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.

Summary: Sell Fuel Efficient Cars Act of 2008 - Directs the Secretary of the Treasury to establish the Passenger Automobile Trade-In Program to provide eligible individuals with subsidies to purchase eligible new automobiles in exchange for eligible old automobiles.

Defines as eligible individuals those who (among other requirements) do not have more than three passenger automobiles registered under his or her name and whose adjusted gross income was not more than $25,000 ($40,000 in the case of a joint tax return).

Defines as eligible new automobiles (among other requirements) those that were manufactured by a U.S. automaker whose failure would have a systemic adverse effect on the overall U.S. economy, were assembled in the United States, and have a fuel economy of not less than 25 miles per gallon (MPG) or more than 4.9 MPG greater than the eligible old automobile.

Defines as eligible old automobiles (among other requirements) those that are operable, were first registered by any person not less than ten years before a trade is initiated, and are registered under the eligible individual's name before December 1, 2008.

Directs the Secretary to provide $10,000 to the seller (automaker) of each new automobile who trades a new automobile to an eligible individual in exchange for an old automobile. Requires the eligible individual to pay the seller the difference between the purchase price of the new automobile and the $10,000 provided by the Secretary.

Requires eligible old automobiles to be destroyed and disposed of.

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.