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The buses have electric motors powered by energy stored in rechargeable battery packs instead of combustion engines fueled by diesel.
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The approval moves the project forward in the capital grants program.
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In the coming months, the agency will continue intensive work to advance its federal grant application.
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The agency has advanced funding for 22 new CIG projects throughout the nation since Jan. 20, 2017.
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The administration published two NOFOs, each with $2 million in competitive funding.
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The technology, known as "queue jump," is part of a package of improvements designed to speed bus trips and keep service on time.
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The agency invited prime contractors, small businesses, and disadvantaged business enterprises to showcase future opportunities.
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With so many agencies looking to at least test electrification of their bus fleets, new financing tools could potentially help agencies do more with less.
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Distortion tests at the Altoona Bus Research and Testing Center with 440 kWh of onboard energy storage
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In addition, approximately $48.5 million in FTA grant funding withheld due to the District, Maryland, and Virginia is now available
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