Senators Introduce ‘Sell Fuel-Efficient Cars Act of 2008’ -

Senators Introduce ‘Sell Fuel-Efficient Cars Act of 2008’

Another Cash for Clunkers Proposal to Be Considered By Congress

WASHINGTON, DC, – U.S. Sens. Tom Harkin, D-Iowa, and Richard Durbin, D-Ill., on Dec. 22, introduced the “Sell Fuel Efficient Cars Act of 2008,” Senate Bill 3737, which “will require the secretary of treasury to carry out a program to enable certain individuals to trade certain old automobiles for certain new automobiles, and for other purposes.”

The bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs.

This fleet modernization program would provide government funds to remove older, less-fuel-efficient vehicles from America’s highways. The program will be administered by the U.S. Department of the Treasury.

The senators’ proposal does not contain a repair option. The Automotive Service Association (ASA) has encouraged Congress to only enact fleet modernization programs that are state administered and include a repair option for vehicle owners.

For a vehicle to be eligible for the $10,000 in federal assistance, in S.B. 3737, it must meet the following criteria:
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 Dec. 1, 2008.

New vehicles for purchase must meet these additional criteria:
    (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.

    There are additional vehicle owner eligibility requirements. To view the text of S.B. 3737 and ASA’s fleet modernization letter to Congress, visit ASA’s legislative Web site, www.TakingTheHill.com.

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