Title: WHERA Act
Policy area: Environmental Protection

Summary:
Wood Heaters Emissions Reduction Act of 2018 or the WHERA Act
This bill requires the Environmental Protection Agency to establish a grant program to provide funding for programs designed to incentivize homeowners to replace old wood heaters with more efficient, cleaner-burning heaters.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3779 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3779

 To establish a voluntary program that strengthens the economy, public 
health, and environment of the United States by reducing emissions from 
                 wood heaters, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 19, 2018

  Mr. Carper (for himself and Ms. Murkowski) introduced the following 
bill; which was read twice and referred to the Committee on Environment 
                            and Public Works

_______________________________________________________________________

                                 A BILL


 
 To establish a voluntary program that strengthens the economy, public 
health, and environment of the United States by reducing emissions from 
                 wood heaters, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wood Heaters Emissions Reduction Act 
of 2018'' or the ``WHERA Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Affected wood heater model.--The term ``affected wood 
        heater model'' means a model of wood heater described in--
                    (A) section 60.530(a) of title 40, Code of Federal 
                Regulations (or a successor regulation); and
                    (B) subsections (a) and (b) of section 60.5472 of 
                that title.
            (3) EPA-certified step 2 wood heater.--The term ``EPA-
        certified Step 2 wood heater'' means a wood heater that--
                    (A) has been certified or verified by the 
                Administrator;
                    (B) meets or exceeds the Step 2 emission reductions 
                standards described in the Final Rule; and
                    (C) is installed by a licensed or certified 
                professional or verified by the State in which the wood 
                heater is being installed.
            (4) Final rule.--The term ``Final Rule'' means the final 
        rule entitled ``Standards of Performance for New Residential 
        Wood Heaters, New Residential Hydronic Heaters and Forced-Air 
        Furnaces'' (80 Fed. Reg. 13672 (March 16, 2015)).
            (5) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (6) Regional agency.--The term ``regional agency'' means 
        any regional or local government agency with jurisdiction over 
        air quality.
            (7) Replacement of an old wood heater.--The term 
        ``replacement of an old wood heater'' means the replacement of 
        an existing wood heater that--
                    (A) does not meet the reductions standards 
                described in paragraph (3)(B);
                    (B) is removed from a home or building in which the 
                wood heater was the primary or secondary source of 
                heat; and
                    (C) is surrendered to a supplier, retailer, or 
                other entity, as defined by the Administrator, who 
                shall render the existing wood heater inoperable and 
                ensure the existing wood heater is disposed through--
                            (i) recycling; or
                            (ii) scrappage.
            (8) State.--The term ``State'' means--
                    (A) each of the several States of the United 
                States;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico;
                    (D) Guam;
                    (E) the United States Virgin Islands;
                    (F) American Samoa; and
                    (G) the Commonwealth of the Northern Mariana 
                Islands.
            (9) Wood heater.--The term ``wood heater'' means an 
        enclosed, wood-burning appliance capable of and intended for 
        residential space heating or space heating and domestic water 
        heating that is an affected wood heater model, including--
                    (A) a residential wood heater;
                    (B) a hydronic heater; and
                    (C) a forced-air furnace.

SEC. 3. ESTABLISHMENT OF GRANT PROGRAM FOR WOOD HEATER EMISSIONS 
              REDUCTIONS.

    (a) In General.--Subject to the availability of appropriations, the 
Administrator shall establish a grant program that provides funding for 
grant, rebate, and other programs administered by States, regional 
agencies, and Indian tribes that are designed--
            (1) to provide financial incentives to homeowners for the 
        replacement of old wood heaters that greatly contribute to 
        particulate pollution with more efficient, cleaner-burning 
        heaters that are--
                    (A) properly installed; and
                    (B) at least as efficient and clean-burning as EPA-
                certified Step 2 wood heaters;
            (2) to achieve significant reductions in emissions from 
        wood heaters in terms of pollution produced by wood heaters and 
        wood heater emissions exposure;
            (3) to help homeowners transition to safer and more 
        efficient sources of heat; and
            (4) to support retailers and manufacturers that sell and 
        make wood heaters that are more efficient and cleaner-burning.
    (b) Applications.--The Administrator shall--
            (1) provide to States, regional agencies, and Indian tribes 
        guidance for use in applying for funding under this section, 
        including information regarding--
                    (A) the process and forms for applications;
                    (B) permissible uses of funds received under this 
                section; and
                    (C) the cost-effectiveness of various emission 
                reduction wood heater technologies eligible for funds 
                provided under this section;
            (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;
                    (C) a simplified application submission process to 
                expedite the provision of funds; and
                    (D) a streamlined process by which a State, 
                regional agency, or Indian tribe may renew an 
                application described in paragraph (1) for subsequent 
                fiscal years;
            (3) require States or regional agencies applying for 
        funding under this section to provide detailed information on 
        how the State or regional agency intends to carry out and 
        verify projects under the wood heater emissions reduction 
        program of the State or regional agency, including--
                    (A) a description of the air quality in the State 
                or the area in which the regional agency has 
                jurisdiction;
                    (B) the means by which the project will achieve a 
                significant reduction in wood heater emissions and air 
                pollution, including the estimated quantity of--
                            (i) residences that depend on non-EPA-
                        certified Step 2 wood heaters as a primary or 
                        secondary source of heat; and
                            (ii) air pollution produced by wood heaters 
                        in the State or the area in which the regional 
                        agency has jurisdiction;
                    (C) an estimate of the cost and economic benefits 
                of the proposed project;
                    (D) the means by which the funds will be 
                distributed, including a description of the intended 
                recipients of the funds;
                    (E) a description of any efforts to target low-
                income individuals that own older wood heaters;
                    (F) provisions for the monitoring and verification 
                of the project; and
                    (G) a description of how the program will carry out 
                the replacement of old wood heaters, including--
                            (i) how the older units will be removed and 
                        placed out of service; and
                            (ii) how new heaters purchased with funding 
                        provided under this section will be installed; 
                        and
            (4) require Indian tribes applying for funding under this 
        section to provide detailed information on how the Indian tribe 
        intends to carry out and verify projects under the wood heater 
        emissions reduction program of the Indian tribe, including--
                    (A) the means by which the project will achieve a 
                significant reduction in wood heater emissions;
                    (B) an estimate of the cost and economic benefits 
                of the proposed project;
                    (C) the means by which the funds will be 
                distributed, including a description of the intended 
                recipients of the funds;
                    (D) a description of any efforts to target low-
                income individuals that own older wood heaters;
                    (E) provisions for the monitoring and verification 
                of the project; and
                    (F) a description of how the program will carry out 
                the replacement of old wood heaters, including--
                            (i) how the older units will be removed and 
                        placed out of service; and
                            (ii) how new heaters purchased with funding 
                        provided under this section will be installed.
    (c) Allocation of Funds.--
            (1) In general.--For each fiscal year, the Administrator 
        shall allocate funds made available to carry out this section--
                    (A) among States, regional agencies, and Indian 
                tribes that submitted an application under this section 
                that was approved by the Administrator;
                    (B) of which not less than 4 percent shall be 
                allocated to Indian tribes to perform functions that 
                include--
                            (i) addressing subsequent maintenance costs 
                        resulting from the installation of wood heaters 
                        under this section; and
                            (ii) training qualified installers and 
                        technicians; and
                    (C) among different geographic areas and varying 
                population densities.
            (2) Allocation priority.--The Administrator shall provide 
        to each State, regional agency, and Indian tribe described in 
        paragraph (1) for a fiscal year an allocation of funds, with 
        priority given to States, regional agencies, and Indian tribes 
        that will use the funds to support projects that--
                    (A) maximize public health benefits;
                    (B) are the most cost-effective;
                    (C) target the replacement of wood heaters that 
                emit the most pollution;
                    (D) include EPA-certified Step 2 wood heaters and 
                other heaters that achieve emission reductions and 
                efficiency improvements beyond the Step 2 emission 
                reductions standards, as described in the Final Rule;
                    (E) target low-income households;
                    (F) encourage the recycling of old wood heaters 
                when replacing those heaters; and
                    (G) serve areas that--
                            (i) receive a disproportionate quantity of 
                        air pollution from wood heaters;
                            (ii) have a high percentage of residents 
                        that use wood as their primary source of heat; 
                        or
                            (iii) are poor air quality areas, including 
                        areas identified by the Administrator as--
                                    (I) in nonattainment or maintenance 
                                of national ambient air quality 
                                standards for particulate matter under 
                                section 109 of the Clean Air Act (42 
                                U.S.C. 7409); or
                                    (II) class I areas under section 
                                162(a) of that Act (42 U.S.C. 7472(a)).
            (3) Unobligated funds.--Any funds that are not obligated by 
        a State, regional agency, or Indian tribe by a date determined 
        by the Administrator in a fiscal year shall be reallocated 
        pursuant to the priorities described in paragraph (2).
            (4) State, regional agency, and tribal matching 
        incentive.--
                    (A) In general.--Subject to subparagraph (B), if a 
                State, regional agency, or Indian tribe agrees to match 
                the allocation provided to the State, regional agency, 
                or Indian tribe under paragraph (1) for a fiscal year, 
                the Administrator shall provide to the State, regional 
                agency, or Indian tribe for the fiscal year a matching 
                incentive consisting of an additional amount equal to 
                30 percent of the allocation of the State, regional 
                agency, or Indian tribe under paragraph (1).
                    (B) Requirement.--To receive a matching incentive 
                under subparagraph (A), a State, regional agency, or 
                Indian tribe--
                            (i) may not use funds received under this 
                        section 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 that subparagraph.
    (d) Administration.--
            (1) In general.--Subject to paragraphs (2) and (3), States, 
        regional agencies, and Indian tribes shall use any funds 
        provided under this section--
                    (A) to develop and implement such programs in the 
                State or in areas under the jurisdiction of the 
                regional agency or Indian tribe as are appropriate to 
                meet the needs and goals of the State, regional agency, 
                or Indian tribe; and
                    (B) to the maximum extent practicable, to use the 
                programs described in subparagraph (A) to give high 
                priority to projects that serve areas described in 
                subsection (c)(2)(G).
            (2) Apportionment of funds.--The chief executive officer of 
        a State, regional agency, or Indian tribe that receives funding 
        under this section may determine the portion of funds to be 
        provided as grants and the portion to be provided as rebates.
            (3) Use of funds.--A State, regional agency, or Indian 
        tribe shall use funds provided under this section for--
                    (A) projects to complete the replacement of old 
                wood heaters, including the installation of heaters and 
                training of certified installers of heaters that--
                            (i) are at least as efficient and clean-
                        burning as EPA-certified Step 2 wood heaters; 
                        and
                            (ii) meet the purposes described in 
                        subsection (a); and
                    (B) with respect to Indian tribes, the purposes 
                described in subsection (c)(1)(B).
            (4) Supplement, not supplant.--Funds made available under 
        this section shall be used to supplement, not supplant, funds 
        made available for existing State clean air programs.
            (5) Public notification.--Not later than 60 days after the 
        date on which the Administrator makes funding available under 
        this section each fiscal year, the Administrator shall publish 
        on the website of the Environmental Protection Agency--
                    (A) the total number of grants awarded and the 
                amounts provided to States, regional agencies, and 
                Indian tribes;
                    (B) a general description of each application of a 
                State, regional agency, or Indian tribe that received 
                funding; and
                    (C) the estimated number of wood heaters that will 
                be replaced using funds made available under this 
                section.
            (6) Report.--Not later than 2 years after the date on which 
        funds are first made available under this section, and 
        biennially thereafter, the Administrator shall submit to 
        Congress a report evaluating the implementation of the program 
        under this section.

SEC. 4. OUTREACH AND INCENTIVES.

    The Administrator shall establish a program under which the 
Administrator shall--
            (1) inform stakeholders of the benefits of replacing wood 
        heaters that do not meet or exceed the Step 2 emission 
        reductions standards described in the Final Rule;
            (2) develop nonfinancial incentives to promote the proper 
        installation and use of EPA-certified Step 2 wood heaters; and
            (3) consult with Indian tribes to carry out the purposes of 
        this Act.

SEC. 5. SUPPLEMENTAL ENVIRONMENTAL PROJECTS.

    (a) EPA Authority To Accept Wood Heater Emissions Reduction 
Supplemental Environmental Projects.--Section 1 of Public Law 110-255 
(42 U.S.C. 16138) is amended--
            (1) in the heading, by inserting ``and wood heater'' after 
        ``diesel''; and
            (2) in the matter preceding paragraph (1), by inserting 
        ``and wood heater'' after ``diesel''.
    (b) Settlement Agreement Provisions.--Section 2 of Public Law 110-
255 (42 U.S.C. 16139) is amended in the first sentence--
            (1) by inserting ``or wood heater'' after ``diesel'' each 
        place it appears;
            (2) by inserting ``, as applicable,'' before ``if the 
        Administrator''; and
            (3) by inserting ``, as applicable'' before the period at 
        the end.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated to carry 
out this Act $75,000,000 for each of fiscal years 2019 through 2024, 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 of the programs under 
this Act.
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