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

Another Cash for Clunkers Proposal to Be Considered By Congress

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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.”

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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.

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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.

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    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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