[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2751 Placed on Calendar Senate (PCS)]

                                                        Calendar No. 74
111th CONGRESS
  1st Session
                                H. R. 2751


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 10, 2009

                    Received and read the first time

                             June 11, 2009

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 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:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
                                                        Calendar No. 74

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.

_______________________________________________________________________

                             June 11, 2009

            Read the second time and placed on the calendar