Carbon Reduction Program
The Carbon Reduction Program is a new program created by the Infrastructure Investment and Jobs Act (IIJA).
The purpose of the program is to reduce carbon dioxide emissions from on-road highway sources.
To use the Carbon Reduction Program funds, Minnesota must select and program eligible projects. This requires teamwork, coordination and cooperation at all levels of government.
The CRP provides Minnesota with approximately $21 million annually over five years to fund projects that reduce carbon emissions from surface transportation. Program funding is distributed across the state, with some funds allocated proportionally based on population. MnDOT Districts, Metropolitan planning organizations (MPOs) and area transportation partnerships (ATPs) select projects to receive CRP funding.
Areas that receive funding use a consistent set of criteria and scoring techniques to support prioritization and selection of projects. While the primary intent of the CRP is to advance projects that reduce carbon from the surface transportation sector, the Minnesota CRS also advances goals of equity, safety, transportation access and public health.
Legislation
President Biden signed into law the Infrastructure and Jobs Act on November 15, 2021. It established the Carbon Reduction Program and funds with $1.234 billion in FY 2022 with an annual increase of approximately 1.9%. Read the law (PDF).
Minnesota receives approximately $21 million annually with an annual increase of approximately 1.9%.
Federal Highway Administration’s Carbon Reduction Program Fact Sheet provides up to date information about the program.
Funding
Program funding is assigned into two main categories with subcategories:
- Areas based on population (65%)
- Urban areas with a population greater than 200,000
- Urban areas with a population between 50,000 and 200,000
- Urban areas with a population between 5,000 and 49,999
- Areas with populations of less than 5,000
- Statewide (35%)
MPOs and ATPs solicit for projects, review and select projects to receive the program funding assigned to areas based on population. Cities and counties may submit projects to their applicable MPO or ATP based on the project location. Statewide funding is distributed to MnDOT Districts to select and program projects.
Projects are selected based on their cost-effectiveness of carbon reduction and four co-benefits (equity, safety, access and health). Reach out to the MPO, ATP or MnDOT contact for more information specific to your area's project selection process. See CRP solicitation materials for more resources.
What projects may be eligible for CRP funding?
Review the following informational sheets on each of the Carbon Reduction Strategy categories to see eligible project types, how to apply for CRP funds, selection criteria, examples of community benefits and project examples.
- Electrification Informational Sheet
- Travel Options Informational Sheet
- Low Carbon Infrastructure and System Management Informational Sheet
CRP solicitation materials
CRP solicitations are administered by the MPOs and ATPs. Reach out to the MPO or ATP in your area for more specific information on the timeline of the CRP solicitation in your area.
CRP funding targets
Area Transportation Partnership (ATP) Targets
| Fiscal Year | Northeast Minnesota ATP | Northwest Minnesota ATP | Central Minnesota ATP | West Central Minnesota ATP | Southeast Minnesota ATP | South Central Minnesota ATP | Southwest Minnesota ATP | Metro ATP |
|---|---|---|---|---|---|---|---|---|
2027 |
$720,000 |
$388,000 |
$1,380,000 |
$510,000 |
$920,000 |
$580,000 |
$460,000 |
$540,000 |
2028 |
$600,000 |
$350,000 |
$1,300,000 |
$470,000 |
$888,000 |
$520,000 |
$480,000 |
$730,000 |
2029 |
$600,000 |
$350,000 |
$1,300,000 |
$470,000 |
$888,000 |
$520,000 |
$480,000 |
$730,000 |
2030* |
$600,000 |
$350,000 |
$1,300,000 |
$470,000 |
$888,000 |
$520,000 |
$480,000 |
$730,000 |
Metropolitan Planning Organization (MPO) Targets
| Fiscal Year | MIC | GFGEF | APO | MetroCOG | ROCOG | MAPO | LAPC | MET C. | MET C.-D3 |
|---|---|---|---|---|---|---|---|---|---|
2027 |
$225,000 |
$18,000 |
$270,000 |
$108,000 |
$261,000 |
$144,000 |
$9,000 |
$6,480,000 |
$190,000 |
2028 |
$210,000 |
$20,000 |
$270,000 |
$110,000 |
$280,000 |
$140,000 |
$12,000 |
$6,600,000 |
$200,000 |
2029 |
$210,000 |
$20,000 |
$270,000 |
$110,000 |
$280,000 |
$140,000 |
$12,000 |
$6,600,000 |
** |
2030* |
$210,000 |
$20,000 |
$270,000 |
$110,000 |
$280,000 |
$140,000 |
$12,000 |
$6,600,000 |
** |
MnDOT District Targets (Federal CRP funds only)
Fiscal Year |
District 1 |
District 2 |
District 3 |
District 4 |
District 6 |
District 7 |
District 8 |
Metro District |
2027 |
$700,000 |
$400,000 |
$800,000 |
$500,000 |
$800,000 |
$500,000 |
$400,000 |
$3,000,000 |
2028 |
$1,100,000 |
$600,000 |
$1,400,000 |
$800,000 |
$1,300,000 |
$900,000 |
$600,000 |
$5,100,000 |
2029 |
$600,000 |
$350,000 |
$1,300,000 |
$470,000 |
$888,000 |
$520,000 |
$480,000 |
$730,000 |
2030* |
$600,000 |
$350,000 |
$1,300,000 |
$470,000 |
$888,000 |
$520,000 |
$480,000 |
$730,000 |
* Fiscal Year 2030 are not fully approved as of September 5, 2025. These values are a projection until Transportation Programming and Investment Committee (TP&IC) approves the targets later in 2025.
** Beginning in Fiscal Year 2029, Met Council and Central Area Transportation Partnership has agreed to spend funds across the area eliminating the need for the specific callout in Fiscal Year 2029 and Fiscal Year 2030.
Materials
ATPs and MPOs are strongly encouraged, but not required, to release a solicitation using the Toolkit. Coordinate with the applicable ATP or MPO for specific dates and deadlines for the CRP solicitation.
- Carbon Reduction Program (CRP) Project Toolkit Guide (PDF)
- Minnesota CRP solicitation template (Word)
- Minnesota CRP solicitation project review materials (PDF)
- Minnesota CRP Scoring Tool (Excel)
Carbon Emissions Tool (CET)
- Minnesota Carbon Emissions Tool (CET) (Excel)
- Minnesota Carbon Emissions Tool (CET) Instructions and Tips (PDF)
Training resources
2025-2026 Solicitation timeline for fiscal year 2027 through fiscal year 2030 funds
- Monday, Oct. 6, 2025 – Announce solicitation; Open LOI period
- Friday, Oct. 31, 2025 – Deadline for applicants to submit LOI
- Monday, Nov. 3, 2025 – LOIs review process by RDO/MPO/MnDOT Districts begins
- Wednesday, Nov. 26, 2025 – Deadline for RDO/MPO/MnDOT District review of LOIs and recommendation to proceed with full application given to applicants
- Monday, Dec. 1, 2025 – Official start of full application period
- Friday, Jan. 9, 2026 – Deadline for applicants to submit full applications
- Monday, Mar. 30, 2026 – Deadline for ATPs to select projects; Deadline for MPOs to select CRP projects
Note: Check with your applicable ATP or MPO for specific dates and deadlines.