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

                                                       Calendar No. 202
109th CONGRESS
  1st Session
                                S. 1265

                          [Report No. 109-133]

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, Mr. Jeffords, Mr. DeWine, Mr. 
   Lautenberg, Mr. Obama, Mr. Stevens, Mr. Levin, Ms. Murkowski, Mr. 
  Salazar, Mr. Alexander, Mr. Lieberman, Mr. Chafee, Mr. DeMint, Mrs. 
    Boxer, Mr. Lugar, Mr. Cornyn, and Ms. Landrieu) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Environment and Public Works

                           September 7, 2005

               Reported by Mr. Inhofe, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Diesel Emissions Reduction 
Act of 2005''.</DELETED>

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Administrator.--The term ``Administrator'' 
        means the Administrator of the Environmental Protection 
        Agency.</DELETED>
        <DELETED>    (2) Certified engine configuration.--The term 
        ``certified engine configuration'' means a new, rebuilt, or 
        remanufactured engine configuration--</DELETED>
                <DELETED>    (A) that has been certified or verified 
                by--</DELETED>
                        <DELETED>    (i) the Administrator; 
                        or</DELETED>
                        <DELETED>    (ii) the California Air Resources 
                        Board;</DELETED>
                <DELETED>    (B) that meets or is rebuilt or 
                remanufactured to a more stringent set of engine 
                emission standards, as determined by the Administrator; 
                and</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) removed from the vehicle; 
                        and</DELETED>
                        <DELETED>    (ii) returned to the supplier for 
                        remanufacturing to a more stringent set of 
                        engine emissions standards or for 
                        scrappage.</DELETED>
        <DELETED>    (3) Eligible entity.--The term ``eligible entity'' 
        means--</DELETED>
                <DELETED>    (A) a regional, State, local, or tribal 
                agency with jurisdiction over transportation or air 
                quality; and</DELETED>
                <DELETED>    (B) a nonprofit organization or 
                institution that--</DELETED>
                        <DELETED>    (i) represents organizations that 
                        own or operate diesel fleets; or</DELETED>
                        <DELETED>    (ii) has, as its principal 
                        purpose, the promotion of transportation or air 
                        quality.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (6) Medium-duty truck.--The term ``medium-duty 
        truck'' has such meaning as shall be determined by the 
        Administrator, by regulation.</DELETED>
        <DELETED>    (7) Verified technology.--The term ``verified 
        technology'' means a pollution control technology, including a 
        retrofit technology, that has been verified by--</DELETED>
                <DELETED>    (A) the Administrator; or</DELETED>
                <DELETED>    (B) the California Air Resources 
                Board.</DELETED>

<DELETED>SEC. 3. NATIONAL GRANT AND LOAN PROGRAMS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) tons of pollution produced; and</DELETED>
        <DELETED>    (2) diesel emissions exposure, particularly from 
        fleets operating in areas designated by the Administrator as 
        poor air quality areas.</DELETED>
<DELETED>    (b) Distribution.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall 
        distribute funds made available for a fiscal year under this 
        Act in accordance with this section.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Engine configurations and technologies.--
        </DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) a certified engine 
                        configuration; or</DELETED>
                        <DELETED>    (ii) a verified 
                        technology.</DELETED>
                <DELETED>    (B) Emerging technologies.--</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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).</DELETED>
<DELETED>    (c) Applications.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Inclusions.--An application under this 
        subsection shall include--</DELETED>
                <DELETED>    (A) a description of the air quality of 
                the area served by the eligible entity;</DELETED>
                <DELETED>    (B) the quantity of air pollution produced 
                by the diesel fleet in the area served by the eligible 
                entity;</DELETED>
                <DELETED>    (C) a description of the project proposed 
                by the eligible entity, including--</DELETED>
                        <DELETED>    (i) any certified engine 
                        configuration, verified technology, or emerging 
                        technology to be used by the eligible entity; 
                        and</DELETED>
                        <DELETED>    (ii) the means by which the 
                        project will achieve a significant reduction in 
                        diesel emissions;</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (E) an estimate of the cost of the 
                proposed project;</DELETED>
                <DELETED>    (F) a description of the age and expected 
                lifetime control of the equipment used by the eligible 
                entity;</DELETED>
                <DELETED>    (G) a description of the diesel fuel 
                available to the eligible entity, including the sulfur 
                content of the fuel; and</DELETED>
                <DELETED>    (H) provisions for the monitoring and 
                verification of the project.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) maximize public health 
                benefits;</DELETED>
                <DELETED>    (B) are the most cost-effective;</DELETED>
                <DELETED>    (C) serve areas--</DELETED>
                        <DELETED>    (i) with the highest population 
                        density;</DELETED>
                        <DELETED>    (ii) that are poor air quality 
                        areas, including areas identified by the 
                        Administrator as--</DELETED>
                                <DELETED>    (I) in nonattainment or 
                                maintenance of national ambient air 
                                quality standards for a criteria 
                                pollutant;</DELETED>
                                <DELETED>    (II) Federal Class I 
                                areas; or</DELETED>
                                <DELETED>    (III) areas with toxic air 
                                pollutant concerns;</DELETED>
                        <DELETED>    (iii) that receive a 
                        disproportionate quantity of air pollution from 
                        a diesel fleet, including ports, rail yards, 
                        and distribution centers; or</DELETED>
                        <DELETED>    (iv) that use a community-based 
                        multistakeholder collaborative process to 
                        reduce toxic emissions;</DELETED>
                <DELETED>    (D) include a certified engine 
                configuration, verified technology, or emerging 
                technology that has a long expected useful 
                life;</DELETED>
                <DELETED>    (E) will maximize the useful life of any 
                retrofit technology used by the eligible entity; 
                and</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (d) Use of Funds.--</DELETED>
        <DELETED>    (1) In general.--An eligible entity may use a 
        grant or loan provided under this section to fund the costs 
        of--</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) a bus;</DELETED>
                        <DELETED>    (ii) a medium-duty truck or a 
                        heavy-duty truck;</DELETED>
                        <DELETED>    (iii) a marine engine;</DELETED>
                        <DELETED>    (iv) a locomotive; or</DELETED>
                        <DELETED>    (v) a nonroad engine or vehicle 
                        used in--</DELETED>
                                <DELETED>    (I) 
                                construction;</DELETED>
                                <DELETED>    (II) handling of cargo 
                                (including at a port or 
                                airport);</DELETED>
                                <DELETED>    (III) 
                                agriculture;</DELETED>
                                <DELETED>    (IV) mining; or</DELETED>
                                <DELETED>    (V) energy production; 
                                or</DELETED>
                <DELETED>    (B) an idle-reduction program involving a 
                vehicle or equipment described in subparagraph 
                (A).</DELETED>
        <DELETED>    (2) Regulatory programs.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>

<DELETED>SEC. 4. STATE GRANT AND LOAN PROGRAMS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Applications.--The Administrator shall--</DELETED>
        <DELETED>    (1) provide to States guidance for use in applying 
        for grant or loan funds under this section, including 
        information regarding--</DELETED>
                <DELETED>    (A) the process and forms for 
                applications;</DELETED>
                <DELETED>    (B) permissible uses of funds received; 
                and</DELETED>
                <DELETED>    (C) the cost-effectiveness of various 
                emission reduction technologies eligible to be carried 
                out using funds provided under this section; 
                and</DELETED>
        <DELETED>    (2) establish, for applications described in 
        paragraph (1)--</DELETED>
                <DELETED>    (A) an annual deadline for submission of 
                the applications;</DELETED>
                <DELETED>    (B) a process by which the Administrator 
                shall approve or disapprove each application; 
                and</DELETED>
                <DELETED>    (C) a streamlined process by which a State 
                may renew an application described in paragraph (1) for 
                subsequent fiscal years.</DELETED>
<DELETED>    (c) Allocation of Funds.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) the proportion that--
                        </DELETED>
                                <DELETED>    (I) the population of the 
                                State; bears to</DELETED>
                                <DELETED>    (II) the population of all 
                                States described in paragraph (1); 
                                by</DELETED>
                        <DELETED>    (ii) the amount of funds remaining 
                        after each State described in paragraph (1) 
                        receives the 2-percent allocation under this 
                        paragraph.</DELETED>
        <DELETED>    (3) State matching incentive.--</DELETED>
                <DELETED>    (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).</DELETED>
                <DELETED>    (B) Requirements.--A State--</DELETED>
                        <DELETED>    (i) may not use funds received 
                        under this Act to pay a matching share required 
                        under this subsection; and</DELETED>
                        <DELETED>    (ii) shall not be required to 
                        provide a matching share for any additional 
                        amount received under subparagraph 
                        (A).</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Administration.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Use of funds.--A grant or loan provided under 
        this section may be used for a project relating to--</DELETED>
                <DELETED>    (A) a certified engine configuration; 
                or</DELETED>
                <DELETED>    (B) a verified technology.</DELETED>

<DELETED>SEC. 5. EVALUATION AND REPORT.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Inclusions.--The report shall include a description 
of--</DELETED>
        <DELETED>    (1) the total number of grant applications 
        received;</DELETED>
        <DELETED>    (2) each grant or loan made under this Act, 
        including the amount of the grant or loan;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (4) the estimated air quality benefits, cost-
        effectiveness, and cost-benefits of the grant and loan programs 
        under this Act;</DELETED>
        <DELETED>    (5) the problems encountered by projects for which 
        a grant or loan is provided under this Act; and</DELETED>
        <DELETED>    (6) any other information the Administrator 
        considers to be appropriate.</DELETED>

<DELETED>SEC. 6. OUTREACH AND INCENTIVES.</DELETED>

<DELETED>    (a) Definition of Eligible Technology.--In this section, 
the term ``eligible technology'' means--</DELETED>
        <DELETED>    (1) a verified technology; or</DELETED>
        <DELETED>    (2) an emerging technology.</DELETED>
<DELETED>    (b) Technology Transfer Program.--</DELETED>
        <DELETED>    (1) In general.--The Administrator shall establish 
        a program under which the Administrator--</DELETED>
                <DELETED>    (A) informs stakeholders of the benefits 
                of eligible technologies; and</DELETED>
                <DELETED>    (B) develops nonfinancial incentives to 
                promote the use of eligible technologies.</DELETED>
        <DELETED>    (2) Eligible stakeholders.--Eligible stakeholders 
        under this section include--</DELETED>
                <DELETED>    (A) equipment owners and 
                operators;</DELETED>
                <DELETED>    (B) emission control technology 
                manufacturers;</DELETED>
                <DELETED>    (C) engine and equipment 
                manufacturers;</DELETED>
                <DELETED>    (D) State and local officials responsible 
                for air quality management;</DELETED>
                <DELETED>    (E) community organizations; and</DELETED>
                <DELETED>    (F) public health and environmental 
                organizations.</DELETED>
<DELETED>    (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).</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 7. EFFECT OF ACT.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 8. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    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.</DELETED>

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 or 
                port authority with jurisdiction over transportation or 
                air quality; and
                    (B) a nonprofit organization or institution that--
                            (i) represents or provides pollution 
                        reduction or educational services to persons or 
                        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) Fleet.--The term ``fleet'' means 1 or more diesel 
        vehicles or mobile or stationary diesel engines.
            (6) 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).
            (7) Medium-duty truck.--The term ``medium-duty truck'' has 
        such meaning as shall be determined by the Administrator, by 
        regulation.
            (8) Verified technology.--The term ``verified technology'' 
        means a pollution control technology (including a retrofit 
        technology), advanced truckstop electrification system, or 
        auxiliary power unit 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 fleets 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 or funded 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 or funded by the eligible 
                entity;
                    (G) a description of the diesel fuel available in 
                the areas served by 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 diesel fleets, 
                        including ports, rail yards, truckstops, 
                        terminals, 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 certified 
                engine configuration, verified technology, or emerging 
                technology used by the eligible entity;
                    (F) conserve diesel fuel; and
                    (G) 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) programs or projects to reduce long-duration 
                idling using verified technology 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 Act 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 1 year after the date on which 
funds are made first available under 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 actual and estimated air quality and diesel fuel 
        conservation 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 and pollution 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, educational, 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 2007 through 2011, to remain 
available until expended.
                                                       Calendar No. 202

109th CONGRESS

  1st Session

                                S. 1265

                          [Report No. 109-133]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 7, 2005

                       Reported with an amendment
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