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Donate NowH.R.2640 - Consumer Assistance to Recycle and Save 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.
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HR 2640 IHCommentsClose CommentsPermalink
111th CONGRESSCommentsClose CommentsPermalink
1st SessionCommentsClose CommentsPermalink
H. R. 2640CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink
May 21, 2009CommentsClose CommentsPermalink
May 21, 2009CommentsClose CommentsPermalink
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 concernedCommentsClose CommentsPermalink
A BILLCommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘Consumer Assistance to Recycle and Save Act’.CommentsClose CommentsPermalink
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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(2) certify dealers for participation in the Program and require that all certified dealers--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(B) in accordance with subsection (c)(2), dispose of each eligible trade-in vehicle surrendered to the dealer under the Program;CommentsClose CommentsPermalink
(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);CommentsClose CommentsPermalink
(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); andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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:CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(ii) the eligible trade-in vehicle is a category 3 truck of model year 2001 or earlier; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(c) Program Specifications-CommentsClose CommentsPermalink
(1) LIMITATIONS-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(G) NUMBER AND AMOUNT- The total number and value of vouchers issued under the Program may not exceed the amounts appropriated for such purpose.CommentsClose CommentsPermalink
(2) DISPOSITION OF ELIGIBLE TRADE-IN VEHICLES-CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(B) SAVINGS PROVISION- Nothing in subparagraph (A) may be construed to preclude a person who dismantles or disposes of the vehicle from--CommentsClose CommentsPermalink
(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); orCommentsClose CommentsPermalink
(ii) retaining the proceeds from such sale.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) the person was the registered owner of an eligible trade-in vehicle; andCommentsClose CommentsPermalink
(B) such vehicle has been disposed of in accordance with clauses (i) and (ii) of paragraph (2)(A).CommentsClose CommentsPermalink
(d) Regulations- Notwithstanding the requirements of
(1) provide for a means of certifying dealers for participation in the program;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(5) establish a process by which persons who qualify for a rebate under subsection (c)(3) may apply for such rebate;CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(8) provide for the enforcement of the penalties described in subsection (e).CommentsClose CommentsPermalink
(e) Anti-Fraud Provisions-CommentsClose CommentsPermalink
(1) VIOLATION- It shall be unlawful for any person to violate any provision under this section or any regulations issued pursuant to subsection (d).CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(1) how to determine if a vehicle is an eligible trade-in vehicle;CommentsClose CommentsPermalink
(2) how to participate in the Program, including how to determine participating dealers;CommentsClose CommentsPermalink
(3) a comprehensive list, by make and model, of new fuel efficient automobiles meeting the requirements of the Program.CommentsClose CommentsPermalink
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.CommentsClose CommentsPermalink
(g) Recordkeeping and Report-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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--CommentsClose CommentsPermalink
(A) a description of program results, including--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(ii) aggregate information regarding the make, model, model year, and manufacturing location of vehicles traded in under the Program; andCommentsClose CommentsPermalink
(iii) the location of sale or lease;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(C) an estimate of the overall economic and employment effects of the Program.CommentsClose CommentsPermalink
(h) Treatment of Payment-CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(i) Definitions- As used in this section--CommentsClose CommentsPermalink
(1) the term ‘passenger automobile’ means a passenger automobile, as defined in
(2) the term ‘category 1 truck’ means a nonpassenger automobile, as defined in
(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’;CommentsClose CommentsPermalink
(4) the term ‘category 3 truck’ means a work truck, as defined in
(5) the term ‘combined fuel economy value’ means--CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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.CommentsClose CommentsPermalink
(6) the term ‘dealer’ means a person licensed by a State who engages in the sale of new automobiles to ultimate purchasers;CommentsClose CommentsPermalink
(7) the term ‘eligible trade-in vehicle’ means an automobile or a work truck (as such terms are defined in
(A) is in drivable condition; andCommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(C) has a combined fuel economy value of 18 miles per gallon or less;CommentsClose CommentsPermalink
(8) the term ‘new fuel efficient automobile’ means an automobile described in paragraph (1), (2), (3), or (4)--CommentsClose CommentsPermalink
(A) the equitable or legal title of which has not been transferred to any person other than the ultimate purchaser;CommentsClose CommentsPermalink
(B) that carries a manufacturer’s suggested retail price of $45,000 or less;CommentsClose CommentsPermalink
(C) that--CommentsClose CommentsPermalink
(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; orCommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(D) that has the combined fuel economy value of--CommentsClose CommentsPermalink
(i) 22 miles per gallon for a passenger automobile;CommentsClose CommentsPermalink
(ii) 18 miles per gallon for a category 1 truck; andCommentsClose CommentsPermalink
(iii) 15 miles per gallon for a category 2 truck;CommentsClose CommentsPermalink
(9) the term ‘Program’ means the Cash for Clunkers Temporary Vehicle Trade-in Program established by this section;CommentsClose CommentsPermalink
(10) the term ‘qualifying lease’ means a lease of an automobile for a period of not less than 5 years;CommentsClose CommentsPermalink
(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;CommentsClose CommentsPermalink
(12) the term ‘Secretary’ means the Secretary of Transportation acting through the National Highway Traffic Safety Administration;CommentsClose CommentsPermalink
(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; andCommentsClose CommentsPermalink
(14) the term ‘vehicle identification number’ means the 17 character number used by the automobile industry to identify individual automobiles.CommentsClose CommentsPermalink
(j) Authorization of Appropriations- There is authorized to be appropriated to the Secretary $4,000,000,000 to carry out this Act.CommentsClose CommentsPermalink
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U.S. Congress - Text of H.R.2640 as Introduced in House Consumer Assistance to Recycle and Save Act



