The Generating Resilient, Environmentally Exceptional National Streets Act, or GREEN Streets Act, aims to integrate climate change mitigation and sustainability into federal transportation planning by establishing "combating climate change" as a key performance measure objective for public roads. This includes reducing carbon dioxide and other greenhouse gas emissions, improving system resilience, and decreasing per capita vehicle miles traveled (VMT). The Secretary of Transportation is required to periodically update rulemaking to reflect these new priorities and establish minimum standards for States to achieve net-zero greenhouse gas emissions and measure various emissions, including CO2, air pollutants, and noise pollution.

States must set performance targets based on these new standards, which also incorporate factors like transit accessibility, transit stop distance, and transit mode share. These standards encourage strategies such as zoning alignment, investment in active transportation infrastructure like sidewalks and bike lanes, and expanded public transit options. For metropolitan and statewide transportation planning, the bill explicitly adds reducing carbon dioxide emissions and decreasing per capita VMT as planning goals.

The bill introduces a requirement for detailed analysis of "covered projects"—those increasing traffic capacity or receiving substantial federal funds. This analysis must assess the project's impact on VMT, mobile source greenhouse gas emissions, and non-single-occupancy-vehicle trips, as well as air pollution and environmental justice metrics in affected communities. Furthermore, before constructing new capacity for single-occupancy passenger vehicles, planning organizations and States must demonstrate progress in maintaining the National Highway System and prove the project is more cost-effective than alternative solutions like operational improvements or public transportation.

A significant provision introduces investment requirements for States that fail to meet their established performance targets for public roads, including those related to greenhouse gas emissions and VMT. If a State does not achieve its targets, it will be required to obligate a specific percentage of its federal highway funds (33% of section 104(b)(1) and 10% of section 104(b)(2) funds) towards projects designed to meet those targets. This obligation increases by 2% annually for each subsequent year the targets are missed, directing funds to projects like transit expansion, active transportation, and transit-oriented development.