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Carbon Reduction Program


The Carbon Reduction Program is a federal competitive grant program created by the 2021 Bipartisan Infrastructure Law. The program will provide Oregon $82 million over five years to fund projects that reduce greenhouse gas emissions from transportation.

The Carbon Reduction Program requires ODOT to develop a Carbon Reduction Strategy. The strategy identifies Oregon’s strategies and priorities for reducing emissions from the transportation sector. Read ODOT’s Carbon Reduction Strategy. 

2024 call for projects: Small Urban and Rural Areas
Your transportation project may be eligible for funding from the Carbon Reduction program! A total of $12 million is available for 2024 for eligible projects in Small Urban and Rural Areas of the state.

DEADLINE EXTENDED: The 2024 application window has been extended to July 10, 2024 for communities with populations under 5,000.

We're extending the deadline because ODOT did not receive enough applications to maximize the distribution of the nearly $3 million available to communities with populations under 5,000 people.

Eligible areas include small cities, rural portions of counties and transportation agencies that serve these populations.


ODOT will provide technical assistance to applicants applying for these funds. Please contact the program manager,

How to apply

  1. Review the Carbon Reduction Program guidance and sample application document. 
  2. Complete the online Carbon Reduction Program project application
  3. As outlined in the program guidance, applicants must have an ODOT Region Manager sign off on their proposed project. The new deadline for applicants to contact their ODOT Region Manager is June 26, 2024 using this form.
*To find which ODOT region your project is in, visit the ODOT regions webpage for a list of counties in each ODOT region. Once you know which region your project is in, find that region manager's contact info on our region contacts webpage.

ODOT will notify applicants of the final project selections in fall 2024.

Need help with your application? ODOT staff are available to answer questions and assist with applications.
Please contact EmailEmailEmailEmailEmailEmailEmailEmailEmailEmailEmailEmailEmailRye Baerg, Climate Program Coordinator. 

Who is eligible
Eligible entities for Small Urban and Rural grants are counties, cities, tribal governments, and local transportation agencies representing urbanized and rural areas with less than 200,000 population. 

What projects are eligible 

Eligible projects must reduce greenhouse gas emissions from transportation. Applicants should review the Small Urban and Rural guidance document for program priorities and the federal eligibilities

Some examples of eligible projects:
  • Traffic monitoring, management, and control facilities.
  • Public transit projects.
  • Bike, pedestrian, and non-motorized facilities and micromobility projects.
  • Advanced transportation and congestion management technologies.
  • Infrastructure-based intelligent transportation systems.
  • Energy efficient street lighting and traffic control devices.
  • Managing or shifting demand, including congestion pricing, tolling and transportation demand management strategies.
  • Alternative fuel projects, including public electric vehicle charging, hydrogen, natural gas and propane fueling, and zero-emission equipment and vehicle purchases.
  • Projects to improve traffic flow that are eligible under the Congestion Mitigation and Air Quality program, and that do not involve construction of new capacity.
  • Projects that reduce transportation emissions at port facilities, including EV charging infrastructure.  
  • Diesel engine retrofits.

Learn more or get help with your application

Attend an upcoming ODOT-led webinar about the Carbon Reduction Program and the Small Urban and Rural call for projects. You’ll learn more about the program and application process, and have an opportunity to pose questions to ODOT staff. 

Note: content for the two webinars will be the same, so you only need to attend the one that best fits your schedule. 

Webinar #1 
If you missed this webinar:
Webinar #2
If you missed this webinar:
ODOT webinars are open to everyone. If you require an accommodation to attend, please contact Rye Baerg ( at least 72 hours in advance. 

More information about the Carbon Reduction Program 

2023 Small Urban and Rural Areas call for projects 

The 2023 call for the projects for Small Urban and Rural Areas ran Feb. 28 - May 31, 2023. In September 2023, ODOT announced that about $12.5 million was awarded to 15 projects in 11 counties and two Tribes

Program development process

From June to August 2022, the OOT Climate Office developed strategies and priorities to guide the program, and project selection criteria with the Carbon Reduction Program Consultation Group. The consultation group consisted of Oregon Metropolitan Planning Organizations, Transportation Management Areas, and partners. The strategies and priorities and the project selection criteria will be used to select projects from the Small Urban and Rural call for projects and statewide portion of funding. 

Types of funding available under the program

The Carbon Reduction Program has three types of funding available for states.

Transportation management areas are the urbanized areas of Portland, Eugene and Salem. The regional agencies for these areas will decide which projects get funded in their jurisdictions. 

ODOT statewide projects are projects overseen by ODOT. The agency will decide which projects to fund using federal and state criteria. 

Small Urban and Rural Areas include counties, cities, rural areas, and tribal governments with populations less than 200,000. ODOT will coordinate a grant program to distribute the federal funding for eligible projects in these areas.