Title 42, The Public Health and WelfareRelease 119-110

§16133 State Grant, Rebate, and Loan Programs

Title 42 › CHAPTER 149 — NATIONAL ENERGY POLICY AND PROGRAMS › SUBCHAPTER VII — VEHICLES AND FUELS › Part F — Diesel Emissions Reduction › § 16133

Last updated Sep 22, 2026|Official source

Summary

Use 30 percent of the money made available under this part each year to help states run grant, rebate, and loan programs that cut diesel pollution, if enough money is provided. The Administrator must give states guidance on how to apply, what the money can pay for, and how cost-effective different diesel-reduction technologies are. The Administrator will set an annual application deadline, a process to approve or deny applications, and a streamlined way for states to renew approved applications. Each year, funds go only to states with approved applications. Using up to 20 percent of the yearly funds, the Administrator will give each qualified state an equal share equal to 1/53 of those funds. Guam, the U.S. Virgin Islands, American Samoa, and the Northern Mariana Islands together get 1/53 divided equally among the four, unless one does not qualify, in which case those funds are reallocated to the remaining qualified states based on population. If a state agrees to match its allocation, it gets an extra amount equal to 50 percent of that allocation (but it cannot use these program funds to meet the match). Any unclaimed state funds go to carry out projects under section 16132. States must use their funds for grants, rebates, or low-cost revolving loans for certified engine setups or verified technologies, follow the priorities in section 16132(c)(4), let their governor decide how much is grants versus rebates versus loans, and publish certain award details online within 60 days of each award.

Full Legal Text

Title 42, §16133

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

(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 part to support grant, rebate, 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, rebate, 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
(A)In general
Except as provided in subparagraphs (B) and (C), using not more than 20 percent of the funds made available to carry out this part for a fiscal year, the Administrator shall provide to each State qualified for an allocation for the fiscal year an allocation equal to 1⁄53 of the funds made available for that fiscal year for distribution to States under this paragraph.
(B)Certain territories
(i)In general
Except as provided in clause (ii), Guam, the United States Virgin Islands, American Samoa, and the Commonwealth of the Northern Mariana Islands shall collectively receive an allocation equal to 1⁄53 of the funds made available for that fiscal year for distribution to States under this subsection, divided equally among those 4 States.
(ii)Exception
If any State described in clause (i) does not qualify for an allocation under this paragraph, the share of funds otherwise allocated for that State under clause (i) shall be reallocated pursuant to subparagraph (C).
(C)Reallocation
If any State does not qualify for an allocation under this paragraph, the share of funds otherwise allocated for that State under this paragraph shall be reallocated to each remaining qualified State in an amount equal to the product obtained by multiplying—
(i)the proportion that the population of the State bears to the population of all States described in paragraph (1); by
(ii)the amount otherwise allocatable to the nonqualifying State 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 part 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 16132 of this title.
(d)Administration
(1)In general
Subject to paragraphs (2) and (3) and, to the extent practicable, the priority areas listed in section 16132(c)(3) of this title, a State shall use any funds provided under this section to develop and implement such grant, rebate, 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 chief executive of a State that receives funding under this section may determine the portion of funds to be provided as grants, rebates, or loans.
(3)Use of funds
A grant, rebate, or loan provided under this section shall be used for a project relating to—
(A)a certified engine configuration; or
(B)a verified technology.
(4)Priority
In providing grants, rebates, and loans under this section, a State shall use the priorities in section 16132(c)(4) of this title.
(5)Public notification
Not later than 60 days after the date of the award of a grant, rebate, or loan by a State, the State shall publish on the Web site of the State—
(A)for rebates, grants, and loans provided to the owner of a diesel vehicle or fleet, the total number and dollar amount of rebates, grants, or loans provided, as well as a breakdown of the technologies funded through the rebates, grants, or loans; and
(B)for other rebates, grants, and loans, a description of each application for which the grant, rebate, or loan is provided.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2011—Pub. L. 111–364, § 2(c)(1), inserted “, rebate,” after “grant” in section catchline. Subsec. (a). Pub. L. 111–364, § 2(c)(2), inserted “, rebate,” after “grant”. Subsec. (b)(1). Pub. L. 111–364, § 2(c)(3), inserted “, rebate,” after “grant” in introductory provisions. Subsec. (c)(2). Pub. L. 111–364, § 2(c)(4), amended par. (2) generally. Prior to amendment, par. (2) related to allocation of funds. Subsec. (d)(1). Pub. L. 111–364, § 2(c)(5)(A), inserted “, rebate,” after “grant”. Subsec. (d)(2). Pub. L. 111–364, § 2(c)(5)(B), inserted “, rebates,” after “grants”. Subsec. (d)(3). Pub. L. 111–364, § 2(c)(5)(C), substituted “grant, rebate, or loan provided under this section shall be used” for “grant or loan provided under this section may be used” in introductory provisions. Subsec. (d)(4), (5). Pub. L. 111–364, § 2(c)(5)(D), added pars. (4) and (5). 2008—Subsec. (c)(2)(A). Pub. L. 110–255, § 3(b)(2), substituted “51” for “50” and “1.96 percent” for “2 percent”. Subsec. (c)(2)(B). Pub. L. 110–255, § 3(b)(2), substituted “51” for “50” in introductory provisions. Subsec. (c)(2)(B)(ii). Pub. L. 110–255, § 3(b)(2), which directed substitution of “1.96 percent” for “2 percent”, was executed by making the substitution for “2-percent”, to reflect the probable intent of Congress. Subsec. (d)(2). Pub. L. 110–255, § 3(b)(1), substituted “chief executive” for “Governor”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2011 AmendmentAmendment by Pub. L. 111–364 effective Oct. 1, 2011, except that amendment by section 2(c)(4) of Pub. L. 111–364 effective Jan. 4, 2011, 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. § 16133

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110