1.This Act may be cited as the
Consumer Assistance to Recycle and
Save Act
.
2.Temporary Vehicle
Trade-in Program
(a)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 vouchersA
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)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)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)
(1)
(A)General period
of eligibilityA 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 vehicleNot 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 vouchersOnly 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 trucksNot 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 permittedThe 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)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)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)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)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)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 enactmentA 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)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)
(1)It shall be unlawful for any person to
violate any provision under this section or any regulations issued pursuant to
subsection (d).
(2)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 dealersNot 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)
(1)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)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)
(1)For Federal and
State programsA 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)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)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
AppropriationsThere is
authorized to be appropriated to the Secretary $4,000,000,000 to carry out this
Act.