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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1265 Introduced in Senate (IS)]

109th CONGRESS
  1st Session
                                S. 1265

To make grants and loans available to States and other organizations to 
 strengthen the economy, public health, and environment of the United 
           States by reducing emissions from diesel engines.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 16, 2005

Mr. Voinovich (for himself, Mr. Carper, Mrs. Clinton, Mr. Isakson, Mrs. 
Hutchison, Mrs. Feinstein, Mr. Inhofe, and Mr. Jeffords) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

_______________________________________________________________________

                                 A BILL

 
To make grants and loans available to States and other organizations to 
 strengthen the economy, public health, and environment of the United 
           States by reducing emissions from diesel engines.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Diesel Emissions Reduction Act of 
2005''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Certified engine configuration.--The term ``certified 
        engine configuration'' means a new, rebuilt, or remanufactured 
        engine configuration--
                    (A) that has been certified or verified by--
                            (i) the Administrator; or
                            (ii) the California Air Resources Board;
                    (B) that meets or is rebuilt or remanufactured to a 
                more stringent set of engine emission standards, as 
                determined by the Administrator; and
                    (C) in the case of a certified engine configuration 
                involving the replacement of an existing engine or 
                vehicle, an engine configuration that replaced an 
                engine that was--
                            (i) removed from the vehicle; and
                            (ii) returned to the supplier for 
                        remanufacturing to a more stringent set of 
                        engine emissions standards or for scrappage.
            (3) Eligible entity.--The term ``eligible entity'' means--
                    (A) a regional, State, local, or tribal agency with 
                jurisdiction over transportation or air quality; and
                    (B) a nonprofit organization or institution that--
                            (i) represents organizations that own or 
                        operate diesel fleets; or
                            (ii) has, as its principal purpose, the 
                        promotion of transportation or air quality.
            (4) Emerging technology.--The term ``emerging technology'' 
        means a technology that is not certified or verified by the 
        Administrator or the California Air Resources Board but for 
        which an approvable application and test plan has been 
        submitted for verification to the Administrator or the 
        California Air Resources Board.
            (5) Heavy-duty truck.--The term ``heavy-duty truck'' has 
        the meaning given the term ``heavy duty vehicle'' in section 
        202 of the Clean Air Act (42 U.S.C. 7521).
            (6) Medium-duty truck.--The term ``medium-duty truck'' has 
        such meaning as shall be determined by the Administrator, by 
        regulation.
            (7) Verified technology.--The term ``verified technology'' 
        means a pollution control technology, including a retrofit 
        technology, that has been verified by--
                    (A) the Administrator; or
                    (B) the California Air Resources Board.

SEC. 3. NATIONAL GRANT AND LOAN PROGRAMS.

    (a) In General.--The Administrator shall use 70 percent of the 
funds made available to carry out this Act for each fiscal year to 
provide grants and low-cost revolving loans, as determined by the 
Administrator, on a competitive basis, to eligible entities to achieve 
significant reductions in diesel emissions in terms of--
            (1) tons of pollution produced; and
            (2) diesel emissions exposure, particularly from fleets 
        operating in areas designated by the Administrator as poor air 
        quality areas.
    (b) Distribution.--
            (1) In general.--The Administrator shall distribute funds 
        made available for a fiscal year under this Act in accordance 
        with this section.
            (2) Fleets.--The Administrator shall provide not less than 
        50 percent of funds available for a fiscal year under this 
        section to eligible entities for the benefit of public fleets.
            (3) Engine configurations and technologies.--
                    (A) Certified engine configurations and verified 
                technologies.--The Administrator shall provide not less 
                than 90 percent of funds available for a fiscal year 
                under this section to eligible entities for projects 
                using--
                            (i) a certified engine configuration; or
                            (ii) a verified technology.
                    (B) Emerging technologies.--
                            (i) In general.--The Administrator shall 
                        provide not more than 10 percent of funds 
                        available for a fiscal year under this section 
                        to eligible entities for the development and 
                        commercialization of emerging technologies.
                            (ii) Application and test plan.--To receive 
                        funds under clause (i), a manufacturer, in 
                        consultation with an eligible entity, shall 
                        submit for verification to the Administrator or 
                        the California Air Resources Board a test plan 
                        for the emerging technology, together with the 
                        application under subsection (c).
    (c) Applications.--
            (1) In general.--To receive a grant or loan under this 
        section, an eligible entity shall submit to the Administrator 
        an application at a time, in a manner, and including such 
        information as the Administrator may require.
            (2) Inclusions.--An application under this subsection shall 
        include--
                    (A) a description of the air quality of the area 
                served by the eligible entity;
                    (B) the quantity of air pollution produced by the 
                diesel fleet in the area served by the eligible entity;
                    (C) a description of the project proposed by the 
                eligible entity, including--
                            (i) any certified engine configuration, 
                        verified technology, or emerging technology to 
                        be used by the eligible entity; and
                            (ii) the means by which the project will 
                        achieve a significant reduction in diesel 
                        emissions;
                    (D) an evaluation (using methodology approved by 
                the Administrator or the National Academy of Sciences) 
                of the quantifiable and unquantifiable benefits of the 
                emissions reductions of the proposed project;
                    (E) an estimate of the cost of the proposed 
                project;
                    (F) a description of the age and expected lifetime 
                control of the equipment used by the eligible entity;
                    (G) a description of the diesel fuel available to 
                the eligible entity, including the sulfur content of 
                the fuel; and
                    (H) provisions for the monitoring and verification 
                of the project.
            (3) Priority.--In providing a grant or loan under this 
        section, the Administrator shall give priority to proposed 
        projects that, as determined by the Administrator--
                    (A) maximize public health benefits;
                    (B) are the most cost-effective;
                    (C) serve areas--
                            (i) with the highest population density;
                            (ii) that are poor air quality areas, 
                        including areas identified by the Administrator 
                        as--
                                    (I) in nonattainment or maintenance 
                                of national ambient air quality 
                                standards for a criteria pollutant;
                                    (II) Federal Class I areas; or
                                    (III) areas with toxic air 
                                pollutant concerns;
                            (iii) that receive a disproportionate 
                        quantity of air pollution from a diesel fleet, 
                        including ports, rail yards, and distribution 
                        centers; or
                            (iv) that use a community-based 
                        multistakeholder collaborative process to 
                        reduce toxic emissions;
                    (D) include a certified engine configuration, 
                verified technology, or emerging technology that has a 
                long expected useful life;
                    (E) will maximize the useful life of any retrofit 
                technology used by the eligible entity; and
                    (F) use diesel fuel with a sulfur content of less 
                than or equal to 15 parts per million, as the 
                Administrator determines to be appropriate.
    (d) Use of Funds.--
            (1) In general.--An eligible entity may use a grant or loan 
        provided under this section to fund the costs of--
                    (A) a retrofit technology (including any 
                incremental costs of a repowered or new diesel engine) 
                that significantly reduces emissions through 
                development and implementation of a certified engine 
                configuration, verified technology, or emerging 
                technology for--
                            (i) a bus;
                            (ii) a medium-duty truck or a heavy-duty 
                        truck;
                            (iii) a marine engine;
                            (iv) a locomotive; or
                            (v) a nonroad engine or vehicle used in--
                                    (I) construction;
                                    (II) handling of cargo (including 
                                at a port or airport);
                                    (III) agriculture;
                                    (IV) mining; or
                                    (V) energy production; or
                    (B) an idle-reduction program involving a vehicle 
                or equipment described in subparagraph (A).
            (2) Regulatory programs.--
                    (A) In general.--Notwithstanding paragraph (1), no 
                grant or loan provided under this section shall be used 
                to fund the costs of emissions reductions that are 
                mandated under Federal, State or local law.
                    (B) Mandated.--For purposes of subparagraph (A), 
                voluntary or elective emission reduction measures shall 
                not be considered ``mandated'', regardless of whether 
                the reductions are included in the State implementation 
                plan of a State.

SEC. 4. STATE GRANT AND LOAN PROGRAMS.

    (a) In General.--Subject to the availability of adequate 
appropriations, the Administrator shall use 30 percent of the funds 
made available for a fiscal year under this Act to support grant and 
loan programs administered by States that are designed to achieve 
significant reductions in diesel emissions.
    (b) Applications.--The Administrator shall--
            (1) provide to States guidance for use in applying for 
        grant or loan funds under this section, including information 
        regarding--
                    (A) the process and forms for applications;
                    (B) permissible uses of funds received; and
                    (C) the cost-effectiveness of various emission 
                reduction technologies eligible to be carried out using 
                funds provided under this section; and
            (2) establish, for applications described in paragraph 
        (1)--
                    (A) an annual deadline for submission of the 
                applications;
                    (B) a process by which the Administrator shall 
                approve or disapprove each application; and
                    (C) a streamlined process by which a State may 
                renew an application described in paragraph (1) for 
                subsequent fiscal years.
    (c) Allocation of Funds.--
            (1) In general.--For each fiscal year, the Administrator 
        shall allocate among States for which applications are approved 
        by the Administrator under subsection (b)(2)(B) funds made 
        available to carry out this section for the fiscal year.
            (2) Allocation.--Using not more than 20 percent of the 
        funds made available to carry out this section for a fiscal 
        year, the Administrator shall provide to each State described 
        in paragraph (1) for the fiscal year an allocation of funds 
        that is equal to--
                    (A) if each of the 50 States qualifies for an 
                allocation, an amount equal to 2 percent of the funds 
                made available to carry out this section; or
                    (B) if fewer than 50 States qualifies for an 
                allocation, an amount equal to the amount described in 
                subparagraph (A), plus an additional amount equal to 
                the product obtained by multiplying--
                            (i) the proportion that--
                                    (I) the population of the State; 
                                bears to
                                    (II) the population of all States 
                                described in paragraph (1); by
                            (ii) the amount of funds remaining after 
                        each State described in paragraph (1) receives 
                        the 2-percent allocation under this paragraph.
            (3) State matching incentive.--
                    (A) In general.--If a State agrees to match the 
                allocation provided to the State under paragraph (2) 
                for a fiscal year, the Administrator shall provide to 
                the State for the fiscal year an additional amount 
                equal to 50 percent of the allocation of the State 
                under paragraph (2).
                    (B) Requirements.--A State--
                            (i) may not use funds received under this 
                        Act to pay a matching share required under this 
                        subsection; and
                            (ii) shall not be required to provide a 
                        matching share for any additional amount 
                        received under subparagraph (A).
            (4) Unclaimed funds.--Any funds that are not claimed by a 
        State for a fiscal year under this subsection shall be used to 
        carry out section 3.
    (d) Administration.--
            (1) In general.--Subject to paragraphs (2) and (3) and, to 
        the extent practicable, the priority areas listed in section 
        3(c)(3), a State shall use any funds provided under this 
        section to develop and implement such grant and low-cost 
        revolving loan programs in the State as are appropriate to meet 
        State needs and goals relating to the reduction of diesel 
        emissions.
            (2) Apportionment of funds.--The Governor of a State that 
        receives funding under this section may determine the portion 
        of funds to be provided as grants or loans.
            (3) Use of funds.--A grant or loan provided under this 
        section may be used for a project relating to--
                    (A) a certified engine configuration; or
                    (B) a verified technology.

SEC. 5. EVALUATION AND REPORT.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, and biennially thereafter, the Administrator shall submit 
to Congress a report evaluating the implementation of the programs 
under this Act.
    (b) Inclusions.--The report shall include a description of--
            (1) the total number of grant applications received;
            (2) each grant or loan made under this Act, including the 
        amount of the grant or loan;
            (3) each project for which a grant or loan is provided 
        under this Act, including the criteria used to select the grant 
        or loan recipients;
            (4) the estimated air quality benefits, cost-effectiveness, 
        and cost-benefits of the grant and loan programs under this 
        Act;
            (5) the problems encountered by projects for which a grant 
        or loan is provided under this Act; and
            (6) any other information the Administrator considers to be 
        appropriate.

SEC. 6. OUTREACH AND INCENTIVES.

    (a) Definition of Eligible Technology.--In this section, the term 
``eligible technology'' means--
            (1) a verified technology; or
            (2) an emerging technology.
    (b) Technology Transfer Program.--
            (1) In general.--The Administrator shall establish a 
        program under which the Administrator--
                    (A) informs stakeholders of the benefits of 
                eligible technologies; and
                    (B) develops nonfinancial incentives to promote the 
                use of eligible technologies.
            (2) Eligible stakeholders.--Eligible stakeholders under 
        this section include--
                    (A) equipment owners and operators;
                    (B) emission control technology manufacturers;
                    (C) engine and equipment manufacturers;
                    (D) State and local officials responsible for air 
                quality management;
                    (E) community organizations; and
                    (F) public health and environmental organizations.
    (c) State Implementation Plans.--The Administrator shall develop 
appropriate guidance to provide credit to a State for emission 
reductions in the State created by the use of eligible technologies 
through a State implementation plan under section 110 of the Clean Air 
Act (42 U.S.C. 7410).
    (d) International Markets.--The Administrator, in coordination with 
the Department of Commerce and industry stakeholders, shall inform 
foreign countries with air quality problems of the potential of 
technology developed or used in the United States to provide emission 
reductions in those countries.

SEC. 7. EFFECT OF ACT.

    Nothing in this Act affects any authority under the Clean Air Act 
(42 U.S.C. 7401 et seq.) in existence on the day before the date of 
enactment of this Act.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$200,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.
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