§179 Low-carbon transportation materials grants

Summary

On top of other funds, $2,000,000,000 is set aside for fiscal year 2022 and can be used until September 30, 2026. The Federal Highway Administration (FHWA) must use that money to pay back or give incentives to eligible public agencies that use construction materials and products the Environmental Protection Agency (EPA) says have much lower greenhouse gas emissions across their life cycle than typical materials. The FHWA can also use some of the money to run the program. Reimbursements must cover the extra cost of the low‑emission materials as shown by the recipient and checked by FHWA. Incentives are 2 percent of the cost of using those materials. If a reimbursement or incentive is given, the federal share of the project may be up to 100 percent. Payments only apply to projects on a federal‑aid highway, a tribal transportation facility, a Federal lands transportation facility, or a Federal lands access transportation facility. The funds must not be used to build extra through lanes for single‑occupant passenger cars. FHWA will review the EPA’s list and decide which low‑embodied carbon materials are suitable and eligible for payments. Administrator: the head of the Federal Highway Administration. Eligible recipient: states, local governments and political subdivisions, U.S. territories, certain tribal and other grant recipients, metropolitan planning organizations, special purpose districts or public authorities with transportation roles. Greenhouse gas: carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.