[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1550 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1550
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 or
public transportation.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2009
Ms. Sutton (for herself, Mr. Braley of Iowa, and Mrs. Miller of
Michigan) introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
Transportation and Infrastructure, 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 or
public transportation.
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 of 2009''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Automobile; manufacturer; model; model year; passenger
automobile.--The terms ``automobile'', ``manufacturer'',
``model'', ``model year,'' ``passenger automobile,'' and ``work
truck'' have the meanings given such terms in section 32901(a)
of title 49, United States Code.
(2) Certificate of title.--The term ``certificate of
title'' means a valid State-issued title or other document
showing ownership by a person of an automobile.
(3) Dealer.--The term ``dealer'' means a person engaged in
any State in the business of selling or leasing in interstate
commerce new automobiles (except a person buying such
automobile as a dealer) to an ultimate purchaser.
(4) Dismantler.--The term ``dismantler'' means a person
residing in a State and is licensed or otherwise authorized by
a State or local government to operate a business employing 3
or more persons to take automobiles apart for the purpose of
reclaiming usable parts and recyclable materials.
(5) Distributor.--The term ``distributor'' means a person
who acts for, and is under the control of, a manufacturer in
connection with the distribution of new automobiles or new
automobile engines, but shall not include any dealer with
respect to such automobiles or engines received by such person
in commerce.
(6) Eligible high polluting automobile.--The term
``eligible high polluting automobile'' means an automobile
that, at the time it is presented for participation in the
program established under section 3 of this Act, it--
(A) is in drivable condition; and
(B) has been continuously registered and licensed
to operate on public roads in any State for a period of
not fewer than 120 consecutive days immediately prior
to such presentation.
(7) High polluting automobile.--The term ``high polluting
automobile'' means an automobile that is either an inefficient
or high polluting automobile and that was issued a certificate
of conformity with the regulations prescribed under section 202
of the Clean Air Act (42 U.S.C. 7521) for any model year before
model year 2001, and is not a new fuel efficient automobile.
(8) Highway label fuel economy value.--The term ``highway
label fuel economy value'' means the number, expressed in miles
per gallon, centered directly below the words ``Highway MPG''
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.
(9) City label fuel economy value.--The term ``city label
fuel economy value'' means the number, expressed in miles per
gallon, centered directly below the words ``City MPG'' 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.
(10) Battery electric automobile.--The term ``battery
electric automobile'' means an automobile that--
(A) draws motive power from a battery with a
capacity of at least 4-kilowatt hours; and
(B) is recharged from an external source of
electricity for motive power.
(11) New fuel efficient automobile.--The term ``new fuel
efficient automobile'' means a model year 2009, 2010, or 2011
passenger automobile, nonpassenger automobile, or work truck
for which--
(A) a manufacturer, distributor, or dealer has
never, except in accordance with the Program
established by this Act, transferred the equitable or
legal title by contract, lease or other means thereof
to an ultimate purchaser;
(B) a dealer participating in such Program may,
during the period beginning after the date in calendar
year 2009 that the interim final regulations required
by section 3(f) of this Act are promulgated by the
Secretary and ending on December 31, 2010, accept a
voucher under such Program as an offset of the purchase
price of such automobile paid by such purchaser; and
(C) at the time of such purchase of such automobile
by an ultimate purchaser--
(i) carries a manufacturer's suggested
retail price of $35,000 or less; and
(ii) achieves the emission standard listed
as tier 2, bin 5 in table S04-1 under section
86.1811-04 of title 40, Code of Federal
Regulation.
(12) Nonpassenger automobile.--The term ``nonpassenger
automobile'' means an automobile classified as a light truck
under part 523 of title 49, Code of Federal Regulations, and is
not a work truck.
(13) Person.--The term ``person'' has the meaning given
such term in section 551 of title 5, United States Code.
(14) Plug-in electric drive automobile.--The term ``plug-in
electric drive automobile'' has the same meaning given the term
``new qualified plug-in electric drive motor vehicle'' in
section 30D(d)(1) through (4) of the Internal Revenue Code of
1986.
(15) Program.--The term ``Program'' means the Consumer
Assistance to Recycle and Save (CARS) Program established by
section 3 of this Act.
(16) Registered work truck.--The term ``registered work
truck'' means a work truck that--
(A) a dealer, at the time of acquisition by an
ultimate purchaser of a work truck for which a voucher
under section 3 of this Act is applied, registers such
truck as a commercial vehicle under the applicable
State law for such purchaser as the registered owner
thereof; and
(B) achieves the emission standard listed as tier
2, bin 5 in Table S04-1 under section 86.1811-04 of
title 40, Code of Federal Regulations.
(17) Registered owner.--The term ``registered owner''
means, with respect to an automobile or work truck, the person
identified as the ultimate purchaser of such automobile or work
truck on the title or other form or certificate of registration
issued by a State.
(18) Scrap recycler.--The term ``scrap recycler'' means a
person licensed or otherwise authorized by a State or local
government to do business--
(A) employing 3 or more individuals at a fixed
location in a State, where machinery and equipment are
utilized for processing and manufacturing scrap metal
into prepared grades; and
(B) whose principal product is scrap iron, scrap
steel, or nonferrous metallic scrap for sale for
remelting purposes.
(19) Administrator; secretary.--The terms ``Administrator''
and ``Secretary'' mean the Administrator of the Environmental
Protection Agency, and the Secretary of Transportation,
respectively.
(20) State.--The term ``State'' has the meaning given such
term in section 32101 of title 49, United States Code.
(21) 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.
(22) Voucher.--The term ``voucher'' means a voucher issued
to the registered owner of an eligible high polluting
automobile under section 3(a) of (g).
SEC. 3. ACCELERATED RECYCLING OF INEFFICIENT VEHICLES PROGRAM.
(a) Establishment.--There is established in the Department of
Transportation a program to be known as the ``Consumer Assistance to
Recycle and Save (CARS) Program'', for fiscal years 2009 through 2011,
through which the Secretary, in accordance with this Act and the
regulations promulgated thereunder, shall--
(1) encourage and allow any dealer, dismantler, and scrap
recycler in any State to participate in the Program;
(2) authorize the issuance by participating dealers of a
vouchers to any person who is a registered owner of a high
polluting automobile, and who transfers such automobile,
together with the applicable certificate of title for the
automobile, to a dealer, or, in the case of subsection (g) of
this section, to a dismantler or scrape recycler;
(3) require that all dealers participating in the Program
accept vouchers submitted to them as provided in this Act as
partial payment for the purchase of a new fuel efficient
automobile;
(4) require that each participating dealer agree to accept
any high polluting automobile from a registered owner thereof
and upon the transfer by such owner of a certificate of title
to such automobile shall issue a voucher for such automobile to
the owner, which may be immediately redeemed by such owner for
the purchase of a new fuel efficient automobile that, using for
comparison purposes only the average full economy standard
applicable to the make and model of each such automobile
(taking into consideration relevant factors established and
published by the Secretary, in coordination with the
Administration), is shown to be more fuel efficient than such
high polluting vehicle;
(5) require that participating dealers, dismantlers, and
scrap recyclers agree to comply with the applicable provisions
of subsection (e) of this section; and
(6) electronically transfer funds to a participating dealer
within 10 days after receipt from such dealer of--
(A) a voucher issued by the dealer and redeemed for
the purchase of a new fuel efficient automobile; and
(B) the applicable certifications required under
this Act.
(b) Amount of Voucher.--
(1) Voucher redemption value if used toward purchase of new
fuel efficient automobile.--A voucher issued under the Program
may be applied to offset a portion of the purchase price of one
new fuel efficient automobile meeting the criteria set forth in
this paragraph, which portion shall be the amount of--
(A) $4,000 for a--
(i) passenger automobile assembled in the
United States with a minimum highway label fuel
economy value of 27 miles per gallon;
(ii) passenger automobile assembled in
North America with a minimum highway label fuel
economy value of 30 miles per gallon; or
(iii) nonpassenger automobile assembled in
the United States with a minimum highway label
fuel economy value of 24 miles per gallon;
(B) $5,000 for a--
(i) passenger automobile assembled in the
United States with a minimum highway label fuel
economy value of 30 miles per gallon; or
(ii) work truck assembled in the United
States registered by the dealer as a registered
work truck; or
(C) $3,000 for a nonpassenger automobile assembled
in North America with a minimum highway value of 24
miles per gallon.
(2) No combination of voucher redemption values.--The
voucher redemption values under subsections (b)(1)(A),
(b)(1)(B), and (b)(1)(C) of this section shall not be combined.
If a new fuel efficient automobile meets the criteria set forth
in more than one such subsection, the purchaser of the new fuel
efficient automobile may designate which subsection applies for
purposes of determining the voucher redemption value.
(c) Administrative Payments to Participating Dealers, Dismantlers,
and Scrap Recycling Facilities.--The Secretary shall provide for a
payment of $50, or another greater amount determined reasonable by the
Secretary, to participating dealers, dismantlers, and scrap recyclers
for each voucher issued under the Program in consideration of their
administrative and other similar costs related to such issuance and for
the issuance of the certification required by subsection (e)(3) of this
section.
(d) Lists of Eligible Automobiles To Be Maintained.--The Secretary
shall prepare, maintain, publicize, and make available through the
Internet, lists of automobiles, classified by make and model, which are
classified under this section as--
(1) eligible high polluting automobiles; or
(2) new fuel efficient automobiles.
(e) Program Specifications.--
(1) Limitations.--
(A) Number of vouchers per person.--A person may be
issued not more than 1 voucher and the person must
demonstrate, in a manner prescribed by rule by the
Secretary, that such person--
(i) is the registered owner of an eligible
high polluting automobile; and
(ii) attests that such high polluting
automobile has not been imported into the
United States during the previous 4-month
period.
(B) Offset.--A dealer--
(i) shall credit the amount of the voucher
being applied toward the purchase of a new fuel
efficient automobile; and
(ii) may not offset the amount of the
voucher against any other rebate or discount
otherwise being offered by the dealer or
manufacturer.
(C) Joint ownership.--Not more than 1 voucher may
be issued to the joint registered owners of an eligible
high polluting automobile.
(D) No combination of vouchers.--A person may only
apply 1 voucher issued under the Program toward the
purchase of a new fuel efficient automobile.
(E) Combination with other incentives permitted.--
Notwithstanding any other provision of law, the
availability or use of a Federal or State tax incentive
or a State-issued voucher for the purchase 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) Duration.--Each voucher shall expire 90 days
after the date on which the voucher is issued and may
not be renewed.
(G) Prompt fulfillment of redemption requests
required.--The Secretary shall provide for the payment
of all vouchers submitted to the Secretary for
redemption in accordance with this section.
(H) Number and amount.--The total number and value
of vouchers issued under the Program may not exceed the
amounts appropriated for such purpose.
(2) Administration of program.--The Secretary shall
establish by the date interim final regulations are promulgated
under subsection (f) of this section a web-based system for the
administration and electronic transfer of vouchers and funds
for the Program. The web-based system shall at a minimum--
(A) provide information to the public regarding the
purposes of the Program, and how to obtain and redeem
vouchers;
(B) provide information to consumers regarding the
availability of new fuel efficient automobiles for
which vouchers may be used and transit passes or fare
credit;
(C) provide information to participating dealers,
dismantlers, and scrap recyclers regarding how to
verify that a registered owner requesting a voucher has
an eligible high polluting automobile;
(D) provide for the electronic issuance of vouchers
once eligibility has been verified; and
(E) provide electronic fund transfer of funds to
participating dealers, dismantlers, and scrap recyclers
in accordance with section. In addition to the web-
based system, the Secretary may use such other means as
the Secretary deems necessary to educate consumers
regarding the voucher program and carry out other
aspects of the program.
(3) Disposition of eligible high polluting automobiles.--
(A) In general.--Any dealer who receives a
certificate of title to any eligible high polluting
automobile in exchange for a voucher under the Program
shall certify to the Secretary, in such manner as the
Secretary shall prescribe, by rule, that such title has
been retired or otherwise extinguished and not re-
issued and that the dealer has received from a
dismantler or recycler a certification that such
automobile, engine and drive train (within such period
as the Secretary prescribes by rule)--
(i) will be crushed or shredded within such
period as the Secretary prescribes;
(ii) will be processed prior to crushing or
shredding to ensure the removal and appropriate
disposition of refrigerants, antifreeze, lead
products, mercury switches, and such other
toxic or hazardous vehicle components as the
Secretary may specify by rule; and
(iii) has not been, and will not be,
registered, sold, leased, exchanged,
distributed, or otherwise operated at any time
as an automobile in the United States or in any
foreign country.
(B) Savings provision.--Nothing in subparagraph (A)
may be construed to preclude a dismantler or recycler
from--
(i) removing any parts of such crushed or
shredded high polluting automobile, other than
the engine block and drive train, and selling
them for use as replacement 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 is appropriately
updated to reflect the crushing or shredding of high
polluting automobiles under this section.
(f) Rulemaking.--Not later than 60 days after the date of the
enactment of this Act, the Secretary shall promulgate interim final
regulations to implement the Program, including--
(1) the removal and disposition of toxic or hazardous
materials from eligible high polluting vehicles presented for
participation in the program; and
(2) the enforcement of the penalties described in section 4
of this Act.
(g) Transit Fare Credits.--The Secretary shall promulgate
regulations establishing criteria that allow operators of bus and rail
public transit systems participating in the program to redeem from the
Secretary the allowable value of transit fare vouchers properly issued
by such operators to any person who is a registered owner of a high
polluting automobile under this Act to offset the purchase price of
annual or monthly transit passes or any other form of individual
transit fare credit designated by the transit system operator.
Participating transit system operators shall establish the terms and
conditions for the ownership, use, and expiration of any transit fare
credits acquired through the use of a transit fare voucher issued under
this subsection. Such transit vouchers may only be issued by a person
who is a dismantler or scrap recycler in lieu of vouchers issued under
subsection (a) if a high polluting automobile of a registered owner is
accepted by any such dismantler or scrap recycler, such owner transfers
the certificate of title for such automobile to either such person, and
such voucher includes the certification by such dismantler or recycler
required by subsection (e)(3) of this section. The amount of any such
voucher shall be $3,000. The Secretary shall electronically transfer
funds to cover such vouchers to such operators.
(h) Disclaimer.--Nothing in this Act or any other provision of law
limits the authority of Congress or the Secretary to terminate or limit
the Program or the issuance of vouchers under this Act or the issuance
of transit fare vouchers.
SEC. 4. PENALTIES.
(a) Violation.--It shall be unlawful for any person to violate any
provision under this Act or any regulations issued pursuant to section
3(f) of this Act.
(b) Penalties.--Any person who commits a violation described in
subsection (a) shall be liable to the United States Government for a
civil penalty of not more than $5,000 for each violation. A separate
violation shall be deemed to have occurred for each day the person
continues to be in violation of any provision under this Act.
SEC. 5. REPORT.
The Secretary shall submit a semi-annual 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 specifies,
for the most recent 6-month period--
(1) the number of vouchers which have been used under the
Program; and
(2) the make, model, model year, location of sale, and
manufacturing location of each vehicle traded in or purchased
under the Program.
SEC. 6. POST-2010 VOUCHERS TO RECYCLE INEFFICIENT VEHICLES AND
ENCOURAGE PURCHASE OF NEW BATTERY ELECTRIC AUTOMOBILES
AND PLUG-IN ELECTRIC DRIVE AUTOMOBILES.
Effective for model year 2011, the Secretary shall, by rule, revise
the Program established under section 3 of this Act to provide for the
issuance by dealers of vouchers to registered owners of a high
polluting automobile, who transfer a certificate of title to such
automobile to the dealer to be redeemed in such model year and for two
subsequent model years to offset the purchase price of a new battery
electric automobile or a new plug-in electric drive automobile, in
accordance with the applicable provisions of this Act and related
regulations, as so revised or modified by the Secretary consistent with
this section. For purposes of determining the amount of a voucher
issued under this section for purposes of such redemption, the voucher
amount shall be $7,500 for either a passenger or nonpassenger
automobile assembled in the United States and each such automobile
shall have a minimum city label fuel economy value of 100 miles per
gallon.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary to the Secretary of Transportation to enable the Secretary to
carry out the Program authorized under section 3 of this Act beginning
in calendar year 2009, under section 6 beginning in calendar year 2010,
and such sums shall remain available until expended.
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