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

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Diesel Emissions Reduction Act of 
2010''.
SEC. 2. DIESEL EMISSIONS REDUCTION PROGRAM.
    (a) Definitions.--Section 791 of the Energy Policy Act of 2005 (42 
U.S.C. 16131) is amended--
        (1) in paragraph (3)--
            (A) in subparagraph (A), by striking ``and'' at the end;
            (B) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following:
            ``(C) any private individual or entity that--
                ``(i) is the owner of record of a diesel vehicle or 
            fleet operated pursuant to a contract, license, or lease 
            with a Federal department or agency or an entity described 
            in subparagraph (A); and
                ``(ii) meets such timely and appropriate requirements 
            as the Administrator may establish for vehicle use and for 
            notice to and approval by the Federal department or agency 
            or entity described in subparagraph (A) with respect to 
            which the owner has entered into a contract, license, or 
            lease as described in clause (i).'';
        (2) in paragraph (4), by inserting ``currently, or has not been 
    previously,'' after ``that is not'';
        (3) by striking paragraph (9);
        (4) by redesignating paragraph (8) as paragraph (9);
        (5) in paragraph (9) (as so redesignated), in the matter 
    preceding subparagraph (A), by striking ``, advanced truckstop 
    electrification system,''; and
        (6) by inserting after paragraph (7) the following:
        ``(8) State.--The term `State' means the several States, the 
    District of Columbia, the Commonwealth of Puerto Rico, Guam, the 
    United States Virgin Islands, American Samoa, and the Commonwealth 
    of the Northern Mariana Islands.''.
    (b) National Grant, Rebate, and Loan Programs.--Section 792 of the 
Energy Policy Act of 2005 (42 U.S.C. 16132) is amended--
        (1) in the section heading, by inserting ``, rebate,'' after 
    ``grant'';
        (2) in subsection (a)--
            (A) in the matter preceding paragraph (1), by striking ``to 
        provide grants and low-cost revolving loans, as determined by 
        the Administrator, on a competitive basis, to eligible 
        entities'' and inserting ``to provide grants, rebates, or low-
        cost revolving loans, as determined by the Administrator, on a 
        competitive basis, to eligible entities, including through 
        contracts entered into under subsection (e) of this section,''; 
        and
            (B) in paragraph (1), by striking ``tons of'';
        (3) in subsection (b)--
            (A) by striking paragraph (2);
            (B) by redesignating paragraph (3) as paragraph (2); and
            (C) in paragraph (2) (as so redesignated)--
                (i) in subparagraph (A), in the matter preceding clause 
            (i), by striking ``90'' and inserting ``95'';
                (ii) in subparagraph (B)(i), by striking ``10 percent'' 
            and inserting ``5 percent''; and
                (iii) in subparagraph (B)(ii), by striking ``the 
            application under subsection (c)'' and inserting ``a 
            verification application'';
        (4) in subsection (c)--
            (A) by redesignating paragraphs (2) and (3) as paragraphs 
        (3) and (4), respectively;
            (B) by striking paragraph (1) and inserting the following:
        ``(1) Expedited process.--
            ``(A) In general.--The Administrator shall develop a 
        simplified application process for all applicants under this 
        section to expedite the provision of funds.
            ``(B) Requirements.--In developing the expedited process 
        under subparagraph (A), the Administrator--
                ``(i) shall take into consideration the special 
            circumstances affecting small fleet owners; and
                ``(ii) to avoid duplicative procedures, may require 
            applicants to include in an application under this section 
            the results of a competitive bidding process for equipment 
            and installation.
        ``(2) Eligibility.--
            ``(A) Grants.--To be eligible to receive a grant under this 
        section, an eligible entity shall submit to the Administrator 
        an application at such time, in such manner, and containing 
        such information as the Administrator may require.
            ``(B) Rebates and low-cost loans.--To be eligible to 
        receive a rebate or a low-cost loan under this section, an 
        eligible entity shall submit an application in accordance with 
        such guidance as the Administrator may establish--
                ``(i) to the Administrator; or
                ``(ii) to an entity that has entered into a contract 
            under subsection (e).'';
            (C) in paragraph (3)(G) (as redesignated by subparagraph 
        (A)), by inserting ``in the case of an application relating to 
        nonroad engines or vehicles,'' before ``a description of the 
        diesel''; and
            (D) in paragraph (4) (as redesignated by subparagraph 
        (A))--
                (i) in the matter preceding subparagraph (A)--

                    (I) by inserting ``, rebate,'' after ``grant''; and
                    (II) by inserting ``highest'' after ``shall give'';

                (ii) in subparagraph (C)(iii)--

                    (I) by striking ``a diesel fleets'' and inserting 
                ``diesel fleets''; and
                    (II) by inserting ``construction sites, schools,'' 
                after ``terminals,'';

                (iii) in subparagraph (E), by adding ``and'' at the 
            end;
                (iv) in subparagraph (F), by striking ``; and'' and 
            inserting a period; and
                (v) by striking subparagraph (G);
        (5) in subsection (d)--
            (A) in paragraph (1), in the matter preceding subparagraph 
        (A), by inserting ``, rebate,'' after ``grant''; and
            (B) in paragraph (2)(A)--
                (i) by striking ``grant or loan provided'' and 
            inserting ``grant, rebate, or loan provided, or contract 
            entered into,''; and
                (ii) by striking ``Federal, State or local law'' and 
            inserting ``any Federal law, except that this subparagraph 
            shall not apply to a mandate in a State implementation plan 
            approved by the Administrator under the Clean Air Act''; 
            and
        (6) by adding at the end the following:
    ``(e) Contract Programs.--
        ``(1) Authority.--In addition to the use of contracting 
    authority otherwise available to the Administrator, the 
    Administrator may enter into contracts with eligible contractors 
    described in paragraph (2) for the administration of programs for 
    providing rebates or loans, subject to the requirements of this 
    subtitle.
        ``(2) Eligible contractors.--The Administrator may enter into a 
    contract under this subsection with a for-profit or nonprofit 
    entity that has the capacity--
            ``(A) to sell diesel vehicles or equipment to, or to 
        arrange financing for, individuals or entities that own a 
        diesel vehicle or fleet; or
            ``(B) to upgrade diesel vehicles or equipment with verified 
        or Environmental Protection Agency-certified engines or 
        technologies, or to arrange financing for such upgrades.
    ``(f) Public Notification.--Not later than 60 days after the date 
of the award of a grant, rebate, or loan, the Administrator shall 
publish on the website of the Environmental Protection Agency--
        ``(1) for rebates and loans provided to the owner of a diesel 
    vehicle or fleet, the total number and dollar amount of rebates or 
    loans provided, as well as a breakdown of the technologies funded 
    through the rebates or loans; and
        ``(2) for other rebates and loans, and for grants, a 
    description of each application for which the grant, rebate, or 
    loan is provided.''.
    (c) State Grant, Rebate, and Loan Programs.--Section 793 of the 
Energy Policy Act of 2005 (42 U.S.C. 16133) is amended--
        (1) in the section heading, by inserting ``, rebate,'' after 
    ``grant'';
        (2) in subsection (a), by inserting ``, rebate,'' after 
    ``grant'';
        (3) in subsection (b)(1), by inserting ``, rebate,'' after 
    ``grant'';
        (4) by amending subsection (c)(2) to read as follows:
        ``(2) Allocation.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), using not more than 20 percent of the funds made 
        available to carry out this subtitle for a fiscal year, the 
        Administrator shall provide to each State qualified for an 
        allocation for the fiscal year an allocation equal to \1/53\ of 
        the funds made available for that fiscal year for distribution 
        to States under this paragraph.
            ``(B) Certain territories.--
                ``(i) In general.--Except as provided in clause (ii), 
            Guam, the United States Virgin Islands, American Samoa, and 
            the Commonwealth of the Northern Mariana Islands shall 
            collectively receive an allocation equal to \1/53\ of the 
            funds made available for that fiscal year for distribution 
            to States under this subsection, divided equally among 
            those 4 States.
                ``(ii) Exception.--If any State described in clause (i) 
            does not qualify for an allocation under this paragraph, 
            the share of funds otherwise allocated for that State under 
            clause (i) shall be reallocated pursuant to subparagraph 
            (C).
            ``(C) Reallocation.--If any State does not qualify for an 
        allocation under this paragraph, the share of funds otherwise 
        allocated for that State under this paragraph shall be 
        reallocated to each remaining qualified State in an amount 
        equal to the product obtained by multiplying--
                ``(i) the proportion that the population of the State 
            bears to the population of all States described in 
            paragraph (1); by
                ``(ii) the amount otherwise allocatable to the 
            nonqualifying State under this paragraph.'';
        (5) in subsection (d)--
            (A) in paragraph (1), by inserting ``, rebate,'' after 
        ``grant'';
            (B) in paragraph (2), by inserting ``, rebates,'' after 
        ``grants'';
            (C) in paragraph (3), in the matter preceding subparagraph 
        (A), by striking ``grant or loan provided under this section 
        may be used'' and inserting ``grant, rebate, or loan provided 
        under this section shall be used''; and
            (D) by adding at the end the following:
        ``(4) Priority.--In providing grants, rebates, and loans under 
    this section, a State shall use the priorities in section 
    792(c)(4).
        ``(5) Public notification.--Not later than 60 days after the 
    date of the award of a grant, rebate, or loan by a State, the State 
    shall publish on the Web site of the State--
            ``(A) for rebates, grants, and loans provided to the owner 
        of a diesel vehicle or fleet, the total number and dollar 
        amount of rebates, grants, or loans provided, as well as a 
        breakdown of the technologies funded through the rebates, 
        grants, or loans; and
            ``(B) for other rebates, grants, and loans, a description 
        of each application for which the grant, rebate, or loan is 
        provided.''.
    (d) Evaluation and Report.--Section 794(b) of the Energy Policy Act 
of 2005 (42 U.S.C. 16134(b)) is amended--
        (1) in each of paragraphs (2) through (5) by inserting ``, 
    rebate,'' after ``grant'' each place it appears;
        (2) in paragraph (5), by striking ``and'' at the end;
        (3) in paragraph (6), by striking the period at the end and 
    inserting ``; and''; and
        (4) by adding at the end the following new paragraph:
        ``(7) in the last report sent to Congress before January 1, 
    2016, an analysis of the need to continue the program, including an 
    assessment of the size of the vehicle and engine fleet that could 
    provide benefits from being retrofit under this program and a 
    description of the number and types of applications that were not 
    granted in the preceding year.''.
    (e) Authorization of Appropriations.--Section 797 of the Energy 
Policy Act of 2005 (42 U.S.C. 16137) is amended to read as follows:
    ``SEC. 797. AUTHORIZATION OF APPROPRIATIONS.
    ``(a) In General.--There is authorized to be appropriated to carry 
out this subtitle $100,000,000 for each of fiscal years 2012 through 
2016, to remain available until expended.
    ``(b) Management and Oversight.--The Administrator may use not more 
than 1 percent of the amounts made available under subsection (a) for 
each fiscal year for management and oversight purposes.''.
SEC. 3. AUDIT.
    (a) In General.--Not later than 360 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall carry out an audit to identify--
        (1) all Federal mobile source clean air grant, rebate, or low 
    cost revolving loan programs under the authority of the 
    Administrator of the Environmental Protection Agency, the Secretary 
    of Transportation, or other relevant Federal agency heads that are 
    designed to address diesel emissions from, or reduce diesel fuel 
    usage by, diesel engines and vehicles; and
        (2) whether, and to what extent, duplication or overlap among, 
    or gaps between, these Federal mobile source clean air programs 
    exists.
    (b) Report.--The Comptroller General of the United States shall--
        (1) submit to the Committee on Environment and Public Works of 
    the Senate and the Committee on Energy and Commerce of the House of 
    Representatives a copy of the audit under subsection (a); and
        (2) make a copy of the audit under subsection (a) available on 
    a publicly accessible Internet site.
    (c) Offset.--All unobligated amounts provided to carry out the 
pilot program under title I of division G of the Omnibus Appropriations 
Act, 2009 (Public Law 111-8; 123 Stat. 814) under the heading 
``miscellaneous items'' are rescinded.
SEC. 4. EFFECTIVE DATE.
    (a) General Rule.--Except as provided in subsection (b), the 
amendments made by section 2 shall take effect on October 1, 2011.
    (b) Exception.--The amendments made by subsections (a)(4) and (6) 
and (c)(4) of section 2 shall take effect on the date of enactment of 
this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

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

Includes among entities eligible to receive funding for reducing diesel emissions any private individual or entity that: (1) is the owner of a diesel vehicle or fleet operated pursuant to a contract, license, or lease with a federal agency or a regional, state, local, or tribal agency or port authority with jurisdiction over transportation or air quality; and (2) meets such requirements as the Administrator may establish for vehicle use and for notice to and approval by such agency with respect to a contract, license, or lease.

Redefines "emerging technology" to mean a technology which is not or has not been certified or verified by, but for which an approved application and test plan has been submitted to, the Administrator or the California Air Resources Board.

Includes Puerto Rico, Guam, the Virgin Islands, American Samoa, and the Northern Mariana Islands within the meaning of "state" along with states and the District of Columbia.

Revises provisions concerning the distribution and use of funds and applications for such funding. Requires the Administrator to develop a simplified application process for applicants to expedite the provision of funds. Requires each state to give priority to projects that meet specified criteria. Requires the Administrator and each state to publish on its website the total number and dollar amount of rebates and loans provided, as well as a breakdown of the technologies funded and a description of each application for which a grant or loan is provided.

Requires the Administrator to include in a report on the implementation of such program sent to Congress before January 1, 2016, an analysis of the need to continue the program, including an assessment of the size of the vehicle and engine fleet that could provide benefits from being retrofitted under this program and a description of the number and types of applications that were not granted in the preceding year.

Requires the Comptroller General to carry out and report on an audit to identify: (1) all federal mobile source clean air grant, rebate, or low cost revolving loan programs under the authority of the Administrator, the Secretary of Transportation, or other relevant federal agency heads that are designed to address diesel emissions from, or reduce diesel fuel usage by, diesel engines and vehicles; and (2) duplication or overlap among, or gaps between, federal mobile source clean air programs.

Rescinds all unobligated amounts provided to carry out the pilot program for mailings of postal patron postcards by Senators for the purpose of providing notice of town meetings the Senator will attend.