[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2640 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2640

 To accelerate motor fuel savings nationwide and provide incentives to 
    registered owners of high polluting automobiles to replace such 
  automobiles with new fuel efficient and less polluting automobiles.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2009

Ms. Sutton (for herself, Mr. Dingell, Mr. Markey of Massachusetts, Mr. 
Barton of Texas, Mr. Upton, Mr. Inslee, Mr. Stupak, Mr. Braley of Iowa, 
 Mrs. Miller of Michigan, Mrs. Capps, Mr. Blunt, Mr. Doyle, Mr. Terry, 
Mr. Welch, Mr. Whitfield, Mrs. Christensen, Mr. Rogers of Michigan, Mr. 
Donnelly of Indiana, Mrs. Emerson, Mr. Arcuri, Mrs. Biggert, Mr. Wilson 
of Ohio, Mr. Castle, Mr. Sarbanes, Mr. Camp, Ms. Baldwin, Mr. McCotter, 
 Mr. Carnahan, Mr. Yarmuth, Mr. Courtney, Mr. Blumenauer, Mr. Hall of 
 New York, Mr. Manzullo, Ms. Kilpatrick of Michigan, Mr. Schauer, Ms. 
Fudge, Mr. Hare, Mr. Shuler, Mr. Connolly of Virginia, Mr. Maffei, Ms. 
 Moore of Wisconsin, Mr. Levin, Mr. Conyers, Mr. Hastings of Florida, 
 Mr. Loebsack, Ms. Kosmas, Mr. Walden, Mr. Hill, Mr. Ryan of Ohio, Mr. 
Peters, Mr. Kildee, Mr. LaTourette, Ms. DeGette, Mr. Boccieri, and Ms. 
   Kaptur) introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
   Ways and Means, 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 polluting automobiles to replace such 
  automobiles with new fuel efficient and less polluting automobiles.

    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 ``Consumer Assistance to Recycle and 
Save Act''.

SEC. 2. TEMPORARY VEHICLE TRADE-IN PROGRAM.

    (a) Establishment.--There is established in the National Highway 
Traffic Safety Administration a program to be known as the ``Cash for 
Clunkers Temporary Vehicle Trade-in Program'' through which the 
Secretary, in accordance with this section and the regulations 
promulgated under subsection (e), 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 and 
        require that all certified dealers--
                    (A) 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), dispose 
                of each eligible trade-in vehicle surrendered to the 
                dealer under the Program;
            (3) in consultation with the Secretary of the Treasury, 
        make payments to dealers for vouchers accepted by such dealers 
        prior to April 1, 2010, 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 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 March 30, 2009 and March 
                31, 2010.
                    (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, the title of which is transferred 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 vehicle, including the 
                engine and drive train--
                            (i) will be crushed or shredded within such 
                        period and in such manner as the Secretary 
                        prescribes, or will be transferred to an entity 
                        that will ensure that the vehicle 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, or has been or will be 
                        transferred, in such manner as the Secretary 
                        prescribes, to an entity that will ensure that 
                        the vehicle 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 and commercially available systems 
                are appropriately updated to reflect the crushing or 
                shredding of vehicles under this section and 
                appropriate re-classification of the vehicles' titles.
            (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 
        enactment of this section is eligible for a cash rebate 
        equivalent to the amounts described in subsection (b)(1) if the 
        person provides proof satisfactory to the Secretary that--
                    (A) the person was the registered owner of an 
                eligible trade-in vehicle; and
                    (B) such 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 section. 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) prohibit a dealer from using the voucher to offset any 
        other rebate or discount offered by that dealer or the 
        manufacturer of the new fuel efficient automobile;
            (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; and
                    (B) a mechanism for dealers to certify to the 
                Secretary that eligible trade-in vehicles are disposed 
                of, or 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;
            (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 
        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 $25,000 for 
        each violation.
    (f) Information to Consumers and Dealers.--Not later than 30 days 
after the date of enactment of this section, 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;
            (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 June 30, 2010, the Secretary 
        shall submit a report to the Committee on Energy and Commerce 
        of the House of Representatives and the Committee on Commerce 
        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) Treatment of Payment.--
            (1) For federal and state programs.--A voucher under this 
        Act or any payment made for such a voucher pursuant to 
        subsection (a)(3) shall not be considered income and shall not 
        be considered as a resource for the month of receipt and the 
        following 12 months, for purposes of determining the 
        eligibility of the recipient (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 or State program.
            (2) For purposes of taxation.--A voucher under this Act or 
        any payment made for such a voucher pursuant to subsection 
        (a)(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 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; and
                    (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; and
                    (C) 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) for new fuel efficient automobiles 
                        weighing up to 8,500 pounds, is certified to 
                        applicable standards under section 86.1811-04 
                        of title 40, Code of Federal Regulations; or
                            (ii) for 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; and
                            (iii) 15 miles per gallon for a category 2 
                        truck;
            (9) the term ``Program'' means the Cash for Clunkers 
        Temporary Vehicle Trade-in 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.
    (j) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $4,000,000,000 to carry out this Act.
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