B-318552
August 24, 2009
The Honorable John D.Rockefeller IV
Chairman
The Honorable Kay Bailey Hutchison
Ranking Minority Member
Committee on Commerce, Science, and Transportation
United States Senate
The Honorable Henry A.Waxman
Chairman
The Honorable Joe L. Barton
Ranking Minority Member
Committee on Energy and Commerce
House of Representatives
Subject: Department of Transportation, National Highway Traffic SafetyAdministration: Requirements and Procedures for Consumer Assistance To Recycleand Save Program
Pursuant to section 801(a)(2)(A)of title 5, United States Code, this is our report on a major rule promulgatedby the Department of Transportation, National Highway Traffic SafetyAdministration (NHTSA), entitled Requirements and Procedures for ConsumerAssistance To Recycle and Save Program (RIN: 2127-AK53). We received the rule on August 7, 2009. It was published in the Federal Register as a final rule on July 29, 2009, with a statedeffective date of July 29, 2009. 74 Fed.Reg. 37,878.
The final rule sets forth the requirements and proceduresfor the voluntary vehicle trade-in and purchase/lease program under theConsumer Assistance to Recycle and Save Act of 2009 (commonly known as theCash-for-Clunkers program). Pub. L. No.111-32, title XIII, 123 Stat, 1859, 19091916 (June 24, 2009). This program helps consumers pay for new,more fuel efficient cars and trucks from a participating dealer when they tradein a less fuel efficient car or truck.The rule establishes a process by which dealers can register in order toparticipate in the program and establishes the criteria this agency will use todetermine which disposal facilities are eligible to receive and either crush orshred the trade-in vehicles. It alsosets forth the criteria that trade-in vehicles and new vehicles must meet inorder for purchases and leases to qualify for assistance under this program andestablishes the requirements that must be met by consumers, dealers, disposalfacilities, and others. Finally, the rule sets forth enforcement procedures andprovisions for punishing fraud and other violations of the programrequirements.
The Congressional Review Act requires major rules to have a60-day delay in their effective date following their publication in the Federal Register or receipt by Congress,whichever is later. 5 U.S.C. sect.801(a)(3)(A).However, notwithstanding the 60-daydelay requirement, any rule that an agency for good cause finds that notice andpublic procedures are impractical, unnecessary, or contrary to the publicinterest is to take effect when the promulgating agency so determines. 5 U.S.C. sect.808(2). The Consumer Assistance to Recycle and SaveAct of 2009 requires that final regulations governing this program bepromulgated no later than 30 days of enactment.Pub. L. No. 111-32, sect.1302(d).NHTSA determined that it has good cause to make this rule effective uponpublication because delay would be inconsistent with congressional intent,impractical, and contrary to the public interest. Therefore, the requirement to have a 60-daydelay does not apply to this rule.
Enclosed is our assessment of NHTSAs compliance with theprocedural steps required by section 801(a)(1)(B)(i) through (iv) of title 5with respect to the rule. Our review ofthe procedural steps taken indicates that NHTSA complied with the applicablerequirements.
If you have any questions about this report or wish tocontact GAO officials responsible for the evaluation work relating to thesubject matter of the rule, please contact Shirley A. Jones, Assistant GeneralCounsel, at (202) 512-8156.
Robert J. Cramer
Managing Associate General Counsel
Enclosure
cc: Milton E. Cooper
Program Analyst, National Highway
Traffic Safety Administration
Department of Transportation
ENCLOSURE
REPORT UNDER 5 U.S.C.sect.801(a)(2)(A) ON A MAJOR RULE
ISSUED BY THE
DEPARTMENT OF TRANSPORTATION,
NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
ENTITLED
"REQUIREMENTS AND PROCEDURES FOR
CONSUMER ASSISTANCE TO RECYCLE AND SAVE PROGRAM"
(RIN: 2127-AK53)
(i) Cost-benefit analysis
National Highway Traffic Safety Administration (NHTSA)analyzed the costs and benefits of this final rule. NHTSA stated that it plans to hire 30employees and over 200 contractor employees to administer the program over 6 months. NHTSA determined that the impact of theprogram governed by this rule will most likely not be large enough to increaseproduction by manufacturers and that dealers will only be selling on average 12additional vehicles. NHTSA identifiedthe improved fuel efficiency of the on-road vehicle fleet as anotherbenefit. NHTSA noted that this willdecrease greenhouse gases and certain pollutants by decreasing fuelconsumption, resulting in air pollution benefits. However, these benefits will be dependentupon which types of vehicles consumers purchase. According to NHTSA, dealers may incur certaincosts, but that they may retain up to $50 from the scrap value of trade-invehicles to offset administrative costs.Also, some related industries, such as automotive repair shops, mayloose some profit due to foregone repairs.
(ii) Agency actions relevant to the RegulatoryFlexibility Act, 5 U.S.C. sections603-605, 607, and 609
NHTSA determined that an analysis under the Act is notrequired because, as explained below, no notice of proposed rulemaking wasrequired. However, NHTSA did state thatit examined the impacts on small entities, including on small businesses, inits regulatory analysis of this final rule.
(iii) Agency actions relevant to sections 202-205 ofthe Unfunded Mandates Reform Act of 1995, 2 U.S.C. sections1532-1535
NHTSA determined that an analysis under the Act is notrequired because no notice of proposed rulemaking was required.
(iv) Other relevantinformation or requirements under acts and executive orders
Administrative ProcedureAct, 5 U.S.C. sections551 et seq.
NHTSA did not issue anotice of proposed rulemaking prior to this final rule. The Consumer Assistance to Recycle and SaveAct of 2009 requires that, notwithstanding section 553, title 5, of the UnitedStates Code, final regulations governing this program be promulgated no laterthan 30 days of enactment. Pub. L. No.111-32, sect.1302(d).
Paperwork Reduction Act, 44 U.S.C. sections3501-3520
NHTSA determined that this final rule contains informationcollection requirements under the Act.NHTSA stated that it has obtained approval from the Office of Managementand Budget (OMB) for NHTSA Form 1070 (OMB Control Number 2127-0657); Form 1073,Disposal Facility Certification Form, and Form 1074, Salvage AuctionCertification Form (OMB Control Number 2127-0658); Form 1075, Survey ofConsumer Response to CARS Initiative (OMB Control Number 2127-0659); and Form1071, Transaction Form, and Form 1072, Certifications and Summary of SaleLanguage (OMB Control Number 2127-0660).Respectively, OMB has given NHTSA approval to collect 57,000 responses, 3,750,000responses, 168,750 responses, and 500,000 responses for each of these controlnumbers for a total of 11,395 burden hours, 31,248 burden hours, 9,375 burdenhours, and 108,334 burden hours.
Statutory authorization for the rule
NHTSA stated that it promulgated this rule under theauthority of section 552 of title5; sections 322, 30166, 30167, 32307,32505, 32708, 32901, 32910, and 33116 of title 49, United States Code.
National Environmental Policy Act (NEPA), 42 U.S.C.sections4321-4370f
NHTSA determined that a NEPA analysis is not required forthis final rule because there is a statutorily mandated time frame for thepromulgation of the rule. The ConsumerAssistance to Recycle and Save Act of 2009 requires that final regulationsgoverning this program be promulgated no later than 30 days of enactment. Pub. L. No. 111-32, sect.1302(d).
Executive Order No. 12,866 (Regulatory Planning andReview)
NHTSA determined that this final rule is economicallysignificant under the Order. This rulewas reviewed by OMB.
Executive Order No. 13,132 (Federalism)
NHTSA determined that this final rule does not havefederalism implications because the rule does not have a substantial directeffect on the states, on the relationship between the national government andthe states, or on the distribution of power and the responsibilities among thevarious levels of government.
