To provide for the designation of, and the award of grant with respect to, air and health quality empowerment zones.

Summary: Air and Health Quality Empowerment Zone Designation Act of 2012 - Allows the Administrator of the Environmental Protection Agency (EPA) to designate an area as an air and health quality empowerment zone if the air pollution control district or other local governmental entity (area entity) authorized to regulate air quality for the area nominates the area for such designation, including by submitting a strategic plan designed to address air quality challenges, achieve attainment of air quality standards, and improve the health of the population in the area.

Requires a designated area to meet the following criteria: (1) it has been designated as being in extreme nonattainment of the national ambient air quality standard for ozone and in nonattainment of the national ambient air quality standard for PM2.5 (particulate matter diameter); (2) it had nitrogen oxide emissions from farm equipment or emissions of volatile organic compounds from farming in excess of specified limits; (3) it meets or exceeds the national average per capita incidence of asthma; (4) it experiences unemployment rates higher than the national average; and (5) the area entity will provide matching contributions of federal funds toward the activities to be carried out under the strategic plan, which may be in cash or in-kind, fairly evaluated, including plant, equipment, or services.

Makes the effective period of area designation the shorter of 10 years or the period ending with revocation by the Administrator.

Authorizes grants to an area entity on behalf of each air and health quality empowerment zone for the purpose of carrying out the strategic plan submitted under this Act.

Requires a report to Congress on the impact of this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Air and Health Quality Empowerment 
Zone Designation Act of 2012''.

SEC. 2. AIR AND HEALTH QUALITY EMPOWERMENT ZONES.

    (a) Designation of Air and Health Quality Empowerment Zones.--
            (1) In general.--The Administrator may designate an area as 
        an air and health quality empowerment zone if--
                    (A) the air pollution control district or other 
                local governmental entity authorized to regulate air 
                quality for the area submits an application under 
                paragraph (2) nominating the area for such designation; 
                and
                    (B) the Administrator determines that--
                            (i) the information in the application is 
                        reasonably accurate; and
                            (ii) the nominated area satisfies the 
                        eligibility criteria described in paragraph 
                        (3).
            (2) Nomination.--To nominate an area for designation under 
        paragraph (1), the air pollution control district or other 
        local governmental entity authorized to regulate air quality 
        for the area shall submit to the Administrator an application 
        that--
                    (A) demonstrates that the nominated area satisfies 
                the eligibility criteria described in paragraph (3); 
                and
                    (B) includes a strategic plan that--
                            (i) is designed for--
                                    (I) addressing air quality 
                                challenges and achieving attainment of 
                                air quality standards in the area; and
                                    (II) improving the health of the 
                                population in the area;
                            (ii) describes--
                                    (I) the process by which the 
                                district or local governmental entity 
                                is a full partner in the process of 
                                developing and implementing the 
                                strategic plan; and
                                    (II) the extent to which local 
                                institutions and organizations have 
                                contributed to the planning process;
                            (iii) identifies--
                                    (I) the amount of State, local, and 
                                private resources that will be 
                                available for carrying out the 
                                strategic plan; and
                                    (II) the private and public 
                                partnerships to be used (which may 
                                include participation by, and 
                                cooperation with, institutions of 
                                higher education, medical centers, and 
                                other private and public entities) in 
                                carrying out the strategic plan;
                            (iv) identifies the funding requested under 
                        any Federal program in support of the strategic 
                        plan;
                            (v) identifies baselines, methods, and 
                        benchmarks for measuring the success of the 
                        strategic plan; and
                            (vi) includes such other information as may 
                        be required by the Administrator; and
                    (C) provides written assurances satisfactory to the 
                Administrator that the strategic plan will be 
                implemented.
            (3) Eligibility criteria.--To be eligible for designation 
        under paragraph (1), an area must meet all of the following 
        criteria:
                    (A) Nonattainment.--The area has been designated as 
                being--
                            (i) in extreme nonattainment of the 
                        national ambient air quality standard for 
                        ozone; and
                            (ii) in nonattainment of the national 
                        ambient air quality standard for 
                        PM&lt;INF&gt;2.5&lt;/INF&gt;.
                    (B) Agricultural sources.--The area had--
                            (i) emissions of oxides of nitrogen from 
                        farm equipment of at least 30 tons per day in 
                        calendar year 2011; or
                            (ii) emissions of volatile organic 
                        compounds from farming operations of at least 3 
                        tons per day in calendar year 2010.
                    (C) Air quality-related health effects.--As of the 
                date of designation, the area meets or exceeds the 
                national average per capita incidence of asthma.
                    (D) Economic impact.--As of the date of 
                designation, the area experiences unemployment rates 
                higher than the national average.
                    (E) Matching funds.--The air pollution control 
                district or other local governmental entity submitting 
                the strategic plan under paragraph (2) for the area 
                agrees that it will make available (directly or through 
                contributions from the State or other public or private 
                entities) non-Federal contributions toward the 
                activities to be carried out under the strategic plan 
                in an amount equal to $1 for each $1 of Federal funds 
                provided for such activities. Such non-Federal matching 
                funds may be in cash or in-kind, fairly evaluated, 
                including plant, equipment, or services.
            (4) Period of designation.--A designation under paragraph 
        (1) shall remain in effect during the period beginning on the 
        date of the designation and ending on the earlier of--
                    (A) the last day of the tenth calendar year ending 
                after the date of the designation; or
                    (B) the date on which the Administrator revokes the 
                designation.
            (5) Revocation of designation.--The Administrator may 
        revoke the designation under paragraph (1) of an area if the 
        Administrator determines that--
                    (A) the area is in attainment with the national 
                ambient air quality standards for PM&lt;INF&gt;2.5&lt;/INF&gt; and 
                ozone; or
                    (B) the air pollution control district or other 
                local governmental entity submitting the strategic plan 
                under paragraph (2) for the area is not complying 
                substantially with, or fails to make progress in 
                achieving the goals of, such strategic plan.
    (b) Grants for Air and Health Quality Empowerment Zones.--
            (1) In general.--For the purpose described in paragraph 
        (2), the Administrator may award one or more grants to the air 
        pollution control district or local governmental entity 
        submitting the application under subsection (a)(2) on behalf of 
        each air and health quality empowerment zone designated under 
        subsection (a)(1).
            (2) Use of grants.--A recipient of a grant under paragraph 
        (1) shall use the grant solely for the purpose of carrying out 
        the strategic plan submitted by the recipient under subsection 
        (a)(2).
            (3) Amount of grants.--The amount awarded under this 
        subsection with respect to a designated air and health quality 
        empowerment zone shall be determined by the Administrator based 
        upon a review of--
                    (A) the information contained in the application 
                for the zone under subsection (a)(2); and
                    (B) the needs set forth in the application for 
                those anticipated to benefit from the strategic plan 
                submitted for the zone.
            (4) Timing of grants.--To the extent and in the amount of 
        appropriations made available in advance, the Administrator 
        shall--
                    (A) award a grant under this subsection with 
                respect to each air and health quality empowerment zone 
                on the date of designation of the zone under subsection 
                (a)(1); and
                    (B) make the grant funds available to the grantee 
                on the first day of the first fiscal year that begins 
                after the date of such designation.
            (5) Authorization of appropriations.--To carry out this 
        subsection, there is authorized to be appropriated $20,000,000 
        for each of fiscal years 2013 through 2017.
    (c) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) PM&lt;INF&gt;2.5&lt;/INF&gt;.--The term ``PM&lt;INF&gt;2.5&lt;/INF&gt;'' means 
        particulate matter with a diameter that does not exceed 2.5 
        micrometers.

SEC. 3. REPORT TO CONGRESS.

    Not later than 5 years after the date of the enactment of this Act, 
the Administrator of the Environmental Protection Agency--
            (1) shall submit a report to the Congress on the impact of 
        this Act; and
            (2) may include in such report a description of the impact 
        of this Act in regard to--
                    (A) the reduction of particulate matter and 
                nitrogen oxides emissions;
                    (B) the reduction of asthma rates and other health 
                indicators; and
                    (C) economic indicators.