II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Diesel Emissions Re5 duction Act of 2005’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 
2 

•S 1265 IS

1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Environ3 mental Protection Agency. 

4 (2) CERTIFIED ENGINE CONFIGURATION.—The 

5 term ‘‘certified engine configuration’’ means a new, 

6 rebuilt, or remanufactured engine configuration— 

7 (A) that has been certified or verified by— 

8 (i) the Administrator; or 

9 (ii) the California Air Resources 

10 Board; 

11 (B) that meets or is rebuilt or remanufac12 tured to a more stringent set of engine emission 

13 standards, as determined by the Administrator; 

14 and 

15 (C) in the case of a certified engine con16 figuration involving the replacement of an exist17 ing engine or vehicle, an engine configuration 

18 that replaced an engine that was— 

19 (i) removed from the vehicle; and 

20 (ii) returned to the supplier for re21 manufacturing to a more stringent set of 

22 engine emissions standards or for 

23 scrappage. 

24 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti25 ty’’ means— 
3 

•S 1265 IS

1 (A) a regional, State, local, or tribal agen2 cy with jurisdiction over transportation or air 

3 quality; and 

4 (B) a nonprofit organization or institution 

5 that— 

6 (i) represents organizations that own 

7 or operate diesel fleets; or 

8 (ii) has, as its principal purpose, the 

9 promotion of transportation or air quality. 

10 (4) EMERGING TECHNOLOGY.—The term 

11 ‘‘emerging technology’’ means a technology that is 

12 not certified or verified by the Administrator or the 

13 California Air Resources Board but for which an ap14 provable application and test plan has been sub15 mitted for verification to the Administrator or the 

16 California Air Resources Board. 

17 (5) HEAVY-DUTY TRUCK.—The term ‘‘heavy18 duty truck’’ has the meaning given the term ‘‘heavy 

19 duty vehicle’’ in section 202 of the Clean Air Act 

20 (42 U.S.C. 7521). 

21 (6) MEDIUM-DUTY TRUCK.—The term ‘‘me22 dium-duty truck’’ has such meaning as shall be de23 termined by the Administrator, by regulation. 

24 (7) VERIFIED TECHNOLOGY.—The term 

25 ‘‘verified technology’’ means a pollution control tech-
4 

•S 1265 IS

1 nology, including a retrofit technology, that has been 

2 verified by— 

3 (A) the Administrator; or 

4 (B) the California Air Resources Board. 

5 SEC. 3. NATIONAL GRANT AND LOAN PROGRAMS. 

6 (a) IN GENERAL.—The Administrator shall use 70 

7 percent of the funds made available to carry out this Act 

8 for each fiscal year to provide grants and low-cost revolv9 ing loans, as determined by the Administrator, on a com10 petitive basis, to eligible entities to achieve significant re11 ductions in diesel emissions in terms of— 

12 (1) tons of pollution produced; and 

13 (2) diesel emissions exposure, particularly from 

14 fleets operating in areas designated by the Adminis15 trator as poor air quality areas. 

16 (b) DISTRIBUTION.— 

17 (1) IN GENERAL.—The Administrator shall dis18 tribute funds made available for a fiscal year under 

19 this Act in accordance with this section. 

20 (2) FLEETS.—The Administrator shall provide 

21 not less than 50 percent of funds available for a fis22 cal year under this section to eligible entities for the 

23 benefit of public fleets. 

24 (3) ENGINE CONFIGURATIONS AND TECH25 NOLOGIES.— 
5 

•S 1265 IS

1 (A) CERTIFIED ENGINE CONFIGURATIONS

2 AND VERIFIED TECHNOLOGIES.—The Adminis3 trator shall provide not less than 90 percent of 

4 funds available for a fiscal year under this sec5 tion to eligible entities for projects using— 

6 (i) a certified engine configuration; or 

7 (ii) a verified technology. 

8 (B) EMERGING TECHNOLOGIES.— 

9 (i) IN GENERAL.—The Administrator 

10 shall provide not more than 10 percent of 

11 funds available for a fiscal year under this 

12 section to eligible entities for the develop13 ment and commercialization of emerging 

14 technologies. 

15 (ii) APPLICATION AND TEST PLAN.— 

16 To receive funds under clause (i), a manu17 facturer, in consultation with an eligible 

18 entity, shall submit for verification to the 

19 Administrator or the California Air Re20 sources Board a test plan for the emerging 

21 technology, together with the application 

22 under subsection (c). 

23 (c) APPLICATIONS.— 

24 (1) IN GENERAL.—To receive a grant or loan 

25 under this section, an eligible entity shall submit to 
6 

•S 1265 IS

1 the Administrator an application at a time, in a 

2 manner, and including such information as the Ad3 ministrator may require. 

4 (2) INCLUSIONS.—An application under this 

5 subsection shall include— 

6 (A) a description of the air quality of the 

7 area served by the eligible entity; 

8 (B) the quantity of air pollution produced 

9 by the diesel fleet in the area served by the eli10 gible entity; 

11 (C) a description of the project proposed 

12 by the eligible entity, including— 

13 (i) any certified engine configuration, 

14 verified technology, or emerging technology 

15 to be used by the eligible entity; and 

16 (ii) the means by which the project 

17 will achieve a significant reduction in diesel 

18 emissions; 

19 (D) an evaluation (using methodology ap20 proved by the Administrator or the National 

21 Academy of Sciences) of the quantifiable and 

22 unquantifiable benefits of the emissions reduc23 tions of the proposed project; 

24 (E) an estimate of the cost of the proposed 

25 project; 
7 

•S 1265 IS

1 (F) a description of the age and expected 

2 lifetime control of the equipment used by the el3 igible entity; 

4 (G) a description of the diesel fuel avail5 able to the eligible entity, including the sulfur 

6 content of the fuel; and 

7 (H) provisions for the monitoring and 

8 verification of the project. 

9 (3) PRIORITY.—In providing a grant or loan 

10 under this section, the Administrator shall give pri11 ority to proposed projects that, as determined by the 

12 Administrator— 

13 (A) maximize public health benefits; 

14 (B) are the most cost-effective; 

15 (C) serve areas— 

16 (i) with the highest population den17 sity; 

18 (ii) that are poor air quality areas, in19 cluding areas identified by the Adminis20 trator as— 

21 (I) in nonattainment or mainte22 nance of national ambient air quality 

23 standards for a criteria pollutant; 

24 (II) Federal Class I areas; or 
8 

•S 1265 IS

1 (III) areas with toxic air pollut2 ant concerns; 

3 (iii) that receive a disproportionate 

4 quantity of air pollution from a diesel fleet, 

5 including ports, rail yards, and distribution 

6 centers; or 

7 (iv) that use a community-based 

8 multistakeholder collaborative process to 

9 reduce toxic emissions; 

10 (D) include a certified engine configura11 tion, verified technology, or emerging tech12 nology that has a long expected useful life; 

13 (E) will maximize the useful life of any ret14 rofit technology used by the eligible entity; and 

15 (F) use diesel fuel with a sulfur content of 

16 less than or equal to 15 parts per million, as 

17 the Administrator determines to be appropriate. 

18 (d) USE OF FUNDS.— 

19 (1) IN GENERAL.—An eligible entity may use a 

20 grant or loan provided under this section to fund the 

21 costs of— 

22 (A) a retrofit technology (including any in23 cremental costs of a repowered or new diesel 

24 engine) that significantly reduces emissions 

25 through development and implementation of a 
9 

•S 1265 IS

1 certified engine configuration, verified tech2 nology, or emerging technology for— 

3 (i) a bus; 

4 (ii) a medium-duty truck or a heavy5 duty truck; 

6 (iii) a marine engine; 

7 (iv) a locomotive; or 

8 (v) a nonroad engine or vehicle used 

9 in— 

10 (I) construction; 

11 (II) handling of cargo (including 

12 at a port or airport); 

13 (III) agriculture; 

14 (IV) mining; or 

15 (V) energy production; or 

16 (B) an idle-reduction program involving a 

17 vehicle or equipment described in subparagraph 

18 (A). 

19 (2) REGULATORY PROGRAMS.— 

20 (A) IN GENERAL.—Notwithstanding para21 graph (1), no grant or loan provided under this 

22 section shall be used to fund the costs of emis23 sions reductions that are mandated under Fed24 eral, State or local law. 
10 

•S 1265 IS

1 (B) MANDATED.—For purposes of sub2 paragraph (A), voluntary or elective emission 

3 reduction measures shall not be considered 

4 ‘‘mandated’’, regardless of whether the reduc5 tions are included in the State implementation 

6 plan of a State. 

7 SEC. 4. STATE GRANT AND LOAN PROGRAMS. 

8 (a) IN GENERAL.—Subject to the availability of ade9 quate appropriations, the Administrator shall use 30 per10 cent of the funds made available for a fiscal year under 

11 this Act to support grant and loan programs administered 

12 by States that are designed to achieve significant reduc13 tions in diesel emissions. 

14 (b) APPLICATIONS.—The Administrator shall— 

15 (1) provide to States guidance for use in apply16 ing for grant or loan funds under this section, in17 cluding information regarding— 

18 (A) the process and forms for applications; 

19 (B) permissible uses of funds received; and 

20 (C) the cost-effectiveness of various emis21 sion reduction technologies eligible to be carried 

22 out using funds provided under this section; 

23 and 

24 (2) establish, for applications described in para25 graph (1)— 
11 

•S 1265 IS

1 (A) an annual deadline for submission of 

2 the applications; 

3 (B) a process by which the Administrator 

4 shall approve or disapprove each application; 

5 and 

6 (C) a streamlined process by which a State 

7 may renew an application described in para8 graph (1) for subsequent fiscal years. 

9 (c) ALLOCATION OF FUNDS.— 

10 (1) IN GENERAL.—For each fiscal year, the Ad11 ministrator shall allocate among States for which 

12 applications are approved by the Administrator 

13 under subsection (b)(2)(B) funds made available to 

14 carry out this section for the fiscal year. 

15 (2) ALLOCATION.—Using not more than 20 

16 percent of the funds made available to carry out this 

17 section for a fiscal year, the Administrator shall pro18 vide to each State described in paragraph (1) for the 

19 fiscal year an allocation of funds that is equal to— 

20 (A) if each of the 50 States qualifies for 

21 an allocation, an amount equal to 2 percent of 

22 the funds made available to carry out this sec23 tion; or 

24 (B) if fewer than 50 States qualifies for an 

25 allocation, an amount equal to the amount de-
12 

•S 1265 IS

1 scribed in subparagraph (A), plus an additional 

2 amount equal to the product obtained by multi3 plying— 

4 (i) the proportion that— 

5 (I) the population of the State; 

6 bears to 

7 (II) the population of all States 

8 described in paragraph (1); by 

9 (ii) the amount of funds remaining 

10 after each State described in paragraph (1) 

11 receives the 2-percent allocation under this 

12 paragraph. 

13 (3) STATE MATCHING INCENTIVE.— 

14 (A) IN GENERAL.—If a State agrees to 

15 match the allocation provided to the State 

16 under paragraph (2) for a fiscal year, the Ad17 ministrator shall provide to the State for the 

18 fiscal year an additional amount equal to 50 

19 percent of the allocation of the State under 

20 paragraph (2). 

21 (B) REQUIREMENTS.—A State— 

22 (i) may not use funds received under 

23 this Act to pay a matching share required 

24 under this subsection; and 
13 

•S 1265 IS

1 (ii) shall not be required to provide a 

2 matching share for any additional amount 

3 received under subparagraph (A). 

4 (4) UNCLAIMED FUNDS.—Any funds that are 

5 not claimed by a State for a fiscal year under this 

6 subsection shall be used to carry out section 3. 

7 (d) ADMINISTRATION.— 

8 (1) IN GENERAL.—Subject to paragraphs (2) 

9 and (3) and, to the extent practicable, the priority 

10 areas listed in section 3(c)(3), a State shall use any 

11 funds provided under this section to develop and im12 plement such grant and low-cost revolving loan pro13 grams in the State as are appropriate to meet State 

14 needs and goals relating to the reduction of diesel 

15 emissions. 

16 (2) APPORTIONMENT OF FUNDS.—The Gov17 ernor of a State that receives funding under this 

18 section may determine the portion of funds to be 

19 provided as grants or loans. 

20 (3) USE OF FUNDS.—A grant or loan provided 

21 under this section may be used for a project relating 

22 to— 

23 (A) a certified engine configuration; or 

24 (B) a verified technology. 
14 

•S 1265 IS

1 SEC. 5. EVALUATION AND REPORT. 

2 (a) IN GENERAL.—Not later than 2 years after the 

3 date of enactment of this Act, and biennially thereafter, 

4 the Administrator shall submit to Congress a report evalu5 ating the implementation of the programs under this Act. 

6 (b) INCLUSIONS.—The report shall include a descrip7 tion of— 

8 (1) the total number of grant applications re9 ceived; 

10 (2) each grant or loan made under this Act, in11 cluding the amount of the grant or loan; 

12 (3) each project for which a grant or loan is 

13 provided under this Act, including the criteria used 

14 to select the grant or loan recipients; 

15 (4) the estimated air quality benefits, cost-effec16 tiveness, and cost-benefits of the grant and loan pro17 grams under this Act; 

18 (5) the problems encountered by projects for 

19 which a grant or loan is provided under this Act; 

20 and 

21 (6) any other information the Administrator 

22 considers to be appropriate. 

23 SEC. 6. OUTREACH AND INCENTIVES. 

24 (a) DEFINITION OF ELIGIBLE TECHNOLOGY.—In 

25 this section, the term ‘‘eligible technology’’ means— 

26 (1) a verified technology; or 
15 

•S 1265 IS

1 (2) an emerging technology. 

2 (b) TECHNOLOGY TRANSFER PROGRAM.— 

3 (1) IN GENERAL.—The Administrator shall es4 tablish a program under which the Administrator— 

5 (A) informs stakeholders of the benefits of 

6 eligible technologies; and 

7 (B) develops nonfinancial incentives to pro8 mote the use of eligible technologies. 

9 (2) ELIGIBLE STAKEHOLDERS.—Eligible stake10 holders under this section include— 

11 (A) equipment owners and operators; 

12 (B) emission control technology manufac13 turers; 

14 (C) engine and equipment manufacturers; 

15 (D) State and local officials responsible for 

16 air quality management; 

17 (E) community organizations; and 

18 (F) public health and environmental orga19 nizations. 

20 (c) STATE IMPLEMENTATION PLANS.—The Adminis21 trator shall develop appropriate guidance to provide credit 

22 to a State for emission reductions in the State created 

23 by the use of eligible technologies through a State imple24 mentation plan under section 110 of the Clean Air Act 

25 (42 U.S.C. 7410). 
16 

•S 1265 IS

1 (d) INTERNATIONAL MARKETS.—The Administrator, 

2 in coordination with the Department of Commerce and in3 dustry stakeholders, shall inform foreign countries with 

4 air quality problems of the potential of technology devel5 oped or used in the United States to provide emission re6 ductions in those countries. 

7 SEC. 7. EFFECT OF ACT. 

8 Nothing in this Act affects any authority under the 

9 Clean Air Act (42 U.S.C. 7401 et seq.) in existence on 

10 the day before the date of enactment of this Act. 

11 SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 

12 There is authorized to be appropriated to carry out 

13 this Act $200,000,000 for each of fiscal years 2006 

14 through 2010, to remain available until expended. 

Æ