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Public Statements

Congressman Rothman Votes In Favor Of Cash For Clunkers Bill

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Date:
Location: Washington, DC

Congressman Rothman Votes In Favor Of Cash For Clunkers Bill

Today, Congressman Steve Rothman (D - NJ) voted in favor of the Consumer Assistance to Recycle and Save Act, H.R. 2751, also known as the "cash-for-clunkers" bill. Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will provide for approximately one million new car or truck purchases. The Act passed the U.S. House 298 - 119.

"By supporting new, fuel-efficient car and truck purchases, Congress today passed common sense legislation to spur car sales at a time when auto companies and dealers are suffering in this tough economy," said Rothman. "At the same time we are providing a boost to our clean energy economy and reducing our dependence on foreign oil. I hope New Jerseyans, who tend to spend a lot of time in their cars, take advantage of this new incentive."

The cash-for-clunkers plan will run for one year, offering vouchers to people who trade in vehicles with average city/highway fuel economy of less than 18 miles a gallon to buy a more-efficient new car or light truck. The proposed program would offer the maximum $4,500 voucher for people to use to buy a car that gets at least 10 more mpg or a truck that is at least five mpg more efficient.

The bill provides incentives for greater fuel-efficiency in car and truck purchases by dividing vehicles into four categories, each with different standards and different amounts of rebate, details are below:

Passenger Cars: The old vehicle must get 18 mpg or less. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

Light-Duty Trucks: The old vehicle must get 18 mpg or less. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class's market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 - 8,500 pounds.


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