Stupak-Sponsored Amendment Adds ‘Cash for Clunkers' Program to Clean Energy Bill

Press Release

Stupak-Sponsored Amendment Adds ‘Cash for Clunkers' Program to Clean Energy Bill

U.S. Congressman Bart Stupak (D-Menominee), along with four of his Democratic colleagues on the House Energy and Commerce Committee, offered an amendment to the American Clean Energy and Security Act during committee consideration Tuesday that added a "Cash for Clunkers" program to the bill. The "Cash for Clunkers" program will reduce green house gas emissions by providing cash vouchers up to $4,500 at auto dealerships for consumers to trade in aging, less fuel efficient automobiles and replace them with modern, fuel efficient models. The committee adopted the amendment by a vote of 50-4-1.

"The Cash for Clunkers program accomplishes a dual task of reducing emissions and stimulating sales in the auto industry," Stupak said. "By including Cash for Clunkers in the clean energy bill we are providing an incentive for Americans to do their part to reduce emissions without imposing any new regulations on the industry or consumers. This is a win-win that results in cleaner cars on the road and an increase in sales for the struggling auto industry."

The amendment offered by Stupak, along with Reps. Betty Sutton (D-OH), Jay Inslee (D-WA), John Dingell (D-MI) and Bruce Braley (D-IA), authorizes the "Cash for Clunkers" program for up to one year and provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories:

Passenger Cars: The old passenger car must get less than 18 mpg. 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 truck must get less than 18 mpg. New regular trucks with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

Large Light-Duty Trucks: New large trucks (trucks 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 truck weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same weight class. 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 vehicle.

"The value of the voucher and criteria used to determine eligibility vary based on the type of car you are trading in and the type of car you are buying," Stupak said. "The agreement we have reached on Cash for Clunkers ensures that the varying needs of consumers are covered under the program."

In addition to the direct incentive provided to consumers in the form of a voucher, the U.S. Department of Energy estimates that a consumer who drives a vehicle that gets 30 miles per gallon will save approximately $780 a year compared to a consumer driving a vehicle that gets 18 miles per gallon, based on gas selling at $2.34 per gallon and driving 15,000 miles annually. Stupak noted that putting more fuel efficient cars on the road is a significant step toward reducing America's dependence on foreign oil.

Source