II 

Calendar No. 74 

111TH CONGRESS 

1ST SESSION H. R. 2751 

IN THE SENATE OF THE UNITED STATES 

JUNE 10, 2009 

Received and read the first time 

JUNE 11, 2009 

Read the second time and placed on the calendar 

AN ACT 

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. 

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 volVerDate Nov 24 2008 22:39 Jun 11, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2751.PCS H2751

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1 untary program to be known as the ‘‘Consumer Assistance 

2 to Recycle and Save Program’’ through which the Sec3 retary of Transportation (hereinafter in this section re4 ferred to as the ‘‘Secretary’’), in accordance with this Act 

5 and the regulations promulgated under subsection (d), 

6 shall— 

7 (1) authorize the issuance of an electronic 

8 voucher, subject to the specifications set forth in 

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

10 price for a qualifying lease of a new fuel efficient 

11 automobile upon the surrender of an eligible trade12 in vehicle to a dealer participating in the Program; 

13 (2) register dealers for participation in the Pro14 gram and require all registered dealers— 

15 (A) to accept vouchers as provided in this 

16 section as partial payment or down payment for 

17 the purchase or qualifying lease of any new fuel 

18 efficient automobile offered for sale or lease by 

19 that dealer; and 

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

21 to transfer each eligible trade-in vehicle surren22 dered to the dealer under the Program to an 

23 entity for disposal; 

24 (3) in consultation with the Secretary of the 

25 Treasury, make electronic payments to dealers for 


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1 eligible transactions accepted by such dealers, in ac2 cordance with the regulations issued under sub3 section (d); and 

4 (4) in consultation with the Secretary of Treas5 ury and the Inspector General of the Department of 

6 Transportation, establish and provide for the en7 forcement of measures to prevent and penalize fraud 

8 under the Program. 

9 (b) QUALIFICATIONS FOR AND VALUE OF VOUCH10 ERS.—A voucher issued under the Program shall have a 

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

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

13 automobile as follows: 

14 (1) $3,500 VALUE.—The voucher may be used 

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

16 fuel efficient automobile by $3,500 if— 

17 (A) the new fuel efficient automobile is a 

18 passenger automobile and the combined fuel 

19 economy value of such automobile is at least 4 

20 miles per gallon higher than the combined fuel 

21 economy value of the eligible trade-in vehicle; 

22 (B) the new fuel efficient automobile is a 

23 category 1 truck and the combined fuel econ24 omy value of such truck is at least 2 miles per 


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1 gallon higher than the combined fuel economy 

2 value of the eligible trade-in vehicle; 

3 (C) the new fuel efficient automobile is a 

4 category 2 truck that has a combined fuel econ5 omy value of at least 15 miles per gallon and— 

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

7 category 2 truck and the combined fuel 

8 economy value of the new fuel efficient 

9 automobile is at least 1 mile per gallon 

10 higher than the combined fuel economy 

11 value of the eligible trade-in vehicle; or 

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

13 category 3 truck of model year 2001 or 

14 earlier; or 

15 (D) the new fuel efficient automobile is a 

16 category 3 truck and the eligible trade-in vehi17 cle is a category 3 truck of model year of 2001 

18 or earlier and is of similar size or larger than 

19 the new fuel efficient automobile as determined 

20 in a manner prescribed by the Secretary. 

21 (2) $4,500 VALUE.—The voucher may be used 

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

23 fuel efficient automobile by $4,500 if— 

24 (A) the new fuel efficient automobile is a 

25 passenger automobile and the combined fuel 


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1 economy value of such automobile is at least 10 

2 miles per gallon higher than the combined fuel 

3 economy value of the eligible trade-in vehicle; 

4 (B) the new fuel efficient automobile is a 

5 category 1 truck and the combined fuel econ6 omy value of such truck is at least 5 miles per 

7 gallon higher than the combined fuel economy 

8 value of the eligible trade-in vehicle; or 

9 (C) the new fuel efficient automobile is a 

10 category 2 truck that has a combined fuel econ11 omy value of at least 15 miles per gallon and 

12 the combined fuel economy value of such truck 

13 is at least 2 miles per gallon higher than the 

14 combined fuel economy value of the eligible 

15 trade-in vehicle and the eligible trade-in vehicle 

16 is a category 2 truck. 

17 (c) PROGRAM SPECIFICATIONS.— 

18 (1) LIMITATIONS.— 

19 (A) GENERAL PERIOD OF ELIGIBILITY.—A 

20 voucher issued under the Program shall be used 

21 only in connection with the purchase or quali22 fying lease of new fuel efficient automobiles 

23 that occur between— 

24 (i) the date of enactment of this Act; 

25 and 


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1 (ii) the date that is 1 year after the 

2 date on which the regulations promulgated 

3 under subsection (d) are implemented. 

4 (B) NUMBER OF VOUCHERS PER PERSON

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

6 1 voucher may be issued for a single person and 

7 not more than 1 voucher may be issued for the 

8 joint registered owners of a single eligible trade9 in vehicle. 

10 (C) NO COMBINATION OF VOUCHERS.— 

11 Only 1 voucher issued under the Program may 

12 be applied toward the purchase or qualifying 

13 lease of a single new fuel efficient automobile. 

14 (D) CAP ON FUNDS FOR CATEGORY 3

15 TRUCKS.—Not more than 7.5 percent of the 

16 total funds made available for the Program 

17 shall be used for vouchers for the purchase or 

18 qualifying lease of category 3 trucks. 

19 (E) COMBINATION WITH OTHER INCEN20 TIVES PERMITTED.—The availability or use of a 

21 Federal, State, or local incentive or a State22 issued voucher for the purchase or lease of a 

23 new fuel efficient automobile shall not limit the 

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1 gram to any person otherwise eligible to receive 

2 such a voucher. 

3 (F) NO ADDITIONAL FEES.—A dealer par4 ticipating in the program may not charge a per5 son purchasing or leasing a new fuel efficient 

6 automobile any additional fees associated with 

7 the use of a voucher under the Program. 

8 (G) NUMBER AND AMOUNT.—The total 

9 number and value of vouchers issued under the 

10 Program may not exceed the amounts appro11 priated for such purpose. 

12 (2) DISPOSITION OF ELIGIBLE TRADE-IN VEHI13 CLES.— 

14 (A) IN GENERAL.—For each eligible trade15 in vehicle surrendered to a dealer under the 

16 Program, the dealer shall certify to the Sec17 retary, in such manner as the Secretary shall 

18 prescribe by rule, that the dealer— 

19 (i) will arrange for the vehicle’s title 

20 to be transferred to the United States and 

21 will accept possession of the vehicle on be22 half of the United States; 

23 (ii) has not and will not sell, lease, ex24 change, or otherwise dispose of the vehicle 


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1 for use as an automobile in the United 

2 States or in any other country; and 

3 (iii) will transfer, on behalf of the 

4 United States, the vehicle (including the 

5 engine block) and the vehicle’s title, in 

6 such manner as the Secretary prescribes, 

7 to an entity that will ensure that the vehi8 cle— 

9 (I) will be crushed or shredded 

10 within such period and in such man11 ner as the Secretary prescribes; and 

12 (II) has not been, and will not 

13 be, sold, leased, exchanged, or other14 wise disposed of for use as an auto15 mobile in the United States or in any 

16 other country. 

17 (B) SAVINGS PROVISION.—Nothing in sub18 paragraph (A) may be construed to preclude a 

19 person who is responsible for ensuring that the 

20 vehicle is crushed or shredded from— 

21 (i) selling any parts of the disposed 

22 vehicle other than the engine block and 

23 drive train (unless the transmission, drive 

24 shaft, or rear end are sold as separate 

25 parts); or 


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1 (ii) retaining the proceeds from such 

2 sale. 

3 (C) COORDINATION.—The Secretary shall 

4 coordinate with the Attorney General to ensure 

5 that the National Motor Vehicle Title Informa6 tion System and other publicly accessible sys7 tems are appropriately updated on a timely 

8 basis to reflect the crushing or shredding of ve9 hicles under this Act and appropriate re-classi10 fication of the vehicles’ titles. The commercial 

11 market shall also have electronic and commer12 cial access to the vehicle identification numbers 

13 of vehicles that have been disposed of on a 

14 timely basis. 

15 (d) REGULATIONS.—Notwithstanding the require16 ments of section 553 of title 5, United States Code, the 

17 Secretary shall promulgate final regulations to implement 

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

19 enactment of this Act. Such regulations shall— 

20 (1) provide for a means of registering dealers 

21 for participation in the program; 

22 (2) establish procedures for the reimbursement 

23 of dealers participating in the Program to be made 

24 through electronic transfer of funds for the amount 

25 of the vouchers as soon as practicable but no longer 


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1 than 10 days after the submission of information 

2 supporting the eligible transaction, as determined 

3 appropriate by the Secretary; 

4 (3) require the dealer to use the voucher in ad5 dition to any other rebate or discount advertised by 

6 the dealer or offered by the manufacturer for the 

7 new fuel efficient automobile and prohibit the dealer 

8 from using the voucher to offset any such other re9 bate or discount; 

10 (4) require dealers to disclose to the person 

11 trading in an eligible trade in vehicle the best esti12 mate of the scrappage value of such vehicle; 

13 (5) require dealers to accept on behalf of the 

14 United States, and Transfer to the Secretary of the 

15 Treasury, the amount paid for scrappage of the ve16 hicle up to $60; 

17 (6) permit the dealer to retain any amounts 

18 paid to the dealer for scrappage of the automobile 

19 in excess of the $60 amount referred to in para20 graph (5) and designate $50 of such excess as pay21 ment for any administrative costs to the dealer asso22 ciated with participation in the Program; 

23 (7) clarify that dealers will not be reimbursed 

24 for any storage fees or other costs associated with 


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1 their custodial handling of the eligible trade-in vehi2 cle; 

3 (8) consistent with subsection (c)(2), establish 

4 requirements and procedures for the disposal of eli5 gible trade-in vehicles and provide such information 

6 as may be necessary to entities engaged in such dis7 posal to ensure that such vehicles are disposed of in 

8 accordance with such requirements and procedures, 

9 including— 

10 (A) requirements for the removal and ap11 propriate disposition of refrigerants, antifreeze, 

12 lead products, mercury switches, and such other 

13 toxic or hazardous vehicle components prior to 

14 the crushing or shredding of an eligible trade15 in vehicle, in accordance with rules established 

16 by the Secretary in consultation with the Ad17 ministrator of the Environmental Protection 

18 Agency, and in accordance with other applicable 

19 Federal or State requirements; 

20 (B) a mechanism for dealers to certify to 

21 the Secretary that each eligible trade-in vehicle 

22 will be transferred by the dealer on behalf of 

23 the United States to an entity that will ensure 

24 that the vehicle is disposed of, in accordance 

25 with such requirements and procedures, and to 


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1 submit the vehicle identification numbers of the 

2 vehicles disposed of and the new fuel efficient 

3 automobile purchased with each voucher; 

4 (C) a mechanism for obtaining such other 

5 certifications as determined necessary by the 

6 Secretary from entities engaged in vehicle dis7 posal; and 

8 (D) a list of entities to which dealers may 

9 transfer eligible trade-in vehicles for disposal; 

10 and 

11 (9) provide for the enforcement of the penalties 

12 described in subsection (e). 

13 (e) ANTI-FRAUD PROVISIONS.— 

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

15 person to violate any provision under this Act or any 

16 regulations issued pursuant to subsection (d) (other 

17 than by making a clerical error). 

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

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

20 the United States Government for a civil penalty of 

21 not more than $15,000 for each violation. The Sec22 retary shall have the authority to assess and com23 promise such penalties, and shall have the authority 

24 to require from any entity the records and inspec25 tions necessary to enforce this program. In deterVerDate Nov 24 2008 22:39 Jun 11, 2009 Jkt 079200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H2751.PCS H2751

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1 mining the amount of the civil penalty, the severity 

2 of the violation and the intent of the person commit3 ting the violation shall be taken into account. 

4 (f) INFORMATION TO CONSUMERS AND DEALERS.— 

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

6 Act, and promptly upon the update of any relevant infor7 mation, the Secretary, in consultation with the Adminis8 trator of the Environmental Protection Agency, shall 

9 make available on an Internet website and through other 

10 means determined by the Secretary information about the 

11 Program, including— 

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

13 trade-in vehicle; 

14 (2) how to participate in the Program, includ15 ing how to determine participating dealers; and 

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

17 new fuel efficient automobiles meeting the require18 ments of the Program. 

19 Once such information is available, the Secretary shall 

20 conduct a public awareness campaign to inform consumers 

21 about the Program and where to obtain additional infor22 mation. 

23 (g) RECORD KEEPING AND REPORT.— 

24 (1) DATABASE.—The Secretary shall maintain 

25 a database of the vehicle identification numbers of 


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1 all new fuel efficient vehicles purchased or leased 

2 and all eligible trade-in vehicles disposed of under 

3 the Program. 

4 (2) REPORT ON THE EFFICACY OF THE PRO5 GRAM.—Not later than 60 days after the termi6 nation date described in subsection (c)(1)(A)(ii), the 

7 Secretary shall submit a report to the Committee on 

8 Energy and Commerce of the House of Representa9 tives and the Committee on Commerce, Science, and 

10 Transportation of the Senate describing the efficacy 

11 of the Program, including— 

12 (A) a description of program results, in13 cluding— 

14 (i) the total number and amount of 

15 vouchers issued for purchase or lease of 

16 new fuel efficient automobiles by manufac17 turer (including aggregate information 

18 concerning the make, model, model year) 

19 and category of automobile; 

20 (ii) aggregate information regarding 

21 the make, model, model year, and manu22 facturing location of vehicles traded in 

23 under the Program; and 

24 (iii) the location of sale or lease; 


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1 (B) an estimate of the overall increase in 

2 fuel efficiency in terms of miles per gallon, total 

3 annual oil savings, and total annual greenhouse 

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

5 (C) an estimate of the overall economic 

6 and employment effects of the Program. 

7 (h) TREATMENT OF PAYMENT.— 

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

9 voucher under this Act or any payment made for 

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

11 not be considered income and shall not be considered 

12 as a resource for the month of receipt and the fol13 lowing 12 months, for purposes of determining the 

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

15 or other family or household members) for benefits 

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

17 assistance, under any Federal or State program. 

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

19 under this Act, or any payment made for such a 

20 voucher pursuant to subsection (a)(3), shall not be 

21 considered as gross income of the purchaser of a ve22 hicle under this Act for purposes of the Internal 

23 Revenue Code of 1986. 

24 (i) DEFINITIONS.—As used in this Act— 


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

2 passenger automobile, as defined in section 

3 32901(a)(18) of title 49, United States Code, that 

4 has a combined fuel economy value of at least 22 

5 miles per gallon; 

6 (2) the term ‘‘category 1 truck’’ means a non7 passenger automobile, as defined in section 

8 32901(a)(17) of title 49, United States Code, that 

9 has a combined fuel economy value of at least 18 

10 miles per gallon, except that such term does not in11 clude a category 2 truck; 

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

13 van or a large pickup, as categorized by the Sec14 retary using the method used by the Environmental 

15 Protection Agency and described in the report enti16 tled ‘‘Light-Duty Automotive Technology and Fuel 

17 Economy Trends: 1975 through 2008’’; 

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

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

20 United States Code; 

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

22 means— 

23 (A) with respect to a new fuel efficient 

24 automobile, the number, expressed in miles per 

25 gallon, centered below the words ‘‘Combined 


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1 Fuel Economy’’ on the label required to be af2 fixed or caused to be affixed on a new auto3 mobile pursuant to subpart D of part 600 of 

4 title 40 Code of Federal Regulations; 

5 (B) with respect to an eligible trade-in ve6 hicle, the equivalent of the number described in 

7 subparagraph (A), and posted under the words 

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

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

10 1985 through 2007, or posted under the words 

11 ‘‘New EPA MPG’’ and above the word ‘‘Com12 bined’’ for vehicles of model year 2008 or later 

13 on the fueleconomy.gov website of the Environ14 mental Protection Agency for the make, model, 

15 and year of such vehicle; or 

16 (C) with respect to an eligible trade-in ve17 hicle manufactured between model years 1978 

18 through 1984, the equivalent of the number de19 scribed in subparagraph (A) as determined by 

20 the Secretary (and posted on the website of the 

21 National Highway Traffic Safety Administra22 tion) using data maintained by the Environ23 mental Protection Agency for the make, model, 

24 and year of such vehicle; 


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

2 by a State who engages in the sale of new auto3 mobiles to ultimate purchasers; 

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

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

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

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

8 trade-in under this Act— 

9 (A) is in drivable condition; 

10 (B) has been continuously insured con11 sistent with the applicable State law and reg12 istered to the same owner for a period of not 

13 less than 1 year immediately prior to such 

14 trade-in; 

15 (C) was manufactured in model year 1984 

16 or later; and 

17 (D) in the case of an automobile, has a 

18 combined fuel economy value of 18 miles per 

19 gallon or less; 

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

21 means an automobile described in paragraph (1), 

22 (2), (3), or (4)— 

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

24 not been transferred to any person other than 

25 the ultimate purchaser; 


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1 (B) that carries a manufacturer’s sug2 gested retail price of $45,000 or less; 

3 (C) that— 

4 (i) in the case of passenger auto5 mobiles, category 1 trucks, or category 2 

6 trucks, is certified to applicable standards 

7 under section 86.1811–04 of title 40, Code 

8 of Federal Regulations; or 

9 (ii) in the case of category 3 trucks, 

10 is certified to the applicable vehicle or en11 gine standards under section 86.1816–08, 

12 86–007–11, or 86.008–10 of title 40, Code 

13 of Federal Regulations; and 

14 (D) that has the combined fuel economy 

15 value of at least— 

16 (i) 22 miles per gallon for a passenger 

17 automobile; 

18 (ii) 18 miles per gallon for a category 

19 1 truck; or 

20 (iii) 15 miles per gallon for a category 

21 2 truck; 

22 (9) the term ‘‘Program’’ means the Consumer 

23 Assistance to Recycle and Save Program established 

24 by this Act; 


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

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

3 years; 

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

5 amount received by the dealer for a vehicle upon 

6 transferring title of such vehicle to the person re7 sponsible for ensuring the dismantling and destroy8 ing the vehicle; 

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

10 of Transportation acting through the National High11 way Traffic Safety Administration; 

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

13 with respect to any new automobile, the first person 

14 who in good faith purchases such automobile for 

15 purposes other than resale; 

16 (14) the term ‘‘voucher’’ means an electronic 

17 transfer of funds to a dealer based on an eligible 

18 transaction under this program; and 

19 (15) the term ‘‘vehicle identification number’’ 

20 means the 17-character number used by the auto21 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 of Trans3 portation $4,000,000,000 to carry out this Act. 

Passed the House of Representatives June 9, 2009. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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Calendar No. 74 

111TH CONGRESS 

1ST SESSION H. R. 2751 

AN ACT 

To accelerate motor fuel savings nationwide and 

mobiles. with new fuel efficient and less polluting autopolluting automobiles to replace such automobiles provide incentives to registered owners of high 

JUNE 11, 2009 

Read the second time and placed on the calendar 


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