House Passes Stupak-Sponsored "Cash for Clunkers" Program

Press Release

The U.S. House of Representatives on Tuesday passed legislation to create a "Cash for Clunkers" program that will provide 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 "Cash for Clunkers" program created under H.R. 2751, the Consumer Assistance to Recycle and Save Act, would reduce greenhouse emissions and provide a needed boost for the auto industry. U.S. Congressman Bart Stupak (D-Menominee) played a key role in negotiating H.R. 2751, which passed the House by a vote of 298 to 199.

"The Cash for Clunkers program accomplishes a dual task of reducing emissions and stimulating sales in the auto industry," Stupak said. "Cash for Clunkers provides an incentive for Americans to do their part to reduce emissions without imposing 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 legislation authorizes the "Cash for Clunkers" program for one year, for a total of $4 billion, which the Congressional Budget Office estimates will be used to put 1 million new cars and trucks on the road and save 250,000 gallons of gasoline. The legislation 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."

"Cash for Clunkers" was also added as an amendment in committee last month to the American Clean Energy and Security Act (H.R. 2452) last month. That legislation awaits consideration by the U.S. House of Representatives. It is also expected that the "Cash for Clunkers" legislation will be included in the supplemental appropriations bill to be considered by the House and Senate later this week.

"We are moving the Cash for Clunkers program on as many different tracks as possible to ensure it becomes law," Stupak said. "Consumers and our auto industry need this incentive in place sooner rather than later."

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