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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1550 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1550

 To accelerate motor fuel savings nationwide and provide incentives to 
    registered owners of high polluting automobiles to replace such 
 automobiles with new fuel efficient and less polluting automobiles or 
                         public transportation.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2009

    Ms. Sutton (for herself, Mr. Braley of Iowa, and Mrs. Miller of 
  Michigan) introduced the following bill; which was referred to the 
 Committee on Energy and Commerce, and in addition to the Committee on 
  Transportation and Infrastructure, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To accelerate motor fuel savings nationwide and provide incentives to 
    registered owners of high polluting automobiles to replace such 
 automobiles with new fuel efficient and less polluting automobiles or 
                         public transportation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Consumer Assistance to Recycle and 
Save Act of 2009''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Automobile; manufacturer; model; model year; passenger 
        automobile.--The terms ``automobile'', ``manufacturer'', 
        ``model'', ``model year,'' ``passenger automobile,'' and ``work 
        truck'' have the meanings given such terms in section 32901(a) 
        of title 49, United States Code.
            (2) Certificate of title.--The term ``certificate of 
        title'' means a valid State-issued title or other document 
        showing ownership by a person of an automobile.
            (3) Dealer.--The term ``dealer'' means a person engaged in 
        any State in the business of selling or leasing in interstate 
        commerce new automobiles (except a person buying such 
        automobile as a dealer) to an ultimate purchaser.
            (4) Dismantler.--The term ``dismantler'' means a person 
        residing in a State and is licensed or otherwise authorized by 
        a State or local government to operate a business employing 3 
        or more persons to take automobiles apart for the purpose of 
        reclaiming usable parts and recyclable materials.
            (5) Distributor.--The term ``distributor'' means a person 
        who acts for, and is under the control of, a manufacturer in 
        connection with the distribution of new automobiles or new 
        automobile engines, but shall not include any dealer with 
        respect to such automobiles or engines received by such person 
        in commerce.
            (6) Eligible high polluting automobile.--The term 
        ``eligible high polluting automobile'' means an automobile 
        that, at the time it is presented for participation in the 
        program established under section 3 of this Act, it--
                    (A) is in drivable condition; and
                    (B) has been continuously registered and licensed 
                to operate on public roads in any State for a period of 
                not fewer than 120 consecutive days immediately prior 
                to such presentation.
            (7) High polluting automobile.--The term ``high polluting 
        automobile'' means an automobile that is either an inefficient 
        or high polluting automobile and that was issued a certificate 
        of conformity with the regulations prescribed under section 202 
        of the Clean Air Act (42 U.S.C. 7521) for any model year before 
        model year 2001, and is not a new fuel efficient automobile.
            (8) Highway label fuel economy value.--The term ``highway 
        label fuel economy value'' means the number, expressed in miles 
        per gallon, centered directly below the words ``Highway MPG'' 
        on the label required to be affixed or caused to be affixed on 
        a new automobile pursuant to subpart D of part 600 of title 40 
        Code of Federal Regulations.
            (9) City label fuel economy value.--The term ``city label 
        fuel economy value'' means the number, expressed in miles per 
        gallon, centered directly below the words ``City MPG'' on the 
        label required to be affixed or caused to be affixed on a new 
        automobile pursuant to subpart D of part 600 of title 40 Code 
        of Federal Regulations.
            (10) Battery electric automobile.--The term ``battery 
        electric automobile'' means an automobile that--
                    (A) draws motive power from a battery with a 
                capacity of at least 4-kilowatt hours; and
                    (B) is recharged from an external source of 
                electricity for motive power.
            (11) New fuel efficient automobile.--The term ``new fuel 
        efficient automobile'' means a model year 2009, 2010, or 2011 
        passenger automobile, nonpassenger automobile, or work truck 
        for which--
                    (A) a manufacturer, distributor, or dealer has 
                never, except in accordance with the Program 
                established by this Act, transferred the equitable or 
                legal title by contract, lease or other means thereof 
                to an ultimate purchaser;
                    (B) a dealer participating in such Program may, 
                during the period beginning after the date in calendar 
                year 2009 that the interim final regulations required 
                by section 3(f) of this Act are promulgated by the 
                Secretary and ending on December 31, 2010, accept a 
                voucher under such Program as an offset of the purchase 
                price of such automobile paid by such purchaser; and
                    (C) at the time of such purchase of such automobile 
                by an ultimate purchaser--
                            (i) carries a manufacturer's suggested 
                        retail price of $35,000 or less; and
                            (ii) achieves the emission standard listed 
                        as tier 2, bin 5 in table S04-1 under section 
                        86.1811-04 of title 40, Code of Federal 
                        Regulation.
            (12) Nonpassenger automobile.--The term ``nonpassenger 
        automobile'' means an automobile classified as a light truck 
        under part 523 of title 49, Code of Federal Regulations, and is 
        not a work truck.
            (13) Person.--The term ``person'' has the meaning given 
        such term in section 551 of title 5, United States Code.
            (14) Plug-in electric drive automobile.--The term ``plug-in 
        electric drive automobile'' has the same meaning given the term 
        ``new qualified plug-in electric drive motor vehicle'' in 
        section 30D(d)(1) through (4) of the Internal Revenue Code of 
        1986.
            (15) Program.--The term ``Program'' means the Consumer 
        Assistance to Recycle and Save (CARS) Program established by 
        section 3 of this Act.
            (16) Registered work truck.--The term ``registered work 
        truck'' means a work truck that--
                    (A) a dealer, at the time of acquisition by an 
                ultimate purchaser of a work truck for which a voucher 
                under section 3 of this Act is applied, registers such 
                truck as a commercial vehicle under the applicable 
                State law for such purchaser as the registered owner 
                thereof; and
                    (B) achieves the emission standard listed as tier 
                2, bin 5 in Table S04-1 under section 86.1811-04 of 
                title 40, Code of Federal Regulations.
            (17) Registered owner.--The term ``registered owner'' 
        means, with respect to an automobile or work truck, the person 
        identified as the ultimate purchaser of such automobile or work 
        truck on the title or other form or certificate of registration 
        issued by a State.
            (18) Scrap recycler.--The term ``scrap recycler'' means a 
        person licensed or otherwise authorized by a State or local 
        government to do business--
                    (A) employing 3 or more individuals at a fixed 
                location in a State, where machinery and equipment are 
                utilized for processing and manufacturing scrap metal 
                into prepared grades; and
                    (B) whose principal product is scrap iron, scrap 
                steel, or nonferrous metallic scrap for sale for 
                remelting purposes.
            (19) Administrator; secretary.--The terms ``Administrator'' 
        and ``Secretary'' mean the Administrator of the Environmental 
        Protection Agency, and the Secretary of Transportation, 
        respectively.
            (20) State.--The term ``State'' has the meaning given such 
        term in section 32101 of title 49, United States Code.
            (21) Ultimate purchaser.--The term ``ultimate purchaser'' 
        means, with respect to any new automobile, the first person who 
        in good faith purchases such automobile for purposes other than 
        resale.
            (22) Voucher.--The term ``voucher'' means a voucher issued 
        to the registered owner of an eligible high polluting 
        automobile under section 3(a) of (g).

SEC. 3. ACCELERATED RECYCLING OF INEFFICIENT VEHICLES PROGRAM.

    (a) Establishment.--There is established in the Department of 
Transportation a program to be known as the ``Consumer Assistance to 
Recycle and Save (CARS) Program'', for fiscal years 2009 through 2011, 
through which the Secretary, in accordance with this Act and the 
regulations promulgated thereunder, shall--
            (1) encourage and allow any dealer, dismantler, and scrap 
        recycler in any State to participate in the Program;
            (2) authorize the issuance by participating dealers of a 
        vouchers to any person who is a registered owner of a high 
        polluting automobile, and who transfers such automobile, 
        together with the applicable certificate of title for the 
        automobile, to a dealer, or, in the case of subsection (g) of 
        this section, to a dismantler or scrape recycler;
            (3) require that all dealers participating in the Program 
        accept vouchers submitted to them as provided in this Act as 
        partial payment for the purchase of a new fuel efficient 
        automobile;
            (4) require that each participating dealer agree to accept 
        any high polluting automobile from a registered owner thereof 
        and upon the transfer by such owner of a certificate of title 
        to such automobile shall issue a voucher for such automobile to 
        the owner, which may be immediately redeemed by such owner for 
        the purchase of a new fuel efficient automobile that, using for 
        comparison purposes only the average full economy standard 
        applicable to the make and model of each such automobile 
        (taking into consideration relevant factors established and 
        published by the Secretary, in coordination with the 
        Administration), is shown to be more fuel efficient than such 
        high polluting vehicle;
            (5) require that participating dealers, dismantlers, and 
        scrap recyclers agree to comply with the applicable provisions 
        of subsection (e) of this section; and
            (6) electronically transfer funds to a participating dealer 
        within 10 days after receipt from such dealer of--
                    (A) a voucher issued by the dealer and redeemed for 
                the purchase of a new fuel efficient automobile; and
                    (B) the applicable certifications required under 
                this Act.
    (b) Amount of Voucher.--
            (1) Voucher redemption value if used toward purchase of new 
        fuel efficient automobile.--A voucher issued under the Program 
        may be applied to offset a portion of the purchase price of one 
        new fuel efficient automobile meeting the criteria set forth in 
        this paragraph, which portion shall be the amount of--
                    (A) $4,000 for a--
                            (i) passenger automobile assembled in the 
                        United States with a minimum highway label fuel 
                        economy value of 27 miles per gallon;
                            (ii) passenger automobile assembled in 
                        North America with a minimum highway label fuel 
                        economy value of 30 miles per gallon; or
                            (iii) nonpassenger automobile assembled in 
                        the United States with a minimum highway label 
                        fuel economy value of 24 miles per gallon;
                    (B) $5,000 for a--
                            (i) passenger automobile assembled in the 
                        United States with a minimum highway label fuel 
                        economy value of 30 miles per gallon; or
                            (ii) work truck assembled in the United 
                        States registered by the dealer as a registered 
                        work truck; or
                    (C) $3,000 for a nonpassenger automobile assembled 
                in North America with a minimum highway value of 24 
                miles per gallon.
            (2) No combination of voucher redemption values.--The 
        voucher redemption values under subsections (b)(1)(A), 
        (b)(1)(B), and (b)(1)(C) of this section shall not be combined. 
        If a new fuel efficient automobile meets the criteria set forth 
        in more than one such subsection, the purchaser of the new fuel 
        efficient automobile may designate which subsection applies for 
        purposes of determining the voucher redemption value.
    (c) Administrative Payments to Participating Dealers, Dismantlers, 
and Scrap Recycling Facilities.--The Secretary shall provide for a 
payment of $50, or another greater amount determined reasonable by the 
Secretary, to participating dealers, dismantlers, and scrap recyclers 
for each voucher issued under the Program in consideration of their 
administrative and other similar costs related to such issuance and for 
the issuance of the certification required by subsection (e)(3) of this 
section.
    (d) Lists of Eligible Automobiles To Be Maintained.--The Secretary 
shall prepare, maintain, publicize, and make available through the 
Internet, lists of automobiles, classified by make and model, which are 
classified under this section as--
            (1) eligible high polluting automobiles; or
            (2) new fuel efficient automobiles.
    (e) Program Specifications.--
            (1) Limitations.--
                    (A) Number of vouchers per person.--A person may be 
                issued not more than 1 voucher and the person must 
                demonstrate, in a manner prescribed by rule by the 
                Secretary, that such person--
                            (i) is the registered owner of an eligible 
                        high polluting automobile; and
                            (ii) attests that such high polluting 
                        automobile has not been imported into the 
                        United States during the previous 4-month 
                        period.
                    (B) Offset.--A dealer--
                            (i) shall credit the amount of the voucher 
                        being applied toward the purchase of a new fuel 
                        efficient automobile; and
                            (ii) may not offset the amount of the 
                        voucher against any other rebate or discount 
                        otherwise being offered by the dealer or 
                        manufacturer.
                    (C) Joint ownership.--Not more than 1 voucher may 
                be issued to the joint registered owners of an eligible 
                high polluting automobile.
                    (D) No combination of vouchers.--A person may only 
                apply 1 voucher issued under the Program toward the 
                purchase of a new fuel efficient automobile.
                    (E) Combination with other incentives permitted.--
                Notwithstanding any other provision of law, the 
                availability or use of a Federal or State tax incentive 
                or a State-issued voucher for the purchase of a new 
                fuel efficient automobile shall not limit the value or 
                issuance of a voucher under the Program to any person 
                otherwise eligible to receive such a voucher.
                    (F) Duration.--Each voucher shall expire 90 days 
                after the date on which the voucher is issued and may 
                not be renewed.
                    (G) Prompt fulfillment of redemption requests 
                required.--The Secretary shall provide for the payment 
                of all vouchers submitted to the Secretary for 
                redemption in accordance with this section.
                    (H) Number and amount.--The total number and value 
                of vouchers issued under the Program may not exceed the 
                amounts appropriated for such purpose.
            (2) Administration of program.--The Secretary shall 
        establish by the date interim final regulations are promulgated 
        under subsection (f) of this section a web-based system for the 
        administration and electronic transfer of vouchers and funds 
        for the Program. The web-based system shall at a minimum--
                    (A) provide information to the public regarding the 
                purposes of the Program, and how to obtain and redeem 
                vouchers;
                    (B) provide information to consumers regarding the 
                availability of new fuel efficient automobiles for 
                which vouchers may be used and transit passes or fare 
                credit;
                    (C) provide information to participating dealers, 
                dismantlers, and scrap recyclers regarding how to 
                verify that a registered owner requesting a voucher has 
                an eligible high polluting automobile;
                    (D) provide for the electronic issuance of vouchers 
                once eligibility has been verified; and
                    (E) provide electronic fund transfer of funds to 
                participating dealers, dismantlers, and scrap recyclers 
                in accordance with section. In addition to the web-
                based system, the Secretary may use such other means as 
                the Secretary deems necessary to educate consumers 
                regarding the voucher program and carry out other 
                aspects of the program.
            (3) Disposition of eligible high polluting automobiles.--
                    (A) In general.--Any dealer who receives a 
                certificate of title to any eligible high polluting 
                automobile in exchange for a voucher under the Program 
                shall certify to the Secretary, in such manner as the 
                Secretary shall prescribe, by rule, that such title has 
                been retired or otherwise extinguished and not re-
                issued and that the dealer has received from a 
                dismantler or recycler a certification that such 
                automobile, engine and drive train (within such period 
                as the Secretary prescribes by rule)--
                            (i) will be crushed or shredded within such 
                        period as the Secretary prescribes;
                            (ii) will be processed prior to crushing or 
                        shredding to ensure the removal and appropriate 
                        disposition of refrigerants, antifreeze, lead 
                        products, mercury switches, and such other 
                        toxic or hazardous vehicle components as the 
                        Secretary may specify by rule; and
                            (iii) has not been, and will not be, 
                        registered, sold, leased, exchanged, 
                        distributed, or otherwise operated at any time 
                        as an automobile in the United States or in any 
                        foreign country.
                    (B) Savings provision.--Nothing in subparagraph (A) 
                may be construed to preclude a dismantler or recycler 
                from--
                            (i) removing any parts of such crushed or 
                        shredded high polluting automobile, other than 
                        the engine block and drive train, and selling 
                        them for use as replacement parts; or
                            (ii) retaining the proceeds from such sale.
                    (C) Coordination.--The Secretary shall coordinate 
                with the Attorney General to ensure that the National 
                Motor Vehicle Title Information System is appropriately 
                updated to reflect the crushing or shredding of high 
                polluting automobiles under this section.
    (f) Rulemaking.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall promulgate interim final 
regulations to implement the Program, including--
            (1) the removal and disposition of toxic or hazardous 
        materials from eligible high polluting vehicles presented for 
        participation in the program; and
            (2) the enforcement of the penalties described in section 4 
        of this Act.
    (g) Transit Fare Credits.--The Secretary shall promulgate 
regulations establishing criteria that allow operators of bus and rail 
public transit systems participating in the program to redeem from the 
Secretary the allowable value of transit fare vouchers properly issued 
by such operators to any person who is a registered owner of a high 
polluting automobile under this Act to offset the purchase price of 
annual or monthly transit passes or any other form of individual 
transit fare credit designated by the transit system operator. 
Participating transit system operators shall establish the terms and 
conditions for the ownership, use, and expiration of any transit fare 
credits acquired through the use of a transit fare voucher issued under 
this subsection. Such transit vouchers may only be issued by a person 
who is a dismantler or scrap recycler in lieu of vouchers issued under 
subsection (a) if a high polluting automobile of a registered owner is 
accepted by any such dismantler or scrap recycler, such owner transfers 
the certificate of title for such automobile to either such person, and 
such voucher includes the certification by such dismantler or recycler 
required by subsection (e)(3) of this section. The amount of any such 
voucher shall be $3,000. The Secretary shall electronically transfer 
funds to cover such vouchers to such operators.
    (h) Disclaimer.--Nothing in this Act or any other provision of law 
limits the authority of Congress or the Secretary to terminate or limit 
the Program or the issuance of vouchers under this Act or the issuance 
of transit fare vouchers.

SEC. 4. PENALTIES.

    (a) Violation.--It shall be unlawful for any person to violate any 
provision under this Act or any regulations issued pursuant to section 
3(f) of this Act.
    (b) Penalties.--Any person who commits a violation described in 
subsection (a) shall be liable to the United States Government for a 
civil penalty of not more than $5,000 for each violation. A separate 
violation shall be deemed to have occurred for each day the person 
continues to be in violation of any provision under this Act.

SEC. 5. REPORT.

    The Secretary shall submit a semi-annual report to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Energy and Commerce of the House of Representatives that specifies, 
for the most recent 6-month period--
            (1) the number of vouchers which have been used under the 
        Program; and
            (2) the make, model, model year, location of sale, and 
        manufacturing location of each vehicle traded in or purchased 
        under the Program.

SEC. 6. POST-2010 VOUCHERS TO RECYCLE INEFFICIENT VEHICLES AND 
              ENCOURAGE PURCHASE OF NEW BATTERY ELECTRIC AUTOMOBILES 
              AND PLUG-IN ELECTRIC DRIVE AUTOMOBILES.

    Effective for model year 2011, the Secretary shall, by rule, revise 
the Program established under section 3 of this Act to provide for the 
issuance by dealers of vouchers to registered owners of a high 
polluting automobile, who transfer a certificate of title to such 
automobile to the dealer to be redeemed in such model year and for two 
subsequent model years to offset the purchase price of a new battery 
electric automobile or a new plug-in electric drive automobile, in 
accordance with the applicable provisions of this Act and related 
regulations, as so revised or modified by the Secretary consistent with 
this section. For purposes of determining the amount of a voucher 
issued under this section for purposes of such redemption, the voucher 
amount shall be $7,500 for either a passenger or nonpassenger 
automobile assembled in the United States and each such automobile 
shall have a minimum city label fuel economy value of 100 miles per 
gallon.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to the Secretary of Transportation to enable the Secretary to 
carry out the Program authorized under section 3 of this Act beginning 
in calendar year 2009, under section 6 beginning in calendar year 2010, 
and such sums shall remain available until expended.
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