Carbon Reduction Program

The Carbon Reduction Program funds projects designed to reduce transportation emissions, defined as carbon dioxide emissions, from on-road sources. This program, established under the Bipartisan Infrastructure Law, provides $6.4 billion dollars to states and metropolitan planning organizations, like MARC, to then be distributed to eligible applicants. Funds are available for five years — from 2022-2026.

Local Match Requirements 

The local share for all eligible projects is 20%. 

Eligible applicants

Eligible applicants include cities, counties, public transit agencies and nonprofit organizations. For-profit organizations are not eligible.

Eligible projects

Carbon Reduction Program funds cover many different types of activities that reduce the number of vehicle trips and carbon emissions.

For a full list of eligible activities, please consult the FHWA program guidance.

Example projects

  • Traffic monitoring, management, and control facilities
  • Public transit projects
  • Bike, pedestrian, and non-motorized facilities and micro-mobility projects
  • Green Infrastructure in transportation rights-of-way
  • Advanced transportation and congestion management technologies
  • Infrastructure-based intelligent transportation systems
  • Energy-efficient street lighting and traffic control devices
  • Managing or shifting demand, including congestion pricing, tolling and transportation demand management strategies
  • Alternative fuel projects, including public EV charging, hydrogen, natural gas and propane fueling and zero-emission equipment and vehicle purchases
  • Projects to improve traffic flow that are eligible under the Congestion Mitigation and Air Quality program, and do not involve the construction of new capacity
  • Projects that reduce transportation emissions at port facilities, including EV infrastructure 
  • Diesel engine retrofits

Program Guidance from the Federal Highway Administration

This guidance from FHWA outlines priorities including safety, ADA requirements, equity, climate change and sustainability, and labor and workforce.



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