IMPACT Act 2.0

Bill Number

H.R. 2122

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Transportation and Public Works

Status

Introduced

Latest Action

2025-03-14: Referred to the Subcommittee on Highways and Transit.

Last Updated

2026-07-07T08:05:28Z

AI-Generated Summary

Purpose of the Legislation

The IMPACT Act 2.0 (H.R. 2122) aims to boost the competitiveness of U.S. production of cement, concrete, asphalt binder (a sticky substance used in road paving), and asphalt mixtures by promoting research, development, testing, and widespread use of technologies that cut down greenhouse gas emissions and related pollutants from their manufacturing. It focuses on integrating these low-emission materials into highway projects to encourage innovation and long-term environmental improvements.

Key Provisions

• Federal Highway Administration (FHWA) Support (Section 2):
• Establishes a grant program to help states adopt low-emission materials in highway projects.
• Provides reimbursements for the extra cost of low-emission materials compared to traditional ones (verified by FHWA).
• Offers incentives equal to 2% of the material costs used in projects.
• Delivers technical assistance to states for updating their material standards to performance-based ones (which focus on how well materials work rather than just their composition) and for measuring embedded greenhouse gas emissions (like through environmental product declarations, which are reports on a product's environmental impact).
• Requires states to have special rules or tools in place to qualify for funding.
• Coordinates with the Department of Transportation's Every Day Counts Initiative to speed up commercialization.
• Authorizes $15 million in funding for fiscal years 2025–2027, with total reimbursements and incentives capped at this amount.

• Directory of Low-Emission Materials (Section 2(b)):
• FHWA must create and maintain a public online list of approved low-emission materials submitted by states.
• States can apply to add materials within 180 days of the bill's enactment; FHWA must decide within another 180 days, providing reasons for any denials.
• Approved materials can be used in any federal highway project.

• Advance Purchase Commitment Program (Section 3):
• Allows states to enter long-term contracts (multi-year) to guarantee purchases of innovative, low-emission materials produced domestically.
• Defines eligible "innovative" materials as those made with processes that improve durability, strength (compressive or tensile, meaning resistance to crushing or pulling), workability (ease of use in construction), environmental performance, or energy efficiency, while meeting state engineering standards.
• Limits contract terms to prevent early payments, include cancellation protections without covering producer's ongoing costs for undelivered items, avoid price hikes based on future contracts, and require proof of progress toward full production capacity.
• States cannot pay producers until materials are delivered per the contract.

• Definition:
• "Low-emissions cement, concrete, and asphalt" refers to products that reduce greenhouse gas or related pollutant emissions as much as possible compared to standard market options.

Significant Changes to Existing Law

• Amends Section 133 of Title 23, United States Code (which covers federal-aid highway programs), by adding two new eligible project types: (1) those using innovative low-emission materials, and (2) advance multi-year contracts for specified quantities and prices of such materials.
• Adds a new subsection (l) defining manufacturing processes for these materials, emphasizing superior performance in durability, strength, environmental impact, or efficiency.
• Expands Section 133(h)(6) to give states more flexibility in using set-aside funds for advance procurement contracts, but only pays after delivery.
• Introduces a new subsection (m) with strict rules for multi-year contracts to protect public funds, including no advance payments and requirements for production readiness.

Potential Impacts

• Government Agencies: The FHWA and Department of Transportation will need to administer grants, verify costs, maintain a directory, and review applications, potentially increasing workload but also promoting efficient use of federal highway funds. States gain financial incentives and tools to modernize standards, easing adoption of greener materials.
• Citizens: Could lead to more durable, efficient roads with lower overall emissions from construction and use, benefiting the environment and public health. Higher initial costs might be offset by long-term savings, but could indirectly raise taxes or fees if not fully covered by federal funds.
• International Relations: Enhances U.S. manufacturing competitiveness by prioritizing domestic low-emission production, potentially reducing reliance on imports and influencing global trade in construction materials. It may encourage international standards for emission reductions in infrastructure.

Main Stakeholders Affected

• States and State Transportation Departments: Primary beneficiaries through grants, incentives, technical help, and procurement flexibility; must update standards to participate.
• Producers and Manufacturers: Cement, concrete, and asphalt companies gain opportunities for contracts and commercialization of low-emission technologies, but face requirements to prove innovation and production capacity.
• Federal Agencies: FHWA and DOT handle implementation, funding distribution, and oversight.
• Environmental and Industry Groups: Benefit from emission reductions; construction firms and highway users may see changes in material availability and project costs.
• Taxpayers and Consumers: Indirectly affected via federal spending and potential improvements in infrastructure quality and sustainability.

Notable Legal, Constitutional, or Political Implications

• Legal: Authorizes specific appropriations and amends federal highway law without altering broader environmental regulations (e.g., no direct ties to Clean Air Act enforcement). Includes safeguards like verification and denial appeals to ensure accountability in fund use.
• Constitutional: Relies on Congress's spending power under Article I to incentivize state actions and promote interstate commerce in infrastructure; no apparent conflicts with federalism, as it provides voluntary grants and flexibility to states.
• Political: Supports bipartisan goals of infrastructure investment and climate action by tying emissions reductions to economic competitiveness, potentially bridging environmental and industry interests. Could spark debates on federal spending priorities amid budget constraints, but emphasizes domestic production to appeal to manufacturing-focused policies.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Foushee, Valerie P. [D-NC-4]

Cosponsors (4)

Rep. Miller, Max L. [R-OH-7], Rep. Riley, Josh [D-NY-19], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Davids, Sharice [D-KS-3]

Recent Actions

• 2025-03-14: Referred to the Subcommittee on Highways and Transit.
• 2025-03-14: Referred to the House Committee on Transportation and Infrastructure.
• 2025-03-14: Introduced in House
• 2025-03-14: Introduced in House

Bill Versions

• IMPACT Act 2.0 — issued 2025-03-14 — PDF (10 pages)