[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 520 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 520

 To accelerate motor fuel savings nationwide and provide incentives to 
registered owners of high fuel consumption automobiles to replace such 
 automobiles with fuel efficient automobiles or public transportation, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 14, 2009

Mr. Israel (for himself, Mr. Inslee, Mr. Hinchey, Mr. Moore of Kansas, 
  and Ms. Lee of California) introduced the following bill; which was 
 referred to the Committee on Energy and Commerce, and in addition to 
the Committee on Transportation and Infrastructure, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To accelerate motor fuel savings nationwide and provide incentives to 
registered owners of high fuel consumption automobiles to replace such 
 automobiles with fuel efficient automobiles or public transportation, 
                        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 ``Accelerated Retirement of 
Inefficient Vehicles Act of 2009''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Automobile; manufacturer; model; model year.--The terms 
        ``automobile'', ``manufacturer'', ``model'', and ``model year'' 
        have the meanings given such terms in section 32901(a) of title 
        49, United States Code.
            (2) Certificate of title.--The term ``certificate of 
        title'' means a State-issued document showing ownership of an 
        automobile.
            (3) Dealer.--The term ``dealer'' means a person residing in 
        a State that engages in the sale, lease, or distribution of new 
        automobiles to the first person (except a dealer buying as a 
        dealer) that is an ultimate purchaser.
            (4) Dismantler.--The term ``dismantler'' means a person 
        residing in a State who is licensed to operate a business 
        employing 3 or more persons to take automobiles apart for the 
        purpose of reclaiming usable parts and recyclable materials.
            (5) Eligible fleet operator.--The term ``eligible fleet 
        operator'' means--
                    (A) the operator of a fleet of automobiles that is 
                owned by a State, Indian tribe, or local government; or
                    (B) the owner of 2 or more automobiles authorized 
                to carry passengers for hire under State, tribal, or 
                local regulations governing the operation of taxi cabs.
            (6) Eligible high fuel consumption automobile.--The term 
        ``eligible high fuel consumption automobile'' means a high fuel 
        consumption automobile that, at the time it is presented for 
        participation in the program established under section 3--
                    (A) is in drivable condition; and
                    (B) has been continuously registered and licensed 
                to operate in any State for a period of not fewer than 
                120 consecutive days for operation on public roads.
            (7) Fuel efficient automobile.--The term ``fuel efficient 
        automobile'' means an automobile manufactured for any model 
        year after 2003 that, at the time of the original sale to a 
        consumer--
                    (A) carries a manufacturer's suggested retail price 
                of $45,000 or less;
                    (B) complies with the applicable air emission and 
                related requirements under the National Emission 
                Standards Act (42 U.S.C. 7521 et seq.);
                    (C) qualifies for listing in emission bin 1, 2, 3, 
                4, or 5 (as defined in section 86.1803-01 of title 40, 
                Code of Federal Regulations); and
                    (D)(i) for automobiles manufactured in any of the 
                model years 2004 through 2010, achieves a measured fuel 
                economy level that exceeds by 25 percent the fuel 
                economy standard prescribed by the Secretary of 
                Transportation under section 32902 of title 49, United 
                States Code, for the model year and compliance category 
                of such automobile; or
                    (ii) for automobiles manufactured for any model 
                year after 2010, achieves a measured fuel economy level 
                that exceeds by 25 percent the fuel economy target 
                prescribed by the Secretary of Transportation under 
                such section 32902 for the model year and automobile 
                attribute group into which such automobile is 
                classified.
            (8) High fuel consumption automobile.--The term ``high fuel 
        consumption automobile'' means an automobile manufactured for 
        any model year before 2008 for which the originally certified 
        measured fuel economy level is less than 18 miles per gallon.
            (9) Measured fuel economy level.--The term ``measured fuel 
        economy level'' means the fuel economy level of a new 
        automobile model measured in accordance with section 32904 of 
        title 49, United States Code, and regulations prescribed 
        thereunder.
            (10) New automobile.--The term ``new automobile'' means an 
        automobile for which a manufacturer, distributor, or dealer has 
        never transferred the equitable or legal title to such 
        automobile to an ultimate purchaser.
            (11) Nonpassenger automobile.--The term ``nonpassenger 
        automobile'' means an automobile classified as a light truck 
        under part 523 of title 49, Code of Federal Regulations.
            (12) Person.--The term ``person'' has the meaning given 
        such term in section 551 of title 5, United States Code.
            (13) Program.--The term ``Program'' means the Accelerated 
        Retirement of Inefficient Vehicles Program established under 
        section 3.
            (14) Registered owner.--The term ``registered owner'' 
        means, with respect to an automobile, the person whose name 
        appears on the current State certificate of registration for 
        such automobile.
            (15) Scrap recycling facility.--The term ``scrap recycling 
        facility'' means a business--
                    (A) employing 3 or more individuals at a fixed 
                location in a State, where machinery and equipment are 
                utilized for processing and manufacturing scrap metal 
                into prepared grades; and
                    (B) whose principal product is scrap iron, scrap 
                steel, or nonferrous metallic scrap for sale for 
                remelting purposes.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (17) State.--The term ``State'' has the meaning given such 
        term in section 32101 of title 49, United States Code.
            (18) Ultimate purchaser.--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.
            (19) Voucher.--The term ``voucher'' means a voucher issued 
        to the registered owner of an eligible high fuel consumption 
        automobile under section 3(a).

SEC. 3. ACCELERATED RETIREMENT OF INEFFICIENT VEHICLES PROGRAM.

    (a) Establishment.--There is established in the Department of 
Energy a program to be known as the ``Accelerated Retirement of 
Inefficient Vehicles Program'', through which the Secretary shall--
            (1) authorize the issuance of a voucher, subject to the 
        limitations described in subsection (e)(1), to any person or 
        eligible fleet operator who is a registered owner of an 
        eligible high fuel consumption automobile, which voucher may be 
        used solely by such person or eligible fleet operator for the 
        purchase of a new or used fuel efficient automobile upon the 
        transfer of the certificate of title to such high fuel 
        consumption automobile to a dealer, dismantler, or scrap 
        recycling facility participating in the Program;
            (2) allow any dealer, dismantler, or scrap recycling 
        facility to participate in the Program if the dealer, 
        dismantler, or scrap recycling facility agrees to--
                    (A) scrap any eligible high fuel consumption 
                automobile upon receiving the certificate of title to 
                such automobile pursuant to the Program;
                    (B) issue a voucher to the registered owner of such 
                automobile;
                    (C) certify to the Secretary that such automobile 
                has been crushed or shredded in accordance with 
                subsection (e)(4); and
                    (D) comply with all applicable requirements under 
                this Act and any regulations promulgated by the 
                Secretary to carry out this Act;
            (3) require that all dealers accept vouchers presented by a 
        person or eligible fleet operator described in paragraph (1) as 
        partial payment for the purchase of a new or used fuel 
        efficient automobile; and
            (4) make payments to dealers for vouchers accepted by such 
        dealers under paragraph (3) between January 1, 2009 and 
        December 31, 2014, in accordance with the provisions of this 
        section.
    (b) Amount of Voucher.--
            (1) Voucher redemption value if used toward purchase of new 
        a fuel efficient automobile.--A voucher issued under the 
        Program during the 4-year period beginning on January 1, 2009, 
        may be applied to offset the purchase price of a new fuel 
        efficient automobile by--
                    (A) $4,500 if the eligible high fuel consumption 
                automobile was manufactured for a model year that is 7 
                or fewer years less than the calendar year in which the 
                voucher was issued;
                    (B) $3,000 if the eligible high fuel consumption 
                automobile was manufactured for a model year that is 8 
                to 10 years less than the calendar year in which the 
                voucher was issued; and
                    (C) $2,500 if the eligible high fuel consumption 
                automobile was manufactured for a model year that is 11 
                or more years less than the calendar year in which the 
                voucher was issued.
            (2) Voucher redemption value if used toward purchase of a 
        used fuel efficient automobile.--A voucher issued under the 
        Program during the 4-year period beginning on January 1, 2009, 
        may be applied to offset the purchase price of a used fuel 
        efficient automobile by--
                    (A) $3,000 if the eligible high fuel consumption 
                automobile was manufactured for a model year that is 7 
                or fewer years less than the calendar year in which the 
                voucher was issued;
                    (B) $2,000 if the eligible high fuel consumption 
                automobile was manufactured for a model year that is 8 
                to 10 years less than the calendar year in which the 
                voucher was issued; and
                    (C) $1,500 if the eligible high fuel consumption 
                automobile was manufactured for a model year that is 11 
                or more years less than the calendar year in which the 
                voucher was issued.
            (3) Voucher redemption value if used toward purchase of a 
        highly fuel efficient automobile.--The values determined under 
        paragraphs (1) or (2) shall be increased by $1,000 if the 
        voucher issued under the Program is applied to offset the 
        purchase price of a fuel efficient automobile that achieves a 
        measured fuel economy level that exceeds by 50 percent the fuel 
        economy standard prescribed by the Secretary of Transportation 
        under section 32902 of title 49, United States Code, for the 
        model year and compliance category of such automobile.
            (4) Voucher redemption value if used for transit fare 
        credits.--A voucher issued under the program during the 4-year 
        period beginning on January 1, 2009, may be applied to acquire 
        single-passenger transit fare credits from participating 
        transit operators in an amount equal to the amounts provided 
        under paragraph (2).
    (c) Administrative Payments to Participating Dealers, Dismantlers, 
and Scrap Recycling Facilities.--The Secretary shall provide for a 
payment of $50, or another amount determined reasonable by the 
Secretary, to participating dealers, dismantlers, and scrap recycling 
facilities for each voucher issued under the Program in consideration 
of the administrative costs related to such issuance.
    (d) Lists of Eligible Automobiles To Be Maintained.--The Secretary, 
in cooperation with the Secretary of Transportation, shall prepare, 
maintain, publicize, and make available through the Internet, lists of 
automobiles, classified by make and model, which are classified under 
this section as--
            (1) eligible high fuel consumption automobiles;
            (2) new fuel efficient automobiles; or
            (3) used fuel efficient automobiles.
    (e) Program Specifications.--
            (1) Limitations.--
                    (A) Vouchers per person.--Not more than 1 voucher 
                may be issued to a person in any period of 3 successive 
                calendar years. A person may be issued a voucher if the 
                person demonstrates, in a manner prescribed by rule by 
                the Secretary, that such person--
                            (i) is the registered owner of an eligible 
                        high fuel consumption automobile; and
                            (ii) attests that such high fuel 
                        consumption automobile has not been imported 
                        into the United States during the previous 4-
                        month period.
                    (B) Vouchers for eligible fleets.--A voucher for 
                the purchase of a new or used fuel efficient automobile 
                from a dealer may be issued to an eligible fleet 
                operator for each eligible high fuel consumption 
                automobile for which such eligible fleet operator is 
                the registered owner, as demonstrated in a manner 
                prescribed by rule by the Secretary.
                    (C) Offset.--A dealer--
                            (i) shall credit the amount of the voucher 
                        being applied toward the purchase of a fuel 
                        efficient automobile; and
                            (ii) may not offset the amount of the 
                        voucher against any other rebate or discount 
                        otherwise being offered by the dealer or 
                        manufacturer.
                    (D) Joint ownership.--Not more than 1 voucher may 
                be issued to the joint owners of an eligible high fuel 
                consumption automobile, unless such automobile is 
                operated by an eligible fleet operator.
                    (E) No combination of vouchers.--A person may not 
                apply 2 or more vouchers issued under the Program 
                toward the purchase of a single fuel efficient 
                automobile.
                    (F) Combination with other incentives permitted.--
                Notwithstanding any other provision of law, the 
                availability or use of a Federal or State tax incentive 
                or a State-issued voucher for the purchase of a fuel 
                efficient automobile shall not limit the value or 
                issuance of a voucher under the Program to any person 
                or eligible fleet operator otherwise eligible to 
                receive such a voucher.
                    (G) Duration.--Each voucher shall expire 2 years 
                after the date on which the voucher is issued and may 
                not be renewed.
                    (H) Prompt fulfillment of redemption requests 
                required.--The Secretary shall provide for the payment 
                of all vouchers submitted to the Secretary for 
                redemption in accordance with the provisions of this 
                Act not later than 60 days after such submission, or 
                within such lesser period as the Secretary determines 
                to be practicable.
                    (I) Number and amount.--The total number and value 
                of vouchers issued under the Program may not exceed the 
                amounts appropriated for such purpose.
            (2) Consumer education program.--The Secretary shall carry 
        out a consumer education program aimed at informing persons 
        about the Program, its fuel economy purposes, and the 
        availability of vouchers under the Program.
            (3) Transit fare credits.--The Secretary shall promulgate 
        regulations that allow operators of bus and rail public transit 
        systems to redeem vouchers properly issued to any person under 
        this Act to offset the purchase price of annual transit passes 
        or any other form of individual transit fare credit designated 
        by the transit system operator. Participating transit system 
        operators shall establish the terms and conditions for the 
        ownership, use, and expiration of any transit fare credits 
        acquired through the use of a voucher issued under this Act.
            (4) Disposition of eligible high fuel consumption 
        automobiles.--
                    (A) In general.--Any automobile dealer, dismantler, 
                or scrap recycling facility who receives a certificate 
                of title to any eligible high fuel consumption 
                automobile in exchange for a voucher under the Program 
                shall certify to the Secretary, in such manner as the 
                Secretary shall prescribe by rule, that such automobile 
                and engine--
                            (i) have been crushed or shredded within 
                        such period as the Secretary prescribes;
                            (ii) have been processed prior to crushing 
                        or shredding to ensure the removal and 
                        appropriate disposition of refrigerants, 
                        antifreeze, lead products, mercury switches, 
                        and such other toxic or hazardous vehicle 
                        components as the Secretary may specify by 
                        rule; and
                            (iii) have 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 dismantler from--
                            (i) selling any parts of such scrapped 
                        automobile other than the engine block and 
                        drive train for use as replacement parts; 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 is appropriately 
                updated to reflect the crushing or shredding of high 
                fuel consumption automobiles under this section.
    (f) Rulemaking.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary shall promulgate regulations to 
implement the Program, including--
            (1) the removal and disposition of toxic or hazardous 
        materials from eligible high fuel consumption vehicles 
        presented for participation in the program; and
            (2) the enforcement of the penalties described in section 
        4.
    (g) Disclaimer.--Nothing in this Act or any other provision of law 
limits the authority of Congress or the Secretary to terminate or limit 
the Program or the issuance of vouchers under the Program.

SEC. 4. PENALTIES.

    (a) Violation.--It shall be unlawful for any person to violate any 
provision under this Act or any regulations issued pursuant to section 
3(f).
    (b) Penalties.--Any person who commits a violation described in 
subsection (a) shall be liable to the United States Government for a 
civil penalty of not more than $5,000 for each violation. A separate 
violation shall be deemed to have occurred for each day the person 
continues to be in violation of any provision under this Act.

SEC. 5. REPORT.

    The Secretary shall submit a report to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate every 6 months that specifies, for 
the most recent 6-month period--
            (1) the number of vouchers which have been used under the 
        Program; and
            (2) the make, model, model year, location of sale, and 
        manufacturing location of each vehicle traded in or purchased 
        under the Program.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated, for each of the fiscal 
years 2009 through 2014, such sums as may be necessary to carry out 
this Act, which shall remain available until expended.
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