[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[S. 3737 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 3737
To require the Secretary of the Treasury to carry out a program to
enable certain individuals to trade certain old automobiles for certain
new automobiles, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 11 (legislative day, December 10), 2008
Mr. Harkin (for himself and Mr. Durbin) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To require the Secretary of the Treasury to carry out a program to
enable certain individuals to trade certain old automobiles for certain
new automobiles, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sell Fuel Efficient Cars Act of
2008''.
SEC. 2. PASSENGER AUTOMOBILE TRADE-IN PROGRAM.
(a) Definitions.--In this section:
(1) Automobile, fuel, manufacturer, passenger automobile.--
The terms ``automobile'', ``fuel'', ``manufacturer'', and
``passenger automobile'' have the meaning given such terms in
section 32901 of title 49, United States Code.
(2) Eligible individual.--The term ``eligible individual''
means an individual--
(A) who does not have more than 3 passenger
automobiles registered under his or her name;
(B) who filed a return of Federal income tax for a
taxable year beginning in 2007, and, if married for
such taxable year (as determined under section 7703 of
the Internal Revenue Code of 1986), filed a joint
return;
(C) who is not an individual with respect to whom a
deduction under section 151 of the Internal Revenue
Code of 1986 is allowable to another taxpayer for a
taxable year beginning in the calendar year in which
the individual's taxable year begins;
(D) whose adjusted gross income reported in such
return was not more than $25,000 ($40,000 in the case
of a joint tax return or a return filed by a head of
household (as defined in section 2(b) of the Internal
Revenue Code of 1986));
(E) who has not acquired an automobile under the
Program; and
(F) who did not file such return jointly with
another individual who has acquired an automobile under
the Program.
(3) Eligible new automobile.--
(A) In general.--The term ``eligible new
automobile'', with respect to a trade of an eligible
old automobile by an eligible individual under the
Program, means a passenger automobile that--
(i) has never been registered in any
jurisdiction;
(ii) was manufactured by an automobile
manufacturer that has--
(I) operations in the United
States, the failure of which would have
a systemic adverse effect on the
overall economy of the United States or
a significant loss of United States
jobs, as determined by the Secretary;
and
(II) operated a manufacturing
facility that produced automobiles or
automobile components in the United
States throughout the 20-year period
ending on the date of the enactment of
this Act;
(iii) was assembled in the United States;
and
(iv) has a fuel economy that--
(I) is not less than 25 miles per
gallon, as determined by the
Administrator of the Environmental
Protection Agency using the 5-cycle
fuel economy measurement methodology of
such Agency; and
(II) has a fuel economy that is
more than 4.9 miles per gallon greater
than the fuel economy of such eligible
old automobile, as determined by the
Administrator using the 2-cycle fuel
economy measurement methodology of such
Agency for both automobiles.
(B) Fuel economy testing methodologies.--If a
passenger automobile described in subclause (I) or (II)
of subparagraph (A)(iv) has not been measured using the
respective methodologies described such subclauses, the
Administrator may estimate what such measurement would
be if the Administrator were to use the respective
methodology for purposes of determining the fuel
economy under such subclauses.
(4) Eligible old automobile.--The term ``eligible old
automobile'', with respect to a trade for an eligible new
automobile by an eligible individual under the Program, means a
passenger automobile that--
(A) is operable;
(B) was first registered in any jurisdiction by any
person not less than 10 years before the date on which
such trade is initiated;
(C) is registered under such eligible individual's
name on the date on which such trade is initiated; and
(D) was registered under such eligible individual's
name before December 1, 2008.
(5) Fuel economy.--The term ``fuel economy'' means the
average number of miles traveled by an automobile for each
gallon of gasoline (or equivalent amount of other fuel) used,
as determined by the Administrator of the Environmental
Protection Agency.
(6) Program.--The term ``Program'' means the Passenger
Automobile Trade-In Program established under subsection (b).
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury, or the Secretary's designee.
(b) Program Established.--The Secretary shall establish the
Passenger Automobile Trade-In Program to provide eligible individuals
with subsidies to purchase eligible new automobiles in exchange for
eligible old automobiles.
(c) Duration of Program.--The Program shall commence on the date on
which the Secretary prescribes regulations under subsection (g) and
shall terminate on December 31, 2009.
(d) Trades.--
(1) In general.--Except as otherwise provided in this
subsection, if an eligible individual and a seller of an
eligible new automobile initiate a trade as described in
subsection (e) for such new automobile with an eligible old
automobile of the eligible individual, the Secretary shall
provide to the seller of such new automobile $10,000.
(2) Limitation on purchase price of eligible new
automobiles.--The Secretary may not make any payment under this
subsection for a trade for an eligible new automobile under the
Program if the purchase price of such new automobile exceeds
the manufacturer's suggested retail price for such new
automobile.
(3) Compensation for delayed payments.--In the case that a
payment under this subsection to a seller for a trade under the
Program is delayed, the Secretary shall provide to such seller
the amount otherwise determined under this subsection plus
interest at the overpayment rate established under section 6621
of the Internal Revenue Code of 1986.
(e) Initiation of Trade.--An eligible individual and the seller of
an eligible new automobile initiate a trade under the Program for such
eligible new automobile with an eligible old automobile of such
individual if--
(1) the eligible individual, or the eligible individual's
designee, drives such old automobile to the location of such
seller;
(2) the eligible individual provides to the seller--
(A) such old automobile; and
(B) an amount (if any) equal to the difference
between--
(i) the purchase price of such new
automobile; and
(ii) the amount the Secretary is required
to provide to the seller under subsection (d);
and
(3) the eligible individual and the seller notify the
Secretary of such trade at such time and in such manner as the
Secretary considers appropriate.
(f) Disposal of Eligible Old Automobiles.--
(1) In general.--A seller who receives an eligible old
automobile in exchange for an eligible new automobile under the
Program shall deliver such old automobile to an appropriate
location for proper destruction and disposal as determined by
the Secretary.
(2) Compensation.--The Secretary shall compensate a seller
described in paragraph (1) for costs incurred by such seller
under such paragraph in such amounts or at such rates as the
Secretary considers appropriate.
(g) Regulations.--
(1) In general.--Not later than 30 days after the date of
the enactment of this Act, the Secretary shall prescribe rules
to carry out the Program.
(2) Expedited procedures for rulemaking.--The provisions of
chapter 5 of title 5, United States Code, shall not apply to
regulations prescribed under paragraph (1).
(h) Direct Spending Authority.--
(1) In general.--There is authorized to be appropriated and
is appropriated to the Secretary such sums as may be necessary
to carry out the Program.
(2) Emergency designation.--Amounts appropriated pursuant
to paragraph (1) are designated as an emergency requirement and
necessary to meet emergency needs pursuant to section 204(a) of
S. Con. Res. 21 (110th Congress) and section 301(b)(2) of S.
Con. Res. 70 (110th Congress), the concurrent resolutions on
the budget for fiscal years 2008 and 2009.
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