[Congressional Record Volume 155, Number 79 (Thursday, May 21, 2009)]
[Senate]
[Pages S5841-S5843]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. STABENOW (for herself, Mr. Brownback, Mr. Durbin, Mr. 
        Voinovich, Mr. Levin, Mr. Brown, Ms. Mikulski, and Mr. 
        Lieberman):
  S. 1135. 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; to the Committee on Commerce, Science, and Transportation.
  Ms. STABENOW. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1135

       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.

[[Page S5842]]

       (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--

[[Page S5843]]

       (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 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.
                                 ______