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Carbon Reduction Program


The Carbon Reduction Program is a new federal program created by the Bipartisan Infrastructure Law that will provide Oregon $82 million over five years to fund projects that reduce greenhouse gas emissions from transportation.
The program provides funding for three types areas: Transportation Management Areas, ODOT statewide projects, and Small Urban and Rural areas.

  • 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. 
The Carbon Reduction Program requires ODOT to develop a Carbon Reduction Strategy. The strategy will identify Oregon’s strategies and priorities for reducing emissions from the transportation sector. The Carbon Reduction Strategy will be based on the Statewide Transportation Strategy : A 2050 Vision for Greenhouse Gas Emissions Reduction. ODOT will submit the Carbon reduction Strategy to FHWA for approval by November 15, 2023. 

From June to August 2022, the Climate Office developed strategies and priorities to guide the program, and project selection criteria with the Carbon Reduction Program Consultation Group. The Consultation Group consists of Metropolitan Planning Organizations, Transportation Management Areas, and stakeholders.  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. 

Call for projects: Small Urban and Rural Areas

Your transportation project may be eligible for funding from the Carbon Reduction program! A total of $13 million is available for 2023. 

The call for projects will be open February 28 – May 31, 2023. More details on how to apply will be posted February 28. 

How to apply

1. Review the Carbon Reduction Program application guidance document
2. Download and complete the Carbon Reduction Program project application
3. Submit your application to ODOT by 5 p.m. May 31.

ODOT will notify applicants of the final project selections in fall 2023.

Who is eligible
Eligible entities for the Small Urban and Rural call for projects are: counties, cities, tribal governments, and local and state 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. 

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 EV 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 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. Content for the two webinars will be the same.

Webinar #1 
  • When: February 28, 2023 | 11:00 a.m. – 12:00 p.m. 
  • Where: Microsoft Teams
  • Registration is required. Click here to register for webinar #1. 
If you missed this webinar:
  • Find the presentation slides here
  • Find a recording of the webinar here
Webinar #2
  • When: March 15, 2023 | 2:00 – 3:00 p.m.
  • Where: Microsoft Teams
  • Registration is required. Click here to register for webinar #2.
If you missed this webinar:
  • Presentation slides will be posted here after the event.
  • A webinar recording will be posted here after the event.
ODOT webinars are open to everyone. If you require an accommodation to attend, please contact Email EmailEmailEmailEmailEmailEmailEmailEmailEmailEmailEmailRye Baerg, at least 72 hours in advance. 
Office hours
If you need help developing a concept, completing your application, or have other questions, ODOT staff will hold virtual “office hours” to assist you. The meetings will be held on Microsoft Teams. Please register for one of the sessions below. 

You do not need to join a session at the start time, but please join no later than 15 minutes before the end time. Staff will assist attendees in the order they arrive, so there may be a short wait while they assist others. 

Office Hours #1 
  • When: March 28, 2023 | 10 a.m. – noon. 
  • Where: Click here to register for the Microsoft Teams virtual meeting. 
Office hours #2
  • When: April 6, 2023  | 1 – 3 p.m. 
  • Where: Click here to register for the Microsoft Teams virtual meeting.
ODOT staff are available to answer questions and assist with applications, please contact Email EmailEmailEmailEmailEmailEmailEmailEmailEmailEmailEmailRye Baerg, Climate Program Coordinator.