Overview of the Inflation Reduction Act of 2022: FHWA Programs
The Inflation Reduction Act of 2022 (IRA) establishes various programs administered by the Federal Highway Administration (FHWA) aimed at enhancing neighborhood access and equity, implementing environmental reviews, and supporting low-carbon transportation materials grants. With over $5 billion allocated for FY 2022, these initiatives focus on improving walkability, safety, and affordable transportation access, particularly in disadvantaged or underserved communities. The IRA funding is available for obligation until September 30, 2026.
- Inflation Reduction Act
- FHWA Programs
- Neighborhood Access
- Environmental Review
- Low-Carbon Transportation
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The Inflation Reduction Act of 2022 (IRA) Overview of FHWA Programs
2 Introductory Notes For general IRA information, please visit the White House s Inflation Reduction Act Guidebook: https://www.whitehouse.gov/cleanenergy/inflation- reduction-act-guidebook/ Disclaimer: Except for any statutes or regulations cited, the contents of this presentation do not have the force and effect of law and are not meant to bind the public in any way. This presentation is intended only to provide information regarding existing requirements under the law or agency policies.
3 IRA Legislative History Date Milestone September 27, 2021 The Build Back Better Act passed the House, providing a legislative vehicle for the IRA August 6, 2022 Senate Majority Leader proposed an amendment that would replace the text of the previously passed Build Back Better Act with the text of the Inflation Reduction Act of 2022 August 7, 2022 The Senate passed the IRA August 12, 2022 The House passed the IRA August 16, 2022 President Biden signed the IRA into law (Public Law No: 117-169)
FEDERAL HIGHWAY ADMINISTRATION: IRA PROGRAMS Neighborhood Access and Equity Program Environmental Review Implementation Funds Low-Carbon Transportation Materials Grants
5 IRA Funding More than $5 billion (all FY 2022 appropriations from General Fund) for three programs administered by FHWA: $3.2 billion for Neighborhood Access and Equity Program (to be jointly o administered by OST and FHWA) $100 million in Environmental Review Implementation Funds o $2.0 billion for Low-Carbon Transportation Materials Grants o Funds are available for obligation until September 30, 2026.
60501 6 Neighborhood Access and Equity Grant Program Purpose Creates a new competitive grant program: for context-sensitive projects to improve walkability, safety, and affordable transportation access; to mitigate or remediate negative impacts on the human or natural environment from a surface transportation facility in a disadvantaged or underserved community; and for planning and capacity building activities in disadvantaged or underserved communities. In addition, provides funding for technical assistance, guidance and other tools to facilitate contracting, design and project delivery by units of local government; and for subgrants to units of local government to build capacity for delivering surface transportation projects. Funding Appropriates (all FY22) from the General Fund, available for obligation until 9/30/2026: $1.893B to provide competitive grants; an additional $1.262B to provide competitive grants in economically disadvantaged communities; and, an additional $50M to fund technical assistance and subgrants to build capacity to units of local governments The Federal share shall be not more than 80 percent, except that cost of a project in a disadvantaged or underserved community may be up to 100 percent.
60501 7 Neighborhood Access and Equity Grant Program, cont. Eligible activities Eligible activities vary under each of the three primary project categories. Representative activities include: Complete streets activities; Providing affordable access to essential destinations; Retrofitting, removing, replacing or capping eligible facilities; Noise barrier installation; Activities to reduce surface-transportation related air pollution; Planning and capacity building to expand public participation in transportation planning Eligible Recipients State, unit of local government, political subdivision of a State, MPO, or U.S. territory; Federally recognized Tribe; or A special purpose district or public authority with a transportation function; or For grants for planning and capacity building activities in disadvantaged or underserved communities, in addition to the eligible entities described above, a non-profit organization or institution of higher education that has partnered with an eligible entity.
60505 8 Environmental Review Implementation Funds Facilitate the development and review of documents for the environmental review process for proposed projects. Purpose $100 million (all FY22) in appropriations from the General Fund, available for obligation until 9/30/2026. Funding The Federal share shall not be more than 80 percent. The non-Federal share can be from any other Federal, State or local grant program funds made available to the eligible entity. Providing guidance, technical assistance, templates, training, or tools to facilitate an efficient and effective environmental review process for surface transportation projects, including FHWA administrative expenses. Providing funds to eligible entities to: o build the capacity of eligible entities to conduct the environmental review process; o facilitate the environmental review process for proposed projects through support of certain activities; o fund the administrative expenses for the eligible entity to conduct the activities described above. Eligible Activities State, unit of local government, political subdivision of a State, MPO, or U.S. territory; Federally recognized Tribe; or Federal Land Management Agency Special purpose district or public authority with a transportation function. Eligible Recipients
60506 9 Low-Carbon Transportation Materials Grants Reimburse or provide incentives for the use of construction materials and products that have substantially lower levels of embodied greenhouse gas emissions associated with all relevant stages of production, use, and disposal. Purpose $2 billion (all FY22) in appropriations from the General Fund, available for obligation until 9/30/2026. Funding The total Federal share payable for the project for which the reimbursement or incentive is provided shall be up to 100%. Reimburse or provide incentives to eligible recipients that use low-embodied carbon construction materials and products on a project funded under 23 U.S.C.: o Reimbursement shall be equal to the incrementally higher cost of using such materials relative to the cost to use traditional materials as determined by the recipient and verified by the Administrator. o Incentives shall be equal to 2 percent of the cost of using the eligible materials or products on the project funded under this title. Funding for FHWA operations and administration associated with this program. Eligible Activities State, unit of local government, political subdivision of a State, MPO, or U.S. territory; Federally recognized Tribe; or Federal Land Management Agency Special purpose district or public authority with a transportation function. Eligible Recipients
FOR MORE INFORMATION Please visit: https://www.fhwa.dot.gov/inflation-reduction-act https://www.whitehouse.gov/cleanenergy/inflation- reduction-act-guidebook/
