Carbon Reduction Program


The Infrastructure Investment and Jobs Act (IIJA) created the Carbon Reduction Program (CRP) to provide federal funding to projects that decrease transportation emissions, which are defined as the carbon dioxide (CO2) emissions that result from on-road, highway sources. California receives annual apportionments of CRP over five years. The apportionments are split, with 65% as Local CRP and 35% as State CRP. Both Local and State CRP funds must be invested in alignment with the Carbon Reduction Strategy.

Program Details

Local CRP Funds - 65%

Local CRP is apportioned annually by population to Metropolitan Planning Organizations (MPOs) and non-MPO Regional Transportation Planning Agencies (RTPAs). Each MPO and non-MPO RTPA has flexibility to select projects for Local CRP funding on any performance metric, as long as the selected projects support the Three Pillars. 


State CRP Funds - 35%

State CRP may be spent anywhere in California and is programmed by Caltrans through the SHOPP on projects that convert existing lanes to priced managed lanes. Converting to priced managed lanes regulates demand for vehicle trips, reduces VMT, reduces carbon emissions, and can generate revenue for other low-carbon transportation projects.


Carbon Reduction Strategy

IIJA requires the Carbon Reduction Strategy to outline how California will spend its CRP dollars to reduce transportation carbon emissions. California's Strategy focuses on Three Pillars: zero-emission vehicles and infrastructure, active transportation, and rail and transit.