I 

111TH CONGRESS 

1ST SESSION H. R. 2640 

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. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2009 

Ms. SUTTON (for herself, Mr. DINGELL, Mr. MARKEY of Massachusetts, Mr. 

BARTON of Texas, Mr. UPTON, Mr. INSLEE, Mr. STUPAK, Mr. BRALEY

of Iowa, Mrs. MILLER of Michigan, Mrs. CAPPS, Mr. BLUNT, Mr. 

DOYLE, Mr. TERRY, Mr. WELCH, Mr. WHITFIELD, Mrs. CHRISTENSEN, 

Mr. ROGERS of Michigan, Mr. DONNELLY of Indiana, Mrs. EMERSON, 

Mr. ARCURI, Mrs. BIGGERT, Mr. WILSON of Ohio, Mr. CASTLE, Mr. SARBANES, Mr. CAMP, Ms. BALDWIN, Mr. MCCOTTER, Mr. CARNAHAN, Mr. 

YARMUTH, Mr. COURTNEY, Mr. BLUMENAUER, Mr. HALL of New York, 

Mr. MANZULLO, Ms. KILPATRICK of Michigan, Mr. SCHAUER, Ms. 

FUDGE, Mr. HARE, Mr. SHULER, Mr. CONNOLLY of Virginia, Mr. 

MAFFEI, Ms. MOORE of Wisconsin, Mr. LEVIN, Mr. CONYERS, Mr. 

HASTINGS of Florida, Mr. LOEBSACK, Ms. KOSMAS, Mr. WALDEN, Mr. 

HILL, Mr. RYAN of Ohio, Mr. PETERS, Mr. KILDEE, Mr. LATOURETTE, 

Ms. DEGETTE, Mr. BOCCIERI, and Ms. KAPTUR) introduced the following 

bill; which was referred to the Committee on Energy and Commerce, and 

in addition to the Committee on Ways and Means, 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. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Assistance 

5 to Recycle and Save Act’’. 

6 SEC. 2. TEMPORARY VEHICLE TRADE-IN PROGRAM. 

7 (a) ESTABLISHMENT.—There is established in the 

8 National Highway Traffic Safety Administration a pro9 gram to be known as the ‘‘Cash for Clunkers Temporary 

10 Vehicle Trade-in Program’’ through which the Secretary, 

11 in accordance with this section and the regulations pro12 mulgated under subsection (e), shall— 

13 (1) authorize the issuance of an electronic 

14 voucher, subject to the specifications set forth in 

15 subsection (c), to offset the purchase price or lease 

16 price for a qualifying lease of a new fuel efficient 

17 automobile upon the surrender of an eligible trade18 in vehicle to a dealer participating in the Program; 

19 (2) certify dealers for participation in the Pro20 gram and require that all certified dealers— 

21 (A) accept vouchers as provided in this 

22 section as partial payment or down payment for 

23 the purchase or qualifying lease of any new fuel 

24 efficient automobile offered for sale or lease by 

25 that dealer; and 


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1 (B) in accordance with subsection (c)(2), 

2 dispose of each eligible trade-in vehicle surren3 dered to the dealer under the Program; 

4 (3) in consultation with the Secretary of the 

5 Treasury, make payments to dealers for vouchers ac6 cepted by such dealers prior to April 1, 2010, in ac7 cordance with the regulations issued under sub8 section (d); 

9 (4) in consultation with the Secretary of the 

10 Treasury, provide for the payment of rebates to per11 sons who qualify for a rebate under subsection 

12 (c)(3); and 

13 (5) in consultation with the Secretary of Treas14 ury and the Inspector General of the Department of 

15 Transportation, establish and provide for the en16 forcement of measures to prevent and penalize fraud 

17 under the Program. 

18 (b) QUALIFICATIONS FOR AND VALUE OF VOUCH19 ERS.—A voucher issued under the Program shall have a 

20 value that may be applied to offset the purchase price or 

21 lease price for a qualifying lease of a new fuel efficient 

22 automobile as follows: 

23 (1) $3,500 VALUE.—The voucher may be used 

24 to offset the purchase price or lease price of the new 

25 fuel efficient automobile by $3,500 if— 


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1 (A) the new fuel efficient automobile is a 

2 passenger automobile and the combined fuel 

3 economy value of such automobile is at least 4 

4 miles per gallon higher than the combined fuel 

5 economy value of the eligible trade-in vehicle; 

6 (B) the new fuel efficient automobile is a 

7 category 1 truck and the combined fuel econ8 omy value of such truck is at least 2 miles per 

9 gallon higher than the combined fuel economy 

10 value of the eligible trade-in vehicle; 

11 (C) the new fuel efficient automobile is a 

12 category 2 truck that has a combined fuel econ13 omy value of at least 15 miles per gallon and— 

14 (i) the eligible trade-in vehicle is a 

15 category 2 truck and the combined fuel 

16 economy value of the new fuel efficient 

17 automobile is at least 1 mile per gallon 

18 higher than the combined fuel economy 

19 value of the eligible trade-in vehicle; or 

20 (ii) the eligible trade-in vehicle is a 

21 category 3 truck of model year 2001 or 

22 earlier; or 

23 (D) the new fuel efficient automobile is a 

24 category 3 truck and the eligible trade-in vehi25 cle is a category 3 truck of model year of 2001 


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1 or earlier and is of similar size or larger than 

2 the new fuel efficient automobile as determined 

3 in a manner prescribed by the Secretary. 

4 (2) $4,500 VALUE.—The voucher may be used 

5 to offset the purchase price or lease price of the new 

6 fuel efficient automobile by $4,500 if— 

7 (A) the new fuel efficient automobile is a 

8 passenger automobile and the combined fuel 

9 economy value of such automobile is at least 10 

10 miles per gallon higher than the combined fuel 

11 economy value of the eligible trade-in vehicle; 

12 (B) the new fuel efficient automobile is a 

13 category 1 truck and the combined fuel econ14 omy value of such truck is at least 5 miles per 

15 gallon higher than the combined fuel economy 

16 value of the eligible trade-in vehicle; or 

17 (C) the new fuel efficient automobile is a 

18 category 2 truck that has a combined fuel econ19 omy value of at least 15 miles per gallon and 

20 the combined fuel economy value of such truck 

21 is 2 miles per gallon higher than the combined 

22 fuel economy value of the eligible trade-in vehi23 cle and the eligible trade-in vehicle is a category 

24 2 truck. 

25 (c) PROGRAM SPECIFICATIONS.— 


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1 (1) LIMITATIONS.— 

2 (A) GENERAL PERIOD OF ELIGIBILITY.—A 

3 voucher issued under the Program shall be used 

4 only for the purchase or qualifying lease of new 

5 fuel efficient automobiles that occur between 

6 March 30, 2009 and March 31, 2010. 

7 (B) NUMBER OF VOUCHERS PER PERSON

8 AND PER TRADE-IN VEHICLE.—Not more than 

9 1 voucher may be issued for a single person and 

10 not more than 1 voucher may be issued for the 

11 joint registered owners of a single eligible trade12 in vehicle. 

13 (C) NO COMBINATION OF VOUCHERS.— 

14 Only 1 voucher issued under the Program may 

15 be applied toward the purchase or qualifying 

16 lease of a single new fuel efficient automobile. 

17 (D) CAP ON FUNDS FOR CATEGORY 3

18 TRUCKS.—Not more than 7.5 percent of the 

19 total funds made available for the Program 

20 shall be used for vouchers for the purchase or 

21 qualifying lease of category 3 trucks. 

22 (E) COMBINATION WITH OTHER INCEN23 TIVES PERMITTED.—The availability or use of a 

24 Federal, State, or local incentive or a State25 issued voucher for the purchase or lease of a 


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1 new fuel efficient automobile shall not limit the 

2 value or issuance of a voucher under the Pro3 gram to any person otherwise eligible to receive 

4 such a voucher. 

5 (F) NO ADDITIONAL FEES.—A dealer par6 ticipating in the program may not charge a per7 son purchasing or leasing a new fuel efficient 

8 automobile any additional fees associated with 

9 the use of a voucher under the Program. 

10 (G) NUMBER AND AMOUNT.—The total 

11 number and value of vouchers issued under the 

12 Program may not exceed the amounts appro13 priated for such purpose. 

14 (2) DISPOSITION OF ELIGIBLE TRADE-IN VEHI15 CLES.— 

16 (A) IN GENERAL.—For each eligible trade17 in vehicle, the title of which is transferred to a 

18 dealer under the Program, the dealer shall cer19 tify to the Secretary, in such manner as the 

20 Secretary shall prescribe by rule, that the vehi21 cle, including the engine and drive train— 

22 (i) will be crushed or shredded within 

23 such period and in such manner as the 

24 Secretary prescribes, or will be transferred 

25 to an entity that will ensure that the vehiVerDate Nov 24 2008 21:13 May 27, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2640.IH H2640

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1 cle will be crushed or shredded within such 

2 period and in such manner as the Sec3 retary prescribes; and 

4 (ii) has not been, and will not be, sold, 

5 leased, exchanged, or otherwise disposed of 

6 for use as an automobile in the United 

7 States or in any other country, or has been 

8 or will be transferred, in such manner as 

9 the Secretary prescribes, to an entity that 

10 will ensure that the vehicle has not been, 

11 and will not be, sold, leased, exchanged, or 

12 otherwise disposed of for use as an auto13 mobile in the United States or in any other 

14 country. 

15 (B) SAVINGS PROVISION.—Nothing in sub16 paragraph (A) may be construed to preclude a 

17 person who dismantles or disposes of the vehicle 

18 from— 

19 (i) selling any parts of the disposed 

20 vehicle other than the engine block and 

21 drive train (unless the engine or drive train 

22 has been crushed or shredded); or 

23 (ii) retaining the proceeds from such 

24 sale. 


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1 (C) COORDINATION.—The Secretary shall 

2 coordinate with the Attorney General to ensure 

3 that the National Motor Vehicle Title Informa4 tion System and other publicly accessible and 

5 commercially available systems are appro6 priately updated to reflect the crushing or 

7 shredding of vehicles under this section and ap8 propriate re-classification of the vehicles’ titles. 

9 (3) ELIGIBLE PURCHASES OR LEASES PRIOR TO

10 DATE OF ENACTMENT.—A person who purchased or 

11 leased a new fuel efficient vehicle after March 30, 

12 2009, and before the date of enactment of this sec13 tion is eligible for a cash rebate equivalent to the 

14 amounts described in subsection (b)(1) if the person 

15 provides proof satisfactory to the Secretary that— 

16 (A) the person was the registered owner of 

17 an eligible trade-in vehicle; and 

18 (B) such vehicle has been disposed of in 

19 accordance with clauses (i) and (ii) of para20 graph (2)(A). 

21 (d) REGULATIONS.—Notwithstanding the require22 ments of section 553 of title 5, United States Code, the 

23 Secretary shall promulgate final regulations to implement 

24 the Program not later than 30 days after the date of the 

25 enactment of this section. Such regulations shall— 


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1 (1) provide for a means of certifying dealers for 

2 participation in the program; 

3 (2) establish procedures for the reimbursement 

4 of dealers participating in the Program to be made 

5 through electronic transfer of funds for both the 

6 amount of the vouchers and any reasonable adminis7 trative costs incurred by the dealer as soon as prac8 ticable but no longer than 10 days after the submis9 sion of a voucher for the new fuel efficient auto10 mobile to the Secretary; 

11 (3) prohibit a dealer from using the voucher to 

12 offset any other rebate or discount offered by that 

13 dealer or the manufacturer of the new fuel efficient 

14 automobile; 

15 (4) require dealers to disclose to the person 

16 trading in an eligible trade-in vehicle the best esti17 mate of the scrappage value of such vehicle and to 

18 permit the dealer to retain $50 of any amounts paid 

19 to the dealer for scrappage of the automobile as pay20 ment for any administrative costs to the dealer asso21 ciated with participation in the Program; 

22 (5) establish a process by which persons who 

23 qualify for a rebate under subsection (c)(3) may 

24 apply for such rebate; 


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1 (6) consistent with subsection (c)(2), establish 

2 requirements and procedures for the disposal of eli3 gible trade-in vehicles and provide such information 

4 as may be necessary to entities engaged in such dis5 posal to ensure that such vehicles are disposed of in 

6 accordance with such requirements and procedures, 

7 including— 

8 (A) requirements for the removal and ap9 propriate disposition of refrigerants, antifreeze, 

10 lead products, mercury switches, and such other 

11 toxic or hazardous vehicle components prior to 

12 the crushing or shredding of an eligible trade13 in vehicle, in accordance with rules established 

14 by the Secretary in consultation with the Ad15 ministrator of the Environmental Protection 

16 Agency, and in accordance with other applicable 

17 Federal or State requirements; and 

18 (B) a mechanism for dealers to certify to 

19 the Secretary that eligible trade-in vehicles are 

20 disposed of, or transferred to an entity that will 

21 ensure that the vehicle is disposed of, in accord22 ance with such requirements and procedures 

23 and to submit the vehicle identification numbers 

24 of the vehicles disposed of and the new fuel effi25 cient automobile purchased with each voucher; 


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1 (7) consistent with subsection (c)(2), establish 

2 requirements and procedures for the disposal of eli3 gible trade-in vehicles and provide such information 

4 as may be necessary to entities engaged in such dis5 posal to ensure that such vehicles are disposed of in 

6 accordance with such requirements and procedures; 

7 and 

8 (8) provide for the enforcement of the penalties 

9 described in subsection (e). 

10 (e) ANTI-FRAUD PROVISIONS.— 

11 (1) VIOLATION.—It shall be unlawful for any 

12 person to violate any provision under this section or 

13 any regulations issued pursuant to subsection (d). 

14 (2) PENALTIES.—Any person who commits a 

15 violation described in paragraph (1) shall be liable to 

16 the United States Government for a civil penalty of 

17 not more than $25,000 for each violation. 

18 (f) INFORMATION TO CONSUMERS AND DEALERS.— 

19 Not later than 30 days after the date of enactment of this 

20 section, and promptly upon the update of any relevant in21 formation, the Secretary shall make available on an Inter22 net website and through other means determined by the 

23 Secretary information about the Program, including— 

24 (1) how to determine if a vehicle is an eligible 

25 trade-in vehicle; 


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1 (2) how to participate in the Program, includ2 ing how to determine participating dealers; 

3 (3) a comprehensive list, by make and model, of 

4 new fuel efficient automobiles meeting the require5 ments of the Program. 

6 Once such information is available, the Secretary shall 

7 conduct a public awareness campaign to inform consumers 

8 about the Program and where to obtain additional infor9 mation. 

10 (g) RECORDKEEPING AND REPORT.— 

11 (1) DATABASE.—The Secretary shall maintain 

12 a database of the vehicle identification numbers of 

13 all new fuel efficient vehicles purchased or leased 

14 and all eligible trade-in vehicles disposed of under 

15 the Program. 

16 (2) REPORT.—Not later than June 30, 2010, 

17 the Secretary shall submit a report to the Com18 mittee on Energy and Commerce of the House of 

19 Representatives and the Committee on Commerce of 

20 the Senate describing the efficacy of the Program, 

21 including— 

22 (A) a description of program results, in23 cluding— 

24 (i) the total number and amount of 

25 vouchers issued for purchase or lease of 


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1 new fuel efficient automobiles by manufac2 turer (including aggregate information 

3 concerning the make, model, model year) 

4 and category of automobile; 

5 (ii) aggregate information regarding 

6 the make, model, model year, and manu7 facturing location of vehicles traded in 

8 under the Program; and 

9 (iii) the location of sale or lease; 

10 (B) an estimate of the overall increase in 

11 fuel efficiency in terms of miles per gallon, total 

12 annual oil savings, and total annual greenhouse 

13 gas reductions, as a result of the Program; and 

14 (C) an estimate of the overall economic 

15 and employment effects of the Program. 

16 (h) TREATMENT OF PAYMENT.— 

17 (1) FOR FEDERAL AND STATE PROGRAMS.—A 

18 voucher under this Act or any payment made for 

19 such a voucher pursuant to subsection (a)(3) shall 

20 not be considered income and shall not be considered 

21 as a resource for the month of receipt and the fol22 lowing 12 months, for purposes of determining the 

23 eligibility of the recipient (or the recipient’s spouse 

24 or other family or household members) for benefits 


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1 or assistance, or the amount or extent of benefits or 

2 assistance, under any Federal or State program. 

3 (2) FOR PURPOSES OF TAXATION.—A voucher 

4 under this Act or any payment made for such a 

5 voucher pursuant to subsection (a)(3) shall not be 

6 considered as gross income for purposes of the Inter7 nal Revenue Code of 1986. 

8 (i) DEFINITIONS.—As used in this section— 

9 (1) the term ‘‘passenger automobile’’ means a 

10 passenger automobile, as defined in section 

11 32901(a)(18) of title 49, United States Code, that 

12 has a combined fuel economy value of at least 22 

13 miles per gallon; 

14 (2) the term ‘‘category 1 truck’’ means a non15 passenger automobile, as defined in section 

16 32901(a)(17) of title 49, United States Code, that 

17 has a combined fuel economy value of at least 18 

18 miles per gallon, except that such term does not in19 clude a category 2 truck; 

20 (3) the term ‘‘category 2 truck’’ means a large 

21 van or a large pickup, as categorized by the Sec22 retary using the method used by the Environmental 

23 Protection Agency and described in the report enti24 tled ‘‘Light-Duty Automotive Technology and Fuel 

25 Economy Trends: 1975 through 2008’’; 


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

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

3 United States Code; 

4 (5) the term ‘‘combined fuel economy value’’ 

5 means— 

6 (A) with respect to a new fuel efficient 

7 automobile, the number, expressed in miles per 

8 gallon, centered below the words ‘‘Combined 

9 Fuel Economy’’ on the label required to be af10 fixed or caused to be affixed on a new auto11 mobile pursuant to subpart D of part 600 of 

12 title 40 Code of Federal Regulations; 

13 (B) with respect to an eligible trade-in ve14 hicle, the equivalent of the number described in 

15 subparagraph (A), and posted under the words 

16 ‘‘Estimated New EPA MPG’’ and above the 

17 word ‘‘Combined’’ for vehicles of model year 

18 1984 through 2007, or posted under the words 

19 ‘‘New EPA MPG’’ and above the word ‘‘Com20 bined’’ for vehicles of model year 2008 or later 

21 on the fueleconomy.gov website of the Environ22 mental Protection Agency for the make, model, 

23 and year of such vehicle; or 

24 (C) with respect to an eligible trade-in ve25 hicle manufactured between model years 1978 


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1 through 1984, the equivalent of the number de2 scribed in subparagraph (A) as determined by 

3 the Secretary (and posted on the website of the 

4 National Highway Traffic Safety Administra5 tion) using data maintained by the Environ6 mental Protection Agency for the make, model, 

7 and year of such vehicle. 

8 (6) the term ‘‘dealer’’ means a person licensed 

9 by a State who engages in the sale of new auto10 mobiles to ultimate purchasers; 

11 (7) the term ‘‘eligible trade-in vehicle’’ means 

12 an automobile or a work truck (as such terms are 

13 defined in section 32901(a) of title 49, United 

14 States Code) that, at the time it is presented for 

15 trade-in under this section— 

16 (A) is in drivable condition; and 

17 (B) has been continuously insured con18 sistent with the applicable State law and reg19 istered to the same owner for a period of not 

20 less than 1 year immediately prior to such 

21 trade-in; and 

22 (C) has a combined fuel economy value of 

23 18 miles per gallon or less; 


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1 (8) the term ‘‘new fuel efficient automobile’’ 

2 means an automobile described in paragraph (1), 

3 (2), (3), or (4)— 

4 (A) the equitable or legal title of which has 

5 not been transferred to any person other than 

6 the ultimate purchaser; 

7 (B) that carries a manufacturer’s sug8 gested retail price of $45,000 or less; 

9 (C) that— 

10 (i) for new fuel efficient automobiles 

11 weighing up to 8,500 pounds, is certified 

12 to applicable standards under section 

13 86.1811–04 of title 40, Code of Federal 

14 Regulations; or 

15 (ii) for category 3 trucks, is certified 

16 to the applicable vehicle or engine stand17 ards under section 86.1816–08, 86–007– 

18 11, or 86.008–10 of title 40, Code of Fed19 eral Regulations; and 

20 (D) that has the combined fuel economy 

21 value of— 

22 (i) 22 miles per gallon for a passenger 

23 automobile; 

24 (ii) 18 miles per gallon for a category 

25 1 truck; and 


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1 (iii) 15 miles per gallon for a category 

2 2 truck; 

3 (9) the term ‘‘Program’’ means the Cash for 

4 Clunkers Temporary Vehicle Trade-in Program es5 tablished by this section; 

6 (10) the term ‘‘qualifying lease’’ means a lease 

7 of an automobile for a period of not less than 5 

8 years; 

9 (11) the term ‘‘scrappage value’’ means the 

10 amount received by the dealer for a vehicle upon 

11 transferring title of such vehicle to the person re12 sponsible for ensuring the dismantling and destroy13 ing of the vehicle; 

14 (12) the term ‘‘Secretary’’ means the Secretary 

15 of Transportation acting through the National High16 way Traffic Safety Administration; 

17 (13) the term ‘‘ultimate purchaser’’ means, 

18 with respect to any new automobile, the first person 

19 who in good faith purchases such automobile for 

20 purposes other than resale; and 

21 (14) the term ‘‘vehicle identification number’’ 

22 means the 17 character number used by the auto23 mobile industry to identify individual automobiles. 


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1 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to the Secretary 

3 $4,000,000,000 to carry out this Act. 

Æ 


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