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Tuesday, June 23, 2009

Cash for Clunkers

From www.Cashforclunkersfacts.com

TITLE XIII--CONSUMER ASSISTANCE TO RECYCLE AND
SAVE PROGRAM

Sec. 1301. Short Title- This title may be cited as the `Consumer
Assistance to Recycle and Save Act of 2009'.
Sec. 1302. Consumer Assistance to Recycle and Save Program- (a)
Establishment- There is established in the National Highway Traffic
Safety Administration a voluntary program to be known as the
`Consumer Assistance to Recycle and Save Program' through which
the Secretary, in accordance with this section and the regulations
promulgated under subsection (d), shall--
(1) authorize the issuance of an electronic voucher, subject to
the specifications set forth in subsection (c), to offset the
purchase price or lease price for a qualifying lease of a new fuel
efficient automobile upon the surrender of an eligible trade-in
vehicle to a dealer participating in the Program;
(2) register dealers for participation in the Program and require
that all registered 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), to transfer each
eligible trade-in vehicle surrendered to the dealer under
the Program to an entity for disposal;
(3) in consultation with the Secretary of the Treasury, make
electronic payments to dealers for eligible transactions by such
dealers, in accordance with the regulations issued under
subsection (d); 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 for a qualifying lease of a new fuel
efficient automobile as follows:
(1) $3,500 VALUE- The voucher may be used to offset the
purchase price or lease price of the new fuel efficient automobile
by $3,500 if--
(A) the new fuel efficient automobile is a passenger
automobile and the combined fuel economy value of such
automobile is at least 4 miles per gallon higher than the
combined fuel economy value of the eligible trade-in
vehicle;
(B) the new fuel efficient automobile is a category 1 truck
and the combined fuel economy value of such truck is at
least 2 miles per gallon higher than the combined fuel
economy value of the eligible trade-in vehicle;
(C) the new fuel efficient automobile is a category 2 truck
that has a combined fuel economy value of at least 15
miles per gallon and--
(i) the eligible trade-in vehicle is a category 2 truck
and the combined fuel economy value of the new
fuel efficient automobile is at least 1 mile per gallon
higher than the combined fuel economy value of
the eligible trade-in vehicle; or
(ii) the eligible trade-in vehicle is a category 3
truck of model year 2001 or earlier; or
(D) the new fuel efficient automobile is a category 3 truck
and the eligible trade-in vehicle is a category 3 truck of
model year of 2001 or earlier and is of similar size or
larger than the new fuel efficient automobile as
determined in a manner prescribed by the Secretary.
(2) $4,500 VALUE- The voucher may be used to offset the
purchase price or lease price of the new fuel efficient automobile
by $4,500 if--
(A) the new fuel efficient automobile is a passenger
automobile and the combined fuel economy value of such
automobile is at least 10 miles per gallon higher than the
combined fuel economy value of the eligible trade-in
vehicle;
(B) the new fuel efficient automobile is a category 1 truck
and the combined fuel economy value of such truck is at
least 5 miles per gallon higher than the combined fuel
economy value of the eligible trade-in vehicle; or
(C) the new fuel efficient automobile is a category 2 truck
that has a combined fuel economy value of at least 15
miles per gallon and the combined fuel economy value of
such truck is at least 2 miles per gallon higher than the
combined fuel economy value of the eligible trade-in
vehicle and the eligible trade-in vehicle is a category 2
truck.
(c) Program Specifications-
(1) LIMITATIONS-
(A) GENERAL PERIOD OF ELIGIBILITY- A voucher issued
under the Program shall be used only in connection with
the purchase or qualifying lease of new fuel efficient
automobiles that occur between July 1, 2009 and
November 1, 2009.
(B) NUMBER OF VOUCHERS PER PERSON AND PER
TRADE-IN VEHICLE- Not more than 1 voucher may be
issued for a single person and not more than 1 voucher
may be issued for the joint registered owners of a single
eligible trade-in vehicle.
(C) NO COMBINATION OF VOUCHERS- Only 1 voucher
issued under the Program may be applied toward the
purchase or qualifying lease of a single new fuel efficient
automobile.
(D) CAP ON FUNDS FOR CATEGORY 3 TRUCKS- Not more
than 7.5 percent of the total funds made available for the
Program shall be used for vouchers for the purchase or
qualifying lease of category 3 trucks.
(E) COMBINATION WITH OTHER INCENTIVES
PERMITTED- The availability or use of a Federal, State, or
local incentive or a State-issued voucher for the purchase
or lease of a new fuel efficient automobile shall not limit
the value or issuance of a voucher under the Program to
any person otherwise eligible to receive such a voucher.
(F) NO ADDITIONAL FEES- A dealer participating in the
program may not charge a person purchasing or leasing a
new fuel efficient automobile any additional fees
associated with the use of a voucher under the Program.
(G) NUMBER AND AMOUNT- The total number and value
of vouchers issued under the Program may not exceed
the amounts appropriated for such purpose.
(2) DISPOSITION OF ELIGIBLE TRADE-IN VEHICLES-
(A) IN GENERAL- For each eligible trade-in vehicle
surrendered to a dealer under the Program, the dealer
shall certify to the Secretary, in such manner as the
Secretary shall prescribe by rule, that the dealer--
(i) has not and will not sell, lease, exchange, or
otherwise dispose of the vehicle for use as an
automobile in the United States or in any other
country; and
(ii) will transfer the vehicle (including the engine
block), in such manner as the Secretary prescribes,
to an entity that will ensure that the vehicle--
(I) will be crushed or shredded within such
period and in such manner as the Secretary
prescribes; and
(II) has not been, and will not be, sold,
leased, exchanged, or otherwise disposed of
for use as an automobile in the United States
or in any other country.
(B) SAVINGS PROVISION- Nothing in subparagraph (A)
may be construed to preclude a person who is responsible
for ensuring that the vehicle is crushed or shredded from-
-
(i) selling any parts of the disposed vehicle other
than the engine block and drive train (unless with
respect to the drive train, the transmission, drive
shaft, or rear end are sold as separate parts); or
(ii) retaining the proceeds from such sale.
(C) COORDINATION- The Secretary shall coordinate with
the Attorney General to ensure that the National Motor
Vehicle Title Information System and other publicly
accessible systems are appropriately updated on a timely
basis to reflect the crushing or shredding of vehicles
under this section and appropriate reclassification of the
vehicles' titles. The commercial market shall also have
electronic and commercial access to the vehicle
identification numbers of vehicles that have been
disposed of on a timely basis.
(d) Regulations- Notwithstanding the requirements of section 553 of
title 5, United States Code, the Secretary shall promulgate final
regulations to implement the Program not later than 30 days after the
date of the enactment of this Act. Such regulations shall--
(1) provide for a means of registering dealers for participation in
the Program;
(2) establish procedures for the reimbursement of dealers
participating in the Program to be made through electronic
transfer of funds for the amount of the vouchers as soon as
practicable but no longer than 10 days after the submission of
information supporting the eligible transaction, as deemed
appropriate by the Secretary;
(3) require the dealer to use the voucher in addition to any
other rebate or discount advertised by the dealer or offered by
the manufacturer for the new fuel efficient automobile and
prohibit the dealer from using the voucher to offset any such
other rebate or discount;
(4) require dealers to disclose to the person trading in an
eligible trade-in vehicle the best estimate of the scrappage value
of such vehicle 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 or State
requirements;
(B) a mechanism for dealers to certify to the Secretary
that each eligible trade-in vehicle will be 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;
(C) a mechanism for obtaining such other certifications as
deemed necessary by the Secretary from entities
engaged in vehicle disposal; and
(D) a list of entities to which dealers may transfer eligible
trade-in vehicles for disposal; and
(6) 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) (other than by making a clerical
error).
(2) PENALTIES- Any person who commits a violation described
in paragraph (1) shall be liable to the United States Government
for a civil penalty of not more than $15,000 for each violation.
The Secretary shall have the authority to assess and
compromise such penalties, and shall have the authority to
require from any entity the records and inspections necessary to
enforce this program. In determining the amount of the civil
penalty, the severity of the violation and the intent and history
of the person committing the violation shall be taken into
account.
(f) Information to Consumers and Dealers- Not later than 30 days
after the date of the enactment of this Act, and promptly upon the
update of any relevant information, the Secretary, in consultation with
the Administrator of the Environmental Protection Agency, shall make
available on an Internet website and through other means determined
by the Secretary information about the Program, including--
(1) how to determine if a vehicle is an eligible trade-in vehicle;
(2) how to participate in the Program, including how to
determine participating dealers; and
(3) a comprehensive list, by make and model, of new fuel
efficient automobiles meeting the requirements of the Program.
Once such information is available, the Secretary shall conduct a public
awareness campaign to inform consumers about the Program and
where to obtain additional information.
(g) Record Keeping and Report-
(1) DATABASE- The Secretary shall maintain a database of the
vehicle identification numbers of all new fuel efficient vehicles
purchased or leased and all eligible trade-in vehicles disposed of
under the Program.
(2) REPORT ON EFFICACY OF THE PROGRAM- Not later than 60
days after the termination date described in subsection
(c)(1)(A), the Secretary shall submit a report to the Committee
on Energy and Commerce of the House of Representatives and
the Committee on Commerce, Science, and Transportation of
the Senate describing the efficacy of the Program, including--
(A) a description of Program results, including--
(i) the total number and amount of vouchers issued
for purchase or lease of new fuel efficient
automobiles by manufacturer (including aggregate
information concerning the make, model, model
year) and category of automobile;
(ii) aggregate information regarding the make,
model, model year, and manufacturing location of
vehicles traded in under the Program; and
(iii) the location of sale or lease;
(B) an estimate of the overall increase in fuel efficiency in
terms of miles per gallon, total annual oil savings, and
total annual greenhouse gas reductions, as a result of the
Program; and
(C) an estimate of the overall economic and employment
effects of the Program.
(h) Exclusion of Vouchers From Income-
(1) FOR PURPOSES OF ALL FEDERAL AND STATE PROGRAMS- A
voucher issued under this program or any payment made for
such a voucher pursuant to subsection (a)(3) shall not be
regarded as income and shall not be regarded as a resource for
the month of receipt of the voucher and the following 12
months, for purposes of determining the eligibility of the
recipient of the voucher (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 issued under the
program or any payment made for such a voucher pursuant to
subsection (a)(3) shall not be considered as gross income of the
purchaser of a vehicle 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 1985,
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;
(B) has been continuously insured consistent with the
applicable State law and registered to the same owner for
a period of not less than 1 year immediately prior to such
trade-in;
(C) was manufactured less than 25 years before the date
of the trade-in; and
(D) in the case of an automobile, has a combined fuel
economy value of 18 miles per gallon or less;
(8) the term `new fuel efficient automobile' means an
automobile described in paragraph (1), (2), (3), or (4)--
(A) the equitable or legal title of which has not been
transferred to any person other than the ultimate
purchaser;
(B) that carries a manufacturer's suggested retail price of
$45,000 or less;
(C) that--
(i) in the case of passenger automobiles, category
1 trucks, or category 2 trucks, is certified to
applicable standards under section 86.1811-04 of
title 40, Code of Federal Regulations; or
(ii) in the case of category 3 trucks, is certified to
the applicable vehicle or engine standards under
section 86.1816-08, 86-007-11, or 86.008-10 of
title 40, Code of Federal Regulations; and
(D) that has the combined fuel economy value of at least-
-
(i) 22 miles per gallon for a passenger automobile;
(ii) 18 miles per gallon for a category 1 truck; or
(iii) 15 miles per gallon for a category 2 truck;
(9) the term `Program' means the Consumer Assistance to
Recycle and Save Program established by this 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;
(14) the term `vehicle identification number' means the 17
character number used by the automobile industry to identify
individual automobiles; and
(15) the term `voucher' means an electronic transfer of funds to
a dealer based on an eligible transaction under this program.
(j) Appropriation- There is hereby appropriated to the Secretary of
Transportation $1,000,000,000, of which up to $50,000,000 is
available for administration, to remain available until expended to
carry out this section.

Senate Passes Cash For Clunkers Bill

Senate Passes Cash For Clunkers Bill

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