Minnesota Department of Transportation

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Carbon Reduction Program

Carbon Reduction Program

The Carbon Reduction Program is a new program created by the Infrastructure Investment and Jobs Act (IIJA).

The purpose of the program is to reduce carbon dioxide emissions from on-road highway sources.

To use the Carbon Reduction Program funds, Minnesota must ask for, select and obligate eligible projects. This requires teamwork, coordination and cooperation at all levels of government.


President Biden signed into law the Infrastructure and Jobs Act on November 15, 2021. It established the Carbon Reduction Program and funds with $1.234 billion in FY 2022 with an annual increase of approximately 1.9%. Read the law (PDF).

Minnesota will receive approximately $20.9 million annually with an annual increase of approximately 1.9%.

Federal Highway Administration’s Carbon Reduction Program Fact Sheet provides up to date information about the program.


Program funding is assigned into two main categories with subcategories:

  • Areas based on population (65%)
    • Urban areas with a population greater than 200,000
    • Urban areas with a population between 50,000 and 200,000
    • Urban areas with a population between 5,000 and 49,999
    • Areas with populations of less than 5,000
  • Statewide (35%)

Cities and counties submit projects to metropolitan planning organizations (MPOs) and area transportation partnerships (ATPs) based on the project location. The MPO or ATP reviews and selects projects to build. Project selection criteria are under development. Reach out to the MPO, ATP or MnDOT contact for more information specific to your area.

Project eligibility

Providing funding for:

  • Establishing or operating a traffic monitoring, management, and control facility or program
  • Public transportation projects
  • Alternative forms of transportation projects of on-road and off-road trail amenities for people, bicyclists, and other nonmotorized users
  • Advanced transportation and congestion management technologies
    • Advanced traveler information systems
    • Advanced transportation management technology
    • Advanced transportation technologies to improve emergency evacuation and response
    • Infrastructure maintenance, monitoring, and condition assessment
    • Advanced public transportation systems
    • Performance data collection, analysis, and dissemination systems
    • Advanced safety systems
    • Integration of intelligent transportation systems with the Smart Grid and other energy distribution and charging systems
    • Integrated corridor management systems
    • Advanced parking reservation or variable pricing systems
    • Electronic pricing, toll collection, and payment systems
    • Technology that enhances high occupancy vehicle toll lanes
    • Integration of transportation service payment systems
    • Advanced mobility, access, and on-demand transportation service technologies
    • Retrofit of dedicated short-range communications technology
  • Infrastructure-based intelligent transportation systems capital improvements and the installation of vehicle-to-infrastructure communications equipment
  • Replace street lighting and traffic control devices with energy-efficient alternatives
  • Projects supporting congestion pricing, shifting vehicle movement to nonpeak hours or other transportation modes
  • Projects reducing the environmental and community impacts of freight movement
  • Deploying alternative fuel vehicles
    • Acquisition, installation, or operation of public alternative vehicle fueling infrastructure
    • Purchasing or leasing zero-emission construction equipment and vehicles
  • Diesel engine retrofit
  • Project to improve traffic flow that is eligible under the CMAQ program, and that does not involve the construction of new capacity
  • Project that reduces transportation emissions at port facilities
  • STBG-eligible project that the State can prove a reduction in transportation emissions, as estimated on a per capita and per unit of economic output basis


  • Nov. 15, 2021: Infrastructure Investment and Jobs Act signed into law
  • May 31, 2022: Notice of funding distribution for Carbon Reduction Program
  • September 2022: Carbon Reduction Program Subgroup started meeting monthly to provide guidance for programming Carbon Reduction Program funds at MnDOT
  • Winter 2022: Regional solicitations begin by metropolitan planning organizations and area transportation partnerships
  • Spring 2023: Projects start to be incorporated into transportation improvement program and state transportation improvement program
  • Nov. 15, 2023: Minnesota Carbon Reduction Strategy submitted to Federal Highway Administration
  • February 2024: Projects solicited for FY2025 and FY2026
  • November 2024: Projects solicited for FY2027 and FY2028