31812 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

1The CARS Act is part (Title XIII) of the 

Supplemental Appropriations Act, Public Law 111– 

32, 123 Stat. 1859. 

2Under certain conditions, which are explained 

later in this notice, the drive train too may be sold. 

3Allocation of any remaining scrappage fees is 

subject to negotiation between the dealer and 

purchaser. 

DEPARTMENT OF TRANSPORTATION 

National Highway Traffic Safety 

Administration 

49 CFR Chapter V 

[Docket No. NHTSA–2009–0109] 

Consumer Assistance To Recycle and 

Save Act of 2009 

AGENCY: National Highway Traffic 

Safety Administration (NHTSA); 

Department of Transportation. 

ACTION: Summary of the Consumer 

Assistance to Recycle and Save Act of 

2009 and notice of upcoming 

rulemaking proceeding. 

SUMMARY: To inform consumers, dealers, 

and other interested persons about the 

Consumer Assistance to Recycle and 

Save Act of 2009 (CARS Act or the Act), 

this agency is publishing a brief 

summary of the Act’s key features in 

question and answer format. The Act 

establishes a new program under which 

the government will provide $3,500 or 

$4,500 to help consumers purchase or 

lease a new, more fuel efficient car, van, 

sport utility vehicle or pickup truck 

from a participating dealer when they 

trade in an old, less fuel efficient 

vehicle. This notice also describes the 

steps that the agency is taking to enable 

it to meet its twin responsibilities under 

the Act: establishing an effective 

program for promptly making money 

available under the CARS Act for 

eligible purchases and leases, and 

exercising due diligence in guarding 

against the possibility of fraud. 

FOR FURTHER INFORMATION CONTACT: You 

may obtain additional information about 

the CARS program by calling 1–866– 

CAR–7891. It is dedicated to calls about 

the program. For technical issues, you 

may contact Mr. Frank Borris, Office of 

Enforcement, by telephone at (202) 366– 

2544. For legal issues, you may contact 

Mr. David Jasinski, Office of Chief 

Counsel, by telephone at (202) 366– 

5552. 

SUPPLEMENTARY INFORMATION: 

About the CARS Act 

On June 24, the President signed the 

Consumer Assistance to Recycle and 

Save Act of 2009 into law.1 The Act 

directs NHTSA to set up a program in 

which owners of vehicles meeting 

statutorily specified criteria may receive 

a monetary credit for trading in their 

vehicle and purchasing or leasing 

certain new vehicles. If all of the 

conditions of eligibility are met, NHTSA 

would make an electronic payment to 

the dealer equal to the amount of the 

credit after the dealer provides NHTSA 

with sufficient documentation relating 

to the transaction. The vehicle that was 

traded in would then be disposed of 

(i.e., crushed or shredded) in a manner 

that ensures it would never be used 

again, although parts of the vehicle, 

other than the engine block and drive 

train,2 may be sold prior to disposal. 

The Act requires NHTSA to issue 

final regulations implementing the 

CARS Act within 30 days after the 

enactment of the Act, i.e., by July 24. 

The nearness of this statutory deadline 

precludes the issuance of a notice of 

proposed rulemaking seeking public 

comment. The regulations must, among 

other things: 

(1) Set up a means for registering 

dealers to participate in the program; 

(2) Set forth the procedures for 

reimbursing dealers participating in the 

program; 

(3) Require that dealers use the credit 

as an addition to, instead of as a 

substitute for, other rebates and 

discounts advertised by the dealer or 

offered by the manufacturer; 

(4) Require that dealers disclose to the 

person trading in an eligible vehicle the 

best estimate of the scrappage value of 

such vehicle and authorize dealers to 

retain $50 of the amount paid for the 

scrappage value as payment for the 

administrative costs of the program; 3

(5) Establish, in consultation with the 

Environmental Protection Agency 

(EPA), requirements and procedures for 

the disposal of eligible trade-in vehicles; 

and 

(6) Provide for a means to enforce 

penalties for violations of the program 

requirements. 

NHTSA must also, not later than July 

24, and in consultation with the EPA, 

make available on an Internet Web site 

information about the program, 

including instructions on 

• How to determine if a vehicle is an 

eligible trade-in vehicle; 

• How to participate in the program; 

• How to determine if a dealer is 

participating in the program; as well as 

a comprehensive list, by make and 

model, of eligible new vehicles that may 

purchased as part of the program. 

Because NHTSA will need several 

weeks to develop and issue a final rule 

implementing the Act, we are issuing 

this notice providing general 

information about the requirements of 

the CARS Act. NHTSA has already 

established a Web site, http:// 

www.cars.gov, which provides overview 

information about the program. The 

agency will periodically update that 

information. To address additional 

questions regarding the CARS program, 

NHTSA has expanded the capacity of 

the NHTSA hotline (888) 327–4236, 

TTY: (800) 424–9153 (available 

Monday–Friday, 8 a.m. to 10 p.m.). 

Beginning June 27, the number will be 

available for CARS calls on Saturdays 

10 a.m.–8 p.m. Beginning July 1, we will 

have a new number, 1–866–CAR–7891, 

dedicated to calls about the program. 

As appropriate in taking these steps, 

NHTSA is actively consulting with the 

EPA. 

What Is the CARS program? 

The Car Allowance Rebate System is 

a new program from the government 

that will help you pay for a new, more 

fuel-efficient vehicle from a 

participating dealer when you trade in 

a less fuel efficient one. 

When Does the CARS Program Begin; 

How Will NHTSA Handle Trade-Ins 

That Are Made Between July 1 and the 

Issuance of the Final Rule? 

While the CARS Act makes 

transactions on and after July 1 

potentially eligible for credits under the 

CARS program, interested dealers and 

consumers may want to wait until all of 

the detailed issues that must be 

addressed in the implementing 

regulations are resolved and the final 

rule is issued. Issuance will occur 

around July 23. At that point, NHTSA 

will have in place detailed provisions 

about establishing eligibility and a 

system to ensure the prompt payment of 

money for credits used under the CARS 

program. 

If dealer choose to structure a 

transaction before the final rule is 

issued, they will bear the risks 

associated with later demonstrating that 

the transaction meets all of the 

specifications of the final rule. The 

dealers should also give the credit to the 

consumer at the time of such 

transaction. The dealer would be 

reimbursed by NHTSA later if the dealer 

registers and submits documentation 

sufficient to demonstrate that the 

transaction was an eligible one, that the 

traded-in vehicle was properly disposed 

of, and that all requirements in the final 

rule were met. 

When Does the CARS Program End? 

The CARS Act provides two 

limitations on the duration of the 

program. First, the program ends 

Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31813 

4This means that all pre-model year 1984 

vehicles, and most model year 1984 vehicles, are 

not eligible as trade in vehicles. 

5There is no minimum for category 3 trucks 

because they do not have any miles-per-gallon 

ratings. 

6The fuel economy information available through 

http://www.cars.gov will be the same as that now 

available only through http:// 

www.fueleconomy.gov. 

7 It is important to note that the Environmental 

Protection Agency (EPA) changed the way it 

estimated fuel economy beginning in model year 

2008. The new estimated combined EPA fuel 

economy for a trade-in vehicle is likely to be less 

than the value that was listed on the window 

sticker (Monroney label) of the vehicle when it was 

sold as a new vehicle. EPA has converted all MPG 

estimates to the new ratings system to help 

consumers compare the MPG of older and newer 

cars. The converted estimates are referred to as 

‘‘new’’ on http://fueleconomy.gov. 

November 1, 2009. Second, NHTSA has 

been appropriated a fixed sum of money 

($1 billion) to fund the program. Thus, 

under current law, the program will end 

on November 1, 2009, or when the 

appropriated funds are exhausted, 

whichever occurs first. Consumers and 

dealers are advised that, in the event 

NHTSA exhausts funds before the end 

of the program, NHTSA will be unable 

to reimburse dealers for some otherwise 

eligible transactions, even if the 

transactions have already occurred. 

NHTSA will develop a method of 

providing consumers and dealers with 

information regarding the amount of 

remaining program funds. 

Do I Need To Obtain a Paper Voucher 

That I Can Redeem When I Go To 

Purchase or Lease a New Vehicle? 

No. Under the CARS Act, consumers 

will not receive vouchers or money 

directly from the government. Instead, 

automobile dealers would credit the 

applicable amount against the cost of 

purchasing or leasing an eligible new 

vehicle and then apply to NHTSA for 

reimbursement. NHTSA would then 

reimburse dealers for the amount of the 

credit through an electronic transfer of 

funds, assuming that the agency 

determines that all program 

requirements have been met. 

Is the Credit Subject To Being Taxed as 

Income to the Consumers or Dealers 

that Participate in the Program? 

The CARS Act expressly provides that 

the credit is not income for the 

consumer. However, the credit will be 

considered as income for the dealer. 

How Do I Know Which Dealers Are 

Participating in the CARS Program? 

The CARS Act requires that NHTSA 

set up a system for registering dealers to 

participate in the program and make 

available on the Internet information 

that will enable the public to determine 

whether a dealer is participating in the 

program. We are working to set up such 

a system and expect to make that 

information available on the program’s 

Web site, http://www.cars.gov, which 

will be accessible directly or from a link 

on NHTSA’s home page, http:// 

www.nhtsa.gov. Consumers can also 

contact dealers to ask whether they plan 

to participate in the program. The CARS 

Act requires that dealers be licensed by 

their respective State for the sale of new 

automobiles in order for them to 

participate in the program. NHTSA will 

complete the registration process as 

soon as possible. 

What Vehicles Are Eligible To Be 

Traded in Under the CARS Program? 

The CARS Act establishes four criteria 

for eligible trade-in vehicles: 

(1) The trade-in vehicle must be in 

drivable condition; 

(2) The trade-in vehicle must have 

been continuously insured, in 

accordance with State law, and 

registered in the same owner’s name for 

the one-year period immediately prior 

to the trade in; 

(3) The trade-in vehicle must have 

been manufactured not earlier than 25 

years before the date of trade in 4 and, 

in the case of a category 3 vehicle, must 

also have been manufactured not later 

than model year 2001; and 

(4) In the case of a passenger 

automobile, category 1 truck, and 

category 2 truck, as those terms are 

defined in the Act, the vehicle must 

have a combined fuel economy value of 

18 miles per gallon or less.5 (These 

truck categories are explained below.) 

Vehicles that do not meet all four 

criteria are not eligible to be traded in 

under the CARS program. 

How Can I Find Out When My Trade 

in Vehicle Was Manufactured? 

The month and year of manufacture 

(e.g., 1–96 (January 1996)) appear on the 

safety standard certification label that is 

located on the frame or edge of the 

driver’s door in most vehicles. In the 

sample label below, that information is 

located in the upper right hand corner. 

It may appear in a different location on 

the label on your vehicle. 

How Can I Determine the Fuel Economy 

of My Trade in Vehicle? 

The CARS Act requires that, by July 

24, NHTSA set up a location on the 

program Web site, http://www.cars.gov, 

to assist consumers in determining 

whether their vehicle is an eligible 

trade-in vehicle. Until that part of the 

Web site is operational, consumers can 

visit http://www.fueleconomy.gov/feg/ 

findacar.htm and search for their 

vehicle to find its combined fuel 

economy value.6 When searching that 

Web site, consumers will need to know 

their vehicle’s model year, make, model, 

engine size, and transmission type. MPG 

requirements for model year 1985 and 

newer vehicles are based on the 

Combined ‘‘Estimated New EPA MPG’’ 

as given in the Find a Car section at 

http://www.fueleconomy.gov.7 See the 

illustration below. Data for model year 

1984 vehicles will be added to that 

section soon. 


EP02JY09.009</GPH>
31814 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

8A vehicle’s combined fuel economy is a 

weighted average of its city fuel economy and its 

highway fuel economy. 

9Section 1302(i) of the CARS Act defines those 

categories largely with reference to statutory 

categories of vehicles subject to the Corporate 

Average Fuel Economy (CAFE) Standards as 

follows: 

(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’;9

(4) The term ‘‘category 3 truck’’ means a work 

truck, as defined in section 32901(a)(19) of title 49, 

United States Code. 

10As noted in a preceding footnote, the statutory 

definition of the term ‘‘category 2 truck’’ is based 

on the categorization method used by the 

Environmental Protection Agency and described in 

the report entitled ‘Light-Duty Automotive 

Technology and Fuel Economy Trends: 1975 

through 2008.’’ Based on that method of 

categorization, large vans and pickup trucks, which 

would otherwise fall within category 1, instead fall 

within category 2. The method is based primarily 

on published wheelbase data according to the 

following criteria: 

What New Vehicles May Be Acquired 

Under the CARS Program? 

The CARS Act applies to new 

vehicles. Thus, used vehicles do not 

qualify under the program. 

The new vehicle must have a 

manufacturer’s suggested retail price of 

not more than $45,000. That price 

appears on the window sticker on new 

vehicles. 

The new vehicle must also achieve 

minimum combined fuel economy 

levels.8 For passenger automobiles, the 

new vehicle must have a combined fuel 

economy value of at least 22 miles per 

gallon. For category 1 trucks, the new 

vehicle must have a combined fuel 

economy value of at least 18 miles per 

gallon. For category 2 trucks, the new 

vehicle must have a combined fuel 

economy value of at least 15 miles per 

gallon. Category 3 trucks have no 

minimum fuel economy requirement; 

however, there are special requirements 

that apply to the purchase of category 3 

vehicles. 

As noted above, the CARS Act also 

requires that NHTSA make available on 

an Internet Web site a comprehensive 

list of new vehicles that meet the 

requirements of the program. Until that 

information is posted on the program’s 

Web site, consumers may determine 

whether a new vehicle meets the fuel 

economy requirements of the program 

in two ways. First, the combined fuel 

economy of a new vehicle will be 

posted under the heading ‘‘Combined 

Fuel Economy’’ on the window sticker 

(‘‘Monroney label’’) of a new vehicle. 

Second, you may also find the 

combined fuel economy value of a new 

vehicle by visiting http:// 

www.fueleconomy.gov/feg/findacar.htm 

and searching for their vehicle to find 

its combined fuel economy value. When 

searching that Web site, consumers will 

need to know their vehicle’s model year, 

make, model, engine size, and 

transmission type. 

May I Lease, Instead of Purchase, a 

Vehicle Under the CARS Program? 

Yes. The credit given for trading in an 

eligible vehicle may be used to offset the 

cost of leasing a new vehicle. However, 

the CARS Act requires that any lease 

under the program be for a period of at 

least five years. 

How Do I Determine Whether the 

Vehicle I Want To Purchase or Lease Is 

a Passenger Automobile or a Category 

1, 2, or 3 Truck? 

The CARS Act divides the eligible 

vehicles into four groups: Passenger 

automobiles; category 1 trucks; category 

2 trucks; and category 3 trucks.9 NHTSA 

will soon publish a list of the vehicles 

that fall into these groups. For the 

present, we describe here the statutory 

definitions, give examples of types of 

vehicles that satisfy those definitions, 

and refer readers to the large table at the 

end of this notice. 

The term ‘‘passenger automobile’’ and 

its definition are borrowed from the fuel 

economy statute. The definition 

excludes from that term (1) vehicles that 

NHTSA has determined are not 

manufactured primarily for transporting 

persons and (2) vehicles that are capable 

of off-highway operation. Vehicles not 

manufactured primarily for transporting 

persons include pickup trucks and 

certain vehicles that permit expanded 

use of the vehicle for cargo-carrying 

purposes. See 49 CFR 523.5(a). Under 

NHTSA’s regulations (49 CFR 523.5(b)), 

there are two groups of vehicles with 

capability of off-highway operation. The 

first includes vehicles that have 4-wheel 

drive and have at least four out of five 

specified physical characteristics 

relating to ground clearance. The second 

includes vehicles that are rated at more 

than 6,000 pounds gross vehicle weight 

and have at least four out of five 

specified physical characteristics 

relating to ground clearance, but do not 

have 4-wheel drive. Passenger 

automobiles are what are commonly 

known as passenger cars. 

A category 1 truck is a nonpassenger 

automobile. This category includes 

sport utility vehicles (SUVs), small and 

medium pickup trucks and small and 

medium passenger and cargo vans.10

Pickup Van SUV 

Small .............................. Less than 105′′ .................................................... Less than 109′′ .................................................... Less than 100′′. 

Midsize .......................... 105′′ to 115′′ ........................................................ 109′′ to 124′′ ........................................................ 100′′ to 110′′. 

Large ............................. More than 115′′ ................................................... More than 124′′ ................................................... More than 110′′. 


EP02JY09.010</GPH>
Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31815 

11See section 1302(i)(7) of the CARS Act. 

12However, if ‘‘the transmission, drive shaft, or 

rear end are sold as separate parts,’’ the drive train 

may be sold. 

A category 2 truck is a large van or a 

large pickup truck, based upon the 

length of the wheelbase (more than 115 

inches for pickup trucks and more than 

124 inches for vans). Note: some pickup 

trucks and cargo vans exceeding these 

thresholds are treated as category 3 

trucks instead of category 2 trucks. 

A category 3 truck is a work truck and 

is rated between 8,500 and 10,000 

pounds gross vehicle weight. This 

category includes very large pickup 

trucks (those with cargo beds 72 inches 

or more in length) and very large cargo 

vans. 

By July 24, NHTSA will make 

available on an Internet Web site a 

comprehensive list of the trucks that fall 

into these categories and meet the 

requirements of the program. 

What Is the Value of the Credit for the 

Purchase or Lease of a New Passenger 

Car? 

The value of the credit for the 

purchase or lease of a new passenger car 

depends upon the difference between 

the combined fuel economy of the 

vehicle that is traded in and that of the 

new vehicle that is purchased or leased. 

If the new vehicle has a combined fuel 

economy that is at least 4, but less than 

10, miles per gallon higher than the 

traded-in vehicle, the credit is $3,500. If 

the new vehicle has a combined fuel 

economy value that is at least 10 miles 

per gallon higher than the traded-in 

vehicle, the credit is $4,500. 

What Is the Value of the Credit for the 

Purchase or Lease of a New Van, 

Pickup Truck or SUV? 

The value of the credit given for the 

purchase or lease of a category 1 or 2 

truck also generally depends on the 

difference between the combined fuel 

economy of the vehicle that is traded in 

and that of the new vehicle that is 

purchased or leased. If the new vehicle 

is a category 1 truck that has a combined 

fuel economy value that is at least 2, but 

less than 5, miles per gallon higher than 

the traded-in vehicle, the credit is 

$3,500. If the new category 1 truck has 

a combined fuel economy value that is 

at least 5 miles per gallon higher than 

the traded-in vehicle, the credit is 

$4,500. 

If both the new vehicle and the 

traded-in vehicle are category 2 trucks 

and the combined fuel economy value 

of the new vehicle is at least 1, but less 

than 2, miles per gallon higher than the 

combined fuel economy value of the 

traded in vehicle, the credit is $3,500. 

If both the new vehicle and the tradedin vehicle are category 2 trucks and the 

combined fuel economy of the new 

vehicle is at least 2 miles per gallon 

higher than that of the traded-in vehicle, 

the credit is $4,500. A $3,500 credit 

applies to the purchase or lease of a 

category 2 truck if the trade-in vehicle 

is a category 3 (work) truck that was 

manufactured not later than model year 

2001, but not earlier than 25 years 

before the date of the trade in. 

What Rules Apply to New Work 

Trucks? 

A work truck, which is called a 

category 3 truck under the CARS Act, is 

subject to special rules. Work trucks are 

not rated for fuel economy by the EPA. 

Thus, the eligibility of work trucks for 

the program does not depend on 

combined fuel economy. Instead, work 

trucks may only be traded in under the 

program if they were manufactured not 

later than model year 2001 and not 

earlier than 25 years before the date of 

the trade in. In addition, work trucks 

may only be traded in for the purchase 

of a category 2 truck or another category 

3 truck that is of similar size or smaller 

than the traded-in vehicle. Finally, the 

Act provides only for a $3,500 credit for 

trading in a work truck. 

The CARS Act limits the amount of 

funds that can be used to provide 

credits for purchases or leases of work 

trucks. Only 7.5 percent of the funds 

appropriated for the program may be 

used for credits for work trucks. Once 

that limit is reached, NHTSA will stop 

making payments for these transactions. 

NHTSA will keep the public informed 

as to the funds that remain available for 

these credits. 

Can I Use the Credit in Combination 

With Manufacturer Rebates or 

Discounts? 

The CARS Act requires the dealer to 

use the credit under the CARS program 

in addition to any rebates or discounts 

advertised by the dealer or offered by 

the new vehicle’s manufacturer. The 

dealer may not use the credit to offset 

these rebates and discounts. 

Can I Combine This Credit With Other 

Government Incentives? 

Yes. You can combine this with other 

State and Federal incentives, such as the 

hybrid vehicle credit. For information 

on this credit, go to http:// 

www.fueleconomy.gov/Feg/ 

tax_hybrid.shtml. 

May I Receive or Use More Than One 

Credit Under the CARS Program? 

No, the CARS Act specifies that not 

more than one credit may be issued to 

a single person, not more than one 

credit may be issued for joint registered 

owners of a single eligible trade-in 

vehicle, and that only one credit under 

this program may be applied toward the 

purchase or lease of any single new 

vehicle. 

Can Dealers Charge Me a Fee for 

Buying or Leasing a Vehicle Under the 

CARS Program? 

While dealers can charge their normal 

types of fees, the CARS Act specifically 

prohibits dealers from charging a fee for 

purchasing or leasing a vehicle under 

the program. 

What Will I Need To Bring to the Dealer 

in Order To Participate in the Program? 

You should bring documentation 

establishing the identity of the person 

who currently owns the vehicle, 

preferably the title of the vehicle, and 

documentary proof that the vehicle ‘‘has 

been continuously insured consistent 

with the applicable State law and 

registered to the same owner for a 

period of not less than 1 year 

immediately prior to the trade-in.’’ 11

The final rule will specify what types of 

documentation would be acceptable. 

What Happens to the Vehicle I Trade 

In? 

The CARS Act requires that the tradein vehicle be crushed or shredded so 

that it will not be resold for use in the 

United States or elsewhere as an 

automobile. The entity crushing or 

shredding the vehicles in this manner 

will be allowed to sell some parts of the 

vehicle prior to crushing or shredding it, 

but these parts cannot include the 

engine or the drive train.12

How and When Will NHTSA Provide 

More Details About the CARS Program? 

The rule implementing the CARS Act 

will provide specific detail regarding 

the process for registering dealers, the 

manner in which dealers will be 

reimbursed for eligible transactions, the 

requirements and procedures for 

disposing of trade-in vehicles, and the 

means for enforcing the program’s 

requirements. NHTSA must issue those 

regulations on or before July 24, 2009, 

legislation. 

In the final rule, NHTSA will seek to 

balance the need to provide prompt 

payment to dealers with the need to 

prevent fraud and preserve records for 

the purposes of enforcing program 

requirements. NHTSA is meeting with a 

variety of groups to ensure that a proper 

balance is struck. NHTSA will also need 

to set up and staff a new office to 

administer the CARS program. 

31816 Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 

Why Is Fuel Economy Important? 

Buying a fuel efficient vehicle is 

important because it can: 

• Save you money. 

You can reduce fuel costs each year 

by choosing the most efficient vehicle 

that meets your needs. 

• Reduce greenhouse gas emissions. 

Carbon dioxide (CO2) from burning 

gasoline and diesel contributes to global 

climate change. You can do your part to 

reduce climate change by reducing your 

carbon footprint. 

• Improve energy security and reduce 

oil dependence costs. 

Our dependence on oil makes us 

vulnerable to oil market manipulation 

and price shocks. 

• Increase energy sustainability. 

Oil is a non-renewable resource, and 

we cannot sustain our current rate of 

use indefinitely. Using it wisely now 

allows us time to find alternative 

technologies and fuels that will be more 

sustainable. 

For more information on the 

importance of better fuel economy, go to 

http://www.fueleconomy.gov/feg/ 

why.shtml. For the 2009 Fuel Economy 

Guide, go to http:// 

www.fueleconomy.gov/feg/FEG2009.pdf. 

What Will NHTSA Do To Guard 

Against Fraud and Ensure That the 

CARS Payments Go to the Right People? 

NHTSA is aware that some 

organizations have already begun to 

convey incorrect information about how 

dealers and individuals can participate 

in the CARS program. The only official 

site providing information on this 

system is the agency’s Web site, http:// 

www.cars.gov. Note that the suffix 

‘‘.gov’’ indicates it is an official 

government site. Other sites may or may 

not have correct information, but none 

plays an official role in this program. 

We urge great caution in providing any 

information over the Internet to any 

Web site that purports to be related to 

this program. The CARS program will 

not request electronic submission of 

information from individual consumers. 

NHTSA is working to create a system 

that will provide payments only for 

eligible transactions under the CARS 

program. Under the law, NHTSA will 

make electronic funds transfers only to 

a registered dealer that has submitted 

the required proof of a completely 

eligible transaction. We will develop a 

registration system to identify licensed, 

franchised new vehicle dealers and to 

obtain the banking and tax 

identification information necessary for 

making secure electronic transfers. Only 

registered dealers will have access to the 

payment system. 

As noted above, at the time of the 

transaction at the dealer, the consumer 

who is trading in the ‘‘trade-in vehicle’’ 

will need to provide evidence of 

ownership of the vehicle and proof that 

the vehicle has been continuously 

registered and insured to the same 

person throughout the last 12 months. 

To prevent repeated use of the program 

by the same person, we anticipate that 

the consumer will need to provide 

evidence of identity, such as a driver’s 

license, and permit that information to 

become part of the documentation of the 

transaction. 

The dealer will have every reason to 

avoid entering into a transaction for 

which the dealer cannot be reimbursed 

under this program. The dealer will be 

expected to verify that the vehicle being 

traded in and the vehicle being 

purchased or leased are both eligible 

under the program. This will entail, 

with regard to the trade-in, making sure 

that the registration and insurance 

information is accurate and that the 

vehicle is in drivable condition. For 

both vehicles, the dealer will need to 

verify their combined fuel economy. 

With regard to the trade-in, NHTSA is 

considering various measures to ensure 

that the vehicle is never used again as 

an automobile in this or any other 

country. We intend to enforce the Act’s 

requirements strictly and vigorously and 

to conduct audits to detect any possible 

violations. See the question below on 

penalties and enforcement policies. 

If I Think Fraud Is Being Committed, 

How Do I Report This? 

Please call the NHTSA Hotline, 

Monday-Friday 8 a.m. to 10 p.m. at 

(888) 327–4236, TTY: (800) 424–9153. 

Beginning June 27, the number will be 

available for CARS calls on Saturdays 

10 a.m.—8 p.m. Beginning July 1, we 

will have a new number, 1–866–CAR– 

7891, dedicated to calls about the 

program. 

You may also call the Hotline of the 

Office of the Inspector General (OIG) at 

the U.S. Department of Transportation. 

The OIG Hotline is an important tool 

that is used to facilitate the reporting of 

allegations of fraud, waste, abuse, or 

mismanagement in the Department’s 

programs or operations, including the 

CARS program. Allegations of fraud 

may be reported by DOT employees, 

grantees, contractors or the general 

public. The Hotline is set up to receive 

allegations in a variety of forms, 

including by e-mail 

(hotline@oig.dot.gov), regular mail (DOT 

Inspector General, P.O. Box 708, 

Fredericksburg, VA 22404), fax (540– 

373–2090) or a toll free number (1–800– 

424–9071). OIG’s Hotline is open 24 

hours a day, seven days a week and is 

operated by a third party contractor. 

Are There Penalties for Violations 

Related to the CARS Program? 

Yes. The money Congress has 

provided for this program is intended 

only for eligible recipients, and the 

requirement to destroy the trade-in 

vehicle is an important part of the 

program. To protect consumers, dealers, 

and others, NHTSA intends to enforce 

the Act and the implementing 

regulations strictly. The CARS Act has 

provisions specifically aimed at 

preventing fraud. A person who violates 

the Act or the implementing regulations 

could be subject to a fine of up to 

$15,000 per transaction. While NHTSA 

may provide discretionary relief for 

innocent clerical errors, NHTSA intends 

to prevent fraud in the first place and 

penalize any fraud that occurs. 

Willful misstatements or false 

reporting made to the government in 

connection with the program may also 

make a person liable for criminal 

penalties under applicable laws. See 18 

U.S.C. 1001. 

Federal Register / Vol. 74, No. 126 / Thursday, July 2, 2009 / Proposed Rules 31817 

Issued on: June 26, 2009. 

Ronald L. Medford, 

Acting Deputy Administrator. 

[FR Doc. E9–15604 Filed 6–30–09; 4:15 pm] 

BILLING CODE 4910–59–P 


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