Low-Carbon Transportation Materials Program Grants
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A resource for DOTs and other qualifying entities on the grant process and federal funding.

The Inflation Reduction Act, signed into law on Aug. 16, 2022, provides over $5 billion in discretionary funding to be used for three new FHWA programs, including the Low-Carbon Transportation Materials (LCTM) grant program, which account for $2 billion of the funding.

The request for applications can be found at: https://www.fhwa.dot.gov/lowcarbon/

What are LCTM Grants?

The IRA created the LCTM grants program to reimburse and provide incentives to eligible recipients for using construction materials and products on projects that have substantially lower levels of greenhouse gas (GHG) emissions associated with production, use and disposal compared to estimated GHG emissions of similar materials or products, as defined by the EPA.

The LCTM Grants Program is an opportunity for DOTs and other qualifying entities to not only reduce carbon but contribute to the improvement of concrete quality overall. A program supported through the LCTM grant can consist of multiple steps that will lead to substantial reduction of embodied carbon over time.

What materials are eligible?

Eligible materials are concrete, asphalt, flat glass and steel with “substantially lower” GWP. “Substantially lower” values have been set by the EPA, based on national/regional industry data, and must be demonstrated through an Environmental Product Declaration (EPD).

What projects are eligible?

Under this program, funds are available to use on construction projects funded under 23 U.S.C., including projects on:

  • Federal-aid highway
  • Tribal transportation facility
  • Federal lands transportation facility
  • Federal lands access transportation facility

Who can receive a grant?

  • States
  • Units of local government
  • Political subdivision of a state
  • Territory of the United States
  • Federally recognized Indian Tribe
  • Federal Land Management Agencies
  • Metropolitan Planning Organization
  • Special purpose district or public authority with a transportation function

What costs will the grant cover?

LCTM program grants will cover all extra costs associated with using an eligible material including higher material costs, but also costs associated with additional design, specifications, training and/or monitoring as covered in their approved IPRs, including the cost in developing the IPRs.

LCTM Applications

LCTM grants involve a two-part application process.

State DOTs had a 90 day window in which to respond. That window closed on June 10, 2024. To see more information on that application process and RC3 resources click here.

Other eligible entities will be able to apply after state DOTs, with 90 days to respond. There will be one application allowed per entity. More information on the Notice of Funding Opportunity for non-State applicants will be posted soon on Grants.gov and RC3 will follow up with further communications at that time.

With the low carbon transportation materials (LCTM) program’s State Request for Application having closed on June 10, 2024, the FHWA is now processing the applications it received, with award announcements anticipated later in the summer. Once a state’s application is approved, the next step will be to develop Implementation Process Reports (IPRs). More information from the FHWA will be forthcoming regarding IPRs and their requirements. It is expected LCTM funding will cover costs not directly associated with construction, including the cost in developing the IPRs, training, outreach, monitoring and more. RC3 sees great potential for efficiency gains if states form regional alliances and unite as teams to optimize funds. We encourage agencies to begin exploring topics others in their region have in common (e.g., training, EPD dashboards, performance monitoring) and begin to develop partnerships. This will enable all parties to move quickly once funding is available.
The LCTM program is making $800 million available to non-State applicants (e.g., cities, counties, metropolitan planning organizations (MTOs), tribes, Federal Land Management Agencies, and special purpose districts with a transportation function), and the Notice of Funding Opportunity (NOFO) is expected to be announced this summer. FHWA has stated program requirements for non-SHAs will be the same as for SHAs. However, the application process is expected to be competitively awarded and formally managed through Grants.gov, so RC3 is preparing to support non-SHA applicants with the expectation significant one-on-one interactions will be required. LCTM monies must be used for Title 23 eligible projects.


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