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Senator Stabenow, Congressman Peters Announce Legislation to Support the Development of Advanced Technology Vehicles in America

On December 7th, Senator Debbie Stabenow (D-MI) and U.S. Congressman Gary Peters (D-MI) introduced the Advanced Vehicle Technology Act of 2009 (S.2843). The Advanced Vehicle Technology Act will provide funding to the U.S. Department of Energy for advanced vehicle research and development. The funding will be available through competitive grant awards for small, medium, and large manufacturers and suppliers that develop technologies to improve the energy efficiency of vehicles. These efforts include hybrid and electrical systems; advanced batteries and energy storage devices; hydrogen and natural gas systems; refueling and recharging infrastructure; and other advanced vehicle technologies. It will also expand the development of more fuel-efficient medium and heavy duty commercial trucks.

Cash for Clunkers

On August 6, 2009, the Senate passed H.R. 3435 without amendment (60-37) to add $2 billion to the Cash for Clunkers program. The bill has been sent to the President for signature.

Cash for Clunkers

On July 23, 2009 NHTSA’s Acting Deputy Administrator signed the final rule setting forth requirements and procedures for the voluntary vehicle trade-in and purchase/lease program that was established by the Consumer Assistance to Recycle and Save Act of 2009. The program will help some consumers pay for a new, more fuel efficient car or truck from a participating dealer when they trade in a less fuel efficient car or truck. The rule establishes a process by which dealers can register in order to participate in the program and establishes the criteria NHTSA will use to determine which disposal facilities are eligible to receive and either crush or shred the trade-in vehicles. It also sets forth the criteria that trade-in vehicles and new vehicles must meet in order for purchases and leases to qualify for assistance under the program and establishes the requirements that must be met by consumers, dealers, disposal facilities and others. Finally, the rule sets forth enforcement procedures and provisions for punishing fraud and other violations of the program requirements. Docket reference: NHTSA-2009-0120. Code reference: 49 CFR Parts 512 and 599. NHTSA contact: Frank Borris (202) 366-8089. The rule will be published in the Federal Register on Wednesday, July 29, 2009. For an advanced copy, click here.

Consumer Assistance to Recycle and Save Act (CARS) (aka cash for clunkers)

NHTSA has published a summary of the CARS law and a copy is available online at http://www.cars.gov/files/day-one.pdf.

NHTSA has also created a CARS website (http://www.cars.gov) that is dedicated to the new law. NHTSA has until July 24th to publish rules to implement the program. Under the law, the program runs from July 1, 2009 to November 1, 2009.

Cash for Clunkers Legislation

On June 9, 2009, the House passed the Consumer Assistance to Recycle and Save Act (H.R. 2751). Under the program, consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will be authorized for up to one year and provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles per gallon figures below refer to EPA “window sticker” values.

Passenger Cars: The old vehicle must get 18 mpg or less. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

Light-Duty Trucks: The old vehicle must get 18 mpg or less. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.