Title 42, The Public Health and WelfareRelease 119-110

§16132 National Grant, Rebate, and Loan Programs

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

Last updated Sep 22, 2026|Official source

Summary

The EPA must use 70 percent of the money for this program each year to award competitive grants, rebates, or low-cost loans that cut diesel pollution and lower people’s exposure, especially in areas the EPA says have poor air. At least 95 percent of the money must go to projects using certified engine setups or EPA-verified technologies. No more than 5 percent may go to new, emerging technologies, and makers who want that money must send a test plan and verification filing to the EPA or the California Air Resources Board. The EPA must run a simpler, faster application process that helps small fleet owners and may let applicants include results from competitive bids. Applications must describe local air quality and diesel pollution, the project and its costs, the technologies to be used, expected benefits using EPA- or National Academy-approved methods, equipment age and life, diesel fuel sulfur for nonroad projects, and how results will be monitored. The EPA will give top priority to projects that improve public health most, are most cost-effective, serve high-density or poor-air-quality areas (including nonattainment/maintenance areas, Federal Class I areas, or places with toxic concerns), cut pollution from big diesel sources (like ports, truckstops, rail yards, schools, construction sites, and distribution centers), use long-life technologies, and save diesel fuel. Grants, rebates, or loans can pay for retrofit technologies, repowers, or part of the cost of new diesel engines, and for verified anti-idling projects for buses, medium- and heavy-duty trucks, marine engines, locomotives, and nonroad equipment used in construction, cargo handling (including ports and airports), agriculture, mining, or energy. Funds cannot pay for emission cuts that federal law already requires, except for requirements in an EPA-approved State implementation plan; voluntary measures are not treated as required. The EPA may hire private or nonprofit contractors to run rebate and loan programs if they can sell, finance, or upgrade diesel vehicles or equipment. Within 60 days after an award, the EPA must post online totals and dollar amounts and a technology breakdown for owner rebates and loans, and descriptions of other funded applications.

Full Legal Text

Title 42, §16132

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

(a)In general
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)
(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 part in accordance with this section.
(2)Engine configurations and technologies
(A)Certified engine configurations and verified technologies
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)Emerging technologies
(i)In general
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)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 a verification application.
(c)Applications
(1)Expedited process
(A)In general
The Administrator shall develop a simplified application process for all applicants under this section to expedite the provision of funds.
(B)Requirements
In developing the expedited process under subparagraph (A), the Administrator— (i)
(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)Eligibility
(A)Grants
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)Rebates and low-cost loans
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)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)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)Priority
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)
(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)Use of funds
(1)In general
An eligible entity may use a grant, rebate, or loan provided under this section to fund the costs of— (A)
(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, 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)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.
(e)Contract programs
(1)Authority
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)Eligible contractors
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)Public notification
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 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110