USDOT launches $6.4 billion Carbon Reduction Program

April 22, 2022
The funding will be provided to states and localities during a five-year period with the program designed to help expand transportation and reduce carbon output.

The U.S. Department of Transportation’s (USDOT) Federal Highway Administration launched the new Carbon Reduction Program (CRP) on April 21 that will provide $6.4 billion in formula funding for states and localities over five years.

The funds can be used to expand transportation options and help states develop carbon reduction strategies.

“As the sector generating the most carbon emissions in the U.S. economy, transportation must play a leading role in solving the climate crisis,” said U.S. Transportation Secretary Pete Buttigieg. “The Carbon Reduction Program will help reduce pollution from transportation and move us closer to the president’s ambitious goal of cutting emissions in half by 2030.”

Projects eligible for the funds range from traffic monitoring and management, active transportation, public transportation, intelligent transportation systems such as vehicle-to-infrastructure communications equipment, street lighting replacement, congestion pricing support, deployment of alternative fuels, among others.

Additionally, any project eligible under the Surface Transportation Block Grant program can use CRP funds if the USDOT secretary has certified that the state has demonstrated a reduction in transportation emissions both on a per capita basis, as well as a per unit of economic output. According to guidance for the program, states’ initial focus during the first year should be “on developing their Carbon Reduction Strategies and using CRP funding to begin implementing their Carbon Reduction Strategies once adopted to establish a baseline; for this reason, the secretary will not certify flexibility for the CRP until at least FY 2023.” Additional guidance will be published on the certification process.

States will be required to develop carbon reduction strategies in consultation with Metropolitan Planning Organizations. However, USDOT says states and localities may begin using the CRP funds even before plans are developed and reviewed.

“This new program provides states and local agencies in both urban and rural areas the flexibility and funding needed to reduce emissions and build a more sustainable transportation network that will benefit all travelers,” said Deputy Federal Highway Administrator Stephanie Pollack. “The Bipartisan Infrastructure Law makes transformative investments in our nation’s transportation infrastructure, and this is one of the key programs that will help address the climate crisis.”

For more information on the Carbon Reduction Program, a link to the website is provided, as well as to a program fact sheet.

About the Author

Mischa Wanek-Libman | Group Editorial Director

Mischa Wanek-Libman serves as editor in chief of Mass Transit magazine and group editorial director of the Infrastructure and Aviation Group at Endeavor Business Media. She is responsible for developing and maintaining the editorial direction of the group and is based in the western suburbs of Chicago.

Wanek-Libman has spent more than 20 years covering transportation issues including construction projects and engineering challenges for various commuter railroads and transit agencies. She has been recognized for editorial excellence through her individual work, as well as for collaborative content. 

She is an active member of the American Public Transportation Association's Marketing and Communications Committee and serves as a Board Observer on the National Railroad Construction and Maintenance Association (NRC) Board of Directors.  

She is a graduate of Drake University, where she earned a Bachelor of Arts degree in Journalism and Mass Communication with a major in magazine journalism and a minor in business management.