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.

The Administrator shall—

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

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.

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—

(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.

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—

(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) ReallocationIf 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.

A State—

(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) RequirementsA 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.

A grant, rebate, or loan provided under this section shall be used for a project relating to—

(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.

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.

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.

(Pub. L. 109–58, title VII, § 793, Aug. 8, 2005, 119 Stat. 841; Pub. L. 110–255, § 3(b), June 30, 2008, 122 Stat. 2424; Pub. L. 111–364, § 2(c), Jan. 4, 2011, 124 Stat. 4059.)