II 

111TH CONGRESS 

1ST SESSION S. 1135 

To establish a voluntary program in the National Highway Traffic Safety 

Administration to encourage consumers to trade-in older vehicles for 

more fuel efficient vehicles, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2009 

Ms. STABENOW (for herself, Mr. BROWNBACK, Mr. DURBIN, Mr. VOINOVICH, 

Mr. LEVIN, Mr. BROWN, Ms. MIKULSKI, and Mr. LIEBERMAN) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To establish a voluntary program in the National Highway 

Traffic Safety Administration to encourage consumers 

to trade-in older vehicles for more fuel efficient vehicles, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Drive America For5 ward Act of 2009’’. 


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1 SEC. 2. DRIVE AMERICA FORWARD PROGRAM. 

2 (a) ESTABLISHMENT.—There is established in the 

3 National Highway Traffic Safety Administration a vol4 untary program to be known as the ‘‘Drive America For5 ward Program’’ through which the Secretary, in accord6 ance with this section and the regulations promulgated 

7 under subsection (d), shall— 

8 (1) authorize the issuance of an electronic 

9 voucher, subject to the specifications set forth in 

10 subsection (c), to offset the purchase price or lease 

11 price for a qualifying lease of a new fuel efficient 

12 automobile upon the surrender of an eligible trade13 in vehicle to a dealer participating in the Program; 

14 (2) certify dealers for participation in the Pro15 gram— 

16 (A) to accept vouchers as provided in this 

17 section as partial payment or down payment for 

18 the purchase or qualifying lease of any new fuel 

19 efficient automobile offered for sale or lease by 

20 that dealer; and 

21 (B) in accordance with subsection (c)(2), 

22 to transfer each eligible trade-in vehicle surren23 dered to the dealer under the Program to an 

24 entity for disposal; 

25 (3) in consultation with the Secretary of the 

26 Treasury, make electronic payments to dealers for 


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1 vouchers accepted by such dealers, in accordance 

2 with the regulations issued under subsection (d); 

3 (4) in consultation with the Secretary of the 

4 Treasury, provide for the payment of rebates to per5 sons who qualify for a rebate under subsection 

6 (c)(3); and 

7 (5) in consultation with the Secretary of the 

8 Treasury and the Inspector General of the Depart9 ment of Transportation, establish and provide for 

10 the enforcement of measures to prevent and penalize 

11 fraud under the Program. 

12 (b) QUALIFICATIONS FOR AND VALUE OF VOUCH13 ERS.—A voucher issued under the Program shall have a 

14 value that may be applied to offset the purchase price or 

15 lease price for a qualifying lease of a new fuel efficient 

16 automobile as follows: 

17 (1) $3,500 VALUE.—The voucher may be used 

18 to offset the purchase price or lease price of the new 

19 fuel efficient automobile by $3,500 if— 

20 (A) the new fuel efficient automobile is a 

21 passenger automobile and the combined fuel 

22 economy value of such automobile is at least 4 

23 miles per gallon higher than the combined fuel 

24 economy value of the eligible trade-in vehicle; 


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1 (B) the new fuel efficient automobile is a 

2 category 1 truck and the combined fuel econ3 omy value of such truck is at least 2 miles per 

4 gallon higher than the combined fuel economy 

5 value of the eligible trade-in vehicle; 

6 (C) the new fuel efficient automobile is a 

7 category 2 truck that has a combined fuel econ8 omy value of at least 15 miles per gallon and— 

9 (i) the eligible trade-in vehicle is a 

10 category 2 truck and the combined fuel 

11 economy value of the new fuel efficient 

12 automobile is at least 1 mile per gallon 

13 higher than the combined fuel economy 

14 value of the eligible trade-in vehicle; or 

15 (ii) the eligible trade-in vehicle is a 

16 category 3 truck of model year 2001 or 

17 earlier; or 

18 (D) the new fuel efficient automobile is a 

19 category 3 truck and the eligible trade-in vehi20 cle is a category 3 truck of model year of 2001 

21 or earlier and is of similar size or larger than 

22 the new fuel efficient automobile as determined 

23 in a manner prescribed by the Secretary. 


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1 (2) $4,500 VALUE.—The voucher may be used 

2 to offset the purchase price or lease price of the new 

3 fuel efficient automobile by $4,500 if— 

4 (A) the new fuel efficient automobile is a 

5 passenger automobile and the combined fuel 

6 economy value of such automobile is at least 10 

7 miles per gallon higher than the combined fuel 

8 economy value of the eligible trade-in vehicle; 

9 (B) the new fuel efficient automobile is a 

10 category 1 truck and the combined fuel econ11 omy value of such truck is at least 5 miles per 

12 gallon higher than the combined fuel economy 

13 value of the eligible trade-in vehicle; or 

14 (C) the new fuel efficient automobile is a 

15 category 2 truck that has a combined fuel econ16 omy value of at least 15 miles per gallon and 

17 the combined fuel economy value of such truck 

18 is 2 miles per gallon higher than the combined 

19 fuel economy value of the eligible trade-in vehi20 cle and the eligible trade-in vehicle is a category 

21 2 truck. 

22 (c) PROGRAM SPECIFICATIONS.— 

23 (1) LIMITATIONS.— 

24 (A) GENERAL PERIOD OF ELIGIBILITY.—A 

25 voucher issued under the Program shall be used 


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1 only for the purchase or qualifying lease of new 

2 fuel efficient automobiles that occur between— 

3 (i) March 30, 2009; and 

4 (ii) the day that is 1 year after the 

5 date on which the regulations promulgated 

6 under subsection (d) are implemented. 

7 (B) NUMBER OF VOUCHERS PER PERSON

8 AND PER TRADE-IN VEHICLE.—Not more than 

9 1 voucher may be issued for a single person and 

10 not more than 1 voucher may be issued for the 

11 joint registered owners of a single eligible trade12 in vehicle. 

13 (C) NO COMBINATION OF VOUCHERS.— 

14 Only 1 voucher issued under the Program may 

15 be applied toward the purchase or qualifying 

16 lease of a single new fuel efficient automobile. 

17 (D) CAP ON FUNDS FOR CATEGORY 3

18 TRUCKS.—Not more than 7.5 percent of the 

19 total funds made available for the Program 

20 shall be used for vouchers for the purchase or 

21 qualifying lease of category 3 trucks. 

22 (E) COMBINATION WITH OTHER INCEN23 TIVES PERMITTED.—The availability or use of a 

24 Federal, State, or local incentive or a State25 issued voucher for the purchase or lease of a 


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1 new fuel efficient automobile shall not limit the 

2 value or issuance of a voucher under the Pro3 gram to any person otherwise eligible to receive 

4 such a voucher. 

5 (F) NO ADDITIONAL FEES.—A dealer par6 ticipating in the program may not charge a per7 son purchasing or leasing a new fuel efficient 

8 automobile any additional fees associated with 

9 the use of a voucher under the Program. 

10 (G) NUMBER AND AMOUNT.—The total 

11 number and value of vouchers issued under the 

12 Program may not exceed the amounts appro13 priated for such purpose. 

14 (2) DISPOSITION OF ELIGIBLE TRADE-IN VEHI15 CLES.— 

16 (A) IN GENERAL.—For each eligible trade17 in vehicle surrendered to a dealer under the 

18 Program, the dealer shall certify to the Sec19 retary, in such manner as the Secretary shall 

20 prescribe by rule, that the dealer— 

21 (i) has not and will not sell, lease, ex22 change, or otherwise dispose of the vehicle 

23 for use as an automobile in the United 

24 States or in any other country; and 


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1 (ii) will transfer the vehicle (including 

2 the engine and drive train), in such man3 ner as the Secretary prescribes, to an enti4 ty that will ensure that the vehicle— 

5 (I) will be crushed or shredded 

6 within such period and in such man7 ner as the Secretary prescribes; and 

8 (II) has not been, and will not 

9 be, sold, leased, exchanged, or other10 wise disposed of for use as an auto11 mobile in the United States or in any 

12 other country. 

13 (B) SAVINGS PROVISION.—Nothing in sub14 paragraph (A) may be construed to preclude a 

15 person who dismantles or disposes of the vehicle 

16 from— 

17 (i) selling any parts of the disposed 

18 vehicle other than the engine block and 

19 drive train (unless the engine or drive train 

20 has been crushed or shredded); or 

21 (ii) retaining the proceeds from such 

22 sale. 

23 (C) COORDINATION.—The Secretary shall 

24 coordinate with the Attorney General to ensure 

25 that the National Motor Vehicle Title InformaVerDate Nov 24 2008 21:11 May 26, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1135.IS S1135

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1 tion System and other publicly accessible sys2 tems are appropriately updated on a timely 

3 basis to reflect the crushing or shredding of ve4 hicles under this section and appropriate reclas5 sification of the vehicles’ titles. The commercial 

6 market shall also have electronic and commer7 cial access to the vehicle identification numbers 

8 of vehicles that have been disposed of on a 

9 timely basis. 

10 (3) ELIGIBLE PURCHASES OR LEASES PRIOR TO

11 DATE OF ENACTMENT.—A person who purchased or 

12 leased a new fuel efficient vehicle after March 30, 

13 2009, and before the date of the enactment of this 

14 Act is eligible for a cash rebate equivalent to the 

15 amount described in subsection (b)(1) if the person 

16 provides proof satisfactory to the Secretary that— 

17 (A)(i) the person was the registered owner 

18 of an eligible trade-in vehicle; or 

19 (ii) if the person leased the vehicle, the 

20 lease was a qualifying lease; and 

21 (B) the vehicle has been disposed of in ac22 cordance with clauses (i) and (ii) of paragraph 

23 (2)(A). 

24 (d) REGULATIONS.—Notwithstanding the require25 ments of section 553 of title 5, United States Code, the 


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1 Secretary shall promulgate final regulations to implement 

2 the Program not later than 30 days after the date of the 

3 enactment of this Act. Such regulations shall— 

4 (1) provide for a means of certifying dealers for 

5 participation in the Program; 

6 (2) establish procedures for the reimbursement 

7 of dealers participating in the Program to be made 

8 through electronic transfer of funds for both the 

9 amount of the vouchers and any reasonable adminis10 trative costs incurred by the dealer as soon as prac11 ticable but no longer than 10 days after the submis12 sion of a voucher for the new fuel efficient auto13 mobile to the Secretary; 

14 (3) allow the dealer to use the voucher in addi15 tion to any other rebate or discount offered by the 

16 dealer or the manufacturer for the new fuel efficient 

17 automobile and prohibit the dealer from using the 

18 voucher to offset any such other rebate or discount; 

19 (4) require dealers to disclose to the person 

20 trading in an eligible trade-in vehicle the best esti21 mate of the scrappage value of such vehicle and to 

22 permit the dealer to retain $50 of any amounts paid 

23 to the dealer for scrappage of the automobile as pay24 ment for any administrative costs to the dealer asso25 ciated with participation in the Program; 


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1 (5) establish a process by which persons who 

2 qualify for a rebate under subsection (c)(3) may 

3 apply for such rebate; 

4 (6) consistent with subsection (c)(2), establish 

5 requirements and procedures for the disposal of eli6 gible trade-in vehicles and provide such information 

7 as may be necessary to entities engaged in such dis8 posal to ensure that such vehicles are disposed of in 

9 accordance with such requirements and procedures, 

10 including— 

11 (A) requirements for the removal and ap12 propriate disposition of refrigerants, antifreeze, 

13 lead products, mercury switches, and such other 

14 toxic or hazardous vehicle components prior to 

15 the crushing or shredding of an eligible trade16 in vehicle, in accordance with rules established 

17 by the Secretary in consultation with the Ad18 ministrator of the Environmental Protection 

19 Agency, and in accordance with other applicable 

20 Federal or State requirements; 

21 (B) a mechanism for dealers to certify to 

22 the Secretary that each eligible trade-in vehicle 

23 will be transferred to an entity that will ensure 

24 that the vehicle is disposed of, in accordance 

25 with such requirements and procedures, and to 


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1 submit the vehicle identification numbers of the 

2 vehicles disposed of and the new fuel efficient 

3 automobile purchased with each voucher; and 

4 (C) a list of entities to which dealers may 

5 transfer eligible trade-in vehicles for disposal; 

6 (7) consistent with subsection (c)(2), establish 

7 requirements and procedures for the disposal of eli8 gible trade-in vehicles and provide such information 

9 as may be necessary to entities engaged in such dis10 posal to ensure that such vehicles are disposed of in 

11 accordance with such requirements and procedures; 

12 and 

13 (8) provide for the enforcement of the penalties 

14 described in subsection (e). 

15 (e) ANTI-FRAUD PROVISIONS.— 

16 (1) VIOLATION.—It shall be unlawful for any 

17 person to knowingly violate any provision under this 

18 section or any regulations issued pursuant to sub19 section (d). 

20 (2) PENALTIES.—Any person who commits a 

21 violation described in paragraph (1) shall be liable to 

22 the United States Government for a civil penalty of 

23 not more than $15,000 for each violation. 

24 (f) INFORMATION TO CONSUMERS AND DEALERS.— 

25 Not later than 30 days after the date of the enactment 


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1 of this Act, and promptly upon the update of any relevant 

2 information, the Secretary shall make available on an 

3 Internet website and through other means determined by 

4 the Secretary information about the Program, including— 

5 (1) how to determine if a vehicle is an eligible 

6 trade-in vehicle; 

7 (2) how to participate in the Program, includ8 ing how to determine participating dealers; and 

9 (3) a comprehensive list, by make and model, of 

10 new fuel efficient automobiles meeting the require11 ments of the Program. 

12 Once such information is available, the Secretary shall 

13 conduct a public awareness campaign to inform consumers 

14 about the Program and where to obtain additional infor15 mation. 

16 (g) RECORDKEEPING AND REPORT.— 

17 (1) DATABASE.—The Secretary shall maintain 

18 a database of the vehicle identification numbers of 

19 all new fuel efficient vehicles purchased or leased 

20 and all eligible trade-in vehicles disposed of under 

21 the Program. 

22 (2) REPORT.—Not later than 60 days after the 

23 termination date described in subsection 

24 (c)(1)(A)(ii), the Secretary shall submit a report to 

25 the Committee on Energy and Commerce of the 


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1 House of Representatives and the Committee on 

2 Commerce, Science, and Transportation of the Sen3 ate describing the efficacy of the Program, includ4 ing— 

5 (A) a description of Program results, in6 cluding— 

7 (i) the total number and amount of 

8 vouchers issued for purchase or lease of 

9 new fuel efficient automobiles by manufac10 turer (including aggregate information 

11 concerning the make, model, model year) 

12 and category of automobile; 

13 (ii) aggregate information regarding 

14 the make, model, model year, and manu15 facturing location of vehicles traded in 

16 under the Program; and 

17 (iii) the location of sale or lease; 

18 (B) an estimate of the overall increase in 

19 fuel efficiency in terms of miles per gallon, total 

20 annual oil savings, and total annual greenhouse 

21 gas reductions, as a result of the Program; and 

22 (C) an estimate of the overall economic 

23 and employment effects of the Program. 

24 (h) EXCLUSION OF VOUCHERS AND REBATES FROM

25 INCOME.— 


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1 (1) FOR PURPOSES OF ALL FEDERAL PRO2 GRAMS.—A voucher issued under the Program or a 

3 cash rebate issued under subsection (c)(3) shall not 

4 be regarded as income and shall not be regarded as 

5 a resource for the month of receipt of the voucher 

6 or rebate and the following 12 months, for purposes 

7 of determining the eligibility of the recipient of the 

8 voucher or rebate (or the recipient’s spouse or other 

9 family or household members) for benefits or assist10 ance, or the amount or extent of benefits or assist11 ance, under any Federal program. 

12 (2) FOR PURPOSES OF TAXATION.—A voucher 

13 issued under the Program or a cash rebate issued 

14 under subsection (c)(3) shall not be considered as 

15 gross income for purposes of the Internal Revenue 

16 Code of 1986. 

17 (i) DEFINITIONS.—As used in this section— 

18 (1) the term ‘‘passenger automobile’’ means a 

19 passenger automobile, as defined in section 

20 32901(a)(18) of title 49, United States Code, that 

21 has a combined fuel economy value of at least 22 

22 miles per gallon; 

23 (2) the term ‘‘category 1 truck’’ means a non24 passenger automobile, as defined in section 

25 32901(a)(17) of title 49, United States Code, that 


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1 has a combined fuel economy value of at least 18 

2 miles per gallon, except that such term does not in3 clude a category 2 truck; 

4 (3) the term ‘‘category 2 truck’’ means a non5 passenger automobile, as defined in section 

6 32901(a)(17) of title 49, United States Code, that 

7 is a large van or a large pickup, as categorized by 

8 the Secretary using the method used by the Environ9 mental Protection Agency and described in the re10 port entitled ‘‘Light-Duty Automotive Technology 

11 and Fuel Economy Trends: 1975 through 2008’’; 

12 (4) the term ‘‘category 3 truck’’ means a work 

13 truck, as defined in section 32901(a)(19) of title 49, 

14 United States Code; 

15 (5) the term ‘‘combined fuel economy value’’ 

16 means— 

17 (A) with respect to a new fuel efficient 

18 automobile, the number, expressed in miles per 

19 gallon, centered below the words ‘‘Combined 

20 Fuel Economy’’ on the label required to be af21 fixed or caused to be affixed on a new auto22 mobile pursuant to subpart D of part 600 of 

23 title 40, Code of Federal Regulations; 

24 (B) with respect to an eligible trade-in ve25 hicle, the equivalent of the number described in 


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1 subparagraph (A), and posted under the words 

2 ‘‘Estimated New EPA MPG’’ and above the 

3 word ‘‘Combined’’ for vehicles of model year 

4 1984 through 2007, or posted under the words 

5 ‘‘New EPA MPG’’ and above the word ‘‘Com6 bined’’ for vehicles of model year 2008 or later 

7 on the fueleconomy.gov website of the Environ8 mental Protection Agency for the make, model, 

9 and year of such vehicle; or 

10 (C) with respect to an eligible trade-in ve11 hicle manufactured between model years 1978 

12 through 1984, the equivalent of the number de13 scribed in subparagraph (A) as determined by 

14 the Secretary (and posted on the website of the 

15 National Highway Traffic Safety Administra16 tion) using data maintained by the Environ17 mental Protection Agency for the make, model, 

18 and year of such vehicle; 

19 (6) the term ‘‘dealer’’ means a person licensed 

20 by a State who engages in the sale of new auto21 mobiles to ultimate purchasers; 

22 (7) the term ‘‘eligible trade-in vehicle’’ means 

23 an automobile or a work truck (as such terms are 

24 defined in section 32901(a) of title 49, United 


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1 States Code) that, at the time it is presented for 

2 trade-in under this section— 

3 (A) is in drivable condition; 

4 (B) has been continuously insured con5 sistent with the applicable State law and reg6 istered to the same owner for a period of not 

7 less than 1 year immediately prior to such 

8 trade-in; 

9 (C) was manufactured less than 25 years 

10 before the date of the trade-in; and 

11 (D) in the case of an automobile, has a 

12 combined fuel economy value of 18 miles per 

13 gallon or less; 

14 (8) the term ‘‘new fuel efficient automobile’’ 

15 means an automobile described in paragraph (1), 

16 (2), (3), or (4)— 

17 (A) the equitable or legal title of which has 

18 not been transferred to any person other than 

19 the ultimate purchaser; 

20 (B) that carries a manufacturer’s sug21 gested retail price of $45,000 or less; 

22 (C) that— 

23 (i) in the case of passenger auto24 mobiles, category 1 trucks, or category 2 

25 trucks, is certified to applicable standards 


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1 under section 86.1811–04 of title 40, Code 

2 of Federal Regulations; or 

3 (ii) in the case of category 3 trucks, 

4 is certified to the applicable vehicle or en5 gine standards under section 86.1816–08, 

6 86.007–11, or 86.008–10 of title 40, Code 

7 of Federal Regulations; and 

8 (D) that has the combined fuel economy 

9 value of— 

10 (i) 22 miles per gallon for a passenger 

11 automobile; 

12 (ii) 18 miles per gallon for a category 

13 1 truck; or 

14 (iii) 15 miles per gallon for a category 

15 2 truck; 

16 (9) the term ‘‘Program’’ means the Drive 

17 America Forward Program established by this sec18 tion; 

19 (10) the term ‘‘qualifying lease’’ means a lease 

20 of an automobile for a period of not less than 5 

21 years; 

22 (11) the term ‘‘scrappage value’’ means the 

23 amount received by the dealer for a vehicle upon 

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1 sponsible for ensuring the dismantling and destroy2 ing of the vehicle; 

3 (12) the term ‘‘Secretary’’ means the Secretary 

4 of Transportation acting through the National High5 way Traffic Safety Administration; 

6 (13) the term ‘‘ultimate purchaser’’ means, 

7 with respect to any new automobile, the first person 

8 who in good faith purchases such automobile for 

9 purposes other than resale; and 

10 (14) the term ‘‘vehicle identification number’’ 

11 means the 17-character number used by the auto12 mobile industry to identify individual automobiles. 

13 SEC. 3. REALLOCATION OF APPROPRIATIONS. 

14 From the amounts appropriated under the American 

15 Recovery and Reinvestment Act of 2009 (Public Law 111– 

16 5), the Director of the Office of Management and Budget 

17 may allocate such sums as the Director determines to be 

18 necessary to carry out the Drive America Forward Pro19 gram established under this Act. 

Æ 


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