§ 16133. 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 part 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 part 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 51 States qualifies for an allocation, an amount equal to 1.96 percent of the funds made available to carry out this section; or
(B) if fewer than 51 States qualifies [1] 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 1.96 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 part 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 16132 of this title.
(d) Administration
(1) In general
Subject to paragraphs (2) and (3) and, to the extent practicable, the priority areas listed in section 16132 (c)(3) of this title, 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 chief executive 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.


[1] So in original. Probably should be “qualify”.