Title 42The Public Health and WelfareRelease 119-73

§16132 National grant, rebate, and loan programs

Title 42 › Chapter CHAPTER 149— - NATIONAL ENERGY POLICY AND PROGRAMS › Subchapter SUBCHAPTER VII— - VEHICLES AND FUELS › Part Part F— - Diesel Emissions Reduction › § 16132

Last updated Apr 6, 2026|Official source

Summary

The EPA must spend 70% of the money each year on competitive grants, rebates, or low-cost revolving loans for projects that cut diesel pollution and lower people’s exposure to diesel emissions, especially in places with poor air quality. Most of the money (at least 95%) must go to projects that use EPA‑certified engine setups or technologies that have been verified to cut emissions. Up to 5% can go to developing and bringing new technologies to market, but makers must give the EPA or the California Air Resources Board a test plan and verification application to get that money. The EPA must make a simple, faster application process, pay attention to small fleet owners, and may ask applicants to show competitive bids for equipment and installation. Applications must describe local air quality, diesel pollution amounts, the project and technology to be used, how it will reduce emissions, benefits, cost, equipment age and life, fuel sulfur where relevant, and how results will be checked. The EPA will give highest priority to projects that save the most health harms, are cost effective, help dense or poor-air-quality areas (including nonattainment areas, Federal Class I areas, or places with toxic-air concerns), cut pollution from major diesel sources, use community planning, have long useful life, and conserve diesel fuel. Funds can pay for retrofits, repowers, or new diesel engines and related upgrades for buses, medium- and heavy‑duty trucks, marine engines, locomotives, and nonroad equipment used in construction, cargo handling, agriculture, mining, or energy production, and for verified technologies that reduce long idling. Money cannot pay for emissions reductions already required by federal law, except for State implementation plan mandates. The EPA can hire private or nonprofit contractors to run rebate or loan programs if they can sell or finance diesel equipment or install verified upgrades. Within 60 days of each award, the EPA must post online the number and amounts of rebates or loans to vehicle owners and the technologies funded, and descriptions of other awards.

Full Legal Text

Title 42, §16132

The Public Health and Welfare — Source: USLM XML via OLRC

(a)The Administrator shall use 70 percent of the funds made available to carry out this part for each fiscal year to provide grants, rebates, or low-cost revolving loans, as determined by the Administrator, on a competitive basis, to eligible entities, including through contracts entered into under subsection (e) of this section, to achieve significant reductions in diesel emissions in terms of—
(1)pollution produced; and
(2)diesel emissions exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas.
(b)(1)The Administrator shall distribute funds made available for a fiscal year under this part in accordance with this section.
(2)(A)The Administrator shall provide not less than 95 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)(i)The Administrator shall provide not more than 5 percent of funds available for a fiscal year under this section to eligible entities for the development and commercialization of emerging technologies.
(ii)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 a verification application.
(c)(1)(A)The Administrator shall develop a simplified application process for all applicants under this section to expedite the provision of funds.
(B)In developing the expedited process under subparagraph (A), the Administrator—
(i)shall take into consideration the special circumstances affecting small fleet owners; and
(ii)to avoid duplicative procedures, may require applicants to include in an application under this section the results of a competitive bidding process for equipment and installation.
(2)(A)To be eligible to receive a grant under this section, an eligible entity shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require.
(B)To be eligible to receive a rebate or a low-cost loan under this section, an eligible entity shall submit an application in accordance with such guidance as the Administrator may establish—
(i)to the Administrator; or
(ii)to an entity that has entered into a contract under subsection (e).
(3)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)in the case of an application relating to nonroad engines or vehicles, 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.
(4)In providing a grant, rebate, or loan under this section, the Administrator shall give highest 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 truckstops, ports, rail yards, terminals, construction sites, schools, 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; and
(F)conserve diesel fuel.
(d)(1)An eligible entity may use a grant, rebate, 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)(A)Notwithstanding paragraph (1), no grant, rebate, or loan provided, or contract entered into, under this section shall be used to fund the costs of emissions reductions that are mandated under any Federal law, except that this subparagraph shall not apply to a mandate in a State implementation plan approved by the Administrator under the Clean Air Act [42 U.S.C. 7401 et seq.].
(B)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.
(e)(1)In addition to the use of contracting authority otherwise available to the Administrator, the Administrator may enter into contracts with eligible contractors described in paragraph (2) for the administration of programs for providing rebates or loans, subject to the requirements of this part.
(2)The Administrator may enter into a contract under this subsection with a for-profit or nonprofit entity that has the capacity—
(A)to sell diesel vehicles or equipment to, or to arrange financing for, individuals or entities that own a diesel vehicle or fleet; or
(B)to upgrade diesel vehicles or equipment with verified or Environmental Protection Agency-certified engines or technologies, or to arrange financing for such upgrades.
(f)Not later than 60 days after the date of the award of a grant, rebate, or loan, the Administrator shall publish on the website of the Environmental Protection Agency—
(1)for rebates and loans provided to the owner of a diesel vehicle or fleet, the total number and dollar amount of rebates or loans provided, as well as a breakdown of the technologies funded through the rebates or loans; and
(2)for other rebates and loans, and for grants, a description of each application for which the grant, rebate, or loan is provided.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Clean Air Act, referred to in subsec. (d)(2)(A), is act July 14, 1955, ch. 360, 69 Stat. 322, which is classified generally to chapter 85 (§ 7401 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 7401 of this title and Tables.

Amendments

2011—Pub. L. 111–364, § 2(b)(1), inserted “, rebate,” after “grant” in section catchline. Subsec. (a). Pub. L. 111–364, § 2(b)(2)(A), substituted “to provide grants, rebates, or low-cost revolving loans, as determined by the Administrator, on a competitive basis, to eligible entities, including through contracts entered into under subsection (e) of this section,” for “to provide grants and low-cost revolving loans, as determined by the Administrator, on a competitive basis, to eligible entities” in introductory provisions. Subsec. (a)(1). Pub. L. 111–364, § 2(b)(2)(B), struck out “tons of” before “pollution produced”. Subsec. (b)(2). Pub. L. 111–364, § 2(b)(3)(A), (B), redesignated par. (3) as (2) and struck out former par. (2). Prior to amendment, text read as follows: “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.” Subsec. (b)(2)(A). Pub. L. 111–364, § 2(b)(3)(C)(i), substituted “95” for “90” in introductory provisions. Subsec. (b)(2)(B)(i). Pub. L. 111–364, § 2(b)(3)(C)(ii), substituted “5 percent” for “10 percent”. Subsec. (b)(2)(B)(ii). Pub. L. 111–364, § 2(b)(3)(C)(iii), substituted “a verification application” for “the application under subsection (c)”. Subsec. (b)(3). Pub. L. 111–364, § 2(b)(3)(B), redesignated par. (3) as (2). Subsec. (c). Pub. L. 111–364, § 2(b)(4)(A), (B), added pars. (1) and (2), redesignated former pars. (2) and (3) as (3) and (4), respectively, and struck out former par. (1). Prior to amendment, text of par. (1) read as follows: “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.” Subsec. (c)(3)(G). Pub. L. 111–364, § 2(b)(4)(C), inserted “in the case of an application relating to nonroad engines or vehicles,” before “a description of the diesel”. Subsec. (c)(4). Pub. L. 111–364, § 2(b)(4)(D)(i), inserted “, rebate,” after “grant” and “highest” before “priority” in introductory provisions. Subsec. (c)(4)(C)(iii). Pub. L. 111–364, § 2(b)(4)(D)(ii), substituted “diesel fleets” for “a diesel fleets” and inserted “

Construction

sites, schools,” after “terminals,”. Subsec. (c)(4)(E) to (G). Pub. L. 111–364, § 2(b)(4)(D)(iii)–(v), inserted “and” at end of subpar. (E), substituted a period for “; and” in subpar. (F), and struck out subpar. (G) which read as follows: “use diesel fuel with a sulfur content of less than or equal to 15 parts per million, as the Administrator determines to be appropriate.” Subsec. (d)(1). Pub. L. 111–364, § 2(b)(5)(A), inserted “, rebate,” after “grant” in introductory provisions. Subsec. (d)(2)(A). Pub. L. 111–364, § 2(b)(5)(B), substituted “grant, rebate, or loan provided, or contract entered into,” for “grant or loan provided” and “any Federal law, except that this subparagraph shall not apply to a mandate in a State implementation plan approved by the Administrator under the Clean Air Act” for “Federal, State or local law”. Subsecs. (e), (f). Pub. L. 111–364, § 2(b)(6), added subsecs. (e) and (f).

Statutory Notes and Related Subsidiaries

Effective Date

of 2011 AmendmentAmendment by Pub. L. 111–364 effective Oct. 1, 2011, except as otherwise provided, see section 4 of Pub. L. 111–364, set out as a note under section 16131 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 16132

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73