SUMMARY AS OF:
6/9/2009--Passed House without amendment.    (There is 1 other summary)

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

Consumer Assistance to Recycle and Save Act

(Sec. 2) Establishes in the National Highway Traffic Safety Administration (NHTSA) a voluntary Consumer Assistance to Recycle and Save Program through which the Secretary of Transportation shall:

• 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
• register dealers for Program participation
• make electronic payments to them for eligible transactions they accept between specified dates
• 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 about each eligible trade-in vehicle that the dealer:

• will arrange for transfer to the United States of the vehicle's title
• will accept possession of the vehicle on behalf of the United States
• has not and will not sell, lease, exchange, or otherwise dispose of the vehicle for use as an automobile anywhere in the world
• will transfer, on behalf of the United States, the vehicle and its title to an entity that will ensure that the vehicle will be crushed or shredded within the Program period, and has not been, and will not be, sold, leased, exchanged, or otherwise disposed of for use as an automobile anywhere in the world

Requires the Secretary to coordinate with the Attorney General to ensure that the National Motor Vehicle Title Information System and other publicly accessible systems are timely updated to reflect the crushing or shredding of vehicles and appropriate reclassification of vehicle titles under this Act. 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
• maintain a database of vehicle identification numbers (VINs) of all new fuel efficient vehicles purchased or leased and eligible trade-in vehicles disposed of under the Program
• report to Congress on Program results

Provides that a voucher issued or payment made for a voucher under this Act shall not be considered as gross income to the recipient or be used to determine the recipient's (or family members') eligibility for benefits or assistance under any federal or state program. Authorizes appropriations.

Cash for Clunkers was a piece of legislation passed in early 2009 which provided government subsidies to people who traded in their older, lower gas mileage vehicles for new models.  The idea was sold as a method of of both stimulating the struggling US automotive industry and lowering the overall level of pollution by replacing older vehicles with more efficient ones.  The program allows for a $3500 or $4500 government subsidy when the vehicle to be traded in and the vehicle to be purchased meet the guidelines established.  The vehicle which was traded in is then to be destroyed. 

Although this bill number was the original version of the C.A.R.S. Program, when the bill entered the Senate there were competing versions.  The final version of the bill was passed in Title 13 of HR 2346, which was a supplemental appropriations bill for the wars in Afghanistan and Iraq.  The bill is discussed here for simplicity.

The official summary of Title 13 of that legislation is given here: 

 Title XIII: Consumer Assistance to Recycle and Save Program - Consumer Assistance to Recycle and Save Act of 2009

(Sec. 1302)

Establishes in the National Highway Traffic Safety Administration (NHTSA) a voluntary Consumer Assistance to Recycle and Save Program through which the Secretary of Transportation shall:

• 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
• register dealers for Program participation
• make electronic payments to them for eligible transactions they accept between specified dates
• 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 use of vouchers to purchases or qualifying leases of new fuel efficient vehicles that occur between July 1, 2009, and November 1, 2009
• their number to one per customer (including joint registered owners of a single eligible trade-in vehicle)

Requires a dealer to certify about each eligible trade-in vehicle that the dealer:

• has not and will not sell, lease, exchange, or otherwise dispose of the vehicle for use as an automobile anywhere in the world
• will transfer the vehicle (including the engine block) to an entity that will ensure that the vehicle will be crushed or shredded within the Program period, and has not been, and will not be, sold, leased, exchanged, or otherwise disposed of for use as an automobile anywhere in the world

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.

Requires the Secretary to:

• maintain a database of vehicle identification numbers (VINs) of all new fuel efficient vehicles purchased or leased and eligible trade-in vehicles disposed of under the Program
• report to Congress on the Program's efficacy

Excludes from the income of the purchaser of a vehicle, for all state and federal programs (and from gross income for federal tax purposes), any voucher issued under the Program or any payment made for one. Authorizes appropriations. 

Path of Legislation

 Several sources, including wikipedia, give credit for the name "Cash for Clunkers", and a first proposal of the idea to a July 27, 2008 editorial by Alan Blinder.  He argued that the program would have a three pronged advantage of an effective stimulus, a cleaner environment, and more equal economic distribution.  Several transportation organizations pressed for the idea, and on June 8, 2009, Representative Betty Sutton [OH-13] officially sponsored the legislation as HR 2751.  The measure passed the House on June 9 as roll call number 314. 

On January 14, 2009, Diane Feinstein had proposed a similar piece of legislation under S 247 which was titled "Accelerated Retirement of Inefficient Vehicles Act of 2009".  This legislation was read twice and then sent to the committee on Energy and Natural Resources.

After the passage of HR2751 in the House, the Senate made the decision to insert the legislation into HR 2346 as Section 13.  The official summary for that section is shown above, and discussion of the contents of the program deal with the final form of the legislation in that bill.  HR 2751 is linked as the official "Cash for Clunkers" only for simplicity.

HR 2346 passed the Senate as roll call number 202 May 21, 2009.

Content of Legislation

The legislation is divided up into 10 sections which create the program, establish the amounts of the various rebates, sets the rules, and establishes the requirements for reporting and disseminating the information to the public.  These sections are listed here:

1. Establishment
2. Qualifications for and Value of Vouchers
3. Program Specifications
4. Regulations
5. Anti-Fraud Provisions
6. Information to Consumers and Dealers
7. Record Keeping and Reporting
8. Exclusion of Voucher from Income
9. Definitions
10. Appropriations

Establishment

In this section, authorization is given to issue an electronic voucher to offset the cost of purchasing or leasing a new vehicle.  It authorizes the government to register dealers into the program, and authorizes the Inspector General of the Department of Transportation to enforce punishment to penalize fraud under the program.

Qualifications for and Value of Vouchers

This section outlines the qualifications for receiving either a $3500 or $4500 voucher for a new passenger vehicle or truck.  

• $3500 Voucher
  • If the vehicle to be purchased is a passenger vehicle
    • the new vehicle must get a combined 4 mpg higher than the vehicle to be traded in
  • If the new vehicle is a category 1 truck
    •  the new vehicle must get a combined 2 mpg higher than the trade in
  • If the new vehicle is a category 2 truck
    • the combined mpg of the new truck must be at least 15 mpg and one of the following
      • the trade in is a cat 2 truck with a combined average at least 1 mpg less
      • the trade in is a cat 3 truck made on or before 2001, and of similar size
• $4500 Voucher
  • If the vehicle to be purchased is a passenger vehicle
    • the new vehicle must get a combined 10 mpg higher than the trade in
  • If the new vehicle is a cat 1 truck
    • the new vehicle must get a combined 5 mpg higher than the trade in
  • If the new vehicle is a cat 2 truck
    • the new vehicle must get at least a combined 15 mpg and
    • the combined mpg of the new vehicle is 2 mpg higher than the trade in
    • the trade in vehicle is a cat 2 truck

Program Specifications

     Limitations

• General period of eligibility
  • purchase or lease of a new vehicle must occur between between July 1, 2009 and November 1, 2009
• 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
• 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
• 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
• 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
• 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
• Number and amount
  • The total number and value of vouchers issued under the Program may not exceed the amounts appropriated for such purpose.
     

Disposal of Eligible Trade Ins

• The dealer
  • 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;
  • will transfer the vehicle (including the engine block), in such manner as the Secretary prescribes, 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
    • 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
• Nothing in the preceding text may be construed to preclude a person who is responsible for ensuring that the vehicle is crushed or shredded from--
  • 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)
  • retaining the proceeds from such sale
• 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.

Regulations

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

• provide for a means of registering dealers for participation in the Program
• 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
• 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
• 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 
• 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--
  • 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;
  • 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;
  • a mechanism for obtaining such other certifications as deemed necessary by the Secretary from entities engaged in vehicle disposal; and
  • a list of entities to which dealers may transfer eligible trade-in vehicles for disposal
• provide for the enforcement of the penalties described in subsection (e).

Anti-Fraud Provisions

1. Violation
   1. 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
   1. 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

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--

• how to determine if a vehicle is an eligible trade-in vehicle
• how to participate in the Program, including how to determine participating dealers
• 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.

Record Keeping and Reporting

• 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.
• 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 description of Program results, including--
      • 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;
      • 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;
    • 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
    • an estimate of the overall economic and employment effects of the Program.

Exclusion of Vouchers From Income

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.  

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.

Definitions

• 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;
• 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;
• 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'';
• category 3 truck
  • means a work truck, as defined in section 32901(a)(19) of title 49, United States Code;
• combined fuel economy value
  • 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;
  • 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;
  • 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.
• dealer
  • means a person licensed by a State who engages in the sale of new automobiles to ultimate purchasers; 
• 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--
    • is in drivable condition;
    • has been continuously insured consistent with the applicable State law and registered to the same person for a period of not less than 1 year immediately prior to such trade-in;
    • was manufactured less than 25 years before the date of the trade-in; and
    • in the case of an automobile, has a combined fuel economy value of 18 miles per gallon or less;
• new fuel efficient automobile
  • means an automobile described in paragraph (1), (2), (3), or (4)--
    • the equitable or legal title of which has not been transferred to any person other than the ultimate purchaser;
    • that carries a manufacturer's suggested retail price of $45,000 or less;
    • that--
      • 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
      • 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
    • that has the combined fuel economy value of at least--
      • 22 miles per gallon for a passenger automobile;
      • 18 miles per gallon for a category 1 truck; or
      • 15 miles per gallon for a category 2 truck;
• Program
  • means the Consumer Assistance to Recycle and Save Program established by this section;
• qualifying lease
  • means a lease of an automobile for a period of not less than 5 years;
• 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;
• Secretary
  • means the Secretary of Transportation acting through the National Highway Traffic Safety Administration;
• ultimate purchaser
  • means, with respect to any new automobile, the first person who in good faith purchases such automobile for purposes other than resale;
• vehicle identification number
  • means the 17 character number used by the automobile industry to identify individual automobiles; and
• voucher
  • means an electronic transfer of funds to a dealer based on an eligible transaction under this program

Appropriations

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.

Controversy

There were 2 controversies surrounding the C.A.R.S. program.  One controversy consisted of the basis of the program and the other focused on inefficiencies concerning the implementation of the program.

The initial controversy concerned whether or not the program would have any tangible benefit to the environment or the economy outside the car dealers and people actually purchasing the vehicles.  The Wall Street Journal call the program "crack pot economics" noting that the program does not generate wealth by simply destroying older vehicles and printing money to subsidize new vehicles for some people.  Some members of Congress noted that the bill actually hurts poor people the most as the destruction of "clunkers" removes a vehicle from the street that a poor person may have purchased at a cheaper price.  The added inflation produced by the printing of money for the program also affects poor people the most.

The second controversy involved the slow reimbursement of funds to car dealerships that were using the program.  By August 19, 2009, roughly 435,000 vehicles had been purchased through the program, and at that time roughly 2 percent of the reimbursements had been paid out.   Many dealerships had begun to pull out of the program due to fear that reimbursement would take too long or not come at all.

End of Program

Although the program had an end date of November 1, 2009, on August 20, 2009 the Obama Administration announced that the program would be ending on Monday August 24, 2009.

   Text of Legislation  
TITLE XIII--CONSUMER ASSISTANCE <<NOTE: Consumer Assistance to Recycle 
and Save Act of 2009. 49 USC 32901 note.>>  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;

[[Page 123 STAT. 1910]]

                    (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 <<NOTE: Vouchers.>>  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

[[Page 123 STAT. 1911]]

                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 <<NOTE: Certification. Regulations.>>  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 <<NOTE: Deadline.>>  
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--

[[Page 123 STAT. 1912]]

            (1) provide for a means of registering dealers for 
        participation in the Program;
            (2) establish <<NOTE: Deadline.>>  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 <<NOTE: Certifications.>>  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

[[Page 123 STAT. 1913]]

        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 <<NOTE: Deadline. Consultation. Web site.>>  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 <<NOTE: Public information.>>  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

[[Page 123 STAT. 1914]]

        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

[[Page 123 STAT. 1915]]

                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.

[[Page 123 STAT. 1916]]