U.S. Code > Title 42 The Public Health and Welfare > CHAPTER 149—NATIONAL ENERGY POLICY AND PROGRAMS > SUBCHAPTER VII—VEHICLES AND FUELS > Part F—Diesel Emissions Reduction > § 16132. National grant and loan programs

§ 16132. National grant and loan programs

(a) In general
The Administrator shall use 70 percent of the funds made available to carry out this part 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 part 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 to be 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 a [1] diesel fleets, including truckstops, ports, rail yards, 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 or funded 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.

[1] So in original. The word “a” probably should not appear.