Let's just ignore the fact that there is zero enumerated Constitutional power for the Feds to regulate local air quality standards. No rationally defensible actual tie even to "Interstate Commerce," nor does the smoke even approach a state or international border. 

The use of extortion vis a vis highway funds, which have no rational intersect with wood-burning, is just the authoritarian icing on the over-reach cake.

If -residents- don't like the smoke, change local or state law, come up with a technologically and economically sound fix, move, or endure. 

That the Feds have the -power- to act unConstitionally doesn't justify them doing so. Using unCon power for the stuff you like lets the other guy use it for stuff you don't. And then it's too late. Better to put Constitutionality and Rule of Law ahead of personal whim and convenience.