June, 2009

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Dianne Feinstein

Friday, June 19th, 2009

Washington, DC – U.S. Senators Dianne Feinstein (D-Calif.), Susan Collins
(R-Maine), and Charles Schumer (D-N.Y.) today jointly announced an
alternative ‘Cash for Clunkers’ proposal to encourage consumers to buy more
fuel efficient vehicles.

Specifically, the Feinstein-Collins-Schumer
counter proposal would require that the newly purchased vehicle have
above-average fuel economy for its class of vehicles. The proposal would
also require that the trade-in vehicle have a fuel economy of 17 miles per
gallon (mpg) or less, instead of the 18 mpg in the House compromise.

In enacted, the Feinstein-Collins-Schumer proposal would:

Save 11,451 barrels per day. This is a 32 percent increase over the House
Compromise (8,706 barrels per day)

Save 176 gallons of gasoline per vehicle per year, which 32 percent more
than House compromise (133 gallons per vehicle per year)

Save 1.91 million metric tons of greenhouse gas emissions per year, a 32
percent increase over House compromise (1.45 million metric tons).

“The ‘Cash for Clunkers’ proposal that I’m putting forward with Senators
Collins and Schumer would place a greater emphasis on fuel economy
improvements than the House compromise — which could allow for the
scrapping of perfectly adequate vehicles in return for federal incentives to
purchase gas-guzzling vehicles. That’s unacceptable,” Senator Feinstein
said. “Our proposal, on the other hand, would achieve between 32 to 38
percent greater oil savings, save drivers 176 gallons of gasoline per year,
and cut greater greenhouse gas emissions by 32 percent more than the House
compromise. In short, this would accomplish the dual goals of stimulating
car sales and requiring more efficient vehicles. We believe this is a much
better deal for American taxpayers.”

Senator Collins said: “Federal support for purchasing new cars must also
promote greater fuel efficiency as a way to reduce our dependence on foreign
oil. The House agreement announced last week does not achieve that goal. Our
alternative proposal, which would save up to 38 percent more oil than the
House agreement, offers both economic and environmental benefits to the
nation by stimulating the purchase of new automobiles and incentivizing fuel
savings.”

“The ‘cash for clunkers’ program has the potential to help the
environment and stimulate the auto industry. Our hope is to achieve both
goals, which this proposal does,” Senator Schumer said.

Senators Feinstein and Collins, along with Senator Olympia Snowe
(R-Maine) and others, were sponsors of the enacted Ten in Ten Fuel Economy
Act, which will increase the average fleetwide fuel economy of all new
passenger cars, trucks and SUVs by at least ten miles per gallon over ten
years, beginning with model year 2011. One of the key elements of the fuel
economy law was the implementation of attribute-based Corporate Average Fuel
Economy standards, which means that the fuel economy of the class of trucks
is compared to only to other trucks, and likewise with SUVs to SUVs, and
small cars to small cars.

The revised “Cash for Clunkers” proposal introduced today would ensure
that vehicles purchased under the program do not bring down the fleetwide
averages that the Ten in Ten Fuel Economy Act intended to raise.

Feinstein-Collins-Schumer Counter Proposal

Trade-in vehicles must be 17 mpg or below. All fuel economy values are
EPA combined city/highway fuel economy, as posted on the window sticker of
new cars.

Details of Feinstein-Collins-Schumer Counter Proposal

Consumers may trade in their gas-guzzling vehicles to be scrapped – with
a fuel economy of less than 17 miles per gallon – and receive vouchers worth
up to $4,500 to help pay for the purchase of more fuel efficient cars and
trucks. The program will be authorized for up to one year and provide for
approximately one million new car or truck purchases. There are
approximately 27 million vehicles on the road today that could qualify for
trade-in under this program.

This proposal is consistent with the framework of the House compromise
legislation, and divides the cars and trucks that would be purchased with
the incentive voucher into four categories. Miles per gallon figures below
refer to EPA “window sticker” values.

Passenger Cars: The trade-in vehicle must get 17 miles per gallon (mpg)
or less. New passenger cars with mileage of at least 24 mpg – the current
average for this vehicle class – are eligible for vouchers.

If the mileage of the new car is at least 7 mpg higher than the old vehicle,
the voucher will be worth $2,500 for a new car purchase.

If the mileage of the new car is at least 10 mpg higher than the old
vehicle, the voucher will be worth $3,500.

If the mileage of the new car is at least 13 mpg higher than the old
vehicle, the voucher will be worth $4,500.

The purchase of a used passenger car with a mileage of at least 24 mpg would
qualify for a voucher of $1,000.

Light-Duty Trucks: The trade-in vehicle must get 17 miles per gallon (mpg)
or less. New light trucks, minivans or SUVs with mileage of at least 20 mpg
– the current average for this vehicle class – are eligible for vouchers.

If the mileage of the newly purchased truck or SUV is at least 3 mpg higher
than the old truck, the voucher will be worth $2,500 for a new vehicle
purchase.

If the mileage of the newly purchased truck or SUV is at least 6 mpg higher
than the old truck, the voucher will be worth $3,500.

If the mileage of the newly purchased truck or SUV is at least 9 mpg higher
than the old truck, the voucher will be worth $4,500.

The purchase of a used light-duty truck or SUV with a mileage of at least 20
mpg would qualify for a voucher of $1,000.

Large Light-Duty Trucks: Newly purchased large trucks (pick-up trucks and
vans weighing between 6,000 and 8,500 pounds) with mileage of at least 17
mpg – the current size-adjusted Corporate Average Fuel Economy Standard for
the largest pickup trucks – are eligible for vouchers.

If the mileage of the newly purchased truck is at least 3 mpg higher than
the old truck, the voucher will be worth $2,500.

If the mileage of the newly purchased truck is at least 5 mpg higher than
the old truck, the voucher will be worth $3,500.

If the mileage of the newly purchased truck is at least 7 mpg higher than
the old truck, the voucher will be worth $4,500.

The purchase of a used large light-duty truck with a mileage of at least 17
mpg and 3 miles per gallon higher than the trade-in vehicle would qualify
for a voucher of $1,000.

Work Trucks: Under the proposal, consumers can trade in a pre-1999 work
truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000
pounds) and receive a voucher worth $2,500 for a new work truck in the same
or smaller weight class. There will be a limit on these vouchers, based on
this vehicle class’s market share. 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 air quality.
Consumers can also “trade down,” receiving a $2,500 voucher for trading in
an older work truck and purchasing a smaller light-duty truck weighing from
6,000 – 8,500 pounds.

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Wall Street Journal

Thursday, June 18th, 2009

By Keith Johnson

The Senate’s “cash for clunkers” bill was initially meant to help the environment and automakers. It might do little for either—for now.

The Senate version of the car-scrappage program, which pays people to trade in old cars for new ones, was attached to a war-funding bill, which helped it overcome Republican opposition and pass yesterday.

The nitty-gritty of the cash-for-clunkers program that passed, sponsored by Michigan Sen. Debbie Stebenow, reflects its provenance: The emphasis is on spurring new car sales, not spurring sales of especially fuel-efficient new cars. Critics called it “handouts-for-Hummers.”

That’s similar to the House version, which fell short of what environmentalists said would be needed in any clunkers plan. But don’t expect miracles on the sales floor, either: General Motors CEO Fritz Henderson figures it could boost auto sales 10% overall; that compares with a 40% jump in sales after Germany started its own geld-for-clunkers deal.

The Senate bill is also under-funded: The whole program will cost about $4 billion. But only the first $1 billion is in place. That means the program would expire this fall, just after starting, unless new funding is found.

And that might just be an opportunity to burnish the bill’s environmental credentials. California Sen. Dianne Feinstein, a vocal critic of the just-passed bill, has her hopes pinned on her own tougher version. “She received ‘absolute assurance’ from Senate leaders that if the program was continued beyond November it would be modeled after the bill she pushed,” AP reports.

By Keith Johnson

The Senate’s “cash for clunkers” bill was initially meant to help the environment and automakers. It might do little for either—for now.

Posted at:
http://blogs.wsj.com/environmentalcapital/2009/06/19/cash-for-clunkers-senate-version-could-get-greener-later/

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Associated Press

Wednesday, June 17th, 2009

By Ken Thomas, Associated Press Writer

WASHINGTON (AP) — Congress approved a “cash for clunkers” program Thursday to provide government incentives of $3,500 to $4,500 to motorists who trade in their gas guzzlers for more fuel efficient vehicles after Senate Democrats narrowly defeated a Republican effort to kill the plan.

Auto state senators said the program would help hard-pressed car dealers and automakers by bringing buyers into showrooms, and they got help from President Barack Obama and Vice President Joe Biden, who made calls to wavering Democrats urging them to keep the plan alive.

“This is an emergency for families and small businesses — for an industry that has been the backbone of our economy for a generation,” said Sen. Debbie Stabenow, D-Mich., who sponsored the proposal.

Opponents said it would increase the federal debt without doing much to get expensive-to-operate vehicles off the roads.

Senate supporters of the program overcame a procedural hurdle by the plan’s leading opponent, Sen. Judd Gregg, R-N.H., on a 60-36 vote, winning the minimum number of votes needed to keep the program in a $106 billion war-spending plan that the Senate passed later Thursday.

The House approved the cash for clunkers bill last week on a vote of 298-119 and Senate Democrats attached it to the war-spending bill. The overall bill now goes to the White House for Obama’s signature.

Four Republicans — Kit Bond of Missouri, Thad Cochran of Mississippi, Susan Collins of Maine and George Voinovich of Ohio — voted with two independents and 54 Democrats in favor of the clunker measure, while Democrat Ben Nelson of Nebraska was opposed along with 35 Republicans.

Sen. Maria Cantwell, D-Wash., changed her vote to support the vehicle incentive plan and spoke by phone with Obama during the vote.

Cantwell spokeswoman Ciaran Clayton said Obama “acknowledged Senator Cantwell’s concerns that the cash- for-clunkers program … did not do enough to meet our nation’s urgent need to reduce foreign oil dependence” and vowed to work with Cantwell and others to “maximize the number of efficient cars on America’s roads.”

In addition to Cantwell, Obama and Biden reached out to Democrats Patrick Leahy of Vermont, Claire McCaskill of Missouri and Michael Bennet of Colorado, according to two people familiar with the outreach. They spoke on condition of anonymity because they were not authorized to speak publicly.

Obama has encouraged Congress to approve the consumer incentives for new car purchases as part of the government’s efforts to restructure General Motors Corp. and Chrysler Group LLC. The bill provides $1 billion for the program from July through November.

Sen. Dianne Feinstein, D-Calif., who supported a plan with more stringent requirements to receive the vouchers, said she received “absolute assurance” from Senate leaders that if the program was continued beyond November it would be modeled after the bill she pushed.

Supporters said the program, which would be implemented by the Transportation Department, was expected to be implemented by early August.

The auto industry and its union lobbied heavily for passage of the cash for clunkers plan as GM and Chrysler have received billions of dollars in government-led bankruptcies and the entire auto industry has dealt with plummeting car sales. In May, overall sales were 34 percent lower than a year ago.

Under the proposal, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 mpg. The value of the voucher would grow to $4,500 if the mileage of the new car was 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the car window’s sticker.

Owners of sport utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV got at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV was at least 5 mpg higher than the older vehicle.

Dealers participating in the program would receive an electronic voucher from the government for the trade-in to apply to the purchase or lease of a qualifying vehicle. The bill directs dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road.

The program was intended to help replace older vehicles — built in model year 1984 or later — and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.

The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared with more than 13 million in 2008 and more than 16 million in 2007.

Associated Press writer Matthew Daly contributed to this report.