Greenify by Cashing Out a Clunker?

January 29, 2009

A measure introduced this past week by U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins (R-Maine), and Charles Schumer (D-N.Y.) would establish a national voucher program to encourage drivers to trade in older, less fuel efficient cars, trucks or SUVs for a more fuel efficient vehicle.

It’s billed as the “Cash for Clunkers” program.  It would give drivers a credit of between $2,500 and $4,500 to turn in fuel-inefficient vehicles to be scrapped, and purchase a more fuel efficient vehicle. The traded-in vehicles would have to be drivable, have a fuel economy of no more than 18 miles per gallon, and have been registered for at least the past 120 days. Vouchers could also be redeemed for transit fares for participating local public transportation agencies. The program would operate for four years, from 2009 – 2012, and is expected to encourage the early retirement of up to one million vehicles per year.

This is Congress’ attempt at encouraging drivers to trade in less fuel efficient vehicles in a tough economic client. 

“If enacted, this bill would be an important part of helping getting America’s struggling automobile industry back on its feet – and help consumers who are concerned about covering the cost of buying a more fuel efficient vehicle,” said Senator Feinstein.

The bill would also…

  • Save an estimated 40,000 to 80,000 barrels per day of motor fuel by the end of the fourth year.
  • Reduce greenhouse gas emissions between 6.6 million metric tons to 7.6 million metric tons, or the equivalent of removing 1.1 million to 2.2 million vehicles from the road in one year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).
  • Reduce nitrogen oxides, which cause ground-level ozone (a leading cause of respiratory health problems, like asthma), by 3,043 short tons (2,761 metric tons) by 2013, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

The senators hope this will compliment a new fuel economy law, which if passed, will raise average fuel economy standards for America’s fleet of vehicles by at least 10 miles per gallon over 10 years or from 25 to at least 35 mpg by the year 2020.


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