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                                                       Calendar No. 342
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-144

======================================================================



 
A BILL TO AMEND THE CLEAN AIR ACT TO REMOVE THE REQUIREMENT FOR DEALER 
             CERTIFICATION OF NEW LIGHT-DUTY MOTOR VEHICLES

                                _______
                                

                 April 1, 2014.--Ordered to be printed

                                _______
                                

    Mrs. Boxer, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 724]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (H.R. 724) to amend the Clean Air Act to 
remove the requirement for dealer certification of new light-
duty motor vehicles, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                    General Statement and Background

    H.R. 724 would repeal a requirement under the Clean Air Act 
that automobile dealers provide purchasers of new light-duty 
motor vehicles with a certificate that indicates the vehicle 
conforms to federal emissions standards.
    H.R. 724 strikes section 207(h)(1) of the Clean Air Act (42 
U.S.C.7541(h)), which requires auto dealers, upon sale of each 
new light duty motor vehicle, to furnish to the purchaser a 
certificate that such motor vehicle conforms to the emissions 
standards issued pursuant to section 202 (42 U.S.C. 7521) and 
notice of the purchaser's right to have the manufacturer remedy 
any non-conformity to section 202 emissions standards at the 
cost of the manufacturer during the warranty period.
    The certification requirement was added to the Clean Air 
Act in the 1977 Amendments. At that time, catalytic converters 
for pollution control were often installed at the dealership, 
and the certification requirement was intended to hold the 
dealers responsible for making sure that the pollution controls 
were installed and working. Now, pollution controls are built 
into the vehicles by the manufacturers, who are fully 
responsible for the functioning of the pollution control 
equipment.
    In addition, the warranty information on the certificate is 
now outdated, and current warranty information is available to 
consumers elsewhere. Further, the Environmental Protection 
Agency no longer enforces this requirement. No other provisions 
of the Clean Air Act are changed by H.R. 724.

                     Objectives of the Legislation

    The goal of the legislation is to remove an unnecessary and 
outdated paperwork requirement applicable to new motor vehicle 
purchases.

                      Section-by-Section Analysis


Section 1

    Section 1 strikes paragraph 1 of section 207(h) of the 
Clean Air Act (42 U.S.C. 7541(h)), which provides that ``[u]pon 
the sale of each new light-duty motor vehicle by a dealer, the 
dealer shall furnish to the purchaser a certificate that such 
motor vehicle conforms to the applicable regulations under 
section 7521 of this title, including notice of the purchaser's 
rights under [this subsection].''
    The section also includes a technical correction, re-
designating current paragraphs (2) and (3) as paragraphs (1) 
and (2), respectively.

                          Legislative History

    On February 14, 2013, H.R. 724 was introduced by Rep. Latta 
(R-OH) and Rep. Peters (D-MI) and referred to the House 
Committee on Energy and Commerce. On December 10 and 11, 2013, 
the House Committee on Energy and Commerce met in open markup 
session and ordered H.R. 724 reported to the House, without 
amendment, by voice vote (H. Rept. 113-320). On January 8, 
2014, the House suspended the rules and passed H.R. 724 by a 
vote of 405-0. On January 9, 2013 the bill was received in the 
Senate and referred to the Committee on Environment and Public 
Works. On February 6, 2014, the Committee on Environment and 
Public Works met to consider H.R. 724. The bill was ordered to 
be reported without amendment favorably.

                                Hearings

    No committee hearings were held on H.R 724.

                             Rollcall Votes

    The Committee on Environment and Public Works met to 
consider H.R. 724 on February 6, 2014. The bill was ordered 
favorably reported by voice vote. No roll call votes were 
taken.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee finds that H.R. 724 
does not create any additional regulatory burdens, nor will it 
cause any adverse impact on the personal privacy of 
individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee notes that the Congressional 
Budget Office found, ``H.R. 724 contains no intergovernmental 
or private-sector mandates as defined in the Unfunded Mandates 
Reform Act and would impose no costs on state, local, or tribal 
governments.''

                                                 February 12, 2014.
Hon. Barbara Boxer,
Chairman, Committee on Environment and Public Works,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 724, an act to 
amend the Clean Air Act to remove the requirement for dealer 
certification of new light-duty motor vehicles.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susanne S. 
Mehlman.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 724--An act to amend the Clean Air Act to remove the requirement 
        for dealer certification of new light-duty motor vehicles

    H.R. 724 would repeal a requirement under the Clean Air Act 
(CAA) that automobile dealers provide purchasers of new light-
duty motor vehicles with a certificate that indicates the 
vehicle conforms to federal emissions standards. The 
certificate also indicates the purchaser's right to have the 
manufacturer fix the vehicle if it does not comply with 
emission standards.
    According to the Environmental Protection Agency, other 
provisions of the CAA ensure that all new vehicles offered for 
sale comply with the act. Thus, CBO estimates that repealing 
this requirement would have no impact on the federal budget. 
Enacting H.R. 724 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    H.R. 724 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    On December 19, 2013, CBO transmitted a cost estimate for 
H.R. 724, as ordered reported by the House Committee on Energy 
and Commerce on December 11, 2013. The two versions of the 
legislation are identical, and the CBO cost estimates are the 
same.
    The CBO staff contact for this estimate is Susanne S. 
Mehlman. The estimate was approved by Theresa Gullo, Deputy 
Assistant Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

CLEAN AIR ACT

           *       *       *       *       *       *       *


  Sec. 101. (a) The Congress finds--
          (1)* * *

           *       *       *       *       *       *       *

  Sec. 207. (a)* * *

           *       *       *       *       *       *       *

  (h)[(1) Upon the sale of each new light-duty motor vehicle by 
a dealer, the dealer shall furnish to the purchaser a 
certificate that such motor vehicle conforms to the applicable 
regulations under section 202, including notice of the 
purchaser's rights under paragraph (2).]
  [(2)] (1) If at any time during the period for which the 
warranty applies under subsection (b), a motor vehicle fails to 
conform to the applicable regulations under section 202 as 
determined under subsection (b) of this section such 
nonconformity shall be remedied by the manufacturer at the cost 
of the manufacturer pursuant to such warranty as provided in 
section 207(b)(2) (without regard to subparagraph (C) thereof).
  [(3)] (2) Nothing in section 209(a) shall be construed to 
prohibit a State from testing, or requiring testing of, a motor 
vehicle after the date of sale of such vehicle to the ultimate 
purchaser (except that no new motor vehicle manufacturer or 
dealer may be required to conduct testing under this 
paragraph).

           *       *       *       *       *       *       *