H.R. 5221 — PART Act

This section defines the term "catalytic converter" for purposes of the Act to mean (1) any device installed in the exhaust system of an internal combustion engine that utilizes catalytic action to oxidize hydrocarbon (HC) and carbon monoxide (CO) emissions to carbon dioxide (CO2) and water (H2O); (2) a diesel oxidation catalyst; or (3) a diesel particulate filter.

This section directs the National Highway Traffic Safety Administration (NHTSA), not later than 180 days after enactment, to revise the motor vehicle theft prevention standard (49 CFR 541.5(a)) to include catalytic converters among specified parts and to update regulations ensuring applicability to vehicles covered by part 565 (vehicle identification number requirements). These requirements apply to unsold vehicles (i.e., not sold to the first purchaser) beginning 6 months after the revisions, regardless of model year or manufacture date. (As background, the theft prevention standard requires manufacturers to mark or inscribe identification numbers—typically the VIN or a derivative—on covered major parts of high-theft passenger motor vehicle lines to aid law enforcement in identifying stolen vehicles and parts.) This section defines "catalytic converter" in 49 U.S.C. §33101(1) to mean (A) a device in an internal combustion engine exhaust system that uses catalytic action to oxidize hydrocarbon and carbon monoxide emissions to carbon dioxide and water; (B) a diesel oxidation catalyst; or (C) a diesel particulate filter. This section amends 49 U.S.C. §33106 (exemptions from marking requirements) to (1) require exemption certifications to include a statement that catalytic converters will be marked in accordance with 49 U.S.C. §§33101–33104 and related regulations; and (2) direct NHTSA to promulgate regulations requiring conspicuous marking of catalytic converters on vehicle lines, allowing unique part identification numbers in a law enforcement-accessible database that retrieves the full vehicle identification number of the originally installed vehicle. (Thus, marking facilitates tracing stolen catalytic converters—frequently targeted for precious metals—back to specific vehicles.)

This section establishes a Department of Transportation grant program, to be implemented not later than 180 days after enactment, to provide $7 million in grants to eligible entities (i.e., law enforcement agencies, automobile dealers, owners and lessees of centrally maintained vehicle fleets, automobile repair shops and service centers, and nonprofit organizations) for equipment and materials—excluding wages—to perform die or pin stamping of full vehicle identification numbers (VINs) or unique part identification numbers (linked to full VINs in law enforcement-accessible databases) onto catalytic converters in a conspicuous, typed-font manner, followed by application of high-visibility, high-heat theft-deterrence paint. Grant recipients must offer stamping services to the public; the Secretary must prioritize applications from high-theft areas and owners of vehicles subject to section 3(b), issue regulations for marking procedures that do not impair converter function, and submit annual reports to Congress—beginning one year after enactment and continuing for 10 years—detailing program progress, total catalytic converters marked, and known thefts or investigations. Funding derives from unobligated balances appropriated by the American Rescue Plan Act of 2021, with additional appropriations authorized if needed to total $7 million.

This section amends the motor vehicle theft prevention program (49 U.S.C. Ch. 331) as follows: (1) adds "catalytic converter" as a specified "major part" (inserting new subparagraph (L) in 49 U.S.C. §33101(6) and redesignating the catch-all provision as subparagraph (M)); (As background, major parts are subject to theft prevention standards, including identification number marking requirements under §§33102-33104, to deter chop shops and vehicle theft.) (2) requires persons engaged in the business of salvaging, dismantling, recycling, or repairing motor vehicles or parts containing precious metals to retain seller records—including name, address, telephone number, photocopy of government-issued ID, vehicle make and model, vehicle identification number (VIN) or unique part identification number tied to the VIN, and purchase date—for at least two years (new §33111(b)); (3) prohibits the sale or purchase of any catalytic converter with identifying markings removed or tampered with; (4) mandates traceable forms of payment (e.g., check, wire transfer) for all catalytic converter purchases and sales, prohibiting cash or cryptocurrency; and (5) directs the Attorney General to prescribe implementing regulations, including enforcement and penalties.

This section addresses theft and trafficking of catalytic converters—devices in motor vehicle exhaust systems that reduce emissions using catalytic precious metals (e.g., platinum, palladium, rhodium)—by (1) adding 18 U.S.C. §671, which establishes as an offense stealing a catalytic converter from another person's motor vehicle or knowingly purchasing a stolen one with intent to distribute, sell, or dispose of it or extracted precious metals in interstate or foreign commerce, punishable by fine, imprisonment up to five years, or both (with concurrent sentences for related conduct); (2) adding to the definitions in 18 U.S.C. §2311 the term "precious metals," as defined in 41 C.F.R. §109-27.5101 (or successor regulation); (3) adding 18 U.S.C. §2321(d), which establishes as an offense buying, receiving, possessing, or obtaining control of a stolen catalytic converter with intent to sell or dispose of it, punishable by fine, imprisonment up to five years, or both (with concurrent sentences for related conduct); and (4) revising the definition of "chop shop" in 18 U.S.C. §2322(b) to include premises used to extract precious metals from unlawfully obtained motor vehicles or parts.