Opportunity Information: Apply for 693JJ325NF00002

The Low Carbon Transportation Materials (LCTM) Program is a Federal Highway Administration (FHWA) discretionary grant program created by the Inflation Reduction Act and codified at 23 U.S.C. 179. Its core aim is to speed up the use of construction materials with substantially lower greenhouse gas (GHG) emissions in federally supported transportation projects. In practical terms, the program helps public transportation agencies cover the incremental added cost of choosing lower-embodied-carbon materials, or it can provide an incentive payment for doing so. The emissions focus is on "embodied" GHG emissions across the material life cycle stages tied to production, use, and disposal, compared against estimated industry-average emissions for similar materials.

Funding under this notice of funding opportunity (NOFO) is intended for projects that receive Federal-aid highway funding under Title 23, plus the supporting work needed to make low-carbon materials easier to use on those projects. That includes activities like updating or developing specifications and carrying out the identification and documentation needed to show that a proposed low-carbon material is appropriate for Federal-aid construction. FHWA is specifically requesting applications from eligible entities other than State Departments of Transportation (State DOTs), since State DOTs had a separate application pathway posted on the FHWA low-carbon funding page.

The program could distribute up to $800 million total (subject to funds availability). For this NOFO, only certain material categories qualify at this time, based on what the Environmental Protection Agency (EPA) Administrator has identified in support of the Federal Buy Clean approach. EPA issued an Interim Determination in December 2022 that set the initial framework, thresholds, and data expectations for what counts as "substantially lower" embodied carbon. Under this round, the eligible categories are concrete (and cement), glass, asphalt mix, and steel. Applicants are expected to follow this EPA framework when claiming reimbursement or incentives tied to low-carbon materials.

A key implementation detail is how an applicant determines whether a given product qualifies as "substantially lower carbon." The NOFO allows two basic approaches. First, an agency can use the thresholds FHWA publishes on its website, including reference points such as best-performing percentiles (for example, top 20 percent and top 40 percent) and industry averages. Second, an agency can develop its own local or regional thresholds for one or more of the eligible materials, as long as it follows accepted International Organization for Standardization (ISO) standards and clearly discloses the Global Warming Potential (GWP) values used, the methods used to set percentiles and averages, the data sources for each material, and the parameters used to set GWP (including performance specifications). Agencies can also combine these approaches, using national thresholds in some cases and regional thresholds where local data and conditions support it.

Beyond reimbursing higher purchase costs, FHWA frames the LCTM Program as a capacity-building push for transportation agencies. The stated goals include increasing the use of lower-carbon materials on Title 23 projects, making it easier to use those materials while still ensuring they meet performance and safety needs, promoting technology transfer and workforce development related to environmental quantification tools (like using EPDs and GWP metrics in procurement decisions), and helping recipients establish durable frameworks to identify and adopt low-carbon transportation materials going forward.

DOT and FHWA also signal that selection will reflect broader Administration and Departmental priorities described in the DOT Strategic Plan and related executive orders. Safety is emphasized, with an expectation that funded projects should provide safety benefits and avoid creating new safety risks for road users and workers. Climate and sustainability priorities focus on reducing GHG emissions from transportation-sector materials, encouraging better EPD availability and harmonization, and incorporating evidence-based climate resilience while avoiding harm to air and water quality, wetlands, and endangered species. Equity and environmental justice are also central: applicants are encouraged to use DOT tools like the Equitable Transportation Community Explorer to understand disadvantage in the project area, to engage the public (including disadvantaged communities) throughout planning and delivery, and to adopt strategies that ensure benefits flow to communities while reducing the risk of displacement. Finally, workforce development and job quality priorities encourage strong labor standards, training and placement programs (including registered apprenticeships), and practices that expand opportunity for underrepresented groups, support local and inclusive economic development, and align with Made in America objectives.

Eligible applicants under this NOFO include a unit of local government; a political subdivision of a state; a U.S. territory; certain entities described in 23 U.S.C. 207(m)(1)(E); recipients of funds under 23 U.S.C. 203; metropolitan planning organizations (MPOs) as defined in 23 U.S.C. 134(b)(2); and special purpose districts or public authorities with a transportation function. The opportunity is administered by the U.S. Department of Transportation, Federal Highway Administration, under Assistance Listing (CFDA) 20.205. The funding opportunity number is 693JJ325NF00002, and the listed closing date for applications is 2024-11-25.

  • The DOT Federal Highway Administration in the transportation sector is offering a public funding opportunity titled "Low Carbon Transportation Materials Program" and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 20.205.
  • This funding opportunity was created on 2024-08-27.
  • Applicants must submit their applications by 2024-11-25. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $800,000,000.00 in funding.
  • Eligible applicants include: Others.
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