[Congressional Record Volume 155, Number 87 (Thursday, June 11, 2009)]
[Senate]
[Pages S6553-S6556]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CASEY:
  S. 1248. A bill to establish a program in the Department of Energy to 
encourage consumers to trade in older vehicles for more fuel-efficient 
vehicles and motorcycles, and for other purposes; to the Committee on 
Finance.
  Mr. CASEY. Mr. President, I rise today to introduce the Green 
Transportation Efficiency Act of 2009. This bill would establish a 
voucher program in the Department of Energy to encourage American 
consumers to trade in their older, less fuel-efficient vehicles for 
new, more fuel-efficient vehicles, including motorcycles.
  This act is very similar to other ``cash for clunkers'' bills offered 
in the House and Senate in that it will help stimulate the economy by 
providing a much needed boost to our struggling automobile industry, 
but will go a step further by bolstering the U.S. motorcycle industry 
as well. After 14 straight years of growth, sales of motorcycles in the 
U.S. declined eight percent in 2007, and, 10 percent in 2008. Due in 
large part to the downturn in our economy, motorcycle sales have 
dropped 30 percent in the first quarter of 2009, according to the 
Motorcycle Industry Council. In my home State of Pennsylvania, Harley-
Davidson has had to cut production and reduce its work force as a 
result of these declines in motorcycle sales. Established in 1973, the 
Harley-Davidson assembly plant in York, PA, is the company's largest 
manufacturing facility and is the third largest employer in York 
County, PA, employing over 2,200 people. It has been reported that it 
is probably the leanest time that Harley has faced since the company 
went public in 1986. Harley-Davidson, like the auto makers and other 
manufacturing sectors, is fighting hard to maintain its workforce and 
to continue to produce a high quality, American-made product during 
these tough economic times. However, the specter of further reductions 
in motorcycle sales could lead to further job losses in my State, a 
State already hard hit by the current economic crisis.
  Indeed, the economic impact of the American motorcycle industry also 
extends far beyond the direct employment at facilities such as the 
Harley-Davidson manufacturing plants in Pennsylvania, Missouri, or 
Wisconsin. Many of the same parts suppliers that provide the critical 
supply chain for our American auto manufacturers, in States such as 
Michigan, Indiana, Ohio, and many others, also rely upon motorcycle 
manufacturers as critical customers. These parts manufacturers and 
suppliers will also be aided by increased motorcycle sales. The effect 
of increased motorcycle sales will be immediate and meaningful. For 
example, Harley-Davidson utilizes ``Just In Time'' manufacturing 
principles, meaning they do not hold parts inventories. So, every new 
bike ordered triggers new orders for parts--there is very little 
elasticity in the supply chain, so the economic benefit down the line 
is immediate.
  Finally, in terms of economic activity, this act recognizes the 
challenges faced by our auto dealerships and the best way to help those 
dealerships is to encourage the purchasing of new, more fuel-efficient 
vehicles. The same principle applies to our motorcycle dealers.
  In addition to helping to spur economic recovery and protect 
manufacturing jobs in Pennsylvania and other parts of the country where 
motorcycles and motorcycle parts are manufactured and assembled, the 
inclusion of motorcycles in this act will help America move away from 
its dependence on foreign sources of oil. Motorcycles are inherently 
fuel efficient. Average miles-per-gallon for motorcycles ranges from 
40-50 MPG, even higher for smaller bikes.

[[Page S6554]]

  Allowing consumers the option of trading in their older, inefficient 
vehicles for newer, more fuel efficient cars, trucks, and motorcycles 
will help the Nation achieve the dual goals of reducing our demand for 
imported oil and reducing our emissions of greenhouse gases--both 
critical components of our energy future. Just as importantly, the act 
will provide a much needed jump start to the auto and motorcycle 
industries at a time when their sales are at historic lows, plants are 
closing, and jobs are being lost.
  I urge all of my colleagues to join me in support of this Act so that 
consumers are given a strong signal from Washington to trade in their 
older, inefficient vehicles and purchase new, high-fuel-efficient cars, 
trucks, or motorcycles.
  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. 1248

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

     SECTION 1. SHORT TITLE.

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

     SEC. 2. DEFINITIONS.

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

     SEC. 3. GREEN TRANSPORTATION EFFICIENCY PROGRAM.

       (a) Establishment.--There is established in the Department 
     of Energy a voluntary program to be known as the ``Green 
     Transportation Efficiency Program'' under which the 
     Secretary, in accordance with this section and regulations 
     issued under subsection (h), shall--
       (1) authorize the issuance of an electronic voucher in 
     accordance with subsection (c) to offset the purchase price, 
     or lease price for a qualifying lease, of a qualifying 
     vehicle on the surrender of an eligible trade-in vehicle to a 
     dealer participating in the Program;
       (2) certify dealers for participation in the Program--
       (A) to accept vouchers in accordance with this section as 
     partial payment or down payment for the purchase or 
     qualifying lease of any qualifying vehicle offered for sale 
     or lease by the dealer; and
       (B) in accordance with subsection (c)(2), to transfer each 
     eligible trade-in vehicle surrendered to the dealer to an 
     entity for disposal;
       (3) in consultation with the Secretary of the Treasury, 
     make electronic payments to dealers for vouchers accepted by 
     the dealers, in accordance with the regulations issued under 
     subsection (h);
       (4) in consultation with the Secretary of the Treasury, 
     provide for the payment of rebates to persons who qualify for 
     a rebate under subsection (c)(3); and
       (5) in consultation with the Secretary of the Treasury and 
     the Inspector General of the Department of Energy, establish 
     and provide for the enforcement of measures to prevent and 
     penalize fraud under the Program.
       (b) Qualifications for and Value of Vouchers.--
       (1) In general.--A voucher issued under the Program shall 
     have a value that may be applied to offset the purchase 
     price, or lease price for a qualifying lease, of a qualifying 
     vehicle in accordance with this subsection.
       (2) New fuel-efficient automobiles.--
       (A) $3,500 value.--A voucher may be used to offset the 
     purchase price or lease price of a new fuel-efficient 
     automobile by $3,500 if the new fuel-efficient automobile is 
     --
       (i) a passenger automobile and the combined fuel economy 
     value of the passenger automobile is at least 4 miles per 
     gallon higher than the combined fuel economy value of the 
     eligible trade-in vehicle;
       (ii) a category 1 truck and the combined fuel economy value 
     of the category 1 truck is at least 2 miles per gallon higher 
     than the

[[Page S6555]]

     combined fuel economy value of the eligible trade-in vehicle;
       (iii) a category 2 truck that has a combined fuel economy 
     value of at least 15 miles per gallon and--

       (I) the eligible trade-in vehicle is a category 2 truck and 
     the combined fuel economy value of the new fuel-efficient 
     automobile is at least 1 mile per gallon higher than the 
     combined fuel economy value of the eligible trade-in vehicle; 
     or
       (II) the eligible trade-in vehicle is a category 3 truck of 
     model year 2001 or earlier; or

       (iv) a category 3 truck and the eligible trade-in vehicle 
     is a category 3 truck of model year of 2001 or earlier and is 
     of similar size or larger than the new fuel-efficient 
     automobile, as determined in a manner prescribed by the 
     Secretary.
       (B) $4,500 value.--A voucher may be used to offset the 
     purchase price or lease price of the new fuel-efficient 
     automobile by $4,500 if the new fuel-efficient automobile 
     is--
       (i) a passenger automobile and the combined fuel economy 
     value of the passenger automobile is at least 10 miles per 
     gallon higher than the combined fuel economy value of the 
     eligible trade-in vehicle;
       (ii) a category 1 truck and the combined fuel economy value 
     of the category 1 truck is at least 5 miles per gallon higher 
     than the combined fuel economy value of the eligible trade-in 
     vehicle; or
       (iii) a category 2 truck that has a combined fuel economy 
     value of at least 15 miles per gallon and the combined fuel 
     economy value of the category 2 truck is 2 miles per gallon 
     higher than the combined fuel economy value of the eligible 
     trade-in vehicle and the eligible trade-in vehicle is a 
     category 2 truck.
       (3) New fuel-efficient motorcycles.--A voucher may be used 
     to offset the purchase price of the new fuel-efficient 
     motorcycle by $2,500 if--
       (A) the new fuel-efficient motorcycle is street-use 
     approved; and
       (B) the manufacturer's estimated combined fuel economy is 
     at least 15 miles higher than the combined fuel economy value 
     of the eligible trade-in vehicle.
       (c) Program Specifications.--
       (1) Limitations.--
       (A) General period of eligibility.--A voucher issued under 
     the Program shall be used only for the purchase or qualifying 
     lease of a qualifying vehicle that occurs during the period--
       (i) beginning on January 1, 2009; and
       (ii) ending on the date that is 3 years after the date on 
     which the regulations issued under subsection (h) are issued.
       (B) Number of vouchers per person and per trade-in 
     vehicle.--
       (i) Single person.--Not more than 1 voucher may be issued 
     for a single person.
       (ii) Joint registered owners.--Not more than 1 voucher may 
     be issued for the joint registered owners of a single 
     eligible trade-in vehicle.
       (C) No combination of vouchers.--Only 1 voucher issued 
     under the Program may be applied toward the purchase or 
     qualifying lease of a qualifying vehicle.
       (D) Limitation on funds for category 3 trucks and 
     motorcycles.--Not more than 7.5 percent and 15 percent of the 
     total funds made available for the Program shall be used for 
     vouchers for the purchase or qualifying lease of category 3 
     trucks and motorcycles, respectively.
       (E) Combination with other incentives permitted.--The 
     availability or use of a Federal, State, or local incentive 
     or a State-issued voucher for the purchase or lease of a 
     qualifying vehicle shall not limit the value or issuance of a 
     voucher under the Program to any person otherwise eligible to 
     receive the voucher.
       (F) No additional fees.--A dealer participating in the 
     Program may not charge a person purchasing or leasing a 
     qualifying vehicle any additional fees associated with the 
     use of a voucher under the Program.
       (G) Number and amount.--The total number and value of 
     vouchers issued under the Program may not exceed the amounts 
     made available for vouchers under subsection (i).
       (2) Disposition of eligible trade-in vehicles.--
       (A) In general.--Subject to subparagraph (B), for each 
     eligible trade-in vehicle surrendered to a dealer under the 
     Program, the dealer shall certify to the Secretary, in such 
     manner as the Secretary shall prescribe by regulation, that 
     the dealer--
       (i) has not and will not sell, lease, exchange, or 
     otherwise dispose of the eligible trade-in vehicle for use as 
     an automobile in the United States or in any other country; 
     and
       (ii) will transfer the eligible trade-in vehicle (including 
     the engine and drive train), in such manner as the Secretary 
     prescribes, to an entity that will ensure that the eligible 
     trade-in vehicle--

       (I) will be crushed or shredded within such period and in 
     such manner as the Secretary prescribes; and
       (II) has not been, and will not be, sold, leased, 
     exchanged, or otherwise disposed of for use as an automobile 
     in the United States or in any other country.

       (B) Sale of parts.--Nothing in subparagraph (A) prevents a 
     person who dismantles or disposes of an eligible trade-in 
     vehicle from--
       (i) selling any parts of the disposed eligible trade-in 
     vehicle other than the engine block and drive train (unless 
     the engine or drive train has been crushed or shredded); or
       (ii) retaining the proceeds from the sale.
       (C) Coordination.--
       (i) In general.--The Secretary shall coordinate with the 
     Attorney General and the Secretary of Transportation to 
     ensure that the National Motor Vehicle Title Information 
     System and other publicly accessible systems are 
     appropriately updated on a timely basis to reflect the 
     crushing or shredding of eligible trade-in vehicles under 
     this section and appropriate reclassification of the titles 
     of the eligible trade-in vehicles.
       (ii) Access to vins.--The commercial market shall have 
     electronic and commercial access to the vehicle 
     identification numbers of eligible trade-in vehicles that 
     have been disposed of on a timely basis.
       (3) Eligible purchases or leases prior to date of 
     enactment.--A person who purchased or leased a qualifying 
     vehicle after January 1, 2009, and before the date of the 
     enactment of this Act, shall be eligible for a cash rebate 
     equivalent to the amount described in subsection (b)(2)(A) if 
     the person proves to the satisfaction of the Secretary that--
       (A)(i) the person was the registered owner of an eligible 
     trade-in vehicle; or
       (ii) if the person leased the qualifying vehicle, the lease 
     was a qualifying lease; and
       (B) the eligible trade-in vehicle has been disposed of in 
     accordance with paragraph (2)(A).
       (d) Anti-Fraud Provisions.--
       (1) Violation.--It shall be unlawful for any person to 
     knowingly violate this section (including a regulation issued 
     pursuant to subsection (h)).
       (2) Penalties.--Any person who commits a violation 
     described in paragraph (1) shall be liable to the United 
     States Government for a civil penalty of not more than 
     $15,000 for each violation.
       (e) Information to Consumers and Dealers.--
       (1) In general.--Not later than 60 days after the date of 
     the enactment of this Act and promptly on the updating of any 
     applicable information, the Secretary shall make available on 
     an Internet website and through other means determined by the 
     Secretary information about the Program, including--
       (A) how to determine if a vehicle is an eligible trade-in 
     vehicle;
       (B) how to participate in the Program, including how to 
     determine participating dealers; and
       (C) a comprehensive list, by make and model, of qualifying 
     vehicles meeting the requirements of the Program.
       (2) Public awareness campaign.--Once information described 
     in paragraph (1) is available, the Secretary shall conduct a 
     public awareness campaign to inform consumers about the 
     Program and where to obtain additional information.
       (f) Recordkeeping and Report.--
       (1) Database.--The Secretary, in coordination with the 
     Secretary of Transportation, shall maintain a database of the 
     vehicle identification numbers of all qualifying vehicles 
     purchased or leased and all eligible trade-in vehicles 
     disposed of under the Program.
       (2) Report.--Not later than 60 days after the termination 
     date described in subsection (c)(1)(A)(ii), the Secretary 
     shall submit to the Committee on Energy and Commerce of the 
     House of Representatives and the Committee on Commerce, 
     Science, and Transportation of the Senate a report that 
     describes the efficacy of the Program, including--
       (A) a description of Program results, including--
       (i) the total number and amount of vouchers issued for 
     purchase or lease of qualifying vehicles by manufacturer 
     (including aggregate information concerning the make, model, 
     model year, and category of automobile and motorcycle);
       (ii) aggregate information regarding the make, model, model 
     year, and manufacturing location of eligible trade-in 
     vehicles traded in under the Program; and
       (iii) the location of sale or lease;
       (B) an estimate of the overall increase in fuel efficiency 
     in terms of miles per gallon, total annual oil savings, and 
     total annual greenhouse gas reductions, as a result of the 
     Program; and
       (C) an estimate of the overall economic and employment 
     effects of the Program.
       (g) Exclusion of Vouchers and Rebates From Income.--
       (1) For purposes of all federal programs.--A voucher issued 
     under the Program or a cash rebate issued under subsection 
     (c)(3) shall not be regarded as income and shall not be 
     regarded as a resource for the month of receipt of the 
     voucher or rebate and the following 12 months, for purposes 
     of determining the eligibility of the recipient of the 
     voucher or rebate (or the spouse or other family or household 
     member of the recipient) for benefits or assistance, or the 
     amount or extent of benefits or assistance, under any Federal 
     program.
       (2) For purposes of taxation.--A voucher issued under the 
     Program or a cash rebate issued under subsection (c)(3) shall 
     not be considered as gross income for purposes of the 
     Internal Revenue Code of 1986.
       (h) Regulations.--Notwithstanding section 553 of title 5, 
     United States Code, not later than 30 days after the date of 
     the enactment of this Act, the Secretary shall issue final 
     regulations to implement the Program, including regulations 
     that--
       (1) provide for a means of certifying dealers for 
     participation in the Program;

[[Page S6556]]

       (2) establish procedures for the reimbursement of dealers 
     participating in the Program to be made through electronic 
     transfer of funds for both the amount of the vouchers and any 
     reasonable administrative costs incurred by the dealer as 
     soon as practicable but not later than 10 days after the 
     submission to the Secretary of a voucher for a qualifying 
     vehicle;
       (3) allow the dealer to use the voucher in addition to any 
     other rebate or discount offered by the dealer or the 
     manufacturer for a qualifying vehicle and prohibit the dealer 
     from using the voucher to offset any such other rebate or 
     discount;
       (4) require dealers to disclose to the person trading in an 
     eligible trade-in vehicle the best estimate of the scrappage 
     value of the vehicle and to permit the dealer to retain $50 
     of any amounts paid to the dealer for scrappage of the 
     eligible trade-in vehicle as payment for any administrative 
     costs to the dealer associated with participation in the 
     Program;
       (5) establish a process by which persons who qualify for a 
     rebate under subsection (c)(3) may apply for the rebate;
       (6) consistent with subsection (c)(2), establish 
     requirements and procedures for the disposal of eligible 
     trade-in vehicles and provide such information as may be 
     necessary to entities engaged in the disposal to ensure that 
     the eligible trade-in vehicles are disposed of in accordance 
     with the requirements and procedures, including--
       (A) requirements for the removal and appropriate 
     disposition of refrigerants, antifreeze, lead products, 
     mercury switches, and such other toxic or hazardous vehicle 
     components prior to the crushing or shredding of an eligible 
     trade-in vehicle, in accordance with procedures established 
     by the Secretary in consultation with the Administrator of 
     the Environmental Protection Agency, and in accordance with 
     other applicable Federal and State requirements;
       (B) a mechanism for dealers to certify to the Secretary 
     that each eligible trade-in vehicle will be transferred to an 
     entity that will ensure that the eligible trade-in vehicle is 
     disposed of, in accordance with the requirements and 
     procedures, and to submit the vehicle identification numbers 
     of the vehicles disposed of and the qualifying vehicle 
     purchased with each voucher; and
       (C) a list of entities to which dealers may transfer 
     eligible trade-in vehicles for disposal;
       (7) consistent with subsection (c)(2), establish 
     requirements and procedures for the disposal of eligible 
     trade-in vehicles and provide such information as may be 
     necessary to entities engaged in the disposal to ensure that 
     the eligible trade-in vehicles are disposed of in accordance 
     with the requirements and procedures; and
       (8) provide for the enforcement of the penalties described 
     in subsection (d).
       (i) Funding.--From the amounts made available under the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5), the Director of the Office of Management and Budget 
     may allocate such sums as the Director determines are 
     necessary to carry out this Act.
                                 ______