To make grants and loans to States and other organizations to strengthen the economy, public health and environment of the United States by reducing emissions from diesel engines.

SA 799. Mr. VOINOVICH (for himself, Mr. Carper, and Mrs. Feinstein)
proposed an amendment to the bill H.R. 6, Reserved; as follows:

On page 446, between lines 18 and 19, insert the following:

Subtitle E--Diesel Emissions Reduction

SEC. 741. DEFINITIONS.

In this subtitle:
(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. 742. NATIONAL GRANT AND LOAN PROGRAMS.

(a) In General.--The Administrator shall use 70 percent of
the funds made available to carry out this subtitle 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 subtitle 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

[[Page S6836]]

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.

SEC. 743. 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 subtitle 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 subtitle 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 subtitle 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 742.
(d) Administration.--
(1) In general.--Subject to paragraphs (2) and (3) and, to
the extent practicable, the priority areas listed in section
742(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. 744. 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 subtitle.
(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 subtitle, including
the amount of the grant or loan;
(3) each project for which a grant or loan is provided
under this subtitle, 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
subtitle;
(5) the problems encountered by projects for which a grant
or loan is provided under this subtitle; and
(6) any other information the Administrator considers to be
appropriate.

SEC. 745. 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.

[[Page S6837]]

(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. 746. EFFECT OF SUBTITLE.

Nothing in this subtitle 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. 747. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this
subtitle $200,000,000 for each of fiscal years 2006 through
2010, to remain available until expended.
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