49338 Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Rules and Regulations 

EBS Channel C1: 2535–2540.5 MHz 

EBS Channel C2: 2540.5–2546 MHz 

EBS Channel C3: 2546–2551.5 MHz 

EBS Channel D1: 2551.5–2557 MHz 

EBS Channel D2: 2557–2562.5 MHz 

EBS Channel D3: 2562.5–2568 MHz 

EBS Channel JA1: 2568.00000– 

2568.33333 MHz 

EBS Channel JA2: 2568.33333– 

2568.66666 MHz 

EBS Channel JA3: 2568.66666– 

2569.00000 MHz 

EBS Channel JB1: 2569.00000– 

2569.33333 MHz 

EBS Channel JB2: 2569.33333– 

2569.66666 MHz 

EBS Channel JB3: 2569.66666– 

2570.00000 MHz 

EBS Channel JC1: 2570.00000– 

2570.33333 MHz 

EBS Channel JC2: 2570.33333– 

2570.66666 MHz 

EBS Channel JC3: 2570.66666– 

2571.00000 MHz 

EBS Channel JD1: 2571.00000– 

2571.33333 MHz 

EBS Channel JD2: 2571.33333– 

2571.66666 MHz 

EBS Channel JD3: 2571.66666– 

2572.00000 MHz 

* * * * * 

(iii) Upper Band Segment (UBS): The 

following channels shall constitute the 

Upper Band Segment: 

BRS Channel KH1: 2614.00000– 

2614.33333 MHz. 

BRS Channel KH2: 2614.33333– 

2614.66666 MHz. 

BRS Channel KH3: 2614.66666– 

2615.00000 MHz. 

EBS Channel KG1: 2615.00000– 

2615.33333 MHz. 

EBS Channel KG2: 2615.33333– 

2615.66666 MHz. 

EBS Channel KG3: 2615.66666– 

2616.00000 MHz. 

BRS Channel KF1: 2616.00000– 

2616.33333 MHz. 

BRS Channel KF2: 2616.33333– 

2616.66666 MHz. 

BRS Channel KF3: 2616.66666– 

2617.00000 MHz. 

BRS Channel KE1: 2617.00000– 

2617.33333 MHz. 

BRS Channel KE2: 2617.33333– 

2617.66666 MHz. 

BRS Channel KE3: 2617.66666– 

2618.00000 MHz. 

BRS Channel 2: 2618–2624 MHz or 

2156–2162 MHz. 

BRS Channel 2A: 2618–2624 MHz or 

2156–2160 MHz. 

BRS/EBS Channel E1: 2624–2629.5 

MHz. 

BRS/EBS Channel E2: 2629.5–2635 

MHz. 

BRS/EBS Channel E3: 2635–2640.5 

MHz. 

BRS/EBS Channel F1: 2640.5–2646 

MHz. 

BRS/EBS Channel F2: 2646–2651.5 

MHz. 

BRS/EBS Channel F3: 2651.5–2657 

MHz. 

BRS Channel H1: 2657–2662.5 MHz. 

BRS Channel H2: 2662.5–2668 MHz. 

BRS Channel H3: 2668–2673.5 MHz. 

EBS Channel G1: 2673.5–2679 MHz. 

EBS Channel G2: 2679–2684.5 MHz. 

EBS Channel G3: 2684.5–2690 MHz. 

* * * * * 

[FR Doc. E9–23330 Filed 9–25–09; 8:45 am] 

BILLING CODE 6712–01–P 

DEPARTMENT OF TRANSPORTATION 

National Highway Traffic Safety 

Administration 

49 CFR Part 599 

[Docket No. NHTSA–2009–0120] 

RIN 2127–AK61 

Requirements and Procedures for 

Consumer Assistance To Recycle and 

Save Program 

AGENCY: National Highway Traffic 

Safety Administration (NHTSA), 

Department of Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

regulation implementing the Consumer 

Assistance to Recycle and Save (CARS) 

Program, published on July 29, 2009 in 

the Federal Register, under the CARS 

Act. The rule adds an exception process 

for registered dealers who were 

prevented from submitting an 

application for reimbursement for a 

qualifying transaction prior to the 

announced August 25, 2009 deadline 

due to problems associated with the 

CARS electronic transaction system. 

DATES: This final rule is effective 

September 28, 2009. A request for an 

exception must be postmarked no later 

than October 13, 2009. 

ADDRESSES: A request for exception 

must be made in writing and mailed by 

United States mail to the NHTSA 

Administrator, 1200 New Jersey Ave., 

SE., Washington, DC 20590. 

FOR FURTHER INFORMATION CONTACT: For 

questions, you may call David Bonelli, 

NHTSA Office of Chief Counsel, 

telephone (202) 366–5834. 

SUPPLEMENTARY INFORMATION: 

Background 

This final rule amends the regulation 

implementing the Consumer Assistance 

to Recycle and Save (CARS) Program, 

published on July 29, 2009 (74 FR 

37878), with a previous amendment 

published on August 5, 2009 (74 FR 

38974), under the CARS Act (Pub. L. 

111–32). The rule adds an exception 

process for registered dealers who were 

unable to submit an application for 

reimbursement for a qualifying 

transaction prior to August 25, 2009, 8 

pm EDT, NHTSA’s announced deadline 

for the program. As detailed below, this 

exception process is available only 

where the delay is attributable to action 

or inaction by NHTSA. 

Due to the enormous popularity of the 

CARS program, the available Federal 

funds were depleted in a short period of 

time. Based on daily projections of 

transactions, NHTSA determined that it 

was necessary to declare an August 24, 

2009, 8 pm EDT deadline for completing 

CARS deals and an August 25, 2009, 8 

pm EDT deadline for submitting 

applications for reimbursement. The 

agency received an overwhelming 

number of inquiries to the CARS hotline 

from dealers and consumers during the 

course of the program, and especially 

during the days immediately prior to the 

announced deadline. From these 

inquiries, we learned that dealers 

encountered problems in submitting 

applications for reimbursement as a 

result of problems caused by the 

agency’s transaction system. Because 

the agency was unable to respond to and 

resolve some of these problems prior to 

the application deadline, some dealers 

who had made qualifying CARS deals 

and extended credits to consumers in 

accordance with the provisions of the 

rule were prevented from completing 

and submitting applications for 

reimbursement. 

We are aware that some of these 

difficulties arose because of a feature 

that automatically locks a dealer out of 

the CARS transaction system and 

prevents the dealer from being able to 

re-enter the system without the agency’s 

assistance. This occurred, for example, 

when a dealer inaccurately entered its 

account password into the system 

multiple times. Ordinarily, the dealer’s 

password could be reset through a 

simple telephone call to the agency for 

technical assistance. However, due to 

the volume of transactions and 

inquiries, some dealers may have been 

unsuccessful in their attempts to get 

their passwords reset prior to the 

deadline. 

We are aware also that some dealers 

were unable to submit an electronic 

application because of an automatic 

feature that precluded a submission 

with a State identification number, a 

trade-in vehicle’s vehicle identification 

number (VIN), or a new vehicle’s VIN 


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Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Rules and Regulations 49339 

that was previously entered into a draft 

application in the CARS system. This 

feature was designed to detect multiple 

transactions with the same persons or 

vehicles, errors, and attempted fraud. 

However, the application of this feature 

also blocks transactions where the draft 

application with the same State 

identification number or VIN was 

entered, but never submitted as part of 

a completed application. This might 

occur, for example, where a dealer 

enters a purchaser’s State identification 

number, trade-in vehicle’s VIN, and/or 

new vehicle’s VIN as part of an 

application, but the deal is never 

completed between the parties. If the 

same or another dealer attempts to enter 

this same purchaser or vehicle 

information as part of another 

transaction, the system automatically 

rejects the application even if the 

purchaser, the trade-in vehicle, and the 

new vehicle have never been part of a 

completed CARS deal. 

On most occasions where such 

problems occurred, a dealer was able to 

contact NHTSA officials to resolve the 

issue. However, due to the 

overwhelming number of transactions 

and inquiries that occurred as the 

application deadline approached, the 

agency was unable to respond to and 

resolve all dealer inquiries. As a result, 

some dealers may have been prevented 

from submitting an application for 

reimbursement, despite having made a 

qualifying CARS deal, where the dealer 

took ownership of the trade-in vehicle 

and transferred ownership and 

possession of the new vehicle to the 

purchaser. 

Today’s final rule establishes an 

exception process by which a dealer 

may apply for reimbursement of a CARS 

credit if it had made a binding CARS 

deal prior to the application deadline 

but was prevented from submitting an 

application for reimbursement prior to 

the deadline due to a hardship caused 

by the agency. This exception process is 

available only to dealers, and not to 

consumers, as the CARS Act authorizes 

payment only to dealers. However, the 

process also benefits consumers, by 

enabling a dealer to seek reimbursement 

from the agency for a legitimate 

transaction rather than seeking return of 

the vehicle or repayment of the credit 

from the consumer. 

Exception Process 

To qualify for the exception process, 

a dealer must have been prevented from 

submitting an application for 

reimbursement due to a hardship 

caused by the agency. Specifically, a 

dealer may request an exception if the 

dealer was locked out of the CARS 

system, contacted NHTSA for a 

password reset prior to the announced 

deadline, but did not receive a password 

reset. A dealer also may request an 

exception if its timely transaction was 

rejected by the CARS system due to a 

duplicate State identification number, 

trade-in vehicle VIN, or new vehicle 

VIN that was never used for a submitted 

CARS transaction, if the dealer 

contacted NHTSA prior to the 

announced deadline to resolve the issue 

but did not receive a resolution. Finally, 

a dealer may seek an exception if it was 

prevented from submitting a transaction 

by the announced deadline due to 

another hardship attributable to 

NHTSA’s action or inaction, upon 

submission of proof and justification 

satisfactory to the Administrator. 

A request for an exception will not be 

granted if the dealer did not complete a 

qualifying vehicle sale/lease and tradein vehicle transaction meeting the 

existing requirements of § 599.300 and 

§ 599.301 prior to the August 24th 

deadline. A qualifying transaction 

requires that the dealer took ownership 

and possession of the trade-in vehicle 

and delivered ownership and 

possession of the new vehicle to the 

purchaser. A request for an exception 

also will not be granted if a dealer’s 

inability to complete or submit an 

application was due to a reason other 

than action or inaction by NHTSA, such 

as technological difficulties in the 

dealer’s own systems or processes. The 

exception process is not available for 

transactions that were successfully 

submitted on the CARS system but were 

subsequently rejected, as dealers have 

the opportunity to correct and resubmit 

their applications following rejection. 

The agency informed dealers on several 

occasions that any applications created 

in the system must be submitted, even 

if in incomplete form, prior to the 

application deadline, and the agency 

also informed the dealers that they 

would have the opportunity to correct 

any incomplete applications after the 

application deadline. 

A dealer seeking an exception must 

describe in a written statement the basis 

for the exception and provide evidence 

that it was prevented from submitting 

an application by the deadline due to 

action or inaction by NHTSA. Such 

evidence may include copies of 

correspondence, such as electronic mail, 

documenting that the dealer contacted 

the agency regarding issues with its 

application. The dealer also must 

present proof that a qualifying deal was 

made on or after July 1, 2009, but not 

later than August 25, 2009, 8 pm EDT, 

by submitting paper copies of all 

completed and signed supporting 

documents and certifications required 

under § 599.302(c)(2) and (c)(3) of the 

rule. 

All decisions granting or denying a 

request for exception will be made by 

the NHTSA Administrator or his or her 

designee. Finally, in order to bring 

finality to the CARS accounting process, 

all requests for exception must be 

postmarked no later than October 13, 

2009. 

Statutory Basis for This Action 

This final rule makes amendments to 

implement the Consumer Assistance to 

Recycle and Save Act (CARS Act) (Pub. 

L. 111–32), which directs the Secretary 

to issue final regulations. 

APA Requirements and Effective Date 

The rule is being issued without first 

providing a notice and an opportunity 

for public comment. Section 1302(d) of 

the CARS Act provides that 

‘‘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. Due 

to the enormous success and popularity 

of the CARS program, the agency closed 

the program and issued an August 25, 

2009, 8 p.m. EDT deadline for 

submission of applications for 

reimbursement. However, the agency is 

aware that there are completed valid 

transactions for which dealers were 

unable to submit applications prior to 

the deadline. In order to ensure that 

dealers and consumers do not unwind 

these transactions because dealers were 

not reimbursed, the agency believes that 

it is important to promulgate an 

exception process for the final rule 

immediately. Therefore, the agency 

finds for good cause that providing 

notice and comment is impracticable 

and contrary to the public interest for 

these changes to the final rule. Drafting 

and issuing a proposed rule, providing 

a period for public comment, and 

addressing those comments in the final 

rule would be highly impracticable in 

the time available and would 

substantially inhibit the ability to make 

payment for granted exception requests. 

For the above-mentioned reasons, the 

agency also finds that it has good cause 

to make this rule effective fewer than 30 

days after the publication in the Federal 

Register. 

We believe it is necessary to provide 

these amendments immediately to 

ensure that payment for valid 

transactions submitted under the 

exception process permitted under this 

rule can be made. We also note that this 

rule relieves restrictions in the original 


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49340 Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Rules and Regulations 

final rule by permitting additional 

submissions of applications for 

reimbursement. It would, therefore, be 

inconsistent with Congressional intent, 

impracticable, and contrary to the 

public interest to delay the effective 

date of the regulation, which would, in 

turn, adversely affect payment for valid 

transactions. 

Accordingly, the effective date of this 

final rule is September 28, 2009. 

Regulatory Analyses and Notices 

Because of the public and 

Congressional interest in the CARS 

program, this rulemaking is considered 

significant under Executive Order 12866 

and the Department of Transportation’s 

Regulatory Policies and Procedures. It 

was reviewed by the Office of 

Management and Budget. The agency 

has discussed the relevant requirements 

of the Regulatory Flexibility Act, 

Executive Order 13132 (Federalism), 

Executive Order 12988 (Civil Justice 

Reform), the National Environmental 

Policy Act, and the Unfunded Mandates 

Reform Act in the July 29, 2009 final 

rule cited above. This rule does not 

change the finding in those analyses. 

Paperwork Reduction Act 

Under the Paperwork Reduction Act 

of 1995 (PRA) (44 U.S.C. 3501 et seq.), 

a person is not required to respond to 

a collection of information by a Federal 

agency unless the collection displays a 

valid OMB control number. As part of 

this final rule, the agency must request 

information from participating dealers 

that encountered problems in 

submitting applications for CARS 

transaction reimbursement prior to the 

announced August 25, 2009 deadline 

due to action or inaction by NHTSA. 

Today’s collection of information 

amends a previously approved 

collection, OMB Control No. 2127–0660, 

to address an exemption process by 

which a dealer may apply for 

reimbursement of a CARS credit if it 

had made a binding CARS deal prior to 

the application deadline but was 

prevented from submitting the 

application due to a hardship caused by 

the agency. 

The agency has received approval 

from OMB to amend the following 

collection of information: 

Title: CARS Program; Dealer and 

Buyer Transaction Information. 

OMB Control No.: 2127–0660. 

Expiration date: January 31, 2010. 

NHTSA has been given OMB approval 

to collect an additional 2,000 responses, 

for a total of 1,000 additional burden 

hours. The total number of responses 

under this collection is 1,352,000, for a 

total of 372,350 burden hours. 

Regulatory Identifier Number (RIN) 

The Department of Transportation 

assigns a regulation identifier number 

(RIN) to each regulatory action listed in 

the Unified Agenda of Federal 

Regulations. The Regulatory Information 

Service Center publishes the Unified 

Agenda in April and October of each 

year. You may use the RIN contained in 

the heading at the beginning of this 

document to find this action in the 

Unified Agenda. 

Privacy Act 

Please note that anyone is able to 

search the electronic form of all 

comments received into any of our 

dockets by the name of the individual 

submitting the comment (or signing the 

comment, if submitted on behalf of an 

association, business, labor union, etc.). 

You may review the complete User 

Notice and Privacy Notice for 

Regulations.gov at http:// 

www.regulations.gov/search/footer/ 

privacyanduse.jsp. 

List of Subjects in 49 CFR Part 599 

Fuel Economy, Motor vehicle safety. 

■ In consideration of the foregoing, 

NHTSA hereby amends 49 CFR part 599 

as set forth below. 

PART 599—REQUIREMENTS AND 

PROCEDURES FOR CONSUMER 

ASSISTANCE TO RECYCLE AND SAVE 

ACT PROGRAM 

■ 1. The authority citation for part 599 

continues to read as follows: 

Authority: 49 U.S.C. 32901, Notes; 

delegation of authority at 49 CFR 1.50. 

■ 2. Add Subpart F to read as follows: 

Subpart F—Requirements and Procedures 

for Exceptions 

Sec. 

599.600 Exceptions—applicability and 

requirements. 

599.601 Procedures for requesting 

exception. 

599.603 Disposition of requests for 

exception. 

Subpart F—Requirements and 

Procedures for Exceptions 

§ 599.600 Exceptions—applicability and 

requirements. 

(a) Applicability. (1) Eligible 

Requesters. To qualify for an exception 

under this subpart, a requester must be 

a dealer registered in accordance with 

the requirements of § 599.200. 

(2) Filing deadline. A request for an 

exception must be postmarked no later 

than October 13, 2009. 

(3) Availability of funds. An exception 

shall be approved under this subpart 

only if Federal funds are available for 

payment. 

(4) Exclusion. No exception may be 

approved for an application for 

reimbursement that was successfully 

submitted to the CARS system. 

(b) Threshold requirements. Subject to 

the requirements of § 599.600(a), a 

registered dealer may submit a request 

for exception and seek reimbursement 

of a CARS credit under this subpart if 

the dealer: 

(1) Prior to August 24, 2009, 8 pm 

EDT, completed a qualifying deal 

meeting the requirements of § 599.300 

and § 599.301; 

(2) Took ownership and possession of 

a trade-in vehicle and transferred 

ownership and possession of a new 

vehicle to the purchaser; and 

(3) Prior to August 25, 2009, 8 pm 

EDT, attempted to submit an application 

for reimbursement meeting the 

requirements of § 599.302, but was 

prevented from submitting the 

application for any of the reasons 

identified in § 599.600(c). 

(c) Exception cases. A dealer is 

eligible for an exception if: 

(1) Password rejection. The dealer’s 

account password was locked out and 

not reset by NHTSA; 

(2) Transaction rejection. The 

application was rejected at submission 

because the dealer entered a State 

identification number, a trade-in vehicle 

VIN, or a new vehicle VIN that was 

already entered into the CARS program 

system, but that State identification 

number, trade-in vehicle VIN, or new 

vehicle VIN was never used for a CARS 

deal; or 

(3) Other hardship. The dealer 

experienced any other hardship 

attributable to NHTSA action or 

inaction that the Administrator 

determines in his or her discretion 

should be redressed, consistent with the 

purposes of the CARS Act. 

§ 599.601 Procedures for requesting 

exception. 

(a) Submission. A request for 

exception must be made in writing and 

mailed by United States mail to the 

NHTSA Administrator, 1200 New Jersey 

Ave SE., Washington, DC 20590. 

(b) Contents. The request must 

include paper copies of the following 

materials: 

(1) Explanation of hardship. A written 

explanation of a hardship identified in 

§ 599.600(c) that prevented the dealer 

from submitting its transaction, and the 

steps the dealer took to contact the 

agency and timely resolve the issue; 

(2) Proof of hardship. Documents 

evidencing that the dealer was unable to 

complete and submit an application for 


CPrice-Sewell on DSKGBLS3C1PROD with RULES
Federal Register / Vol. 74, No. 186 / Monday, September 28, 2009 / Rules and Regulations 49341 

reimbursement prior to the deadline 

because of hardship caused by NHTSA. 

Documents may include copies of 

correspondence with the agency; 

(3) Documentation of qualifying 

transaction. Paper copies of all 

supporting attachments required by 

§ 599.302(c)(2) which reveal that a 

qualifying CARS transaction, including 

the transfer of ownership and 

possession of the trade-in vehicle to the 

dealer and the delivery of ownership 

and possession of the new vehicle to the 

purchaser, was made prior to August 24, 

2009, 8 p.m. EDT; and 

(4) Certifications. Paper copies of all 

certifications provided in Appendix A 

to this part, signed by both the dealer 

and the purchaser. 

(5) Evidence of prior notice to 

NHTSA. Evidence, if any, that the dealer 

attempted to contact NHTSA prior to 

August 25, 2009, 8 p.m. EDT, to request 

assistance with a problem described in 

§ 599.600(c). 

§ 599.603 Disposition of requests for 

exception. 

(a) In general. Upon receipt of the 

request for exception, the agency will 

review the request to determine whether 

the exception should be granted and 

approved for payment. 

(b) Deciding official. The NHTSA 

Administrator or his or her designee 

shall serve as the Deciding Official for 

all determinations under this subpart. 

(c) Incomplete requests. A request for 

exception that fails to include all of the 

documents required under this subpart 

may be rejected without further review. 

(d) Denied requests. If the Deciding 

Official denies the request, the requester 

will be informed in writing of the 

reasons for the denial of the request. 

(e) Granted requests. If the Deciding 

Official grants the request, the requester 

will be notified by electronic mail, at 

the e-mail address identified in 

§ 599.200(c)(2)(iii), and the requester’s 

application for reimbursement will be 

processed for payment by the agency as 

a qualifying transaction in accordance 

with § 599.304. 

(f) No appeals. There are no appeals 

from the Deciding Official’s decision. 

Issued on: September 23, 2009. 

Ronald L. Medford, 

Acting Deputy Administrator. 

[FR Doc. E9–23335 Filed 9–23–09; 4:15 pm] 

BILLING CODE 4910–59–P 


CPrice-Sewell on DSKGBLS3C1PROD with RULES