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.