Minnesota Department of Transportation

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Carbon Reduction Program

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 ask for, select and obligate eligible projects. This requires teamwork, coordination and cooperation at all levels of government.

The CRP provides Minnesota with approximately $20.9 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, MPOs and ATPs will select projects to receive CRP funding.

Areas that receive funding will 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.


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 will receive approximately $20.9 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.


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 will select projects to receive the program funding assigned to areas based on population. Cities and counties may submit projects to metropolitan planning organizations (MPOs) and area transportation partnerships (ATPs) based on the project location. MnDOT Districts will select projects to receive the statewide funding. Projects will be 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.

Area Transportation Partnership (ATP) Targets

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
FY 2025 $1,160,000 $580,000 $2,190,000 $688,000 $1,470,000 $920,000 $740,000 $640,000
FY 2026 $1,170,000 $590,000 $2,230,000 $830,000 $1,490,000 $940,000 $750,000 $660,000

Metropolitan Planning Organization (MPO) Targets

FY 2025 $370,000 $30,000 $440,000 $170,000 $430,000 $230,000 $16,000 $7,650,000 $240,000
FY 2026 $370,000 $30,000 $440,000 $170,000 $430,000 $230,000 $16,000 $7,740,000 $240,000

CRP solicitation materials

Training resources

Carbon Emissions Tool training for partners


  • Feb 2024: Develop solicitation
  • Mar 2024: Release solicitation for FY2025 and FY2026
  • Apr 2024: Collect Project applications for FY2025 and FY2026
  • May/Jun 2024: Review applications and select projects for FY2025 and FY2026
  • Jul 8, 2024: Final ATIPs submittal to MnDOT Office of Transportation System Management
    • FY2025 and FY2026 projects included in final TIP/STIP
    • FY2027 and FY2028 set-asides included in final TIP/STIP
  • Oct/Nov 2024: FY2027 and FY2028 project solicitation begins

ATPs and MPOs are strongly encouraged, but not required, to release a solicitation using the Toolkit this spring. Coordinate with the applicable ATP or MPO for specific dates and deadlines for the CRP solicitation.