II Calendar No. 202 109th CONGRESS 1st Session S. 1265 [Report No. 109–133] 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.
1.
Short title
This Act may be cited as the Diesel Emissions Reduction Act of 2005.
2.
Definitions
In this Act: (1)
Administrator
The term Administrator means the Administrator of the Environmental Protection Agency. (2)
Certified engine configuration
The term certified engine configuration means a new, rebuilt, or remanufactured engine configuration— (A)that has been certified or verified by— (i)the Administrator; or (ii)the California Air Resources Board; (B)that meets or is rebuilt or remanufactured to a more stringent set of engine emission standards, as determined by the Administrator; and (C)in the case of a certified engine configuration involving the replacement of an existing engine or vehicle, an engine configuration that replaced an engine that was— (i)removed from the vehicle; and (ii)returned to the supplier for remanufacturing to a more stringent set of engine emissions standards or for scrappage. (3)
Eligible entity
The term eligible entity means— (A)a regional, State, local, or tribal agency with jurisdiction over transportation or air quality; and (B)a nonprofit organization or institution that— (i)represents organizations that own or operate diesel fleets; or (ii)has, as its principal purpose, the promotion of transportation or air quality. (4)
Emerging technology
The term emerging technology means a technology that is not certified or verified by the Administrator or the California Air Resources Board but for which an approvable application and test plan has been submitted for verification to the Administrator or the California Air Resources Board. (5)
Heavy-duty truck
The term heavy-duty truck has the meaning given the term heavy duty vehicle in section 202 of the Clean Air Act (42 U.S.C. 7521). (6)
Medium-duty truck
The term medium-duty truck has such meaning as shall be determined by the Administrator, by regulation. (7)
Verified technology
The term verified technology means a pollution control technology, including a retrofit technology, that has been verified by— (A)the Administrator; or (B)the California Air Resources Board.
3.
National grant and loan programs
(a)
In general
The Administrator shall use 70 percent of the funds made available to carry out this Act 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 Act 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 fleet 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 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 by the eligible entity; (G)a description of the diesel fuel available to 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 diesel fleet, including ports, rail yards, 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 retrofit technology used by the eligible entity; and (F)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)an idle-reduction program 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.
4.
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 Act 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 section 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 50 States qualifies for an allocation, an amount equal to 2 percent of the funds made available to carry out this section; or (B)if fewer than 50 States qualifies 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 2-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 Act 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 3. (d)
Administration
(1)
In general
Subject to paragraphs (2) and (3) and, to the extent practicable, the priority areas listed in section 3(c)(3), 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 Governor 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.
5.
Evaluation and report
(a)
In general
Not later than 2 years after the date of enactment of this Act, and biennially thereafter, the Administrator shall submit to Congress a report evaluating the implementation of the programs under this Act. (b)
Inclusions
The report shall include a description of— (1)the total number of grant applications received; (2)each grant or loan made under this Act, including the amount of the grant or loan; (3)each project for which a grant or loan is provided under this Act, including the criteria used to select the grant or loan recipients; (4)the estimated air quality benefits, cost-effectiveness, and cost-benefits of the grant and loan programs under this Act; (5)the problems encountered by projects for which a grant or loan is provided under this Act; and (6)any other information the Administrator considers to be appropriate.
6.
Outreach and incentives
(a)
Definition of eligible technology
In this section, the term eligible technology means— (1)a verified technology; or (2)an emerging technology. (b)
Technology transfer program
(1)
In general
The Administrator shall establish a program under which the Administrator— (A)informs stakeholders of the benefits of eligible technologies; and (B)develops nonfinancial incentives to promote the use of eligible technologies. (2)
Eligible stakeholders
Eligible stakeholders under this section include— (A)equipment owners and operators; (B)emission control technology manufacturers; (C)engine and equipment manufacturers; (D)State and local officials responsible for air quality management; (E)community organizations; and (F)public health and environmental organizations. (c)
State implementation plans
The Administrator shall develop appropriate guidance to provide credit to a State for emission reductions in the State created by the use of eligible technologies through a State implementation plan under section 110 of the Clean Air Act (42 U.S.C. 7410). (d)
International markets
The Administrator, in coordination with the Department of Commerce and industry stakeholders, shall inform foreign countries with air quality problems of the potential of technology developed or used in the United States to provide emission reductions in those countries.
7.
Effect of Act
Nothing in this Act affects any authority under the Clean Air Act (42 U.S.C. 7401 et seq.) in existence on the day before the date of enactment of this Act.
8.
Authorization of appropriations
There is authorized to be appropriated to carry out this Act $200,000,000 for each of fiscal years 2006 through 2010, to remain available until expended.
1.
Short title
This Act may be cited as the Diesel Emissions Reduction Act of 2005.
2.
Definitions
In this Act: (1)
Administrator
The term Administrator means the Administrator of the Environmental Protection Agency. (2)
Certified engine configuration
The term certified engine configuration means a new, rebuilt, or remanufactured engine configuration— (A)that has been certified or verified by— (i)the Administrator; or (ii)the California Air Resources Board; (B)that meets or is rebuilt or remanufactured to a more stringent set of engine emission standards, as determined by the Administrator; and (C)in the case of a certified engine configuration involving the replacement of an existing engine or vehicle, an engine configuration that replaced an engine that was— (i)removed from the vehicle; and (ii)returned to the supplier for remanufacturing to a more stringent set of engine emissions standards or for scrappage. (3)
Eligible entity
The term eligible entity means— (A)a regional, State, local, or tribal agency or port authority with jurisdiction over transportation or air quality; and (B)a nonprofit organization or institution that— (i)represents or provides pollution reduction or educational services to persons or organizations that own or operate diesel fleets; or (ii)has, as its principal purpose, the promotion of transportation or air quality. (4)
Emerging technology
The term emerging technology means a technology that is not certified or verified by the Administrator or the California Air Resources Board but for which an approvable application and test plan has been submitted for verification to the Administrator or the California Air Resources Board. (5)
Fleet
The term fleet means 1 or more diesel vehicles or mobile or stationary diesel engines. (6)
Heavy-duty truck
The term heavy-duty truck has the meaning given the term heavy duty vehicle in section 202 of the Clean Air Act (42 U.S.C. 7521). (7)
Medium-duty truck
The term medium-duty truck has such meaning as shall be determined by the Administrator, by regulation. (8)
Verified technology
The term verified technology means a pollution control technology (including a retrofit technology), advanced truckstop electrification system, or auxiliary power unit that has been verified by— (A)the Administrator; or (B)the California Air Resources Board.
3.
National grant and loan programs
(a)
In general
The Administrator shall use 70 percent of the funds made available to carry out this Act 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 Act 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 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 diesel fleets, including ports, rail yards, truckstops, 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 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.
4.
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 Act 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 Act 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 50 States qualifies for an allocation, an amount equal to 2 percent of the funds made available to carry out this section; or (B)if fewer than 50 States qualifies 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 2-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 Act 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 3. (d)
Administration
(1)
In general
Subject to paragraphs (2) and (3) and, to the extent practicable, the priority areas listed in section 3(c)(3), 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 Governor 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.
5.
Evaluation and report
(a)
In general
Not later than 1 year after the date on which funds are made first available under this Act, and biennially thereafter, the Administrator shall submit to Congress a report evaluating the implementation of the programs under this Act. (b)
Inclusions
The report shall include a description of— (1)the total number of grant applications received; (2)each grant or loan made under this Act, including the amount of the grant or loan; (3)each project for which a grant or loan is provided under this Act, including the criteria used to select the grant or loan recipients; (4)the actual and estimated air quality and diesel fuel conservation benefits, cost-effectiveness, and cost-benefits of the grant and loan programs under this Act; (5)the problems encountered by projects for which a grant or loan is provided under this Act; and (6)any other information the Administrator considers to be appropriate.
6.
Outreach and incentives
(a)
Definition of eligible technology
In this section, the term eligible technology means— (1)a verified technology; or (2)an emerging technology. (b)
Technology transfer program
(1)
In general
The Administrator shall establish a program under which the Administrator— (A)informs stakeholders of the benefits of eligible technologies; and (B)develops nonfinancial incentives to promote the use of eligible technologies. (2)
Eligible stakeholders
Eligible stakeholders under this section include— (A)equipment owners and operators; (B)emission and pollution control technology manufacturers; (C)engine and equipment manufacturers; (D)State and local officials responsible for air quality management; (E)community organizations; and (F)public health, educational, and environmental organizations. (c)
State implementation plans
The Administrator shall develop appropriate guidance to provide credit to a State for emission reductions in the State created by the use of eligible technologies through a State implementation plan under section 110 of the Clean Air Act (42 U.S.C. 7410). (d)
International markets
The Administrator, in coordination with the Department of Commerce and industry stakeholders, shall inform foreign countries with air quality problems of the potential of technology developed or used in the United States to provide emission reductions in those countries.
7.
Effect of Act
Nothing in this Act affects any authority under the Clean Air Act (42 U.S.C. 7401 et seq.) in existence on the day before the date of enactment of this Act.
8.
Authorization of appropriations
There is authorized to be appropriated to carry out this Act $200,000,000 for each of fiscal years 2007 through 2011, to remain available until expended.
September 7, 2005 Reported with an amendment