AGC Challenges Regulation Diverting Highway Funds

On February 20, AGC and the American Road & Transportation Builders Association (ARTBA) jointly filed amicus briefs in support of the 22 states challenging the Federal Highway Administration’s (FHWA) greenhouse gas performance (GHG) measure rule. AGC has long held that the Biden administration lacks the statutory authority to issue this rule, as Congress repeatedly debated and rejected the effort.  

FHWA contends that there are no explicit penalties set in the rule. However, AGC disagrees. The rule details that states that fail to meet their declining targets must “provide data-supported explanations for not achieving significant progress, and their plan to achieve said progress in the future.” So, what does that mean? States will have to explain to FHWA how they will reduce carbon dioxide emissions—i.e., invest in buses, Amtrak trains, and electric vehicle charging stations at the expense of road and bridge projects. 

AGC has extensively covered this issue for the last few years and has led coalition efforts to block the rule from taking effect. You might recall, last year AGC was successful in a series of Supreme Court cases advocating for the construction industry. Thanks to your contributions to the Construction Advocacy Fund, AGC is able to weigh in on cases like this one. We will keep you updated on the latest, including congressional efforts to block this rule and any court decisions challenging the rule. 

For more information, please contact Alex Etchen at

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