The U.S. House of Representatives Committee on Energy and Commerce accepted the fleet modernization amendment into the language of House Bill 2454, the American Clean Energy and Security Act of 2009, by a vote of 50-4. The amendment’s goal is to replace older, less-fuel-efficient vehicles with new, more-fuel-efficient vehicles – thus spurring new car sales in the United States. The program is referred to as “Cash for Clunkers.”
This new provision states that consumers may receive vouchers worth up to $4,500 to help pay for new, more-fuel-efficient cars with a goal of selling 1 million cars in one year. Specifically, the text states:
• The old vehicle must get less than 18 miles per gallon (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.
The Automotive Service Association (ASA) supports a Cash for Clunkers program with a vehicle repair option. ASA supports a Cash for Clunkers program with these key points:
• includes a vehicle repair option for consumers;
• programs should be administered by the states;
• vehicle participation should be tied to emissions and improving air quality; and
• repair cost allowances should be sufficient to address emissions repairs.
The amendment, accepted by the Committee, excludes a vehicle repair option, which could be harmful to independent repairers.
“Arbitrarily removing older vehicles from America’s highways would take vehicles out of independent repair bays, costing jobs and potentially closing small businesses,” says Robert L. Redding Jr., ASA’s Washington, D.C., representative. “A repair option tied to higher-emitting vehicles is the most cost-efficient, consumer-friendly approach to a fleet-modernization program. This option will also allow low-income vehicle owners who don’t have the resources for a new vehicle to now have a dependable, lower emission vehicle. This legislation has a long way to go and hopefully will improve as it moves forward.”
