House passes ‘cash for clunkers’ bill

WASHINGTON - The focus to boost new car sales and remove old gas guzzlers from the road turns to the U.S. Senate after easy House approval.

The “cash for clunkers” bill, which passed the House 298-119, would give consumers instant vouchers of up to $4,500 when they turn in older, gas guzzling vehicles and buy new, more fuel-efficient ones.

The aim is to help the ailing auto industry, which has seen sales drop by more than one-third in just two years.

U.S. Rep. Henry Waxman, D-Calif., said the bill is an all-around winner.

The year-long program is expected to cost about $4 billion, but there’s been no determination yet where the money will come from.

A look at proposals in Congress to provide consumers with rebates of up to $4,500 to turn in their gas-guzzling cars and trucks for more fuel-efficient vehicles.

HOUSE

Lawmakers on Tuesday passed the House bill sponsored by Rep. Betty Sutton, D-Ohio. Its provisions:

• Passenger car owners could receive a voucher worth $3,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car getting at least 22 mpg.
• Sport utility vehicle, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $3,500 if their new SUV, truck or minivan is at least 2 mpg higher than their old vehicle.
• Passenger car owners could get a voucher for $4,500 if they traded in a passenger car getting 18 miles per gallon or less for a new car that is 10 mpg higher than the old car.
• SUV, pickup truck or minivan owners that get 18 mpg or less could receive a voucher for $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle.
• Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg would be eligible for vouchers of $3,500 to $4,500.
• Consumers can receive electronic government vouchers through participating dealers for the purchase or lease of qualifying vehicles.
• Older trade-in vehicles must be in drivable condition, be manufactured in model year 1984 or later and be continuously insured to the same owner for at least one year immediately prior to trade-in.

   
SENATE

A group of senators led by Sen. Dianne Feinstein, D-Calif., have proposed an alternative to the House version. Its provisions:

• The trade-in passenger car must get 17 mpg or less and the new passenger car must get at least 24 mpg to be eligible for vouchers.
• Passenger car owners could receive a voucher worth $2,500 if they traded in a passenger car getting at least 7 mpg more than the old car. The voucher would grow to $3,500 if they traded in a passenger car getting at least 10 mpg more than the old car. And it would grow to $4,500 if they traded in a passenger car getting at least 13 mpg more than the old car.
• The purchase of a used passenger car with a mileage of at least 24 mpg would qualify for a voucher of $1,000.
• The trade-in sport utility vehicle, pickup truck or minivan must get 17 mpg or less and the new vehicle must get at least 20 mpg to be eligible for a voucher.
• SUV, pickup truck or minivan owners could get a voucher for $2,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 3 mpg more than the old vehicle. The voucher would increase to $3,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 6 mpg more than the old vehicle.
• SUV, pickup truck or minivan owners could a voucher for $4,500 if they traded in their vehicle for a new SUV, pickup truck or minivan getting at least 9 mpg more than their old vehicle.
• The purchase of a used SUV, pickup truck or minivan with a mileage of at least 20 mpg would qualify for a voucher of $1,000.
• Large trucks (pickup trucks and vans weighing between 6,000 and 8,500 pounds) with a mileage of at least 17 mpg would be eligible for vouchers ranging from $2,500 to $4,500.

Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., have sponsored legislation in the Senate that has similar requirements as Sutton’s bill in the House.
   
Source: Office of Rep. Betty Sutton, D-Ohio; Office of Sen. Dianne Feinstein, D-Calif.