Consumer Assistance to Recycle and Save Act - Establishes in the National Highway Traffic Safety Administration (NHTSA) a Cash for Clunkers Temporary Vehicle Trade-in Program through which the Secretary of Transportation shall: (1) authorize the issuance of an electronic voucher to offset the purchase or lease price for a new fuel efficient automobile upon the surrender of an eligible trade-in vehicle to a participating dealer; (2) certify dealers for Program participation; (3) make payments to them for vouchers they accept between March 30, 2009, and April 1, 2010; (4) provide for the payment of rebates to qualifying persons; and (5) establish and provide for the enforcement of measures to prevent and penalize fraud under the Program.
Prescribes requirements, including combined fuel economy, for $3,500 and $4,500 vouchers to offset the purchase or lease price for a qualifying passenger automobile or truck.
Limits the number of vouchers to one per customer, including joint registered owners of a single eligible trade-in vehicle.
Requires a dealer to certify that each eligible trade-in vehicle: (1) will be crushed or shredded, or transferred to an entity that will ensure it will be crushed or shredded, within the period of the Program; and (2) 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.
Makes any person who purchased or leased a new fuel efficient vehicle after March 30, 2009, and before the enactment of this Act eligible for a cash rebate equivalent to the appropriate voucher amount.
Prescribes standards which any regulations issued by the Secretary for the Program must meet.
Makes it unlawful for any person to violate this Act or any regulations issued under it, particularly by fraud. Prescribes civil penalties for any such violation.
Directs the Secretary to make Program information available on an Internet website and through other means.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2640 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2640
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 21, 2009
Ms. Sutton (for herself, Mr. Dingell, Mr. Markey of Massachusetts, Mr.
Barton of Texas, Mr. Upton, Mr. Inslee, Mr. Stupak, Mr. Braley of Iowa,
Mrs. Miller of Michigan, Mrs. Capps, Mr. Blunt, Mr. Doyle, Mr. Terry,
Mr. Welch, Mr. Whitfield, Mrs. Christensen, Mr. Rogers of Michigan, Mr.
Donnelly of Indiana, Mrs. Emerson, Mr. Arcuri, Mrs. Biggert, Mr. Wilson
of Ohio, Mr. Castle, Mr. Sarbanes, Mr. Camp, Ms. Baldwin, Mr. McCotter,
Mr. Carnahan, Mr. Yarmuth, Mr. Courtney, Mr. Blumenauer, Mr. Hall of
New York, Mr. Manzullo, Ms. Kilpatrick of Michigan, Mr. Schauer, Ms.
Fudge, Mr. Hare, Mr. Shuler, Mr. Connolly of Virginia, Mr. Maffei, Ms.
Moore of Wisconsin, Mr. Levin, Mr. Conyers, Mr. Hastings of Florida,
Mr. Loebsack, Ms. Kosmas, Mr. Walden, Mr. Hill, Mr. Ryan of Ohio, Mr.
Peters, Mr. Kildee, Mr. LaTourette, Ms. DeGette, Mr. Boccieri, and Ms.
Kaptur) introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
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 program to be known as the ``Cash for
Clunkers Temporary Vehicle Trade-in Program'' through which the
Secretary, in accordance with this section and the regulations
promulgated under subsection (e), shall--
(1) authorize the issuance of an electronic voucher,
subject to the specifications set forth in subsection (c), to
offset the purchase price or lease price for a qualifying lease
of a new fuel efficient automobile upon the surrender of an
eligible trade-in vehicle to a dealer participating in the
Program;
(2) certify dealers for participation in the Program and
require that all certified dealers--
(A) accept vouchers as provided in this section as
partial payment or down payment for the purchase or
qualifying lease of any new fuel efficient automobile
offered for sale or lease by that dealer; and
(B) in accordance with subsection (c)(2), dispose
of each eligible trade-in vehicle surrendered to the
dealer under the Program;
(3) in consultation with the Secretary of the Treasury,
make payments to dealers for vouchers accepted by such dealers
prior to April 1, 2010, in accordance with the regulations
issued under subsection (d);
(4) in consultation with the Secretary of the Treasury,
provide for the payment of rebates to persons who qualify for a
rebate under subsection (c)(3); and
(5) in consultation with the Secretary of Treasury and the
Inspector General of the Department of Transportation,
establish and provide for the enforcement of measures to
prevent and penalize fraud under the Program.
(b) Qualifications for and Value of 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 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 for the
purchase or qualifying lease of new fuel efficient
automobiles that occur between March 30, 2009 and March
31, 2010.
(B) Number of vouchers per person and per trade-in
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, the title of which is transferred to a dealer
under the Program, the dealer shall certify to the
Secretary, in such manner as the Secretary shall
prescribe by rule, that the vehicle, including the
engine and drive train--
(i) will be crushed or shredded within such
period and in such manner as the Secretary
prescribes, or will be transferred to an entity
that will ensure that the vehicle will be
crushed or shredded within such period and in
such manner as the Secretary prescribes; and
(ii) has not been, and will not be, sold,
leased, exchanged, or otherwise disposed of for
use as an automobile in the United States or in
any other country, or has been or will be
transferred, in such manner as the Secretary
prescribes, to an entity that will ensure that
the vehicle has not been, and will not be,
sold, leased, exchanged, or otherwise disposed
of for use as an automobile in the United
States or in any other country.
(B) Savings provision.--Nothing in subparagraph (A)
may be construed to preclude a person who dismantles or
disposes of the vehicle from--
(i) selling any parts of the disposed
vehicle other than the engine block and drive
train (unless the engine or drive train has
been crushed or shredded); or
(ii) retaining the proceeds from such sale.
(C) 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 re-classification of the vehicles' titles.
(3) Eligible purchases or leases prior to date of
enactment.--A person who purchased or leased a new fuel
efficient vehicle after March 30, 2009, and before the date of
enactment of this section is eligible for a cash rebate
equivalent to the amounts described in subsection (b)(1) if the
person provides proof satisfactory to the Secretary that--
(A) the person was the registered owner of an
eligible trade-in vehicle; and
(B) such vehicle has been disposed of in accordance
with clauses (i) and (ii) of paragraph (2)(A).
(d) 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 section. Such regulations shall--
(1) provide for a means of certifying dealers for
participation in the program;
(2) establish procedures for the reimbursement of dealers
participating in the Program to be made through electronic
transfer of funds for both the amount of the vouchers and any
reasonable administrative costs incurred by the dealer as soon
as practicable but no longer than 10 days after the submission
of a voucher for the new fuel efficient automobile to the
Secretary;
(3) prohibit a dealer from using the voucher to offset any
other rebate or discount offered by that dealer or the
manufacturer of the new fuel efficient automobile;
(4) require dealers to disclose to the person trading in an
eligible trade-in vehicle the best estimate of the scrappage
value of such vehicle and to permit the dealer to retain $50 of
any amounts paid to the dealer for scrappage of the automobile
as payment for any administrative costs to the dealer
associated with participation in the Program;
(5) establish a process by which persons who qualify for a
rebate under subsection (c)(3) may apply for such rebate;
(6) consistent with subsection (c)(2), establish
requirements and procedures for the disposal of eligible trade-
in vehicles and provide such information as may be necessary to
entities engaged in such disposal to ensure that such vehicles
are disposed of in accordance with such requirements and
procedures, including--
(A) requirements for the removal and appropriate
disposition of refrigerants, antifreeze, lead products,
mercury switches, and such other toxic or hazardous
vehicle components prior to the crushing or shredding
of an eligible trade-in vehicle, in accordance with
rules established by the Secretary in consultation with
the Administrator of the Environmental Protection
Agency, and in accordance with other applicable Federal
or State requirements; and
(B) a mechanism for dealers to certify to the
Secretary that eligible trade-in vehicles are disposed
of, or transferred to an entity that will ensure that
the vehicle is disposed of, in accordance with such
requirements and procedures and to submit the vehicle
identification numbers of the vehicles disposed of and
the new fuel efficient automobile purchased with each
voucher;
(7) consistent with subsection (c)(2), establish
requirements and procedures for the disposal of eligible trade-
in vehicles and provide such information as may be necessary to
entities engaged in such disposal to ensure that such vehicles
are disposed of in accordance with such requirements and
procedures; and
(8) provide for the enforcement of the penalties described
in subsection (e).
(e) 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 of not more than $25,000 for
each violation.
(f) Information to Consumers and Dealers.--Not later than 30 days
after the date of enactment of this section, and promptly upon the
update of any relevant information, the Secretary shall make available
on an Internet website and through other means determined by the
Secretary information about the Program, including--
(1) how to determine if a vehicle is an eligible trade-in
vehicle;
(2) how to participate in the Program, including how to
determine participating dealers;
(3) a comprehensive list, by make and model, of new fuel
efficient automobiles meeting the requirements of the Program.
Once such information is available, the Secretary shall conduct a
public awareness campaign to inform consumers about the Program and
where to obtain additional information.
(g) Recordkeeping 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.--Not later than June 30, 2010, the Secretary
shall submit a report to the Committee on Energy and Commerce
of the House of Representatives and the Committee on Commerce
of the Senate describing the efficacy of the Program,
including--
(A) a description of program results, including--
(i) the total number and amount of vouchers
issued for purchase or lease of new fuel
efficient automobiles by manufacturer
(including aggregate information concerning the
make, model, model year) and category of
automobile;
(ii) aggregate information regarding the
make, model, model year, and manufacturing
location of vehicles traded in under the
Program; and
(iii) the location of sale or lease;
(B) an estimate of the overall increase in fuel
efficiency in terms of miles per gallon, total annual
oil savings, and total annual greenhouse gas
reductions, as a result of the Program; and
(C) an estimate of the overall economic and
employment effects of the Program.
(h) 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 for purposes of
the Internal Revenue Code of 1986.
(i) Definitions.--As used in this section--
(1) the term ``passenger automobile'' means a passenger
automobile, as defined in section 32901(a)(18) of title 49,
United States Code, that has a combined fuel economy value of
at least 22 miles per gallon;
(2) the term ``category 1 truck'' means a nonpassenger
automobile, as defined in section 32901(a)(17) of title 49,
United States Code, that has a combined fuel economy value of
at least 18 miles per gallon, except that such term does not
include a category 2 truck;
(3) the term ``category 2 truck'' means a large van or a
large pickup, as categorized by the Secretary using the method
used by the Environmental Protection Agency and described in
the report entitled ``Light-Duty Automotive Technology and Fuel
Economy Trends: 1975 through 2008'';
(4) the term ``category 3 truck'' means a work truck, as
defined in section 32901(a)(19) of title 49, United States
Code;
(5) the term ``combined fuel economy value'' means--
(A) with respect to a new fuel efficient
automobile, the number, expressed in miles per gallon,
centered below the words ``Combined Fuel Economy'' on
the label required to be affixed or caused to be
affixed on a new automobile pursuant to subpart D of
part 600 of title 40 Code of Federal Regulations;
(B) with respect to an eligible trade-in vehicle,
the equivalent of the number described in subparagraph
(A), and posted under the words ``Estimated New EPA
MPG'' and above the word ``Combined'' for vehicles of
model year 1984 through 2007, or posted under the words
``New EPA MPG'' and above the word ``Combined'' for
vehicles of model year 2008 or later on the
fueleconomy.gov website of the Environmental Protection
Agency for the make, model, and year of such vehicle;
or
(C) with respect to an eligible trade-in vehicle
manufactured between model years 1978 through 1984, the
equivalent of the number described in subparagraph (A)
as determined by the Secretary (and posted on the
website of the National Highway Traffic Safety
Administration) using data maintained by the
Environmental Protection Agency for the make, model,
and year of such vehicle.
(6) the term ``dealer'' means a person licensed by a State
who engages in the sale of new automobiles to ultimate
purchasers;
(7) the term ``eligible trade-in vehicle'' means an
automobile or a work truck (as such terms are defined in
section 32901(a) of title 49, United States Code) that, at the
time it is presented for trade-in under this section--
(A) is in drivable condition; and
(B) has been continuously insured consistent with
the applicable State law and registered to the same
owner for a period of not less than 1 year immediately
prior to such trade-in; and
(C) has a combined fuel economy value of 18 miles
per gallon or less;
(8) the term ``new fuel efficient automobile'' means an
automobile described in paragraph (1), (2), (3), or (4)--
(A) the equitable or legal title of which has not
been transferred to any person other than the ultimate
purchaser;
(B) that carries a manufacturer's suggested retail
price of $45,000 or less;
(C) that--
(i) for new fuel efficient automobiles
weighing up to 8,500 pounds, is certified to
applicable standards under section 86.1811-04
of title 40, Code of Federal Regulations; or
(ii) for category 3 trucks, is certified to
the applicable vehicle or engine standards
under section 86.1816-08, 86-007-11, or 86.008-
10 of title 40, Code of Federal Regulations;
and
(D) that has the combined fuel economy value of--
(i) 22 miles per gallon for a passenger
automobile;
(ii) 18 miles per gallon for a category 1
truck; and
(iii) 15 miles per gallon for a category 2
truck;
(9) the term ``Program'' means the Cash for Clunkers
Temporary Vehicle Trade-in Program established by this section;
(10) the term ``qualifying lease'' means a lease of an
automobile for a period of not less than 5 years;
(11) the term ``scrappage value'' means the amount received
by the dealer for a vehicle upon transferring title of such
vehicle to the person responsible for ensuring the dismantling
and destroying of the vehicle;
(12) the term ``Secretary'' means the Secretary of
Transportation acting through the National Highway Traffic
Safety Administration;
(13) the term ``ultimate purchaser'' means, with respect to
any new automobile, the first person who in good faith
purchases such automobile for purposes other than resale; and
(14) the term ``vehicle identification number'' means the
17 character number used by the automobile industry to identify
individual automobiles.
(j) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $4,000,000,000 to carry out this Act.
<all>
Introduced in House
Introduced in House
Referred to House Energy and Commerce
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Ways and Means
Referred to the Subcommittee on Energy and Environment.
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