II 

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. 
2 

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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: 

8 (1) ADMINISTRATOR.—The term ‘‘Adminis9 trator’’ means the Administrator of the Environ10 mental Protection Agency. 

11 (2) CERTIFIED ENGINE CONFIGURATION.—The 

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

13 rebuilt, or remanufactured engine configuration— 

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

15 (i) the Administrator; or 

16 (ii) the California Air Resources 

17 Board; 

18 (B) that meets or is rebuilt or remanufac19 tured to a more stringent set of engine emission 

20 standards, as determined by the Administrator; 

21 and 

22 (C) in the case of a certified engine con23 figuration involving the replacement of an exist24 ing engine or vehicle, an engine configuration 

25 that replaced an engine that was— 
3 

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1 (i) removed from the vehicle; and 

2 (ii) returned to the supplier for re3 manufacturing to a more stringent set of 

4 engine emissions standards or for 

5 scrappage. 

6 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti7 ty’’ means— 

8 (A) a regional, State, local, or tribal agen9 cy with jurisdiction over transportation or air 

10 quality; and 

11 (B) a nonprofit organization or institution 

12 that— 

13 (i) represents organizations that own 

14 or operate diesel fleets; or 

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

16 promotion of transportation or air quality. 

17 (4) EMERGING TECHNOLOGY.—The term 

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

19 not certified or verified by the Administrator or the 

20 California Air Resources Board but for which an ap21 provable application and test plan has been sub22 mitted for verification to the Administrator or the 

23 California Air Resources Board. 

24 (5) HEAVY-DUTY TRUCK.—The term ‘‘heavy25 duty truck’’ has the meaning given the term ‘‘heavy 
4 

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

2 (42 U.S.C. 7521). 

3 (6) MEDIUM-DUTY TRUCK.—The term ‘‘me4 dium-duty truck’’ has such meaning as shall be de5 termined by the Administrator, by regulation. 

6 (7) VERIFIED TECHNOLOGY.—The term 

7 ‘‘verified technology’’ means a pollution control tech8 nology, including a retrofit technology, that has been 

9 verified by— 

10 (A) the Administrator; or 

11 (B) the California Air Resources Board. 

12 SEC. 3. NATIONAL GRANT AND LOAN PROGRAMS. 

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

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

15 for each fiscal year to provide grants and low-cost revolv16 ing loans, as determined by the Administrator, on a com17 petitive basis, to eligible entities to achieve significant re18 ductions in diesel emissions in terms of— 

19 (1) tons of pollution produced; and 

20 (2) diesel emissions exposure, particularly from 

21 fleets operating in areas designated by the Adminis22 trator as poor air quality areas. 

23 (b) DISTRIBUTION.— 
5 

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1 (1) IN GENERAL.—The Administrator shall dis2 tribute funds made available for a fiscal year under 

3 this Act in accordance with this section. 

4 (2) FLEETS.—The Administrator shall provide 

5 not less than 50 percent of funds available for a fis6 cal year under this section to eligible entities for the 

7 benefit of public fleets. 

8 (3) ENGINE CONFIGURATIONS AND TECH9 NOLOGIES.— 

10 (A) CERTIFIED ENGINE CONFIGURATIONS

11 AND VERIFIED TECHNOLOGIES.—The Adminis12 trator shall provide not less than 90 percent of 

13 funds available for a fiscal year under this sec14 tion to eligible entities for projects using— 

15 (i) a certified engine configuration; or 

16 (ii) a verified technology. 

17 (B) EMERGING TECHNOLOGIES.— 

18 (i) IN GENERAL.—The Administrator 

19 shall provide not more than 10 percent of 

20 funds available for a fiscal year under this 

21 section to eligible entities for the develop22 ment and commercialization of emerging 

23 technologies. 

24 (ii) APPLICATION AND TEST PLAN.— 

25 To receive funds under clause (i), a manu-
6 

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1 facturer, in consultation with an eligible 

2 entity, shall submit for verification to the 

3 Administrator or the California Air Re4 sources Board a test plan for the emerging 

5 technology, together with the application 

6 under subsection (c). 

7 (c) APPLICATIONS.— 

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

9 under this section, an eligible entity shall submit to 

10 the Administrator an application at a time, in a 

11 manner, and including such information as the Ad12 ministrator may require. 

13 (2) INCLUSIONS.—An application under this 

14 subsection shall include— 

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

16 area served by the eligible entity; 

17 (B) the quantity of air pollution produced 

18 by the diesel fleet in the area served by the eli19 gible entity; 

20 (C) a description of the project proposed 

21 by the eligible entity, including— 

22 (i) any certified engine configuration, 

23 verified technology, or emerging technology 

24 to be used by the eligible entity; and 
7 

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1 (ii) the means by which the project 

2 will achieve a significant reduction in diesel 

3 emissions; 

4 (D) an evaluation (using methodology ap5 proved by the Administrator or the National 

6 Academy of Sciences) of the quantifiable and 

7 unquantifiable benefits of the emissions reduc8 tions of the proposed project; 

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

10 project; 

11 (F) a description of the age and expected 

12 lifetime control of the equipment used by the el13 igible entity; 

14 (G) a description of the diesel fuel avail15 able to the eligible entity, including the sulfur 

16 content of the fuel; and 

17 (H) provisions for the monitoring and 

18 verification of the project. 

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

20 under this section, the Administrator shall give pri21 ority to proposed projects that, as determined by the 

22 Administrator— 

23 (A) maximize public health benefits; 

24 (B) are the most cost-effective; 

25 (C) serve areas— 
8 

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1 (i) with the highest population den2 sity; 

3 (ii) that are poor air quality areas, in4 cluding areas identified by the Adminis5 trator as— 

6 (I) in nonattainment or mainte7 nance of national ambient air quality 

8 standards for a criteria pollutant; 

9 (II) Federal Class I areas; or 

10 (III) areas with toxic air pollut11 ant concerns; 

12 (iii) that receive a disproportionate 

13 quantity of air pollution from a diesel fleet, 

14 including ports, rail yards, and distribution 

15 centers; or 

16 (iv) that use a community-based 

17 multistakeholder collaborative process to 

18 reduce toxic emissions; 

19 (D) include a certified engine configura20 tion, verified technology, or emerging tech21 nology that has a long expected useful life; 

22 (E) will maximize the useful life of any ret23 rofit technology used by the eligible entity; and 
9 

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

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

3 the Administrator determines to be appropriate. 

4 (d) USE OF FUNDS.— 

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

6 grant or loan provided under this section to fund the 

7 costs of— 

8 (A) a retrofit technology (including any in9 cremental costs of a repowered or new diesel 

10 engine) that significantly reduces emissions 

11 through development and implementation of a 

12 certified engine configuration, verified tech13 nology, or emerging technology for— 

14 (i) a bus; 

15 (ii) a medium-duty truck or a heavy16 duty truck; 

17 (iii) a marine engine; 

18 (iv) a locomotive; or 

19 (v) a nonroad engine or vehicle used 

20 in— 

21 (I) construction; 

22 (II) handling of cargo (including 

23 at a port or airport); 

24 (III) agriculture; 

25 (IV) mining; or 
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1 (V) energy production; or 

2 (B) an idle-reduction program involving a 

3 vehicle or equipment described in subparagraph 

4 (A). 

5 (2) REGULATORY PROGRAMS.— 

6 (A) IN GENERAL.—Notwithstanding para7 graph (1), no grant or loan provided under this 

8 section shall be used to fund the costs of emis9 sions reductions that are mandated under Fed10 eral, State or local law. 

11 (B) MANDATED.—For purposes of sub12 paragraph (A), voluntary or elective emission 

13 reduction measures shall not be considered 

14 ‘‘mandated’’, regardless of whether the reduc15 tions are included in the State implementation 

16 plan of a State. 

17 SEC. 4. STATE GRANT AND LOAN PROGRAMS. 

18 (a) IN GENERAL.—Subject to the availability of ade19 quate appropriations, the Administrator shall use 30 per20 cent of the funds made available for a fiscal year under 

21 this Act to support grant and loan programs administered 

22 by States that are designed to achieve significant reduc23 tions in diesel emissions. 

24 (b) APPLICATIONS.—The Administrator shall— 
11 

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1 (1) provide to States guidance for use in apply2 ing for grant or loan funds under this section, in3 cluding information regarding— 

4 (A) the process and forms for applications; 

5 (B) permissible uses of funds received; and 

6 (C) the cost-effectiveness of various emis7 sion reduction technologies eligible to be carried 

8 out using funds provided under this section; 

9 and 

10 (2) establish, for applications described in para11 graph (1)— 

12 (A) an annual deadline for submission of 

13 the applications; 

14 (B) a process by which the Administrator 

15 shall approve or disapprove each application; 

16 and 

17 (C) a streamlined process by which a State 

18 may renew an application described in para19 graph (1) for subsequent fiscal years. 

20 (c) ALLOCATION OF FUNDS.— 

21 (1) IN GENERAL.—For each fiscal year, the Ad22 ministrator shall allocate among States for which 

23 applications are approved by the Administrator 

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

25 carry out this section for the fiscal year. 
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1 (2) ALLOCATION.—Using not more than 20 

2 percent of the funds made available to carry out this 

3 section for a fiscal year, the Administrator shall pro4 vide to each State described in paragraph (1) for the 

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

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

7 an allocation, an amount equal to 2 percent of 

8 the funds made available to carry out this sec9 tion; or 

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

11 allocation, an amount equal to the amount de12 scribed in subparagraph (A), plus an additional 

13 amount equal to the product obtained by multi14 plying— 

15 (i) the proportion that— 

16 (I) the population of the State; 

17 bears to 

18 (II) the population of all States 

19 described in paragraph (1); by 

20 (ii) the amount of funds remaining 

21 after each State described in paragraph (1) 

22 receives the 2-percent allocation under this 

23 paragraph. 

24 (3) STATE MATCHING INCENTIVE.— 
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1 (A) IN GENERAL.—If a State agrees to 

2 match the allocation provided to the State 

3 under paragraph (2) for a fiscal year, the Ad4 ministrator shall provide to the State for the 

5 fiscal year an additional amount equal to 50 

6 percent of the allocation of the State under 

7 paragraph (2). 

8 (B) REQUIREMENTS.—A State— 

9 (i) may not use funds received under 

10 this Act to pay a matching share required 

11 under this subsection; and 

12 (ii) shall not be required to provide a 

13 matching share for any additional amount 

14 received under subparagraph (A). 

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

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

17 subsection shall be used to carry out section 3. 

18 (d) ADMINISTRATION.— 

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

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

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

22 funds provided under this section to develop and im23 plement such grant and low-cost revolving loan pro24 grams in the State as are appropriate to meet State 
14 

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1 needs and goals relating to the reduction of diesel 

2 emissions. 

3 (2) APPORTIONMENT OF FUNDS.—The Gov4 ernor of a State that receives funding under this 

5 section may determine the portion of funds to be 

6 provided as grants or loans. 

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

8 under this section may be used for a project relating 

9 to— 

10 (A) a certified engine configuration; or 

11 (B) a verified technology. 

12 SEC. 5. EVALUATION AND REPORT. 

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

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

15 the Administrator shall submit to Congress a report evalu16 ating the implementation of the programs under this Act. 

17 (b) INCLUSIONS.—The report shall include a descrip18 tion of— 

19 (1) the total number of grant applications re20 ceived; 

21 (2) each grant or loan made under this Act, in22 cluding the amount of the grant or loan; 

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

24 provided under this Act, including the criteria used 

25 to select the grant or loan recipients; 
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1 (4) the estimated air quality benefits, cost-effec2 tiveness, and cost-benefits of the grant and loan pro3 grams under this Act; 

4 (5) the problems encountered by projects for 

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

6 and 

7 (6) any other information the Administrator 

8 considers to be appropriate. 

9 SEC. 6. OUTREACH AND INCENTIVES. 

10 (a) DEFINITION OF ELIGIBLE TECHNOLOGY.—In 

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

12 (1) a verified technology; or 

13 (2) an emerging technology. 

14 (b) TECHNOLOGY TRANSFER PROGRAM.— 

15 (1) IN GENERAL.—The Administrator shall es16 tablish a program under which the Administrator— 

17 (A) informs stakeholders of the benefits of 

18 eligible technologies; and 

19 (B) develops nonfinancial incentives to pro20 mote the use of eligible technologies. 

21 (2) ELIGIBLE STAKEHOLDERS.—Eligible stake22 holders under this section include— 

23 (A) equipment owners and operators; 

24 (B) emission control technology manufac25 turers; 
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1 (C) engine and equipment manufacturers; 

2 (D) State and local officials responsible for 

3 air quality management; 

4 (E) community organizations; and 

5 (F) public health and environmental orga6 nizations. 

7 (c) STATE IMPLEMENTATION PLANS.—The Adminis8 trator shall develop appropriate guidance to provide credit 

9 to a State for emission reductions in the State created 

10 by the use of eligible technologies through a State imple11 mentation plan under section 110 of the Clean Air Act 

12 (42 U.S.C. 7410). 

13 (d) INTERNATIONAL MARKETS.—The Administrator, 

14 in coordination with the Department of Commerce and in15 dustry stakeholders, shall inform foreign countries with 

16 air quality problems of the potential of technology devel17 oped or used in the United States to provide emission re18 ductions in those countries. 

19 SEC. 7. EFFECT OF ACT. 

20 Nothing in this Act affects any authority under the 

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

22 the day before the date of enactment of this Act. 
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1 SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 

2 There is authorized to be appropriated to carry out 

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

4 through 2010, to remain available until expended. 

5 SECTION 1. SHORT TITLE. 

6 This Act may be cited as the ‘‘Diesel Emissions Reduc7 tion Act of 2005’’. 

8 SEC. 2. DEFINITIONS. 

9 In this Act: 

10 (1) ADMINISTRATOR.—The term ‘‘Adminis11 trator’’ means the Administrator of the Environ12 mental Protection Agency. 

13 (2) CERTIFIED ENGINE CONFIGURATION.—The 

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

15 rebuilt, or remanufactured engine configuration— 

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

17 (i) the Administrator; or 

18 (ii) the California Air Resources 

19 Board; 

20 (B) that meets or is rebuilt or remanufac21 tured to a more stringent set of engine emission 

22 standards, as determined by the Administrator; 

23 and 

24 (C) in the case of a certified engine configu25 ration involving the replacement of an existing 
18 

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1 engine or vehicle, an engine configuration that 

2 replaced an engine that was— 

3 (i) removed from the vehicle; and 

4 (ii) returned to the supplier for re5 manufacturing to a more stringent set of 

6 engine emissions standards or for 

7 scrappage. 

8 (3) ELIGIBLE ENTITY.—The term ‘‘eligible enti9 ty’’ means— 

10 (A) a regional, State, local, or tribal agency 

11 or port authority with jurisdiction over trans12 portation or air quality; and 

13 (B) a nonprofit organization or institution 

14 that— 

15 (i) represents or provides pollution re16 duction or educational services to persons or 

17 organizations that own or operate diesel 

18 fleets; or 

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

20 promotion of transportation or air quality. 

21 (4) EMERGING TECHNOLOGY.—The term ‘‘emerg22 ing technology’’ means a technology that is not cer23 tified or verified by the Administrator or the Cali24 fornia Air Resources Board but for which an approv25 able application and test plan has been submitted for 
19 

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1 verification to the Administrator or the California 

2 Air Resources Board. 

3 (5) FLEET.—The term ‘‘fleet’’ means 1 or more 

4 diesel vehicles or mobile or stationary diesel engines. 

5 (6) HEAVY-DUTY TRUCK.—The term ‘‘heavy-duty 

6 truck’’ has the meaning given the term ‘‘heavy duty 

7 vehicle’’ in section 202 of the Clean Air Act (42 

8 U.S.C. 7521). 

9 (7) MEDIUM-DUTY TRUCK.—The term ‘‘medium10 duty truck’’ has such meaning as shall be determined 

11 by the Administrator, by regulation. 

12 (8) VERIFIED TECHNOLOGY.—The term ‘‘verified 

13 technology’’ means a pollution control technology (in14 cluding a retrofit technology), advanced truckstop 

15 electrification system, or auxiliary power unit that 

16 has been verified by— 

17 (A) the Administrator; or 

18 (B) the California Air Resources Board. 

19 SEC. 3. NATIONAL GRANT AND LOAN PROGRAMS. 

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

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

22 for each fiscal year to provide grants and low-cost revolving 

23 loans, as determined by the Administrator, on a competitive 

24 basis, to eligible entities to achieve significant reductions 

25 in diesel emissions in terms of— 
20 

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1 (1) tons of pollution produced; and 

2 (2) diesel emissions exposure, particularly from 

3 fleets operating in areas designated by the Adminis4 trator as poor air quality areas. 

5 (b) DISTRIBUTION.— 

6 (1) IN GENERAL.—The Administrator shall dis7 tribute funds made available for a fiscal year under 

8 this Act in accordance with this section. 

9 (2) FLEETS.—The Administrator shall provide 

10 not less than 50 percent of funds available for a fiscal 

11 year under this section to eligible entities for the ben12 efit of public fleets. 

13 (3) ENGINE CONFIGURATIONS AND TECH14 NOLOGIES.— 

15 (A) CERTIFIED ENGINE CONFIGURATIONS

16 AND VERIFIED TECHNOLOGIES.—The Adminis17 trator shall provide not less than 90 percent of 

18 funds available for a fiscal year under this sec19 tion to eligible entities for projects using— 

20 (i) a certified engine configuration; or 

21 (ii) a verified technology. 

22 (B) EMERGING TECHNOLOGIES.— 

23 (i) IN GENERAL.—The Administrator 

24 shall provide not more than 10 percent of 

25 funds available for a fiscal year under this 
21 

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1 section to eligible entities for the develop2 ment and commercialization of emerging 

3 technologies. 

4 (ii) APPLICATION AND TEST PLAN.—To 

5 receive funds under clause (i), a manufac6 turer, in consultation with an eligible enti7 ty, shall submit for verification to the Ad8 ministrator or the California Air Resources 

9 Board a test plan for the emerging tech10 nology, together with the application under 

11 subsection (c). 

12 (c) APPLICATIONS.— 

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

14 under this section, an eligible entity shall submit to 

15 the Administrator an application at a time, in a 

16 manner, and including such information as the Ad17 ministrator may require. 

18 (2) INCLUSIONS.—An application under this 

19 subsection shall include— 

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

21 area served by the eligible entity; 

22 (B) the quantity of air pollution produced 

23 by the diesel fleets in the area served by the eligi24 ble entity; 
22 

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1 (C) a description of the project proposed by 

2 the eligible entity, including— 

3 (i) any certified engine configuration, 

4 verified technology, or emerging technology 

5 to be used or funded by the eligible entity; 

6 and 

7 (ii) the means by which the project will 

8 achieve a significant reduction in diesel 

9 emissions; 

10 (D) an evaluation (using methodology ap11 proved by the Administrator or the National 

12 Academy of Sciences) of the quantifiable and 

13 unquantifiable benefits of the emissions reduc14 tions of the proposed project; 

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

16 project; 

17 (F) a description of the age and expected 

18 lifetime control of the equipment used or funded 

19 by the eligible entity; 

20 (G) a description of the diesel fuel available 

21 in the areas served by the eligible entity, includ22 ing the sulfur content of the fuel; and 

23 (H) provisions for the monitoring and 

24 verification of the project. 
23 

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

2 under this section, the Administrator shall give pri3 ority to proposed projects that, as determined by the 

4 Administrator— 

5 (A) maximize public health benefits; 

6 (B) are the most cost-effective; 

7 (C) serve areas— 

8 (i) with the highest population density; 

9 (ii) that are poor air quality areas, in10 cluding areas identified by the Adminis11 trator as— 

12 (I) in nonattainment or mainte13 nance of national ambient air quality 

14 standards for a criteria pollutant; 

15 (II) Federal Class I areas; or 

16 (III) areas with toxic air pollut17 ant concerns; 

18 (iii) that receive a disproportionate 

19 quantity of air pollution from diesel fleets, 

20 including ports, rail yards, truckstops, ter21 minals, and distribution centers; or 

22 (iv) that use a community-based multi23 stakeholder collaborative process to reduce 

24 toxic emissions; 
24 

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1 (D) include a certified engine configuration, 

2 verified technology, or emerging technology that 

3 has a long expected useful life; 

4 (E) will maximize the useful life of any cer5 tified engine configuration, verified technology, 

6 or emerging technology used by the eligible enti7 ty; 

8 (F) conserve diesel fuel; and 

9 (G) use diesel fuel with a sulfur content of 

10 less than or equal to 15 parts per million, as the 

11 Administrator determines to be appropriate. 

12 (d) USE OF FUNDS.— 

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

14 grant or loan provided under this section to fund the 

15 costs of— 

16 (A) a retrofit technology (including any in17 cremental costs of a repowered or new diesel en18 gine) that significantly reduces emissions 

19 through development and implementation of a 

20 certified engine configuration, verified tech21 nology, or emerging technology for— 

22 (i) a bus; 

23 (ii) a medium-duty truck or a heavy24 duty truck; 

25 (iii) a marine engine; 
25 

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1 (iv) a locomotive; or 

2 (v) a nonroad engine or vehicle used 

3 in— 

4 (I) construction; 

5 (II) handling of cargo (including 

6 at a port or airport); 

7 (III) agriculture; 

8 (IV) mining; or 

9 (V) energy production; or 

10 (B) programs or projects to reduce long-du11 ration idling using verified technology involving 

12 a vehicle or equipment described in subpara13 graph (A). 

14 (2) REGULATORY PROGRAMS.— 

15 (A) IN GENERAL.—Notwithstanding para16 graph (1), no grant or loan provided under this 

17 section shall be used to fund the costs of emis18 sions reductions that are mandated under Fed19 eral, State or local law. 

20 (B) MANDATED.—For purposes of subpara21 graph (A), voluntary or elective emission reduc22 tion measures shall not be considered ‘‘man23 dated’’, regardless of whether the reductions are 

24 included in the State implementation plan of a 

25 State. 
26 

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1 SEC. 4. STATE GRANT AND LOAN PROGRAMS. 

2 (a) IN GENERAL.—Subject to the availability of ade3 quate appropriations, the Administrator shall use 30 per4 cent of the funds made available for a fiscal year under 

5 this Act to support grant and loan programs administered 

6 by States that are designed to achieve significant reductions 

7 in diesel emissions. 

8 (b) APPLICATIONS.—The Administrator shall— 

9 (1) provide to States guidance for use in apply10 ing for grant or loan funds under this section, includ11 ing information regarding— 

12 (A) the process and forms for applications; 

13 (B) permissible uses of funds received; and 

14 (C) the cost-effectiveness of various emission 

15 reduction technologies eligible to be carried out 

16 using funds provided under this section; and 

17 (2) establish, for applications described in para18 graph (1)— 

19 (A) an annual deadline for submission of 

20 the applications; 

21 (B) a process by which the Administrator 

22 shall approve or disapprove each application; 

23 and 

24 (C) a streamlined process by which a State 

25 may renew an application described in para26 graph (1) for subsequent fiscal years. 
27 

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1 (c) ALLOCATION OF FUNDS.— 

2 (1) IN GENERAL.—For each fiscal year, the Ad3 ministrator shall allocate among States for which ap4 plications are approved by the Administrator under 

5 subsection (b)(2)(B) funds made available to carry 

6 out this section for the fiscal year. 

7 (2) ALLOCATION.—Using not more than 20 per8 cent of the funds made available to carry out this Act 

9 for a fiscal year, the Administrator shall provide to 

10 each State described in paragraph (1) for the fiscal 

11 year an allocation of funds that is equal to— 

12 (A) if each of the 50 States qualifies for an 

13 allocation, an amount equal to 2 percent of the 

14 funds made available to carry out this section; or 

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

16 allocation, an amount equal to the amount de17 scribed in subparagraph (A), plus an additional 

18 amount equal to the product obtained by multi19 plying— 

20 (i) the proportion that— 

21 (I) the population of the State; 

22 bears to 

23 (II) the population of all States 

24 described in paragraph (1); by 
28 

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1 (ii) the amount of funds remaining 

2 after each State described in paragraph (1) 

3 receives the 2-percent allocation under this 

4 paragraph. 

5 (3) STATE MATCHING INCENTIVE.— 

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

7 match the allocation provided to the State under 

8 paragraph (2) for a fiscal year, the Adminis9 trator shall provide to the State for the fiscal 

10 year an additional amount equal to 50 percent 

11 of the allocation of the State under paragraph 

12 (2). 

13 (B) REQUIREMENTS.—A State— 

14 (i) may not use funds received under 

15 this Act to pay a matching share required 

16 under this subsection; and 

17 (ii) shall not be required to provide a 

18 matching share for any additional amount 

19 received under subparagraph (A). 

20 (4) UNCLAIMED FUNDS.—Any funds that are not 

21 claimed by a State for a fiscal year under this sub22 section shall be used to carry out section 3. 

23 (d) ADMINISTRATION.— 

24 (1) IN GENERAL.—Subject to paragraphs (2) and 

25 (3) and, to the extent practicable, the priority areas 
29 

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1 listed in section 3(c)(3), a State shall use any funds 

2 provided under this section to develop and implement 

3 such grant and low-cost revolving loan programs in 

4 the State as are appropriate to meet State needs and 

5 goals relating to the reduction of diesel emissions. 

6 (2) APPORTIONMENT OF FUNDS.—The Governor 

7 of a State that receives funding under this section 

8 may determine the portion of funds to be provided as 

9 grants or loans. 

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

11 under this section may be used for a project relating 

12 to— 

13 (A) a certified engine configuration; or 

14 (B) a verified technology. 

15 SEC. 5. EVALUATION AND REPORT. 

16 (a) IN GENERAL.—Not later than 1 year after the date 

17 on which funds are made first available under this Act, and 

18 biennially thereafter, the Administrator shall submit to 

19 Congress a report evaluating the implementation of the pro20 grams under this Act. 

21 (b) INCLUSIONS.—The report shall include a descrip22 tion of— 

23 (1) the total number of grant applications re24 ceived; 
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1 (2) each grant or loan made under this Act, in2 cluding the amount of the grant or loan; 

3 (3) each project for which a grant or loan is pro4 vided under this Act, including the criteria used to se5 lect the grant or loan recipients; 

6 (4) the actual and estimated air quality and die7 sel fuel conservation benefits, cost-effectiveness, and 

8 cost-benefits of the grant and loan programs under 

9 this Act; 

10 (5) the problems encountered by projects for 

11 which a grant or loan is provided under this Act; and 

12 (6) any other information the Administrator 

13 considers to be appropriate. 

14 SEC. 6. OUTREACH AND INCENTIVES. 

15 (a) DEFINITION OF ELIGIBLE TECHNOLOGY.—In this 

16 section, the term ‘‘eligible technology’’ means— 

17 (1) a verified technology; or 

18 (2) an emerging technology. 

19 (b) TECHNOLOGY TRANSFER PROGRAM.— 

20 (1) IN GENERAL.—The Administrator shall es21 tablish a program under which the Administrator— 

22 (A) informs stakeholders of the benefits of el23 igible technologies; and 

24 (B) develops nonfinancial incentives to pro25 mote the use of eligible technologies. 
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1 (2) ELIGIBLE STAKEHOLDERS.—Eligible stake2 holders under this section include— 

3 (A) equipment owners and operators; 

4 (B) emission and pollution control tech5 nology manufacturers; 

6 (C) engine and equipment manufacturers; 

7 (D) State and local officials responsible for 

8 air quality management; 

9 (E) community organizations; and 

10 (F) public health, educational, and environ11 mental organizations. 

12 (c) STATE IMPLEMENTATION PLANS.—The Adminis13 trator shall develop appropriate guidance to provide credit 

14 to a State for emission reductions in the State created by 

15 the use of eligible technologies through a State implementa16 tion plan under section 110 of the Clean Air Act (42 U.S.C. 

17 7410). 

18 (d) INTERNATIONAL MARKETS.—The Administrator, 

19 in coordination with the Department of Commerce and in20 dustry stakeholders, shall inform foreign countries with air 

21 quality problems of the potential of technology developed or 

22 used in the United States to provide emission reductions 

23 in those countries. 
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1 SEC. 7. EFFECT OF ACT. 

2 Nothing in this Act affects any authority under the 

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

4 day before the date of enactment of this Act. 

5 SEC. 8. AUTHORIZATION OF APPROPRIATIONS. 

6 There is authorized to be appropriated to carry out 

7 this Act $200,000,000 for each of fiscal years 2007 through 

8 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 

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

SEPTEMBER 7, 2005 

Reported with an amendment