"Cash For Clunkers" Bill Hits Speed Bump

(AP)  Legislation that would give car buyers a government voucher up to $4,500 when they trade in gas guzzlers hit a speed bump in the Senate amid concerns that a compromise between the White House and House Democrats doesn't go far enough to protect the environment.

Sen. Dianne Feinstein, D-Calif., who authored the "cash for clunkers" bill in the Senate, said Wednesday that she can't support the compromise announced last week after House Democrats met with President Barack Obama on global warming.

"Essentially what it means is that perfectly good vehicles would be scrapped, so that vehicles with below average fuel economy could be purchased," Feinstein said.

The program is supposed to serve two purposes: Help the struggling automobile industry and the environment by replacing gas guzzlers with more fuel efficient autos.

Under the compromise, car owners could get a voucher worth $3,500 if they traded in a vehicle getting less than 18 miles per gallon for one getting at least 22 miles per gallon. The value of the voucher would increase to $4,500 if the mileage of the new car is 10 miles per gallon higher than the old vehicle.

But Feinstein referred to the compromise as the "automobile industry's version."

"American taxpayers have already pledged $33 billion in bailout funds to this flagging industry without any special considerations for achieving greater fuel economy," Feinstein said. "This is unacceptable."

Feinstein's opposition could lead to more behind-the-scenes negotiations in the Senate where Majority Leader Harry Reid, D-Nev., said he would like to move quickly on a bill. Some lawmakers, such as Sen. Debbie Stabenow, D-Mich., have expressed support for a bill like the one moving through the House. But Sen. Susan Collins, R-Maine, said she agrees with Feinstein that the House bill doesn't do enough to generate fuel savings.

"Federal support for purchasing new cars must also promote greater fuel efficiency as a way to reduce our dependence on foreign oil," Collins said. "The House agreement announced last week does not achieve that goal."

Under the House bill, owners of small trucks and SUVs face even a lower threshold than car owners to get a voucher. They could get a $3,500 voucher if their new vehicle gets at least 2 miles per gallon more than the old truck or SUV. The voucher increases to $4,500 for a difference of at least 5 miles per gallon. For larger trucks, the new truck only has to exceed the fuel efficiency of the old vehicle by 1 mile per gallon to generate a $3,500 voucher.

An analysis from the American Council for an Energy Efficient Economy projects that the House bill would lead the average program participant to use 133 fewer gallons of fuel per year. Meanwhile, Feinstein's legislation would lead the average participant to save 306 gallons a year.

[sjc_1]

This might work in Germany, where people make a decent wage, but not here. People that drive old cars have to, to get to work and back and make other people wealthy. That is the nature of exploitation and capitalism.

[quapawsix]

Isn't that special. But the reality is how do you pay for the rest of the car loan? another failed example of Brain Dead Legislation. Let me one more time attempt to give them the economic formula; No Good Paying Middle Income Jobs = No Economic Recovery.

[lennypw]

So we reward those that use the Bush era tax write-off to by huge gas guzzlers by giving them money to buy new vehicles. Let's up the fuel tax and add a pollution tax and return the money to people to 1) fix up their old vehicles to meet current standards, or 2) replace the vehicles if they can not be fixed. We are all paying extra for health care, roads, etc to subsidize the use of these needlessly huge gas hogs. Drive what ever you want, but don't complain when asked to pay the full cost!

[grabandgo]

nobama just keeps printing more money.....

[whitemale08]

This is one step further towards outlawing used cars.

From here on out they will out law cars more then 10 years old which is in line with new payment plans of 120 months, no money down 0% APR. for a Fiat UNO @$46.000.00

[jetjt1]

I have to agree, you can't give the average american anything , after all what would be left for the fat bankers and wall street pigs

[dgal878]

Let's get it done! Three members of my household would buy new cars TODAY if we had a voucher. We drive a 1990 Buick Skylark, a 1990 Jeep Wagoneer, and a 1997 Lincoln Continental and would be glad to crush every one of them.

[Rowdy113]

Sorry, you can offer all the vouchers you want to for perfectly good running cars....people right now cannot afford to buy a $25,000 to $30,000 new car just because the government says so, and backs some global warming myth put out by Al Bore to sell his books.

I've bought the last vehicle I'm buying in this lifetime. Stop grabbing my money so somebody else can buy your krappy little tin can car that hasn't even been proved worthy yet.