Carbon Reduction Program (CRP)

Background

In November 2021, the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), was passed into law.  With the passage of IIJA, the Carbon Reduction Program (CRP) was created.  The purpose of the CRP is 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.

Carbon Reduction Strategy

IIJA requires Caltrans, in partnership with the MPOs, to develop a Carbon Reduction Strategy and submit to the Federal Highway Administration for approval by November 2023. Caltrans’ Carbon Reduction Strategy is currently under development. Caltrans will be hosting workshops with partner agencies in April to guide the development of the Carbon Reduction Strategy. The draft Carbon Reduction Strategy will be available for public comment in July and August. Updates on the Carbon Reduction Strategy will be added to this website as it is developed.

Although IIJA allows for a variety of projects to be funded through CRP, Caltrans’ Carbon Reduction Strategy directs Local and State CRP funds to be invested in projects that support bicycle and pedestrian, rail and transit, zero-emission vehicles and infrastructure, and conversions of existing lanes to priced managed lanes.

Local CRP

Local CRP is apportioned by population throughout California based on 2020 US Census Urbanized Areas (UZA). Local CRP apportioned to UZAs within a Metropolitan Planning Organization (MPO) boundary must be programmed by the MPO and cannot be suballocated within the MPO boundary. The MPO must use a competitive, performance-driven process to select projects for CRP funds. While each MPO may set their own process and performance metrics, their process should select projects that support bicycle and pedestrian, rail and transit, zero-emission vehicles and infrastructure, and conversions of existing lanes to priced managed lanes, in alignment with Caltrans’ Carbon Reduction Strategy. Once MPOs have selected their program of projects, Caltrans Local Assistance will perform an eligibility review using the form linked below.

Local CRP apportioned to UZAs outside an MPO boundary are programmed by Caltrans. These funds must programmed to projects with the UZA they were apportioned to. Caltrans will work with Regional Transportation Planning Agencies to identify projects that support bicycle and pedestrian, rail and transit, zero-emission vehicles and infrastructure, and conversions of existing lanes to priced managed lanes, in alignment with Caltrans’ Carbon Reduction Strategy.

State CRP

State CRP may be spent anywhere in California and is programmed by Caltrans. For State CRP, Caltrans is prioritizing projects that convert existing lanes into priced managed lanes and invest the revenues from the priced lane into low-carbon transportation options. The funds will be programmed using a competitive performance-drive process. This process is under development and will include workshops with partner agencies to guide the program. Updates will be added to this website as they are available.

Process Update
MPOs manage CRP funds and select which CRP projects will be funded. Local agencies compete for CRP funds and selection of projects through their MPOs. Caltrans HQ Division of Local Assistance performs eligibility review of projects selected by MPOs. (For local agencies in rural areas where there is no MPO, the RTPA shall serve as the MPO.) 

23 CFR § 450.332 - Project selection from the TIP
(c) In areas designated as TMAs, the MPO shall select all 23 U.S.C. and 49 U.S.C. Chapter 53 funded projects (excluding projects on the NHS and Tribal Transportation Program, Federal Lands Transportation Program, and Federal Lands Access Program) in consultation with the State and public transportation operator(s) from the approved TIP and in accordance with the priorities in the approved TIP. The State shall select projects on the NHS in cooperation with the MPO, from the approved TIP.

Funding

California’s share of the CRP (FY22) is $106,704,653.  The breakout for this total amount into the five different funding categories in the below table:

2022 FFY CRP Category Funding Amounts – California

Categories

Appn Code

Amount

State/Local

Total

% Divide

Pop over 200K

Y601

$55,973,200

Local

$69,358,024

65.0%

Pop 50K to 200K

Y606

$6,531,179

Local

Pop 5K to 49,999

Y607

$3,116,216

Local

Pop under 5K

Y608

$3,737,429

Local

Any Area

Y600

$37,346,629

State

$37,346,629

35.0%

 

TOTAL

$106,704,653

 

$106,704,653

100.0%

 

California’s share of the CRP (FY23) is $108,838,746.  The breakout for this total amount into the five different funding categories in the below table:

2023 FFY CRP Category Funding Amounts – California

Categories

Appn Code

Amount

State/Local

Total

% Divide

Pop over 200K

Y601

$57,092,664

Local

$70,745,185

65.0%

Pop 50K to 200K

Y606

$6,661,802 

Local

Pop 5K to 49,999

Y607

$3,178,541

Local

Pop under 5K

Y608

$3,812,178

Local

Any Area

Y600

$38,093,561

State

$38,093,561

35.0%

 

TOTAL

$108,838,746

 

$108,838,746

100.0%

CRP Category Funding Amounts per FFY– California

 

Population Categories

 

FFY

Areas Over 200K

200K to 50K

49,999 to 5K

Under 5K

Any Area

TOTAL

2022

$55,973,200

$6,531,179

$3,116,216

$3,737,429

$37,346,629

$106,704,653

2023

$57,092,664

$6,661,802

$3,178,541

$3,812,178

$38,093,561

$108,838,746

Deadlines

This program specific deadline is only one of many project deadlines.  For other deadlines see the Local Assistance Procedures Manual, as well as talk to and keep in regular communication with the DLAE.

Project Deadlines – Per Project Appropriation Year

Federal Fiscal Year

2022

2023

2024

2025

2026

Obligation (E76) Deadline1

09/30/2025

9/30/2026

TBD

TBD

TBD

Expenditure Deadline  9/30/2030  9/30/2031   TBD TBD  TBD 
1Deadline to obligate (E76) is three Federal Fiscal Years after the FFY the funds were apportioned. (REF: Carbon Reduction Program Implementation Guidance, FHWA, p. 10, April 2022.)
CRP Links
Project Funding Guidance and Forms

Additional Useful Links

*Link opens new Browser window, which requires user have JavaScript enabled and Popups allowed.

Also, please feel free to send comments regarding this web site to the DLA Webmaster.

For more information concerning this program contact:
Kathleen Hanley
Carbon Reduction Program Manager
Kathleen.hanley@dot.ca.gov
916-917-3108

Please feel free to send comments regarding this web site to the DLA Webmaster.