[Congressional Record Volume 151, Number 80 (Thursday, June 16, 2005)]
[Senate]
[Pages S6761-S6763]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH (for himself, Mr. Carper, Mrs. Clinton, Mr. 
        Isakson, Mrs. Hutchison, Mrs. Feinstein, Mr. Inhofe, and Mr. 
        Jeffords):
  S. 1265. 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; to the Committee on Environment and Public Works.
  Mr. VOINOVICH. Mr. President, I speak as Chairman of the Environment 
and Public Works Subcommittee on Clean Air, Climate Change, and Nuclear 
Safety to introduce a landmark, bipartisan piece of legislation--the 
Diesel Emissions Reduction Act of 2005.
  This bill is cosponsored by Environment and Public Works Committee 
Jim Inhofe and ranking member Jim Jeffords and Senators Tom Carper, 
Johnny Isakson, Hillary Clinton, Kay Bailey Hutchison, and Dianne 
Feinstein. Focused on improving air quality and protecting public 
health, it would establish voluntary national and state-level grant and 
loan programs to promote the reduction of diesel emissions. 
Additionally, the bill would help areas come into attainment for the 
new air quality standards.
  Developed with environmental, industry, and public officials, the 
legislation complements Environmental Protection Agency, EPA, 
regulations now being implemented that address diesel fuel and new 
diesel engines. I am pleased to be joined by a strong and diverse group 
of organizations and officials: Environmental Defense; Clean Air Task 
Force; Union of Concerned Scientists; Ohio Environmental Council; 
Caterpillar Inc.; Cummins Inc.; Diesel Technology Forum; Emissions 
Control Technology Association; Associated General Contractors of 
America; State and Territorial Air Pollution Program Administrators/
Association of Local Air Pollution Control Officials; Ohio 
Environmental Protection Agency; Regional Air Pollution Control Agency 
in Dayton, Ohio; Mid-Ohio Regional Planning Commission.
  The cosponsors of this legislation and these groups do not agree on 
many issues--which is why this bill is so special.
  The process for developing this legislation began last year when 
several of these organizations came in to meet with me. They informed 
me of the harmful public health impact of diesel emissions. Onroad and 
nonroad diesel vehicles and engines account for roughly one-half of the 
nitrogen oxide and particulate matter mobile source emissions 
nationwide.
  I was pleased to hear that the administration had taken strong action 
with new diesel fuel and engine regulations, which were developed in a 
collaborative effort to substantially reduce diesel emissions. However, 
I was told that the full health benefit would not be realized until 
2030 because these regulations address new engines and the estimated 11 
million existing engines have a long life.
  I was pleased that they had a constructive suggestion on how we could 
address this problem. They informed me of successful grant and loan 
programs at the State and local level throughout the Nation that were 
working on a voluntary basis to retrofit diesel engines.
  I was also cognizant that the new ozone and particulate matter air 
quality standards were going into effect and that a voluntary program 
was needed to help the nation's 495 and Ohio's 38 nonattainment 
counties--especially those that are in moderate nonattainment like 
Northeast Ohio.
  Additionally, I have visited with University of Cincinnati Medical 
Center doctors--as recently as this month--to discuss their Cincinnati 
Childhood Allergy and Air Pollution Study. Some of the early results 
indicate disturbing impacts on the development of children living near 
highways.
  It became clear to me that a national program was needed. We then 
formed a strong, diverse coalition comprised of environmental, 
industry, and public officials. The culmination of this work is being 
revealed today in the Diesel Emissions Reduction Act of 2005.
  This legislation would establish voluntary national and State-level 
grant and loan programs to promote the reduction of diesel emissions. 
It would authorize $1 billion over 5 years--$200 million annually. Some 
will claim that this is too much money and others will claim it is not 
enough--which is probably why it is just right.
  We should first recognize that the need far outpaces what is 
contained in the legislation. This funding is also fiscally responsible 
as diesel retrofits have proven to be one of the most cost-effective 
emissions reduction strategies. Furthermore, as a former Governor, I 
know firsthand that the new air quality standards are an unfunded 
mandate on our states and localities--and they need the Federal 
Government's help.

[[Page S6762]]

  This legislation would help bring counties into attainment by 
encouraging the retrofitting or replacement of diesel engines, 
substantially reducing diesel emissions and the formation of ozone and 
particulate matter.
  The bill is efficient with the Federal Government's dollars in 
several ways. First, 20 percent of the funding would be distributed to 
States that establish voluntary diesel retrofit programs. 10 percent of 
the bill's overall funding would be set aside as an incentive for 
States to match the Federal dollars being provided. The remaining 70 
percent of the program would be administered by the EPA.
  Second, the program would focus on nonattainment areas where help is 
needed the most. Third, it would require at least 50 percent of the 
Federal program to be used on public fleets since we are talking about 
public dollars. Fourth, it would place a high priority on the projects 
that are the most cost effective and affect the most people.
  Lastly, the bill would include provisions to help develop new 
technologies, encourage more action through non-financial incentives, 
and require EPA to outreach to stakeholders and report on the success 
of the program.
  EPA estimates that this billion dollar program would leverage an 
additional $500 million leading to a net benefit of almost $20 billion 
with a reduction of about 70,000 tons of particulate matter. This is a 
13 to 1 benefit-cost ratio.
  The Diesel Emissions Reduction Act of 2005 enjoys broad bipartisan 
support, and it is needed desperately. I plan to work with the bill's 
cosponsors and the coalition to use every avenue to get it signed into 
law as soon as possible.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1265

       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 ``Diesel Emissions Reduction 
     Act of 2005''.

     SEC. 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.

     SEC. 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

[[Page S6763]]

       (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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.

     SEC. 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.
                                 ______