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Cash for Clunkers Senate Bill
(a) Establishment- There is established in the National
Highway Traffic Safety Administration a voluntary program to be known as
the `Drive America Forward 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) certify dealers for participation in the
Program--
(A) to 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 vouchers accepted by such dealers,
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 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 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--
(i) March 30, 2009; and
(ii) the day that is 1 year after the date on
which the regulations promulgated under subsection (d) are
implemented.
(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 and drive train), 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 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 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.
(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 the enactment of this Act is
eligible for a cash rebate equivalent to the amount described in subsection
(b)(1) if the person provides proof satisfactory to the Secretary
that--
(A)(i) the person was the registered owner of an
eligible trade-in vehicle; or
(ii) if the person leased the vehicle, the lease was a
qualifying lease; and
(B) the 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 Act. 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) allow the dealer to use the voucher in addition to any
other rebate or discount offered by the dealer or 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) 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;
(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; and
(C) a list of entities to which dealers may transfer
eligible trade-in vehicles for disposal;
(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
knowingly 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 $15,000 for each violation.
(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 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) 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 60 days after the termination
date described in subsection (c)(1)(A)(ii), 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 and Rebates From Income-
(1) FOR PURPOSES OF ALL FEDERAL PROGRAMS- A voucher issued
under the Program or a cash rebate issued under subsection (c)(3) shall not
be regarded as income and shall not be regarded as a resource for the month
of receipt of the voucher or rebate and the following 12 months, for
purposes of determining the eligibility of the recipient of the voucher or
rebate (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 program.
(2) FOR PURPOSES OF TAXATION- A voucher issued under the
Program or a cash rebate issued under subsection (c)(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 nonpassenger
automobile, as defined in section 32901(a)(17) of title 49, United States
Code, that is 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;
(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--
(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 Drive America Forward
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.