Environmental Review Implementation Funds

*Funds were appropriated in FY22 and remain available until September 30, 2026.

Note: Except as indicated, all references in this document are to the Inflation Reduction Act (IRA), enacted as Pub. L. 117-169 (Aug. 16, 2022).

Program Purpose

The IRA establishes the Environmental Review Implementation Funds program to facilitate the development and review of documents for the environmental review process for proposed surface transportation projects.

Statutory Citation

• § 60505; 23 U.S.C. 178

Funding Features

Type of Budget Authority or Authorization of Appropriations

• Appropriated Budget Authority from the General Fund, not subject to any limitation on obligations.

Federal Share

• The Federal share of the cost of an activity carried out by an eligible entity under the program may not exceed 80%.
• The non-Federal share of the cost of an activity carried out under the program by an eligible entity can be from any other Federal, State, or local grant program funds made available to the eligible entity. [§ 60505; 23 U.S.C. 178(b)]

Program Features

This is a new program established under the IRA.

Eligible Entities

• A State,
• A unit of local government,
• A political subdivision of a State,
• A U.S. territory,
• An entity described in 23 U.S.C. 207(m)(1)(E) (Federally recognized Indian Tribe),
• A recipient of funds under 23 U.S.C. 203 (Federal Land Management Agencies), or
• A Metropolitan Planning Organization (as defined in 23 U.S.C. 134(b)(2)) [§ 60505; 23 U.S.C. 178(c)(2)]

Additional Considerations

Funding is appropriated to facilitate the development and review of documents for the environmental review process for proposed surface transportation projects through:

• 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 to conduct activities described under this program. [§ 60505; 23 U.S.C. 178(a)(1)]
• Providing funds to eligible entities to:
  • build the capacity of eligible entities to conduct the environmental review processes;
  • facilitate the environmental review process for proposed projects by:
    • defining the scope or study areas,
    • identifying impacts, mitigation measures, and reasonable alternatives,
    • preparing planning and environmental studies and other documents prior to and during the environmental review process, for potential use in the environmental review process in accordance with applicable statutes and regulations,
    • conducting public engagement activities; and
    • carrying out permitting or other activities, as the Administrator determines to be appropriate, to support the timely completion of an environmental review process required for a proposed project; and
  • for administrative expenses of the eligible entity to conduct the activities described above. [§ 60505; 23 U.S.C. 178(a)(2)]

Additional Information and Assistance

• FHWA can connect you with your local FHWA office and support you with technical assistance for planning, design, construction, preserving, and improving public roads and in the stewardship of Federal funds. For assistance, visit: https://www.fhwa.dot.gov/bipartisan-infrastructure-law/technical_support.cfm.