Transportation asset management systems are concerned with the daunting task of maintenance and upgrade of infrastructure within the restrictions of an annual budget. Consideration of environmental impacts is normally left out of the analysis. This paper considers the incorporation into strategic planning of environmental impacts resulting from maintenance and rehabilitation of pavements. The energy use of such activities and resulting greenhouse gas (GHG) emissions are explicitly considered, and the results of a performance-based optimization are discussed. The study followed a three-step trade-off process: (a) finding the minimum requirement for the annual budget, (b) maximizing pavement condition, and (c) reducing environmental impacts. The results showed that considering environmental impacts in the strategic planning process returned a substantial gain in energy savings and reduction of GHG emissions, although a small sacrifice in pavement performance was required. The consideration of environmental impacts reduced energy use and GHG emissions by 19% and 24%, respectively, but pavement condition dropped slightly to 98.5% of the optimal solution.