[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2751 Engrossed in House (EH)]
111th CONGRESS
1st Session
H. R. 2751
_______________________________________________________________________
AN ACT
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 voluntary program to be known as the
``Consumer Assistance to Recycle and Save Program'' through which the
Secretary of Transportation (hereinafter in this section referred to as
the ``Secretary''), in accordance with this Act 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) register dealers for participation in the Program and
require all registered dealers--
(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 eligible transactions
accepted by such dealers, in accordance with the regulations
issued under subsection (d); and
(4) 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 at least 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 in
connection with the purchase or qualifying lease of new
fuel efficient automobiles that occur between--
(i) the date of enactment of this Act; and
(ii) the date 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) will arrange for the vehicle's title to
be transferred to the United States and will
accept possession of the vehicle on behalf of
the United States;
(ii) 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
(iii) will transfer, on behalf of the
United States, the vehicle (including the
engine block) and the vehicle's title, 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 is
responsible for ensuring that the vehicle is crushed or
shredded from--
(i) selling any parts of the disposed
vehicle other than the engine block and drive
train (unless the transmission, drive shaft, or
rear end are sold as separate parts); 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 Act and appropriate re-
classification 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.
(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 registering 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 the amount of the vouchers as soon as
practicable but no longer than 10 days after the submission of
information supporting the eligible transaction, as determined
appropriate by the Secretary;
(3) require the dealer to use the voucher in addition to
any other rebate or discount advertised by the dealer or
offered by 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;
(5) require dealers to accept on behalf of the United
States, and Transfer to the Secretary of the Treasury, the
amount paid for scrappage of the vehicle up to $60;
(6) permit the dealer to retain any amounts paid to the
dealer for scrappage of the automobile in excess of the $60
amount referred to in paragraph (5) and designate $50 of such
excess as payment for any administrative costs to the dealer
associated with participation in the Program;
(7) clarify that dealers will not be reimbursed for any
storage fees or other costs associated with their custodial
handling of the eligible trade-in vehicle;
(8) 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 by the dealer on behalf of the United
States 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;
(C) a mechanism for obtaining such other
certifications as determined necessary by the Secretary
from entities engaged in vehicle disposal; and
(D) a list of entities to which dealers may
transfer eligible trade-in vehicles for disposal; and
(9) 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 Act or any regulations issued
pursuant to subsection (d) (other than by making a clerical
error).
(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. The Secretary shall have the authority to
assess and compromise such penalties, and shall have the
authority to require from any entity the records and
inspections necessary to enforce this program. In determining
the amount of the civil penalty, the severity of the violation
and the intent of the person committing the violation shall be
taken into account.
(f) Information to Consumers and Dealers.--Not later than 30 days
after the date of enactment of this Act, and promptly upon the update
of any relevant information, the Secretary, in consultation with the
Administrator of the Environmental Protection Agency, 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; 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) Record Keeping 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 on the efficacy of the program.--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) 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 of the
purchaser of a vehicle under this Act for purposes of the
Internal Revenue Code of 1986.
(i) Definitions.--As used in this Act--
(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 non-passenger
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 1985 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 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 such trade-in;
(C) was manufactured in model year 1984 or later;
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 at
least--
(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 Consumer Assistance to
Recycle and Save Program established by this Act;
(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;
(14) the term ``voucher'' means an electronic transfer of
funds to a dealer based on an eligible transaction under this
program; and
(15) 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 of Transportation $4,000,000,000 to carry
out this Act.
Passed the House of Representatives June 9, 2009.
Attest:
Clerk.
111th CONGRESS
1st Session
H. R. 2751
_______________________________________________________________________
AN ACT
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.