From AAIA Capital Report

Sen. Jeff Bingaman (D-N.M.), who had expressed initial concern about the $2 billion extension for the "Cash for Clunkers" program, has introduced a bill that aims to encourage Americans to purchase more fuel-efficient vehicles in the long-term. The proposed legislation, the Efficient Vehicle Leadership Act (SB. 1620), would create a program that rewards consumers for purchasing cars and trucks that exceed corporate average fuel economy (CAFE) standards for their class. 

The reward would come in the form of a "fuel performance rebate," which could be claimed on the buyers' tax return or paid instantly by the dealer. The rebate would be tied to the fuel savings over and above the relevant CAFE standard. The program would be funded through the assessment of a fuel performance fee for manufacturers of larger, less fuel-efficient vehicles. 

The legislation was co-sponsored by Sen. Olympia Snowe (R-Maine). If enacted, the rebates would begin as early as next year (model year 2011) and the fees would begin in model year 2013. Providing rebates as soon as possible is intended to help the program act as a natural successor to "Cash for Clunkers" and provide additional stimulus to the auto industry. Examples of estimated rebates range from $1,000 for the Honda Civic and Ford Focus to $2,500 for the Ford Escape Hybrid and $8,000 for the 100-mile-per-gallon Chevy Volt. A Hummer H3 would incur a fee of roughly $2,500.

The full text of the legislation is available by clicking here.