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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1248 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1248

    To establish a program in the Department of Energy to encourage 
 consumers to trade-in older vehicles for more fuel-efficient vehicles 
                and motorcycles, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2009

   Mr. Casey introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
    To establish a program in the Department of Energy to encourage 
 consumers to trade-in older vehicles for more fuel-efficient vehicles 
                and motorcycles, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Green Transportation Efficiency Act 
of 2009''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Automobile.--The term ``automobile'' has the meaning 
        given the term in section 32901(a) of title 49, United States 
        Code.
            (2) Category 1 truck.--
                    (A) In general.--The term ``category 1 truck'' 
                means a non-passenger automobile that has a combined 
                fuel economy value of at least 18 miles per gallon.
                    (B) Exclusion.--The term ``category 1 truck'' does 
                not include a category 2 truck.
            (3) Category 2 truck.--The term ``category 2 truck'' means 
        a non-passenger automobile that is a large van or a large 
        pickup, as categorized by the Secretary using the method used 
        by the Environmental Protection Agency and described in the 
        report entitled ``Light-Duty Automotive Technology and Fuel 
        Economy Trends: 1975 through 2008''.
            (4) Category 3 truck.--The term ``category 3 truck'' means 
        a work truck.
            (5) Combined fuel economy value.--The term ``combined fuel 
        economy value'' means--
                    (A) in the case of a qualifying vehicle, the 
                number, expressed in miles per gallon, centered below 
                the term ``Combined Fuel Economy'' on the label 
                required to be affixed or caused to be affixed on a 
                qualifying vehicle pursuant to part 600 of title 40, 
                Code of Federal Regulations (or comparable 
                regulations);
                    (B) in the case of an eligible trade-in vehicle, 
                the equivalent of the number described in subparagraph 
                (A) that is posted--
                            (i) under the term ``Estimated New EPA 
                        MPG'' and above the term ``Combined'' for 
                        vehicles of model years 1984 through 2007; or
                            (ii) under the term ``New EPA MPG'' and 
                        above the term ``Combined'' for vehicles of 
                        model year 2008 or later on the fuel economy 
                        website of the Environmental Protection Agency 
                        for the make, model, and year of the vehicle; 
                        or
                    (C) in the case an eligible trade-in vehicle 
                manufactured during model years 1978 through 1984, the 
                equivalent of the number described in subparagraph (A), 
                as determined by the Secretary (and posted on the 
                website of the National Highway Traffic Safety 
                Administration) using data maintained by the 
                Environmental Protection Agency for the make, model, 
                and year of the eligible trade-in vehicle.
            (6) Dealer.--The term ``dealer'' means a person licensed by 
        a State who engages in the sale of new automobiles to ultimate 
        purchasers.
            (7) Eligible trade-in vehicle.--The term ``eligible trade-
        in vehicle'' means an automobile, work truck, or motorcycle 
        that, at the time the automobile, work truck, or motorcycle is 
        presented for trade-in under this Act--
                    (A) is in drivable condition;
                    (B) has been continuously insured consistent with 
                the applicable State law and registered to the same 
                owner for a period of not less than 1 year immediately 
                prior to the trade-in;
                    (C) was manufactured less than 25 years before the 
                date of the trade-in; and
                    (D) in the case of an automobile, has a combined 
                fuel economy value of 18 miles per gallon or less.
            (8) Motorcycle.--The term ``motorcycle'' means a motor 
        vehicle with motive power having a seat or saddle for the use 
        of the rider and designed to travel on not more than 3 wheels 
        in contact with the ground.
            (9) New fuel-efficient automobile.--The term ``new fuel-
        efficient automobile'' means a passenger automobile, category 1 
        truck, category 2 truck, or category 3 truck--
                    (A) the equitable or legal title of which has not 
                been transferred to any person other than the ultimate 
                purchaser;
                    (B) that carries a manufacturer's suggested retail 
                price of $45,000 or less;
                    (C) that--
                            (i) in the case of a passenger automobile, 
                        category 1 truck, or category 2 truck, is 
                        certified to applicable standards established 
                        under section 86.1811-04 of title 40, Code of 
                        Federal Regulations (or a successor 
                        regulation); or
                            (ii) in the case of a category 3 truck, is 
                        certified to the applicable vehicle or engine 
                        standards established under section 86.1816-08, 
                        86.007-11, or 86.008-10 of title 40, Code of 
                        Federal Regulations (or successor regulations); 
                        and
                    (D) that has the combined fuel economy value of--
                            (i) in the case of a passenger automobile, 
                        22 miles per gallon;
                            (ii) in the case of a category 1 truck, 18 
                        miles per gallon; and
                            (iii) in the case of a category 2 truck or 
                        a category 3 truck, 15 miles per gallon.
            (10) New fuel-efficient motorcycle.--The term ``new fuel-
        efficient motorcycle'' means a motorcycle--
                    (A) the equitable or legal title of which has not 
                been transferred to any person other than the ultimate 
                purchaser;
                    (B) that carries a manufacturer's suggested retail 
                price of not less than $7,000 and not more than 
                $20,000; and
                    (C) that has a manufacturer's estimated combined 
                fuel economy of at least 40 miles per gallon.
            (11) Non-passenger automobile.--The term ``non-passenger 
        automobile'' has the meaning given the term in section 32901(a) 
        of title 49, United States Code.
            (12) Passenger automobile.--The term ``passenger 
        automobile'' means a passenger automobile (as defined in 
        section 32901(a) of title 49, United States Code) that has a 
        combined fuel economy value of at least 22 miles per gallon.
            (13) Program.--The term ``Program'' means the Green 
        Transportation Efficiency Program established by section 3.
            (14) Qualifying lease.--The term ``qualifying lease'' means 
        a lease of an automobile for a period of not less than 5 years.
            (15) Qualifying vehicle.--The term ``qualifying vehicle'' 
        means--
                    (A) a new fuel-efficient automobile; or
                    (B) a new fuel-efficient motorcycle.
            (16) Scrappage value.--The term ``scrappage value'' means 
        the amount received by the dealer for a vehicle on transferring 
        title of the vehicle to the person responsible for ensuring the 
        dismantling and destroying of the vehicle.
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (18) Ultimate purchaser.--The term ``ultimate purchaser'' 
        means, in the case of any qualifying vehicle, the first person 
        who in good faith purchases the qualifying vehicle for purposes 
        other than resale.
            (19) Vehicle identification number.--The term ``vehicle 
        identification number'' means the 17-character number used by 
        the automobile industry to identify individual automobiles.
            (20) Work truck.--The term ``work truck'' has the meaning 
        given the term in section 32901(a) of title 49, United States 
        Code.

SEC. 3. GREEN TRANSPORTATION EFFICIENCY PROGRAM.

    (a) Establishment.--There is established in the Department of 
Energy a voluntary program to be known as the ``Green Transportation 
Efficiency Program'' under which the Secretary, in accordance with this 
section and regulations issued under subsection (h), shall--
            (1) authorize the issuance of an electronic voucher in 
        accordance with subsection (c) to offset the purchase price, or 
        lease price for a qualifying lease, of a qualifying vehicle on 
        the surrender of an eligible trade-in vehicle to a dealer 
        participating in the Program;
            (2) certify dealers for participation in the Program--
                    (A) to accept vouchers in accordance with this 
                section as partial payment or down payment for the 
                purchase or qualifying lease of any qualifying vehicle 
                offered for sale or lease by the dealer; and
                    (B) in accordance with subsection (c)(2), to 
                transfer each eligible trade-in vehicle surrendered to 
                the dealer to an entity for disposal;
            (3) in consultation with the Secretary of the Treasury, 
        make electronic payments to dealers for vouchers accepted by 
        the dealers, in accordance with the regulations issued under 
        subsection (h);
            (4) in consultation with the Secretary of the Treasury, 
        provide for the payment of rebates to persons who qualify for a 
        rebate under subsection (c)(3); and
            (5) in consultation with the Secretary of the Treasury and 
        the Inspector General of the Department of Energy, establish 
        and provide for the enforcement of measures to prevent and 
        penalize fraud under the Program.
    (b) Qualifications for and Value of Vouchers.--
            (1) In general.--A voucher issued under the Program shall 
        have a value that may be applied to offset the purchase price, 
        or lease price for a qualifying lease, of a qualifying vehicle 
        in accordance with this subsection.
            (2) New fuel-efficient automobiles.--
                    (A) $3,500 value.--A voucher may be used to offset 
                the purchase price or lease price of a new fuel-
                efficient automobile by $3,500 if the new fuel-
                efficient automobile is--
                            (i) a passenger automobile and the combined 
                        fuel economy value of the passenger automobile 
                        is at least 4 miles per gallon higher than the 
                        combined fuel economy value of the eligible 
                        trade-in vehicle;
                            (ii) a category 1 truck and the combined 
                        fuel economy value of the category 1 truck is 
                        at least 2 miles per gallon higher than the 
                        combined fuel economy value of the eligible 
                        trade-in vehicle;
                            (iii) a category 2 truck that has a 
                        combined fuel economy value of at least 15 
                        miles per gallon and--
                                    (I) the eligible trade-in vehicle 
                                is a category 2 truck and the combined 
                                fuel economy value of the new fuel-
                                efficient automobile is at least 1 mile 
                                per gallon higher than the combined 
                                fuel economy value of the eligible 
                                trade-in vehicle; or
                                    (II) the eligible trade-in vehicle 
                                is a category 3 truck of model year 
                                2001 or earlier; or
                            (iv) a category 3 truck and the eligible 
                        trade-in vehicle is a category 3 truck of model 
                        year of 2001 or earlier and is of similar size 
                        or larger than the new fuel-efficient 
                        automobile, as determined in a manner 
                        prescribed by the Secretary.
                    (B) $4,500 value.--A voucher may be used to offset 
                the purchase price or lease price of the new fuel-
                efficient automobile by $4,500 if the new fuel-
                efficient automobile is--
                            (i) a passenger automobile and the combined 
                        fuel economy value of the passenger automobile 
                        is at least 10 miles per gallon higher than the 
                        combined fuel economy value of the eligible 
                        trade-in vehicle;
                            (ii) a category 1 truck and the combined 
                        fuel economy value of the category 1 truck is 
                        at least 5 miles per gallon higher than the 
                        combined fuel economy value of the eligible 
                        trade-in vehicle; or
                            (iii) a category 2 truck that has a 
                        combined fuel economy value of at least 15 
                        miles per gallon and the combined fuel economy 
                        value of the category 2 truck is 2 miles per 
                        gallon higher than the combined fuel economy 
                        value of the eligible trade-in vehicle and the 
                        eligible trade-in vehicle is a category 2 
                        truck.
            (3) New fuel-efficient motorcycles.--A voucher may be used 
        to offset the purchase price of the new fuel-efficient 
        motorcycle by $2,500 if--
                    (A) the new fuel-efficient motorcycle is street-use 
                approved; and
                    (B) the manufacturer's estimated combined fuel 
                economy is at least 15 miles higher than the combined 
                fuel economy value of the eligible trade-in vehicle.
    (c) Program Specifications.--
            (1) Limitations.--
                    (A) General period of eligibility.--A voucher 
                issued under the Program shall be used only for the 
                purchase or qualifying lease of a qualifying vehicle 
                that occurs during the period--
                            (i) beginning on January 1, 2009; and
                            (ii) ending on the date that is 3 years 
                        after the date on which the regulations issued 
                        under subsection (h) are issued.
                    (B) Number of vouchers per person and per trade-in 
                vehicle.--
                            (i) Single person.--Not more than 1 voucher 
                        may be issued for a single person.
                            (ii) Joint registered owners.--Not more 
                        than 1 voucher may be issued for the joint 
                        registered owners of a single eligible trade-in 
                        vehicle.
                    (C) No combination of vouchers.--Only 1 voucher 
                issued under the Program may be applied toward the 
                purchase or qualifying lease of a qualifying vehicle.
                    (D) Limitation on funds for category 3 trucks and 
                motorcycles.--Not more than 7.5 percent and 15 percent 
                of the total funds made available for the Program shall 
                be used for vouchers for the purchase or qualifying 
                lease of category 3 trucks and motorcycles, 
                respectively.
                    (E) Combination with other incentives permitted.--
                The availability or use of a Federal, State, or local 
                incentive or a State-issued voucher for the purchase or 
                lease of a qualifying vehicle shall not limit the value 
                or issuance of a voucher under the Program to any 
                person otherwise eligible to receive the voucher.
                    (F) No additional fees.--A dealer participating in 
                the Program may not charge a person purchasing or 
                leasing a qualifying vehicle any additional fees 
                associated with the use of a voucher under the Program.
                    (G) Number and amount.--The total number and value 
                of vouchers issued under the Program may not exceed the 
                amounts made available for vouchers under subsection 
                (i).
            (2) Disposition of eligible trade-in vehicles.--
                    (A) In general.--Subject to subparagraph (B), for 
                each eligible trade-in vehicle surrendered to a dealer 
                under the Program, the dealer shall certify to the 
                Secretary, in such manner as the Secretary shall 
                prescribe by regulation, that the dealer--
                            (i) has not and will not sell, lease, 
                        exchange, or otherwise dispose of the eligible 
                        trade-in vehicle for use as an automobile in 
                        the United States or in any other country; and
                            (ii) will transfer the eligible trade-in 
                        vehicle (including the engine and drive train), 
                        in such manner as the Secretary prescribes, to 
                        an entity that will ensure that the eligible 
                        trade-in vehicle--
                                    (I) will be crushed or shredded 
                                within such period and in such manner 
                                as the Secretary prescribes; and
                                    (II) has not been, and will not be, 
                                sold, leased, exchanged, or otherwise 
                                disposed of for use as an automobile in 
                                the United States or in any other 
                                country.
                    (B) Sale of parts.--Nothing in subparagraph (A) 
                prevents a person who dismantles or disposes of an 
                eligible trade-in vehicle from--
                            (i) selling any parts of the disposed 
                        eligible trade-in vehicle other than the engine 
                        block and drive train (unless the engine or 
                        drive train has been crushed or shredded); or
                            (ii) retaining the proceeds from the sale.
                    (C) Coordination.--
                            (i) In general.--The Secretary shall 
                        coordinate with the Attorney General and the 
                        Secretary of Transportation to ensure that the 
                        National Motor Vehicle Title Information System 
                        and other publicly accessible systems are 
                        appropriately updated on a timely basis to 
                        reflect the crushing or shredding of eligible 
                        trade-in vehicles under this section and 
                        appropriate reclassification of the titles of 
                        the eligible trade-in vehicles.
                            (ii) Access to vins.--The commercial market 
                        shall have electronic and commercial access to 
                        the vehicle identification numbers of eligible 
                        trade-in vehicles that have been disposed of on 
                        a timely basis.
            (3) Eligible purchases or leases prior to date of 
        enactment.--A person who purchased or leased a qualifying 
        vehicle after January 1, 2009, and before the date of the 
        enactment of this Act, shall be eligible for a cash rebate 
        equivalent to the amount described in subsection (b)(2)(A) if 
        the person proves to the satisfaction of the Secretary that--
                    (A)(i) the person was the registered owner of an 
                eligible trade-in vehicle; or
                    (ii) if the person leased the qualifying vehicle, 
                the lease was a qualifying lease; and
                    (B) the eligible trade-in vehicle has been disposed 
                of in accordance with paragraph (2)(A).
    (d) Anti-Fraud Provisions.--
            (1) Violation.--It shall be unlawful for any person to 
        knowingly violate this section (including a regulation issued 
        pursuant to subsection (h)).
            (2) Penalties.--Any person who commits a violation 
        described in paragraph (1) shall be liable to the United States 
        Government for a civil penalty of not more than $15,000 for 
        each violation.
    (e) Information to Consumers and Dealers.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act and promptly on the updating of any 
        applicable information, the Secretary shall make available on 
        an Internet website and through other means determined by the 
        Secretary information about the Program, including--
                    (A) how to determine if a vehicle is an eligible 
                trade-in vehicle;
                    (B) how to participate in the Program, including 
                how to determine participating dealers; and
                    (C) a comprehensive list, by make and model, of 
                qualifying vehicles meeting the requirements of the 
                Program.
            (2) Public awareness campaign.--Once information described 
        in paragraph (1) is available, the Secretary shall conduct a 
        public awareness campaign to inform consumers about the Program 
        and where to obtain additional information.
    (f) Recordkeeping and Report.--
            (1) Database.--The Secretary, in coordination with the 
        Secretary of Transportation, shall maintain a database of the 
        vehicle identification numbers of all qualifying vehicles 
        purchased or leased and all eligible trade-in vehicles disposed 
        of under the Program.
            (2) Report.--Not later than 60 days after the termination 
        date described in subsection (c)(1)(A)(ii), the Secretary shall 
        submit to the Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate a report that describes the 
        efficacy of the Program, including--
                    (A) a description of Program results, including--
                            (i) the total number and amount of vouchers 
                        issued for purchase or lease of qualifying 
                        vehicles by manufacturer (including aggregate 
                        information concerning the make, model, model 
                        year, and category of automobile and 
                        motorcycle);
                            (ii) aggregate information regarding the 
                        make, model, model year, and manufacturing 
                        location of eligible trade-in vehicles traded 
                        in under the Program; and
                            (iii) the location of sale or lease;
                    (B) an estimate of the overall increase in fuel 
                efficiency in terms of miles per gallon, total annual 
                oil savings, and total annual greenhouse gas 
                reductions, as a result of the Program; and
                    (C) an estimate of the overall economic and 
                employment effects of the Program.
    (g) Exclusion of Vouchers and Rebates From Income.--
            (1) For purposes of all federal programs.--A voucher issued 
        under the Program or a cash rebate issued under subsection 
        (c)(3) shall not be regarded as income and shall not be 
        regarded as a resource for the month of receipt of the voucher 
        or rebate and the following 12 months, for purposes of 
        determining the eligibility of the recipient of the voucher or 
        rebate (or the spouse or other family or household member of 
        the recipient) for benefits or assistance, or the amount or 
        extent of benefits or assistance, under any Federal program.
            (2) For purposes of taxation.--A voucher issued under the 
        Program or a cash rebate issued under subsection (c)(3) shall 
        not be considered as gross income for purposes of the Internal 
        Revenue Code of 1986.
    (h) Regulations.--Notwithstanding section 553 of title 5, United 
States Code, not later than 30 days after the date of the enactment of 
this Act, the Secretary shall issue final regulations to implement the 
Program, including regulations that--
            (1) provide for a means of certifying dealers for 
        participation in the Program;
            (2) establish procedures for the reimbursement of dealers 
        participating in the Program to be made through electronic 
        transfer of funds for both the amount of the vouchers and any 
        reasonable administrative costs incurred by the dealer as soon 
        as practicable but not later than 10 days after the submission 
        to the Secretary of a voucher for a qualifying vehicle;
            (3) allow the dealer to use the voucher in addition to any 
        other rebate or discount offered by the dealer or the 
        manufacturer for a qualifying vehicle and prohibit the dealer 
        from using the voucher to offset any such other rebate or 
        discount;
            (4) require dealers to disclose to the person trading in an 
        eligible trade-in vehicle the best estimate of the scrappage 
        value of the vehicle and to permit the dealer to retain $50 of 
        any amounts paid to the dealer for scrappage of the eligible 
        trade-in vehicle as payment for any administrative costs to the 
        dealer associated with participation in the Program;
            (5) establish a process by which persons who qualify for a 
        rebate under subsection (c)(3) may apply for the rebate;
            (6) consistent with subsection (c)(2), establish 
        requirements and procedures for the disposal of eligible trade-
        in vehicles and provide such information as may be necessary to 
        entities engaged in the disposal to ensure that the eligible 
        trade-in vehicles are disposed of in accordance with the 
        requirements and procedures, including--
                    (A) requirements for the removal and appropriate 
                disposition of refrigerants, antifreeze, lead products, 
                mercury switches, and such other toxic or hazardous 
                vehicle components prior to the crushing or shredding 
                of an eligible trade-in vehicle, in accordance with 
                procedures established by the Secretary in consultation 
                with the Administrator of the Environmental Protection 
                Agency, and in accordance with other applicable Federal 
                and State requirements;
                    (B) a mechanism for dealers to certify to the 
                Secretary that each eligible trade-in vehicle will be 
                transferred to an entity that will ensure that the 
                eligible trade-in vehicle is disposed of, in accordance 
                with the requirements and procedures, and to submit the 
                vehicle identification numbers of the vehicles disposed 
                of and the qualifying vehicle purchased with each 
                voucher; and
                    (C) a list of entities to which dealers may 
                transfer eligible trade-in vehicles for disposal;
            (7) consistent with subsection (c)(2), establish 
        requirements and procedures for the disposal of eligible trade-
        in vehicles and provide such information as may be necessary to 
        entities engaged in the disposal to ensure that the eligible 
        trade-in vehicles are disposed of in accordance with the 
        requirements and procedures; and
            (8) provide for the enforcement of the penalties described 
        in subsection (d).
    (i) Funding.--From the amounts made available under the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5), the Director 
of the Office of Management and Budget may allocate such sums as the 
Director determines are necessary to carry out this Act.
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