Low Carbon Transportation Materials Program

The Low-Carbon Transportation Materials (LCTM) Program is a funding opportunity established by the U.S. Department of Transportation (DOT) through the Federal Highway Administration (FHWA) under the Inflation Reduction Act (IRA) of 2022. This program aims to incentivize the use of construction materials with substantially lower greenhouse gas (GHG) emissions for federally funded transportation projects. By encouraging the adoption of sustainable materials, the LCTM Program seeks to reduce the environmental impact of construction projects while ensuring the materials meet engineering standards for safety and performance. This program will provide up to $800 million in competitive grants for eligible entities, excluding state departments of transportation (DOTs), which had their own funding window earlier in the year. Eligible applicants include local governments, metropolitan planning organizations, special-purpose districts, and others with a transportation function. The grants will reimburse either the incremental cost of using lower carbon materials or offer a 2% incentive on the cost of such materials when used in federally funded projects. The core goal of the LCTM Program is to increase the use of low carbon materials, such as concrete, steel, asphalt, and glass, which have been identified as significant contributors to GHG emissions during their production. In alignment with the Federal Buy Clean Initiative, the Environmental Protection Agency (EPA) has established thresholds for "substantially lower embodied carbon" for these materials. Projects applying for these funds must adhere to these standards and document how the materials used meet or exceed the environmental performance criteria set by the EPA. Applicants must submit a detailed project plan that includes the selection of eligible materials, the identification of potential construction projects, and the development of frameworks for material testing and verification. The application process also requires the inclusion of a detailed budget and a performance timeline. Additionally, applicants are encouraged to align their projects with key federal priorities, such as promoting climate resilience, improving equity and environmental justice, and supporting workforce development through job creation. Applications must be submitted by November 25, 2024, via Grants.gov. The funds, once awarded, will be available for obligation until September 2026, with all expenditures required to be completed by September 2031. Potential applicants are urged to begin the registration and submission process early to avoid technical issues and ensure compliance with all application requirements. The program also mandates adherence to federal environmental regulations, including the National Environmental Policy Act (NEPA), Buy America provisions, and civil rights obligations. This funding opportunity presents a significant chance for entities involved in transportation infrastructure to advance sustainability while contributing to the reduction of GHG emissions. With a strong emphasis on innovation and performance, the LCTM Program supports both immediate environmental improvements and long-term sustainable development in the transportation sector.