A bill to direct the Secretary of Transportation to establish an emergency grant program for reclaiming abandoned automobiles and to conduct a study for the purpose of developing a permanent program for reclaiming abandoned automobiles.

Directs the Secretary of Transportation to make grants to State or local governments to establish programs for the selling of abandoned motor vehicles at fair market value. Sets forth the matching requirements by State and local governments for FY 1988. Sets a ceiling of Federal funds per program of $500,000.

Mandates as a prerequisite for such grant that the recipient demonstrate to the Secretary that it will implement a program for disposing of hazardous materials contained in such vehicles in an environmentally safe manner.

Authorizes appropriations for FY 1988 and 1989.

Requires the Secretary to study: (1) the number of abandoned vehicles and the scope of the problems (including environmental and safety hazards) caused by such vehicles; and (2) a methodology for developing a permanent reclamation program for such vehicles. Requires the Secretary to report to the Congress within one year after enactment of this Act regarding such study results, including recommendations for a trust fund which would be financed by a surcharge on the vehicle manufacturer, and which would fund the reclamation program.