For Immediate Release: June 9, 2009

House Passes Rep. Sutton’s “CARS” Bill

Washington, D.C. - Today, the House of Representatives passed Congresswoman Sutton's Consumer Assistance to Recycle and Save (CARS) Act, H.R. 2751, by a margin of 298-119. The bill will help consumers purchase more fuel-efficient vehicles, improve our environment and boost auto sales. Rep. Sutton worked with the Administration, House leadership and the Committee on Energy and Commerce to pass this collaborative measure.

Through the program, consumers may trade in less fuel-efficient vehicles and receive vouchers ranging from $3,500 to $4,500 to help purchase or lease a more fuel-efficient car or truck. Under the bill, the Department of Transportation will outline the eligibility requirements and provide a list of vehicles that will qualify. For more information, please visit http://www.fueleconomy.gov/.

"This bill is called the CARS Act, but it is about far more than just cars. It is about people. It is about the millions of families in this great nation who depend on the strength of our auto and related industries for their livelihood," said Rep. Sutton. "It's about our friends and neighbors and it is about our communities that depend on auto related jobs for their tax base to support their schools, police, fire, and other city services. By passing the CARS Act, we can shore up these jobs, get customers back into the showrooms, help our dealers move cars, and improve the environment."

"This legislation will ensure that we have a strong manufacturing base and get more fuel-efficient vehicles on the road, which is essential to our economy, to our national security, and a clean, green future," Speaker Nancy Pelosi said. "I commend Congresswoman Sutton for her determination to bring this legislation to the floor quickly. Her hard work is evident in the strong bipartisan vote received today."

"Congresswoman Sutton should be commended for her unwavering commitment to getting the Consumer Assistance to Recycle and Save Act passed through the House," said House Majority Leader Steny Hoyer. "As a result of her efforts, we have passed a bill that will make new vehicles more affordable for consumers at a time when more consumer purchasing power is sorely needed by the auto industry. The bill has important side benefits of providing an incentive for the trade-in of older vehicles for more fuel efficient ones, more rapidly reducing fossil fuel consumption by America's vehicle fleet."

"I appreciate the work of Rep. Sutton and my colleagues on this important legislation, which is good for the economy, good for consumers, and good for the environment," said Chairman Waxman, Chairman of the U.S. House Committee on Energy and Commerce. "The automobile industry is and must remain a vital part of our economy and this is an area where saving American jobs and protecting the environment go hand in hand."

"This bill is the ultimate political triple play. It is a win for consumers who get a new, more fuel efficient vehicle, a win for reducing America's dependence on imported oil, and a win for American auto workers as the industry gets back on its feet," said Edward J. Markey (D-Mass.), Chairman of the Energy and Environment Subcommittee.

Close to home, UAW Local 2000 President Tim Donovan said:

"Passage of this important legislation will not only help the consumer and public by putting cars on the road that run cleaner and maintain better fuel efficiency, but it will provide assistance by boosting car sales to the struggling auto industry in America," said President Donovan.

"The UAW applauds Representative Sutton for her tremendous leadership on the fleet modernization issue. Thanks to her efforts, the House has approved legislation that will provide an immediate boost to the auto industry in the United States, helping to promote jobs for American workers," said Alan Reuther, Legislative Director, United Auto Workers.

And, Terry Metcalf, Executive Vice President of the Akron Area Auto Dealers Association added:

"Providing an incentive to stimulate sales is a critical step in the recovery of the automobile industry and congressional passage of the CARS Act represents an opportunity to benefit both the economy and the environment," said Mr. Metcalf.

 

Q: What is the purpose of this bill?

A: To help consumers purchase more fuel efficient vehicles, help the environment, and boost auto sales.

Q: What are the trade-in eligibility requirements to participate in the CARS program?

A: Requirements:

· Trade-in vehicle must be registered in purchaser's name and have been owned for 1 year.

· Consumers must trade-in a vehicle with a maximum combined city/highway fuel economy of 18 miles per gallon or less to be eligible for CARS program.

Q: What are the requirements when purchasing the new car?

A: The requirements for purchasing a new car, light truck, or work truck are different depending on what class of vehicle you are purchasing.

 

· Eligible new vehicles must have a Manufacturer's Suggested Retail Price (MSRP) of $45,000 or less

Passenger Car

· Minimum Fuel Economy for New Vehicle must receive 22 mpg (EPA combined fuel economy)

To receive a $3,500 Voucher- toward the lease or purchase of a new eligible vehicle

· Mileage improvement must be at least 4 mpg over trade-in vehicle

To receive a $4,500 Voucher- toward the lease or purchase of a new eligible vehicle

· Mileage improvement must be at least 10 mpg over trade-in vehicle

Small Light-Duty Truck

· Minimum Fuel Economy for New Vehicle must receive 18 mpg (EPA combined fuel economy)

To receive a $3,500 Voucher- toward the lease or purchase of a new eligible vehicle

· Mileage improvement must be at least 2 mpg over trade-in vehicle

To receive a $4,500 Voucher- toward the lease or purchase of a new eligible vehicle

· Mileage improvement must be at least 5 mpg over trade-in vehicle

Large Light-Duty Truck

· Minimum Fuel Economy for New Vehicle must receive 15 mpg (EPA combined fuel economy)

To receive a $3,500 Voucher- toward the lease or purchase of a new eligible vehicle

· Mileage improvement must be at least 1 mpg over trade-in; or trade-in a work truck for Large Light-Duty Truck

To receive a $4,500 Voucher- toward the lease or purchase of a new eligible vehicle

· Mileage improvement must be at least 2 mpg over trade-in vehicle

Work Truck (8,500-10,000 pounds gross vehicle weight rating)

· Minimum Fuel Economy for New Work Truck Does not apply

· If you trade in a work truck, you must purchase a work truck.

To receive a $3,500 Voucher- toward the lease or purchase of a new work truck

· Trade-in vehicle must be a 2001 Model Year work truck or older.

Q: Can I lease a vehicle through the CARS program?

A: Yes, the vehicle lease terms must be for a minimum of five years.

Q: What is Combined Fuel Economy? How do I qualify?

A: To determine if your vehicle qualifies under the CARS Act you should:

· Find out the combined fuel economy of your vehicle by visiting the Environmental Protection Agency's site http://www.fueleconomy.gov/.

· Proceed to "Your MPG" section located in the bottom left hand corner of the site. Follow the link and provide the make, model, and year your vehicle.

· Visit a local dealership in your area

Q: How do I receive the voucher?

A: A dealer will credit the voucher amount towards the purchase or lease of the eligible new vehicle.

Q: When can I take advantage of this CARS program?

A: The CARS program will be effective immediately after the bill is enacted.

Q: Is the bill retroactive?

A: Unfortunately, this bill is not retroactive.

Q: What is the status of the bill?

A: The House of Representatives passed the bill on Tuesday, June 9, 2009. The Bill will now go to the Senate.

Q: When trading in the old vehicle, is the voucher value added to the "trade in" or scrap value of the car?

A: Consumers surrender their old vehicle to the dealer in order to take advantage of the CARS program. Consumers should research the scrap value of the vehicle they are trading in. The bill does require the dealer to disclose their best estimate regarding the scrap value of the trade-in car. There is no requirement for the scrap value to be added to the voucher value.

Q: How many vouchers can be obtained per person?

A: One voucher can be issued per individual.

Q: How many vouchers can be obtained per trade-in vehicle?

A: One voucher will be issued for a single trade in vehicle; this includes trade in vehicles that are jointly-registered.

Q: Are used cars eligible under the CARS program?

A: Unfortunately no, this program applies to the purchase of new vehicles.

Q: Are only American cars eligible for this program?

A: No, all cars are eligible for this program if they meet the requirements.

Q: Are their any tax consequences?

A: No, the value of the voucher is not considered gross or taxable income.

Q: Are all dealerships required to participate in the CARS program?

A: The Department of Transportation will issue regulations within 30 days of the bill, including the process for dealers to register to participate in the program. These regulations will also include how to determine if the vehicle is eligible for a trade in, how to locate participating dealers, a comprehensive list by make and model, of new fuel efficient automobiles meeting the requirements of the program.

Q: Where can I find more information?

A: More information can be found at http://www.sutton.house.gov/.

Contact: Nichole Francis Reynolds at 202-225-3401 or nichole.reynolds@mail.house.gov