IMPACT Act 2.0 Offers States Cash & Support to Use Greener Cement and Asphalt in Highway Projects

The IMPACT Act 2.0 aims to cut emissions from the stuff our roads and buildings are made of – specifically cement, concrete, and asphalt. It plans to do this by encouraging states to adopt and use lower-emission versions of these materials for highway projects funded by the federal government.

Greening the Asphalt Jungle: How It Works

The bill sets up a couple of key programs run by the Federal Highway Administration (FHWA). First, there's a grant program outlined in Section 2(a) designed to make choosing greener materials easier on state budgets. If a state uses approved low-emission concrete or asphalt that costs more than the standard stuff, the FHWA can reimburse the difference. On top of that, states get a little bonus – an incentive payment equal to 2% of the material's cost – just for making the greener choice. To sweeten the deal, the FHWA will also offer technical help to states wanting to update their material standards to focus on performance (how well the material actually works) and how to measure the greenhouse gas emissions associated with these materials. There's $15 million earmarked for this grant program from fiscal year 2025 through 2027. To get the cash, states need to already have rules or standards in place that favor buying low-emission options.

The Official List: Getting Materials Approved

To streamline things, Section 2(b) directs the FHWA to create and maintain a public list – a directory – of all the low-emission cement, concrete, and asphalt mixes that have been approved. Think of it like an 'approved products' list for green road materials. States can submit their preferred low-emission materials for review. The FHWA has 180 days to decide whether to add a material to the directory or deny it, and if it's a 'no', they have to explain why in writing. Once a material is on the list, it's good to go for use in any federally funded highway project nationwide. This could help good ideas spread faster, but it also puts pressure on the FHWA to process applications efficiently.

Betting on Breakthroughs: Advance Purchase Power

Section 3 introduces another tool: allowing states to use federal highway funds (specifically amending Title 23, Section 133 of the US Code) to make advance purchase commitments for innovative, domestically produced low-emission materials. This means a state could promise to buy a certain amount of a new, greener concrete or asphalt mix over several years, even before it's being mass-produced. The goal is to give manufacturers the confidence and financial security to invest in developing and scaling up production of next-generation materials that are either more durable, perform better, or meet specific environmental standards. There are strings attached, though. Contracts must ensure payment happens only after materials are delivered, producers have to show they're making real progress towards commercial production, and there are safeguards against certain cancellation fees or price hikes.

Defining 'Low-Emission': The Fine Print

The bill defines 'low-emissions' materials as those offering a "significant reduction" in greenhouse gas or related pollutant emissions compared to what's typically available commercially. What counts as 'significant' isn't spelled out in detail, which means the FHWA will likely need to establish clearer benchmarks during implementation. This definition will be crucial in determining which materials actually qualify for the incentives and the directory, impacting both manufacturers aiming to innovate and states looking to utilize the program.