVs are here to close key gaps in your networks. Grants such as Areas of Persistent Poverty, Rural Surface Transportation Grant, or 5310 can be applied to for study or to meet the needs of key populations using May Mobility’s autonomous microtransit service.

Other Grants

Federal departments like Housing and Urban Development (HUD) and Health and Human Services often express interest in autonomous vehicle programs, community impacts, and data. Researchers and or university transportation departments may have similar interests and access to research grants too.

Many other grant opportunities in transportation, innovation, infrastructure, etc. come up frequently. We are happy to discuss if any might be a potential fit.

Pathways forward: Procurement

With a good understanding of how and why you want to incorporate AVs into your network and what funding is available; you can move forward with purchasing.

May Mobility AV services are purchasable via standard procurement processes; including sole source. There are a few other purchasing methods that you may want to consider.

Leveraging your Microtransit or Other Services

If you are operating a service today, or are issuing an RFP, consider an option to add autonomous vehicles to the contract. May Mobility works closely with transportation software providers and operators; and could introduce an AV component to your services in partnership with your vendors.

Cooperative Purchasing

May Mobility autonomous vehicle services are purchasable via the Texas 791 Cooperative Mobility as a Service and Solutions contract through October 2028. All public agencies, cities, and states are eligible for free membership in the Cooperative but should verify eligibility with their own state compliance laws.

Partnerships

Many organizations in your community, region, or state may be interested in helping bring AVs into your environments. Coalitions are a great way to build interest, gather funds, and ensure key stakeholder involvement. Consider reaching out to your transit agency, city, state DOT, COGs, local university, real estate developers, tourism board, and/or large local employers.

For more on planning, funding and procuring your autonomous vehicle fleet, tune into our webinar discussion with AECOM and Via. And don’t hesitate to reach out if you have any questions or would like to get started.