[Congressional Record Volume 155, Number 84 (Monday, June 8, 2009)]
[Senate]
[Pages S6260-S6265]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself, Ms. Collins, Mr. Schumer, and Mr. 
        Carper):
  S. 1200. A bill to establish a temporary vehicle trade-in program 
through which the Secretary of Transportation shall provide financial 
incentives for consumers to replace fuel inefficient vehicles with 
vehicles that have above average fuel efficiency; to the Committee on 
the Budget.
  Mrs. FEINSTEIN. Mr. President, I rise today to offer legislation to 
establish a Cash for Clunkers proposal with my colleagues, Senators 
Susan Collins, Charles Schumer, and Thomas Carper.
  This proposal would establish a Federal incentive program designed to 
encourage consumers to turn in their gas guzzling vehicles and buy more 
fuel efficient vehicles.
  It would be authorized for 1 year, and provide for one to two million 
car or truck purchases. It would be funded with up to $4 billion from 
the American Recovery and Reinvestment Act, to be identified by the 
President and approved by Congress under an expedited rescission 
procedure. There are approximately 47 million vehicles on the road 
today that could qualify for trade-in under this program.
  This proposal will help stimulate auto sales at a time when sales are 
at historic lows.
  U.S. auto sales tumbled by 37 percent from March of last year. Two of 
the three American auto companies have filed for bankruptcy, GM and 
Chrysler. Auto dealerships are closing. Tens of thousands of jobs have 
already been lost--and thousands more hang in the balance.
  There is no question that our Nation's auto industry is in trouble, 
and all of us want to help.
  But the whole point of a cash-for-clunkers program is to replace a 
clunker with a more fuel-efficient vehicle. Otherwise the program 
replaces a clunker with a guzzler, and destroys a good vehicle for one 
that is not fuel efficient.
  So, the goal of the Feinstein-Collins ``cash for clunkers'' proposal 
is to require real fuel economy improvements--improvements that are 
lacking in the Auto Industry proposal.
  Unfortunately, the Auto Industry proposal would allow for the 
scrapping of perfectly adequate vehicles in return for new gas 
guzzlers, like the 2009 Hummer H3T.
  For example: a consumer could trade the 2005 Chevy Silverado 1500 4-
wheel drive for a 2009 Hummer 3T 4-wheel drive, even though both 
vehicles are below size-adjusted CAFE standards for large pick-up 
trucks.
  So this trade would be, in fact, replacing a clunker with a guzzler. 
The consumer would receive a voucher of $4,500 to make this trade. This 
is unacceptable.
  In contrast, the Feinstein-Collins proposal that I am offering today 
would save 32 percent more than the Auto Industry proposal in oil use 
and reduced greenhouse gas emissions.
  To be specific, it would save 11,451 barrels of oil per day, versus 
8,706 barrels in the industry proposal; save 176 gallons of gas per 
vehicle per year; versus 133 gallons in the industry proposal; and save 
1.91 million metric tons of emissions per year; versus 1.45 million 
metric tons in the industry proposal.
  Our proposal is supported by a coalition of those who care about 
reducing America's consumption of fossil fuels, including: CarMax, one 
of the Nation's largest car dealers; evironmental groups, including the 
Sierra Club; efficiency advocates, including the American Council for 
an Energy Efficient Economy, ACEEE, the Alliance to Save Energy, and 
the Union of Concerned Scientists, UCS; and consumer groups, including 
the Consumer Federation of America.
  I believe the Feinstein-Collins bill is a sensible, balanced proposal 
that achieves better fuel mileage--32 percent more than the Auto 
Industry proposal--and would result in the rapid exchange of between 
one to two million vehicles.
  Let me take a moment to outline the key differences between our 
proposal and the other Auto Industry proposal.
  First, our bill would require that the newly purchased vehicles under 
this program have above-average fuel economy for their class.
  For newly purchased cars: our proposal requires the vehicle get 24 
miles per gallon, the current fleetwide average for cars. Auto proposal 
requires only 22 mpg.
  For midsize SUVs and minivans: our proposal requires 20 mpg, the 
current fleetwide average for that class of vehicles. Auto proposal 
requires only 18 mpg.
  For large pickups: our proposal requires 17 mpg, the current size 
adjusted

[[Page S6261]]

CAFE standard for this largest class of vehicles. Auto proposal 
requires only 15 mpg.
  So, our bill is 2 miles per gallon better in every category of 
vehicle.
  Second, our proposal targets some of the worst gas guzzling offenders 
on the road.
  Under our proposal, the trade-in vehicle would be required to have a 
fuel economy of 17 miles per gallon or less--instead of the 18 miles 
per gallon threshold of the Auto Industry proposal. This would achieve 
greater oil savings by targeting the least efficient 47 million 
vehicles on the road today.
  Third, our proposal would allow leased vehicles and newer used cars 
to qualify, in order to encourage greater participation by low-income 
consumers.
  Our program would allow consumers who have signed three to five year 
leases to qualify for a voucher worth 50 percent of the value of a 
voucher for a new car. Last year, 18 percent of new vehicles were 
leased, so this is a sizable part of the auto marketplace and shouldn't 
be overlooked.
  In contrast, the Auto Industry proposal makes no allowance for leased 
vehicle participation with typical terms, of 3 to 5 years.
  Our proposal would also allow newer used cars like the 2007 Ford 
Escape Hybrid to be purchased through the program. 40 million used cars 
were sold in the U.S. last year--so I believe it makes sense to include 
these used cars and increase the rate of participation.
  Our proposal creates a three-tier voucher system to provide the most 
financial payment to the consumer willing to save the most oil: $2,500 
for the minimum fuel economy improvement of 7 mpg for cars and 3 mpg 
for trucks. $3,500 for a moderate fuel economy improvement of 10 mpg 
for cars, 6 mpg for mid-size SUVs, and 5 mpg for large trucks. $4,500 
for the maximum fuel economy improvement of 13 mpg for cars, 9 mpg for 
midsize SUVs, and 7 mpg for large trucks.
  So, the more you improve fuel efficiency, the more money you get.
  In contrast, the Auto Industry proposal would scrap perfectly 
adequate vehicles in return for a voucher to help put more gas guzzling 
vehicles on the road.
  In the SUV category, the Auto Industry proposal would provide 
consumers with a voucher of $3,500 to increase fuel economy from the 
traded-in vehicle to the new vehicle by only 2 mpg. For large pick-up 
trucks, it requires only a 1 mpg improvement.
  Over the last 5 years, fuel economy standards for trucks and SUVs 
have gone up 2.4 mpg--so in many cases the industry proposal would 
subsidize people for trading in their old truck or SUV for the exact 
same model.
  Let me discuss some examples: $3,500 to trade in the 2002 Jeep 
Cherokee for the 2009 Jeep Cherokee. $4,500 to trade in a 2005 four-
wheel drive Chevy Silverado for a 2009 four-wheel drive Chevy 
Silverado. $3,500 to trade in a 2003 four-wheel drive Dodge Ram Pick-up 
for a four-wheel drive Dodge Ram Pick-up. $3,500 to trade in a 2002 
Toyota 4-Runner for a 2009 Toyota 4-Runner SUV.
  The examples go on and on.
  With respect to fuel economy?
  I strongly believe that--merely 2 years after passing the Ten-in-Ten 
Fuel Economy Act--we should not subsidize the purchase of inefficient 
vehicles.
  This could have the effect of bringing down the fleetwide average 
fuel economy. In other words, it would nullify all we fought for in the 
passage of the first CAFE bill to improve fuel efficiency in 20 years.
  But that is exactly what the Auto proposal would do: 68 percent of 
all cars sold last year, in 2008, 18 percent of which have below 
average fuel economy, 24 mpg or less--would qualify for the industry 
proposal. 28 percent of below-average SUVs and small pick-ups would 
also qualify for subsidy.
  But it is in the large pick up category that the fuel economy 
threshold--15 miles per gallon--is remarkably weak under the Auto 
Industry proposal.
  Under the other program, 96 percent of all new large pick-ups--not 
work trucks, but regular large pick-ups--which are the least fuel 
efficient vehicles on the road today, would qualify for subsidized 
purchase. More than 90 percent of below average new heavy duty pick-ups 
would qualify.
  Gas guzzlers like these big pick-up trucks simply do not belong in 
this program.
  I recognize that some believe this should be the goal of the program.
  But these large pickups make up the least efficient class of all 
vehicles on the road. So, if there are 1 million more of these vehicles 
sold through this program--that would not have been sold otherwise--it 
could dramatically lower the fleetwide average fuel economy for new 
vehicles sold this year.
  That is why I believe these inefficient, big pickup trucks don't 
belong in the ``cash for clunkers'' proposal.
  In contrast, our proposal encourages the purchase of those vehicles 
that have above average fuel economy for their class.
  Finally, I would like to take a few moments to counter one of the 
arguments from the other side.
  There are those who have mistakenly claimed that this bill, which 
prioritizes fuel efficiency, would give an unfair advantage to foreign 
automakers.
  Nothing could be further from the truth.
  In fact, the American auto industry has produced some very popular 
models of more fuel efficient vehicles, and our bill would incentivize 
their purchase.
  Together, these three firms build 44 to 50 percent of all vehicle 
models that would qualify for our program's proposal in model year 
2009.
  According to EPA, in 2008, General Motors sold 1.2 million vehicles 
that would have met the higher fuel economy thresholds in our bill. And 
Ford and Chrysler sold more than 465,000 and 593,000 vehicles last 
year, respectively, that could have met the thresholds in our proposal.
  That means that there were 2.2 million fuel efficient vehicles sold 
last year--manufactured by the Big Three Auto companies--and all of 
them bought without the incentives in place.
  So, just imagine how many could be sold this year with the 
incentives.
  That is the point of this ``cash for clunkers'' bill--to encourage 
the sale of fuel efficient vehicles.
  For many models, GM, Ford and Chrysler can scale up production of 
their most fuel efficient configurations of their current models in 
their current factories.
  They can make more V-6 trucks, instead of V-8 trucks.
  They can use 6-speed automatic transmissions instead of 4-speed.
  They can make more 2 wheel-drive trucks.
  For example, Ford makes a 15 mpg version and a 17 mpg version of its 
best selling 2009 F-150. It is the same truck, from the same factory.
  This is true for all firms.
  Chrysler builds a 17 mpg configuration and a 15 mpg configuration of 
its 2009 Dodge Dakota pick-up in Warren, MI.
  GM builds 17 mpg configurations of the 2009 Chevy Silverado and the 
GMC Sierra pick-ups in Fort Wayne, IN, as well as less efficient 
configurations.
  Ford builds 17 mpg configurations of its 2009 Ford Explorer Sport 
Trac pick-up in Louisville, KY, and less efficient versions as well.
  But the difference is that our proposal would create an incentive for 
Ford, GM, and Chrysler to manufacture more of the fuel efficient, 17 
mpg models.
  Also last year, 100 percent of all large pickups and large vans sold 
that would have met the higher fuel economy thresholds in our bill were 
either built by the Detroit Three or in an American factory.
  So, I think our bill strikes a better balance.
  Contrary to what some may think, I do not believe that greater fuel 
economy and increased auto sales have to be considered as competing 
goals, but rather can be understood as complementary.
  I think it is evident that our bill would achieve better fuel 
efficiency for the consumer, and would provide a more sound investment 
for the taxpayer.
  Our program would also allow the vouchers to be used to buy used cars 
or even lease a more fuel efficient vehicle.
  These options are important, especially to lower income Americans who 
need a new car but cannot afford to buy a new vehicle. The other 
version of this legislation would deprive many Americans of the 
opportunity to participate in the program.

[[Page S6262]]

  Bottom line--we have chosen reasonable fuel economy levels that save 
more oil and help all firms, including the Detroit three, sell cars at 
a time when sales are desperately needed.
  So, I encourage my colleagues to support the Feinstein-Collins-
Schumer-Carper proposal, rather than the Auto Industry proposal.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1200

       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 ``Short Term Accelerated 
     Retirement of Inefficient Vehicles Act of 2009''.

     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 
     (d), shall--
       (1) authorize the issuance of a voucher, subject to the 
     specifications set forth in subsection (c), to offset the 
     purchase price or lease price of a fuel efficient automobile 
     upon the transfer of the certificate of title of an eligible 
     trade-in vehicle to a dealer participating in the Program;
       (2) register dealers for participation in the Program and 
     require each registered dealer to--
       (A) accept vouchers provided under this section as partial 
     payment or down payment for the purchase or lease of any fuel 
     efficient automobile offered for sale or lease by such 
     dealer; and
       (B) dispose of each eligible trade-in vehicle in accordance 
     with subsection (c)(2) after the title of such vehicle is 
     transferred to the dealer under the Program;
       (3) in consultation with the Secretary of the Treasury, 
     make payments to dealers for eligible transactions by such 
     dealers before the date that is 1 year after regulations are 
     promulgated under subsection (d), in accordance with such 
     regulations; and
       (4) in consultation with the Secretary of the 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 of a fuel 
     efficient automobile as follows:
       (1) $1,000 value.--The voucher may be used to offset the 
     purchase price of a previously owned fuel efficient 
     automobile manufactured for model year 2004 or later, by 
     $1,000 if--
       (A) the newly purchased fuel efficient automobile is a 
     passenger automobile and the combined fuel economy value of 
     such automobile is at least 7 miles per gallon higher than 
     the combined fuel economy value of the eligible trade-in 
     vehicle;
       (B) the newly purchased fuel efficient automobile is a 
     category 1 truck and the combined fuel economy value of such 
     truck is at least 3 miles per gallon higher than the combined 
     fuel economy value of the eligible trade-in vehicle; or
       (C) the newly purchased fuel efficient automobile is a 
     category 2 truck that has a combined fuel economy value of at 
     least 17 miles per gallon and the combined fuel economy value 
     of such truck is at least 3 miles per gallon higher than the 
     combined fuel economy value of the eligible trade-in vehicle, 
     which is also a category 2 truck.
       (2) $2,500 value.--The voucher may be used to offset the 
     purchase price or lease price of the new fuel efficient 
     automobile by $2,500 if--
       (A) the new fuel efficient automobile is a passenger 
     automobile and the combined fuel economy value of such 
     automobile is at least 7 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 
     3 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 17 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 3 miles 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 
     manufactured for 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 
     manufactured for model year 1999 or earlier and is of similar 
     size or larger than the new fuel efficient automobile, as 
     determined in a manner prescribed by the Secretary.
       (3) $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 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 
     6 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 17 miles 
     per gallon 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, which is also 
     a category 2 truck.
       (4) $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 13 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 
     9 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 17 miles 
     per gallon and the combined fuel economy value of such truck 
     is 7 miles per gallon higher than the combined fuel economy 
     value of the eligible trade-in vehicle, which is also a 
     category 2 truck.
       (c) Program Specifications.--
       (1) Limitations.--
       (A) General period of eligibility.--A voucher issued under 
     the Program may only be used for the purchase or lease of a 
     fuel efficient automobile that occurs between the date on 
     which the regulations promulgated under subsection (d) are 
     implemented and the date that is 1 year after such date.
       (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 lease 
     of a single new fuel efficient automobile.
       (D) Cap on vouchers for category 3 trucks.--Not more than 
     7.5 percent of the amounts made available for the Program may 
     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 or State tax 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.
       (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.
       (H) Values for qualifying shorter term leases.--If a fuel 
     efficient vehicle is leased under a qualifying shorter term 
     lease, the value of the voucher issued under the Program 
     shall be 50 percent of the value otherwise applicable under 
     subsection (b).
       (2) Disposition of eligible trade-in vehicles.--
       (A) In general.--If the title of an eligible trade-in 
     vehicle 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 such vehicle, 
     including the engine and drive train--
       (i) has been or 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) purchasing the disposed vehicle from a dealer for the 
     purpose of selling parts other than the engine block and 
     drive train;
       (ii) 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
       (iii) retaining the proceeds from such sale.

[[Page S6263]]

       (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 reclassification of the vehicles' 
     titles.
       (d) Rulemaking.--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 electronic reimbursement 
     of dealers participating in the Program, within 10 days after 
     the submission to the Secretary of information supporting the 
     eligible transaction, as determined appropriate by the 
     Secretary, for the appropriate amount under subsection (c) 
     and any reasonable administrative costs incurred by the 
     dealer;
       (3) prohibit any dealer from using vouchers to offset any 
     other rebate or discount offered by that dealer or by 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) 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 and State requirements;
       (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, 
     mileage, condition, and other appropriate information, as 
     determined by the Secretary, of the vehicles disposed of and 
     the new fuel efficient automobile purchased with each 
     voucher; and
       (C) a mechanism for obtaining such other certifications as 
     deemed necessary by the Secretary from entities engaged in 
     vehicle disposal;
       (6) establish a mechanism for dealers to determine the 
     scrappage value of the trade-in vehicle; and
       (7) provide for the enforcement of the penalties described 
     in subsection (e)(2).
       (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 in an amount equal to 
     not more than $25,000 for each such violation.
       (f) Information to Consumers and Dealers.--
       (1) In general.--Not later than 30 days after the date of 
     the enactment of this Act, and promptly upon the update of 
     any relevant information, the Secretary shall make 
     information about the Program available through an Internet 
     Web site and through other means determined by the Secretary. 
     Such information shall include--
       (A) how to determine if a vehicle is an eligible trade-in 
     vehicle;
       (B) how to determine the scrappage value of an eligible 
     trade-in vehicle;
       (C) how to participate in the Program, including how to 
     determine participating dealers; and
       (D) a comprehensive list, by make and model, of fuel 
     efficient automobiles meeting the requirements of the 
     Program.
       (2) Public awareness campaign.--Upon completing the 
     requirements under paragraph (1), the Secretary shall conduct 
     a public awareness campaign to inform consumers about the 
     Program and the sources for additional information.
       (g) Recordkeeping and Report.--
       (1) Database.--The Secretary shall maintain a database that 
     includes--
       (A) the vehicle identification numbers of all fuel 
     efficient vehicles purchased or leased under the Program; and
       (B) the vehicle identification numbers, mileage, condition, 
     scrappage value, and other appropriate information, as 
     determined by the Secretary, of all the eligible trade-in 
     vehicles which have been disposed of under the Program.
       (2) Report.--Not later than June 30, 2010, the Secretary 
     shall submit a report to the Committee on Commerce, Science, 
     and Transportation of the Senate and the Committee on Energy 
     and Commerce of the House of Representatives that describes 
     the efficacy of the Program and includes--
       (A) a description of the results of the Program, 
     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, mileage, condition, 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) Rule of Construction.--For purposes of determining 
     Federal or State income tax liability or eligibility for any 
     Federal or State program that bases eligibility, in whole or 
     in part, on income, the value of any voucher issued under the 
     Program to offset the purchase price or lease price of a new 
     fuel efficient automobile shall not be considered income of 
     the person purchasing such automobile.
       (i) Definitions.--In this section:
       (1) Category 1 truck.--The term ``category 1 truck'' means 
     a nonpassenger automobile (as defined in section 32901(a)(17) 
     of title 49, United States Code) that--
       (A) has a combined fuel economy value of at least 20 miles 
     per gallon; and
       (B) is not a category 2 truck.
       (2) Category 2 truck.--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''.
       (3) Category 3 truck.--The term ``category 3 truck'' has 
     the meaning given the term ``work truck'' in section 
     32901(a)(19) of title 49, United States Code.
       (4) Combined fuel economy value.--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 
     manufactured after model year 1984, the equivalent number 
     determined on the fueleconomy.gov Web site of the 
     Environmental Protection Agency for the make, model, and year 
     of such vehicle; and
       (C) with respect to an eligible trade-in vehicle 
     manufactured between model years 1978 through 1984, the 
     equivalent number 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.
       (5) Dealer.--The term ``dealer'' means a person that is 
     licensed by a State and engages in the sale of automobiles to 
     ultimate purchasers.
       (6) Eligible trade-in vehicle.--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;
       (B) has been continuously insured, consistent with 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 17 miles per 
     gallon or less.
       (7) Fuel efficient automobile.--The term ``fuel efficient 
     automobile'' means a vehicle described in paragraph (1), (2), 
     (3), or (9), that was manufactured for any model year after 
     2003, and, at the time of the original sale to a consumer--
       (A) carries a manufacturer's suggested retail price of 
     $45,000 or less;
       (B) complies with the applicable air emission and related 
     requirements under the National Emission Standards Act (42 
     U.S.C. 7521 et seq.);
       (C) qualifies for listing in emission bin 1, 2, 3, 4, or 5 
     (as defined in section 86.1803-01 of title 40, Code of 
     Federal Regulations), or for work trucks the applicable 
     vehicle and engine standards found under section 86.005-10 
     and 86.007-11 of title 40, Code of Federal Regulations; and
       (D) has a combined fuel economy value of--
       (i) 24 miles per gallon, if the vehicle is a passenger 
     automobile;
       (ii) 20 miles per gallon, if the vehicle is a category 1 
     truck; or
       (iii) 17 miles per gallon, if the vehicle is a category 2 
     truck.
       (8) New fuel efficient automobile.--The term ``new fuel 
     efficient automobile'' means a fuel efficient automobile, the 
     equitable or legal title of which has not been transferred to 
     any person other than the ultimate purchaser.
       (9) Passenger automobile.--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 24 miles per 
     gallon.

[[Page S6264]]

       (10) Program.--The term ``Program'' means the Cash for 
     Clunkers Temporary Vehicle Trade-In Program established under 
     this section.
       (11) Qualifying lease.--The term ``qualifying lease'' means 
     a lease of an automobile for a period of not less than 5 
     years.
       (12) Qualifying shorter term lease.--The term ``qualifying 
     shorter term lease'' means a lease of an automobile for a 
     period of not less than 3 years and not more than 5 years.
       (13) Scrappage value.--The term ``scrappage value'' means 
     the amount received by the dealer for an eligible trade-in 
     vehicle upon transferring title of such vehicle to the person 
     responsible for ensuring the dismantling and destruction of 
     the vehicle.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation, acting through the National Highway 
     Traffic Safety Administration.
       (15) Ultimate purchaser.--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.
       (16) Vehicle identification number.--The term ``vehicle 
     identification number'' means the 17 character number used by 
     the automobile industry to identify individual automobiles.

     SEC. 3. EXPEDITED CONSIDERATION OF AMERICAN RECOVERY AND 
                   REINVESTMENT ACT RESCISSIONS.

       (a) Proposed Rescission of Discretionary Budget 
     Authority.--The President may propose, at the time and in the 
     manner provided in subsection (b), the rescission of any 
     discretionary budget authority provided under the American 
     Recovery and Reinvestment Act (Public Law 111-5).
       (b) Transmittal of Special Message.--(1) Not later than 15 
     days after the date of the enactment of this Act, the 
     President may--
       (A) transmit to Congress a special message proposing to 
     rescind amounts of discretionary budget authority provided in 
     the American Recovery and Reinvestment Act; and
       (B) include with the special message described in 
     subparagraph (A) a draft bill or joint resolution that, if 
     enacted, would only rescind that discretionary budget 
     authority.
       (2) If an Act includes accounts within the jurisdiction of 
     more than 1 subcommittee of the Committee on Appropriations, 
     the President, in proposing to rescind discretionary budget 
     authority under this section, shall send a separate special 
     message and accompanying draft bill or joint resolution for 
     accounts within the jurisdiction of each such subcommittee.
       (3) Each special message transmitted to Congress under this 
     subsection shall specify, with respect to the discretionary 
     budget authority proposed to be rescinded--
       (A) the amount of budget authority proposed to be rescinded 
     or which is to be so reserved;
       (B) any account, department, or establishment of the 
     Government to which such budget authority is available for 
     obligation, and the specific project or governmental 
     functions involved;
       (C) the reasons why the budget authority should be 
     rescinded or is to be so reserved;
       (D) to the maximum extent practicable, the estimated 
     fiscal, economic, and budgetary effect of the proposed 
     rescission or of the reservation; and
       (E) all facts, circumstances, and considerations relating 
     to or bearing upon the proposed rescission or the reservation 
     and the decision to effect the proposed rescission or the 
     reservation, and to the maximum extent practicable, the 
     estimated effect of the proposed rescission or the 
     reservation upon the objects, purposes, and programs for 
     which the budget authority is provided.
       (c) Limitation on Amounts Subject to Rescission.--The 
     amount of discretionary budget authority the President may 
     propose to rescind in a special message under this section 
     for a particular program, project, or activity may not exceed 
     $4,000,000,000.
       (d) Procedures for Expedited Consideration.--(1)(A) Before 
     the close of the second day of continuous session of the 
     applicable House of Congress after the date of receipt of a 
     special message transmitted to Congress under subsection (b), 
     the majority leader or minority leader of the House of 
     Congress in which the Act involved originated shall introduce 
     (by request) the draft bill or joint resolution accompanying 
     that special message. If the bill or joint resolution is not 
     introduced by the third day of continuous session of that 
     House after the date of receipt of that special message, any 
     Member of that House may introduce the bill or joint 
     resolution.
       (B) A bill or joint resolution introduced pursuant to 
     subparagraph (A) shall be referred to the Committee on 
     Appropriations of the House in which it is introduced. The 
     bill or joint resolution shall be voted on not later than the 
     seventh day of continuous session of that House after the 
     date of receipt of that special message. If the Committee on 
     Appropriations fails to vote on the bill or joint resolution 
     within that period, that committee shall be automatically 
     discharged from consideration of the bill or joint 
     resolution, and the bill or joint resolution shall be placed 
     on the appropriate calendar.
       (C) A vote on final passage of a bill or joint resolution 
     introduced pursuant to subparagraph (A) shall be taken in 
     that House on or before the close of the 10th calendar day of 
     continuous session of that House after the date of the 
     introduction of the bill or joint resolution in that House, 
     except in cases in which the Committee on Appropriations has 
     considered and voted against discharging the bill or joint 
     resolution for further consideration. If the bill or joint 
     resolution is agreed to, the Clerk of the House of 
     Representatives (in the case of a bill or joint resolution 
     agreed to in the House of Representatives) or the Secretary 
     of the Senate (in the case of a bill or joint resolution 
     agreed to in the Senate) shall cause the bill or joint 
     resolution to be engrossed, certified, and transmitted to the 
     other House of Congress on the same calendar day on which the 
     bill or joint resolution is agreed to.
       (2)(A) A bill or joint resolution transmitted to the Senate 
     or the House of Representatives pursuant to paragraph (1)(C) 
     shall be referred to the Committee on Appropriations of that 
     House. The bill or joint resolution shall be voted on not 
     later than the seventh day of continuous session of that 
     House after it receives the bill or joint resolution. A 
     committee failing to vote on the bill or joint resolution 
     within such period shall be automatically discharged from 
     consideration of the bill or joint resolution, and the bill 
     or joint resolution shall be placed upon the appropriate 
     calendar.
       (B) A vote on final passage of a bill or joint resolution 
     transmitted to that House shall be taken on or before the 
     close of the 10th calendar day of continuous session of that 
     House after the date on which the bill or joint resolution is 
     transmitted, except in cases in which the Committee on 
     Appropriations has considered and voted against discharging 
     the bill or joint resolution for further consideration. If 
     the bill or joint resolution is agreed to in that House, the 
     Clerk of the House of Representatives (in the case of a bill 
     or joint resolution agreed to in the House of 
     Representatives) or the Secretary of the Senate (in the case 
     of a bill or joint resolution agreed to in the Senate) shall 
     cause the engrossed bill or joint resolution to be returned 
     to the House in which the bill or joint resolution 
     originated.
       (3)(A) A motion in the House of Representatives to proceed 
     to the consideration of a bill or joint resolution under this 
     section shall be highly privileged and not debatable. An 
     amendment to the motion and a motion to reconsider the vote 
     by which the motion is agreed to or disagreed to shall not be 
     in order.
       (B) Debate in the House of Representatives on a bill or 
     joint resolution under this section shall not exceed 4 hours, 
     which shall be divided equally between those favoring and 
     those opposing the bill or joint resolution. A motion further 
     to limit debate shall not be debatable. It shall not be in 
     order to move to recommit a bill or joint resolution under 
     this section or to move to reconsider the vote by which the 
     bill or joint resolution is agreed to or disagreed to.
       (C) Appeals from decisions of the Chair relating to the 
     application of the Rules of the House of Representatives to 
     the procedure relating to a bill or joint resolution under 
     this section shall be decided without debate.
       (D) Except to the extent specifically provided in the 
     preceding provisions of this subsection, consideration of a 
     bill or joint resolution under this section shall be governed 
     by the Rules of the House of Representatives.
       (4)(A) A motion in the Senate to proceed to the 
     consideration of a bill or joint resolution under this 
     section shall be privileged and not debatable. An amendment 
     to the motion and a motion to reconsider the vote by which 
     the motion is agreed to or disagreed to shall not be in 
     order.
       (B) Debate in the Senate on a bill or joint resolution 
     under this section, and all debatable motions and appeals in 
     connection to such bill or joint resolution, shall not exceed 
     10 hours. The time shall be equally divided between, and 
     controlled by, the majority leader and the minority leader or 
     their designees.
       (C) Debate in the Senate on any debatable motion or appeal 
     in connection with a bill or joint resolution under this 
     section shall be limited to not more than 1 hour, to be 
     equally divided between, and controlled by, the mover and the 
     manager of the bill or joint resolution, except that in the 
     event the manager of the bill or joint resolution is in favor 
     of any such motion or appeal, the time in opposition to such 
     motion or appeal shall be controlled by the minority leader 
     or his designee. Either such leader may, from time under 
     their control on the passage of a bill or joint resolution, 
     allot additional time to any Senator during the consideration 
     of any debatable motion or appeal.
       (D) A motion in the Senate to further limit debate on a 
     bill or joint resolution under this section is not debatable. 
     A motion to recommit a bill or joint resolution under this 
     section is not in order.
       (e) Amendments Prohibited.--No amendment to a bill or joint 
     resolution considered under this section shall be in order in 
     the Senate or the House of Representatives. No motion to 
     suspend the application of this subsection shall be in order 
     in either House, nor shall it be in order in either House to 
     suspend the application of this subsection by unanimous 
     consent.
       (f) Requirement To Make Available for Obligation.--Any 
     amount of discretionary budget authority proposed to be 
     rescinded in a special message transmitted to Congress under 
     subsection (b) shall be made available for obligation on the 
     day after the date on which either House defeats the bill or 
     joint resolution transmitted with that special message.
       (g) Definitions.--For purposes of this section--

[[Page S6265]]

       (1) continuity of a session of either House of Congress 
     shall be considered as broken only by an adjournment of that 
     House sine die, and the days on which that House is not in 
     session because of an adjournment of more than 3 days to a 
     date certain shall be excluded in the computation of any 
     period; and
       (2) the term ``discretionary budget authority'' means the 
     dollar amount of discretionary budget authority and 
     obligation limitations--
       (A) specified in the American Recovery and Reinvestment Act 
     (Public Law 111-5), or the dollar amount of budget authority 
     required to be allocated by a specific proviso in an 
     appropriation law for which a specific dollar figure was not 
     included;
       (B) represented separately in any table, chart, or 
     explanatory text included in the statement of managers or the 
     governing committee report accompanying such law;
       (C) required to be allocated for a specific program, 
     project, or activity in a law (other than an appropriation 
     law) that mandates obligations from or within accounts, 
     programs, projects, or activities for which budget authority 
     or an obligation limitation is provided in an appropriation 
     law;
       (D) represented by the product of the estimated procurement 
     cost and the total quantity of items specified in an 
     appropriation law or included in the statement of managers or 
     the governing committee report accompanying such law; or
       (E) represented by the product of the estimated procurement 
     cost and the total quantity of items required to be provided 
     in a law (other than an appropriation law) that mandates 
     obligations from accounts, programs, projects, or activities 
     for which dollar amount of discretionary budget authority or 
     an obligation limitation is provided in an appropriation law.
       (h) Conforming Amendment.--Section 1014(e)(1) of the 
     Congressional Budget and Impoundment Control Act of 1974 (2 
     U.S.C. 685(e)(1)) is amended--
       (1) in subparagraphs (A) and (B), by striking ``he'' each 
     place such term appears and inserting ``the President'';
       (2) in subparagraph (A), by striking ``and'' at the end;
       (3) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (4) by inserting after subparagraph (A) the following:
       ``(B) the President has transmitted a special message under 
     section 3 of the Short Term Accelerated Retirement of 
     Inefficient Vehicles Act of 2009 with respect to a proposed 
     rescission; and''.

     SEC. 4. SUNSET PROVISION.

       Section 3 shall be repealed on the date on which 
     regulations are promulgated under section 2(d).
                                 ______