Title 42 › Chapter CHAPTER 149— - NATIONAL ENERGY POLICY AND PROGRAMS › Subchapter SUBCHAPTER VII— - VEHICLES AND FUELS › Part Part F— - Diesel Emissions Reduction › § 16132
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
The Public Health and Welfare — Source: USLM XML via OLRC
Legislative History
Reference
Citation
42 U.S.C. § 16132
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73