To amend the Energy Policy Act of 2005 to reauthorize and modify provisions relating to the diesel emissions reduction program.

Summary: Diesel Emissions Reduction Act of 2010 - Amends the Energy Policy Act of 2005 to reauthorize and extend funding for a grant program for reducing diesel emissions. Authorizes the Administrator of the Environmental Protection Agency (EPA) to: (1) provide contracts and rebates to eligible entities to achieve significant reductions in diesel emissions; and (2) support rebate programs administered by states that are designed to achieve such reductions.

Includes among entities eligible to receive funding for reducing diesel emissions any private individual or entity that is the owner of a diesel vehicle or fleet operated pursuant to a contract, license, or lease with a federal, regional, state, local, or tribal agency or port authority with jurisdiction over transportation or air quality and that meets such requirements as the Administrator may establish for vehicle use and for notice to and approval by the agency with respect to a contract, license, or lease.

Includes Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Northern Mariana Islands within the meaning of "state" under such Act.

Revises provisions concerning the distribution and use of, and applications for, funds.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Diesel Emissions Reduction Act of 
2010''.

SEC. 2. DIESEL EMISSIONS REDUCTION PROGRAM.

    (a) Definitions.--Section 791 of the Energy Policy Act of 2005 (42 
U.S.C. 16131) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(C) any private individual or entity that--
                            ``(i) is the owner of record of a diesel 
                        vehicle or fleet operated pursuant to a 
                        contract, license, or lease with a Federal 
                        department or agency or an entity described in 
                        subparagraph (A); and
                            ``(ii) meets such timely and appropriate 
                        requirements as the Administrator may establish 
                        for vehicle use and for notice to and approval 
                        by the Federal department or agency or entity 
                        described in subparagraph (A) with respect to 
                        which the owner has entered into a contract, 
                        license, or lease as described in clause 
                        (i).'';
            (2) in paragraph (4), by inserting ``currently, or has not 
        been previously,'' after ``that is not'';
            (3) by striking paragraph (9);
            (4) by redesignating paragraph (8) as paragraph (9);
            (5) in paragraph (9) (as so redesignated), in the matter 
        preceding subparagraph (A), by striking ``, advanced truckstop 
        electrification system,''; and
            (6) by inserting after paragraph (7) the following:
            ``(8) State.--The term `State' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, 
        Guam, the United States Virgin Islands, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.''.
    (b) National Grant, Rebate, and Loan Programs.--Section 792 of the 
Energy Policy Act of 2005 (42 U.S.C. 16132) is amended--
            (1) in the section heading, by inserting ``, rebate,'' 
        after ``grant'';
            (2) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``to provide grants and low-cost revolving 
                loans, as determined by the Administrator, on a 
                competitive basis, to eligible entities'' and inserting 
                ``to provide grants, rebates, or low-cost revolving 
                loans, as determined by the Administrator, on a 
                competitive basis, to eligible entities, including 
                through contracts entered into under subsection (e) of 
                this section,''; and
                    (B) in paragraph (1), by striking ``tons of'';
            (3) in subsection (b)--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraph (3) as paragraph 
                (2); and
                    (C) in paragraph (2) (as so redesignated)--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by striking ``90'' and 
                        inserting ``95'';
                            (ii) in subparagraph (B)(i), by striking 
                        ``10 percent'' and inserting ``5 percent''; and
                            (iii) in subparagraph (B)(ii), by striking 
                        ``the application under subsection (c)'' and 
                        inserting ``a verification application'';
            (4) in subsection (c)--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively;
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) Expedited process.--
                    ``(A) In general.--The Administrator shall develop 
                a simplified application process for all applicants 
                under this section to expedite the provision of funds.
                    ``(B) Requirements.--In developing the expedited 
                process under subparagraph (A), the Administrator--
                            ``(i) shall take into consideration the 
                        special circumstances affecting small fleet 
                        owners; and
                            ``(ii) to avoid duplicative procedures, may 
                        require applicants to include in an application 
                        under this section the results of a competitive 
                        bidding process for equipment and installation.
            ``(2) Eligibility.--
                    ``(A) Grants.--To be eligible to receive a grant 
                under this section, an eligible entity shall submit to 
                the Administrator an application at such time, in such 
                manner, and containing such information as the 
                Administrator may require.
                    ``(B) Rebates and low-cost loans.--To be eligible 
                to receive a rebate or a low-cost loan under this 
                section, an eligible entity shall submit an application 
                in accordance with such guidance as the Administrator 
                may establish--
                            ``(i) to the Administrator; or
                            ``(ii) to an entity that has entered into a 
                        contract under subsection (e).'';
                    (C) in paragraph (3)(G) (as redesignated by 
                subparagraph (A)), by inserting ``in the case of an 
                application relating to nonroad engines or vehicles,'' 
                before ``a description of the diesel''; and
                    (D) in paragraph (4) (as redesignated by 
                subparagraph (A))--
                            (i) in the matter preceding subparagraph 
                        (A)--
                                    (I) by inserting ``, rebate,'' 
                                after ``grant''; and
                                    (II) by inserting ``highest'' after 
                                ``shall give'';
                            (ii) in subparagraph (C)(iii)--
                                    (I) by striking ``a diesel fleets'' 
                                and inserting ``diesel fleets''; and
                                    (II) by inserting ``construction 
                                sites, schools,'' after ``terminals,'';
                            (iii) in subparagraph (E), by adding 
                        ``and'' at the end;
                            (iv) in subparagraph (F), by striking ``; 
                        and'' and inserting a period; and
                            (v) by striking subparagraph (G);
            (5) in subsection (d)--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by inserting ``, rebate,'' after 
                ``grant''; and
                    (B) in paragraph (2)(A)--
                            (i) by striking ``grant or loan provided'' 
                        and inserting ``grant, rebate, or loan 
                        provided, or contract entered into,''; and
                            (ii) by striking ``Federal, State or local 
                        law'' and inserting ``any Federal law, except 
                        that this subparagraph shall not apply to a 
                        mandate in a State implementation plan approved 
                        by the Administrator under the Clean Air Act''; 
                        and
            (6) by adding at the end the following:
    ``(e) Contract Programs.--
            ``(1) Authority.--In addition to the use of contracting 
        authority otherwise available to the Administrator, the 
        Administrator may enter into contracts with eligible 
        contractors described in paragraph (2) for the administration 
        of programs for providing rebates or loans, subject to the 
        requirements of this subtitle.
            ``(2) Eligible contractors.--The Administrator may enter 
        into a contract under this subsection with a for-profit or 
        nonprofit entity that has the capacity--
                    ``(A) to sell diesel vehicles or equipment to, or 
                to arrange financing for, individuals or entities that 
                own a diesel vehicle or fleet; or
                    ``(B) to upgrade diesel vehicles or equipment with 
                verified or Environmental Protection Agency-certified 
                engines or technologies, or to arrange financing for 
                such upgrades.
    ``(f) Public Notification.--Not later than 60 days after the date 
of the award of a grant, rebate, or loan, the Administrator shall 
publish on the website of the Environmental Protection Agency--
            ``(1) for rebates and loans provided to the owner of a 
        diesel vehicle or fleet, the total number and dollar amount of 
        rebates or loans provided, as well as a breakdown of the 
        technologies funded through the rebates or loans; and
            ``(2) for other rebates and loans, and for grants, a 
        description of each application for which the grant, rebate, or 
        loan is provided.''.
    (c) State Grant, Rebate, and Loan Programs.--Section 793 of the 
Energy Policy Act of 2005 (42 U.S.C. 16133) is amended--
            (1) in the section heading, by inserting ``, rebate,'' 
        after ``grant'';
            (2) in subsection (a), by inserting ``, rebate,'' after 
        ``grant'';
            (3) in subsection (b)(1), by inserting ``, rebate,'' after 
        ``grant'';
            (4) by amending subsection (c)(2) to read as follows:
            ``(2) Allocation.--
                    ``(A) In general.--Except as provided in 
                subparagraphs (B) and (C), using not more than 20 
                percent of the funds made available to carry out this 
                subtitle for a fiscal year, the Administrator shall 
                provide to each State qualified for an allocation for 
                the fiscal year an allocation equal to \1/53\ of the 
                funds made available for that fiscal year for 
                distribution to States under this paragraph.
                    ``(B) Certain territories.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), Guam, the United States Virgin 
                        Islands, American Samoa, and the Commonwealth 
                        of the Northern Mariana Islands shall 
                        collectively receive an allocation equal to \1/
                        53\ of the funds made available for that fiscal 
                        year for distribution to States under this 
                        subsection, divided equally among those 4 
                        States.
                            ``(ii) Exception.--If any State described 
                        in clause (i) does not qualify for an 
                        allocation under this paragraph, the share of 
                        funds otherwise allocated for that State under 
                        clause (i) shall be reallocated pursuant to 
                        subparagraph (C).
                    ``(C) Reallocation.--If any State does not qualify 
                for an allocation under this paragraph, the share of 
                funds otherwise allocated for that State under this 
                paragraph shall be reallocated to each remaining 
                qualified State in an amount equal to the product 
                obtained by multiplying--
                            ``(i) the proportion that the population of 
                        the State bears to the population of all States 
                        described in paragraph (1); by
                            ``(ii) the amount otherwise allocatable to 
                        the nonqualifying State under this 
                        paragraph.'';
            (5) in subsection (d)--
                    (A) in paragraph (1), by inserting ``, rebate,'' 
                after ``grant'';
                    (B) in paragraph (2), by inserting ``, rebates,'' 
                after ``grants'';
                    (C) in paragraph (3), in the matter preceding 
                subparagraph (A), by striking ``grant or loan provided 
                under this section may be used'' and inserting ``grant, 
                rebate, or loan provided under this section shall be 
                used''; and
                    (D) by adding at the end the following:
            ``(4) Priority.--In providing grants, rebates, and loans 
        under this section, a State shall use the priorities in section 
        792(c)(4).
            ``(5) Public notification.--Not later than 60 days after 
        the date of the award of a grant, rebate, or loan by a State, 
        the State shall publish on the Web site of the State--
                    ``(A) for rebates, grants, and loans provided to 
                the owner of a diesel vehicle or fleet, the total 
                number and dollar amount of rebates, grants, or loans 
                provided, as well as a breakdown of the technologies 
                funded through the rebates, grants, or loans; and
                    ``(B) for other rebates, grants, and loans, a 
                description of each application for which the grant, 
                rebate, or loan is provided.''.
    (d) Evaluation and Report.--Section 794(b) of the Energy Policy Act 
of 2005 (42 U.S.C. 16134(b)) is amended in each of paragraphs (2) 
through (5) by inserting ``, rebate,'' after ``grant'' each place it 
appears.
    (e) Authorization of Appropriations.--Section 797 of the Energy 
Policy Act of 2005 (42 U.S.C. 16137) is amended to read as follows:

``SEC. 797. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to carry 
out this subtitle $200,000,000 for each of fiscal years 2012 through 
2016, to remain available until expended.
    ``(b) Management and Oversight.--The Administrator may use not more 
than 1 percent of the amounts made available under subsection (a) for 
each fiscal year for management and oversight purposes.''.