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42 U.S. Code § 16132. National grant, rebate, and loan programs
(a) In generalThe 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) 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 technologiesThe 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.