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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1135 Introduced in Senate (IS)]

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.

    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 ``Drive America Forward Act of 2009''.

SEC. 2. DRIVE AMERICA FORWARD PROGRAM.

    (a) Establishment.--There is established in the National Highway 
Traffic Safety Administration a voluntary program to be known as the 
``Drive America Forward Program'' through which the Secretary, in 
accordance with this section and the regulations promulgated under 
subsection (d), shall--
            (1) authorize the issuance of an electronic voucher, 
        subject to the specifications set forth in subsection (c), to 
        offset the purchase price or lease price for a qualifying lease 
        of a new fuel efficient automobile upon 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 as provided in this section 
                as partial payment or down payment for the purchase or 
                qualifying lease of any new fuel efficient automobile 
                offered for sale or lease by that dealer; and
                    (B) in accordance with subsection (c)(2), to 
                transfer each eligible trade-in vehicle surrendered to 
                the dealer under the Program to an entity for disposal;
            (3) in consultation with the Secretary of the Treasury, 
        make electronic payments to dealers for vouchers accepted by 
        such dealers, in accordance with the regulations issued under 
        subsection (d);
            (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 Transportation, 
        establish and provide for the enforcement of measures to 
        prevent and penalize fraud under the Program.
    (b) Qualifications for and Value of Vouchers.--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 new fuel 
efficient automobile as follows:
            (1) $3,500 value.--The voucher may be used to offset the 
        purchase price or lease price of the new fuel efficient 
        automobile by $3,500 if--
                    (A) the new fuel efficient automobile is a 
                passenger automobile and the combined fuel economy 
                value of such automobile is at least 4 miles per gallon 
                higher than the combined fuel economy value of the 
                eligible trade-in vehicle;
                    (B) the new fuel efficient automobile is a category 
                1 truck and the combined fuel economy value of such 
                truck is at least 2 miles per gallon higher than the 
                combined fuel economy value of the eligible trade-in 
                vehicle;
                    (C) the new fuel efficient automobile is 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
                    (D) the new fuel efficient automobile is 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.
            (2) $4,500 value.--The voucher may be used to offset the 
        purchase price or lease price of the new fuel efficient 
        automobile by $4,500 if--
                    (A) the new fuel efficient automobile is a 
                passenger automobile and the combined fuel economy 
                value of such automobile is at least 10 miles per 
                gallon higher than the combined fuel economy value of 
                the eligible trade-in vehicle;
                    (B) the new fuel efficient automobile is a category 
                1 truck and the combined fuel economy value of such 
                truck is at least 5 miles per gallon higher than the 
                combined fuel economy value of the eligible trade-in 
                vehicle; or
                    (C) the new fuel efficient automobile is 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 such 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.
    (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 new fuel efficient 
                automobiles that occur between--
                            (i) March 30, 2009; and
                            (ii) the day that is 1 year after the date 
                        on which the regulations promulgated under 
                        subsection (d) are implemented.
                    (B) Number of vouchers per person and per trade-in 
                vehicle.--Not more than 1 voucher may be issued for a 
                single person and 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 single new fuel 
                efficient automobile.
                    (D) Cap on funds for category 3 trucks.--Not more 
                than 7.5 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.
                    (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 new fuel efficient automobile shall not 
                limit the value or issuance of a voucher under the 
                Program to any person otherwise eligible to receive 
                such a voucher.
                    (F) No additional fees.--A dealer participating in 
                the program may not charge a person purchasing or 
                leasing a new fuel efficient automobile 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 appropriated for such purpose.
            (2) Disposition of eligible trade-in vehicles.--
                    (A) In general.--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 rule, that the dealer--
                            (i) has not and will not sell, lease, 
                        exchange, or otherwise dispose of the vehicle 
                        for use as an automobile in the United States 
                        or in any other country; and
                            (ii) will transfer the vehicle (including 
                        the engine and drive train), in such manner as 
                        the Secretary prescribes, to an entity that 
                        will ensure that the 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) Savings provision.--Nothing in subparagraph (A) 
                may be construed to preclude a person who dismantles or 
                disposes of the vehicle from--
                            (i) selling any parts of the disposed 
                        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 such sale.
                    (C) Coordination.--The Secretary shall coordinate 
                with the Attorney General 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 vehicles under this section and appropriate 
                reclassification of the vehicles' titles. The 
                commercial market shall also have electronic and 
                commercial access to the vehicle identification numbers 
                of 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 new fuel 
        efficient vehicle after March 30, 2009, and before the date of 
        the enactment of this Act is eligible for a cash rebate 
        equivalent to the amount described in subsection (b)(1) if the 
        person provides proof satisfactory to the Secretary that--
                    (A)(i) the person was the registered owner of an 
                eligible trade-in vehicle; or
                    (ii) if the person leased the vehicle, the lease 
                was a qualifying lease; and
                    (B) the vehicle has been disposed of in accordance 
                with clauses (i) and (ii) of paragraph (2)(A).
    (d) Regulations.--Notwithstanding the requirements of section 553 
of title 5, United States Code, the Secretary shall promulgate final 
regulations to implement the Program not later than 30 days after the 
date of the enactment of this Act. Such regulations shall--
            (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 no longer than 10 days after the submission 
        of a voucher for the new fuel efficient automobile to the 
        Secretary;
            (3) allow the dealer to use the voucher in addition to any 
        other rebate or discount offered by the dealer or the 
        manufacturer for the new fuel efficient automobile 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 such vehicle and to permit the dealer to retain $50 of 
        any amounts paid to the dealer for scrappage of the automobile 
        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 such 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 such disposal to ensure that such vehicles 
        are disposed of in accordance with such 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 
                rules established by the Secretary in consultation with 
                the Administrator of the Environmental Protection 
                Agency, and in accordance with other applicable Federal 
                or 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 
                vehicle is disposed of, in accordance with such 
                requirements and procedures, and to submit the vehicle 
                identification numbers of the vehicles disposed of and 
                the new fuel efficient automobile 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 such disposal to ensure that such vehicles 
        are disposed of in accordance with such requirements and 
        procedures; and
            (8) provide for the enforcement of the penalties described 
        in subsection (e).
    (e) Anti-Fraud Provisions.--
            (1) Violation.--It shall be unlawful for any person to 
        knowingly violate any provision under this section or any 
        regulations issued pursuant to subsection (d).
            (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.
    (f) Information to Consumers and Dealers.--Not later than 30 days 
after the date of the enactment of this Act, and promptly upon the 
update of any relevant information, the Secretary shall make available 
on an Internet website and through other means determined by the 
Secretary information about the Program, including--
            (1) how to determine if a vehicle is an eligible trade-in 
        vehicle;
            (2) how to participate in the Program, including how to 
        determine participating dealers; and
            (3) a comprehensive list, by make and model, of new fuel 
        efficient automobiles meeting the requirements of the Program.
Once such information is available, the Secretary shall conduct a 
public awareness campaign to inform consumers about the Program and 
where to obtain additional information.
    (g) Recordkeeping and Report.--
            (1) Database.--The Secretary shall maintain a database of 
        the vehicle identification numbers of all new fuel efficient 
        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 a report to the Committee on Energy and Commerce of the 
        House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate describing 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 new fuel 
                        efficient automobiles by manufacturer 
                        (including aggregate information concerning the 
                        make, model, model year) and category of 
                        automobile;
                            (ii) aggregate information regarding the 
                        make, model, model year, and manufacturing 
                        location of 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.
    (h) 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 recipient's spouse or other family or household 
        members) 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.
    (i) Definitions.--As used in this section--
            (1) the term ``passenger automobile'' means a passenger 
        automobile, as defined in section 32901(a)(18) of title 49, 
        United States Code, that has a combined fuel economy value of 
        at least 22 miles per gallon;
            (2) the term ``category 1 truck'' means a nonpassenger 
        automobile, as defined in section 32901(a)(17) of title 49, 
        United States Code, that has a combined fuel economy value of 
        at least 18 miles per gallon, except that such term does not 
        include a category 2 truck;
            (3) the term ``category 2 truck'' means a nonpassenger 
        automobile, as defined in section 32901(a)(17) of title 49, 
        United States Code, 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) the term ``category 3 truck'' means a work truck, as 
        defined in section 32901(a)(19) of title 49, United States 
        Code;
            (5) the term ``combined fuel economy value'' means--
                    (A) with respect to a new fuel efficient 
                automobile, the number, expressed in miles per gallon, 
                centered below the words ``Combined Fuel Economy'' on 
                the label required to be affixed or caused to be 
                affixed on a new automobile pursuant to subpart D of 
                part 600 of title 40, Code of Federal Regulations;
                    (B) with respect to an eligible trade-in vehicle, 
                the equivalent of the number described in subparagraph 
                (A), and posted under the words ``Estimated New EPA 
                MPG'' and above the word ``Combined'' for vehicles of 
                model year 1984 through 2007, or posted under the words 
                ``New EPA MPG'' and above the word ``Combined'' for 
                vehicles of model year 2008 or later on the 
                fueleconomy.gov website of the Environmental Protection 
                Agency for the make, model, and year of such vehicle; 
                or
                    (C) with respect to an eligible trade-in vehicle 
                manufactured between 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 such vehicle;
            (6) the term ``dealer'' means a person licensed by a State 
        who engages in the sale of new automobiles to ultimate 
        purchasers;
            (7) the term ``eligible trade-in vehicle'' means an 
        automobile or a work truck (as such terms are defined in 
        section 32901(a) of title 49, United States Code) that, at the 
        time it is presented for trade-in under this section--
                    (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 such 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) the term ``new fuel efficient automobile'' means an 
        automobile described in paragraph (1), (2), (3), or (4)--
                    (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 passenger automobiles, 
                        category 1 trucks, or category 2 trucks, is 
                        certified to applicable standards under section 
                        86.1811-04 of title 40, Code of Federal 
                        Regulations; or
                            (ii) in the case of category 3 trucks, is 
                        certified to the applicable vehicle or engine 
                        standards under section 86.1816-08, 86.007-11, 
                        or 86.008-10 of title 40, Code of Federal 
                        Regulations; and
                    (D) that has the combined fuel economy value of--
                            (i) 22 miles per gallon for a passenger 
                        automobile;
                            (ii) 18 miles per gallon for a category 1 
                        truck; or
                            (iii) 15 miles per gallon for a category 2 
                        truck;
            (9) the term ``Program'' means the Drive America Forward 
        Program established by this section;
            (10) the term ``qualifying lease'' means a lease of an 
        automobile for a period of not less than 5 years;
            (11) the term ``scrappage value'' means the amount received 
        by the dealer for a vehicle upon transferring title of such 
        vehicle to the person responsible for ensuring the dismantling 
        and destroying of the vehicle;
            (12) the term ``Secretary'' means the Secretary of 
        Transportation acting through the National Highway Traffic 
        Safety Administration;
            (13) the term ``ultimate purchaser'' means, with respect to 
        any new automobile, the first person who in good faith 
        purchases such automobile for purposes other than resale; and
            (14) the term ``vehicle identification number'' means the 
        17-character number used by the automobile industry to identify 
        individual automobiles.

SEC. 3. REALLOCATION OF APPROPRIATIONS.

    From the amounts appropriated 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 to be necessary to carry out the Drive America Forward 
Program established under this Act.
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