Calling all hoopties!

Congress gives green light to “cash for clunkers” bill; Obama to sign 6

The “cash for clunkers” bill is now headed to President Barack Obama’s desk, and he’s expected to sign it enthusiastically.

Obama and Vice President Joe Biden personally lobbied senators to support the bill, helping stave off a Republican-led effort to kill it.  The bill ultimately passed the Senate on Thursday as part of a large war-spending package.  The House passed the “cash for clunkers” bill last week.

The legislation puts $1 billion toward vouchers for drivers who trade in older cars for new ones that get slightly better gas mileage; the whole plan is expected to cost $4 billion, so lawmakers will have to come up with additional money if they want to keep it going for a full year, as intended. The bill is expected to subsidize the purchase up to one million new vehicles.

“This is a bill that saves jobs and helps small businesses affected by the economic downturn, all with the added benefit of helping the environment,” said Democrat Debbie Stabenow of Michigan, who sponsored the measure in the Senate.

Enviros are much less enthused, noting that the bill would subsidize the purchase of new vehicles that are only marginally more efficient than the ones they replace.

Under the program, drivers will be able to trade in vehicles of model year 1984 or later that are currently in use, and the old cars will be crushed or otherwise permanently removed from the roads. To qualify as a “clunker,” a vehicle has to average 18 miles per gallon or less. For cars, drivers could get a $3,500 subsidy for purchasing a new model that gets at least 22 mpg or 4 mpg more than the old one, or $4,500 for a new car that gets at least 10 mpg more. For light trucks and SUVs, drivers could get $3,500 for a new model that averages at least 2 mpg more than the old one, or $4,500 for 5 mpg more.

Those are pretty low standards considering that the Obama administration’s new fuel-economy rules will require cars to get 39 mpg and light trucks to get 30 mpg by 2016.

So while the bill will give a boost to the beleaguered auto industry, it won’t do much to lower greenhouse-gas emissions or the nation’s dependence on oil.

Kate Sheppard is Grist’s political reporter.

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  1. Woody Posted 9:00 am
    19 Jun 2009

    What a GREAT IDEA. Unfortunately, it will only benefit those who can qualify for credit enough to buy a NEW car. Most of them are well-enough off that they do not NEED to conserve.Meanwhile, the poor who will be buying the cheap clunkers taht the middle-class turn in will still be contributing to the carbon problem, buying ever more expensive gas to feed their inefficient--but slightly newer--pieces of crap cars...   

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  2. quiethawkjames Posted 9:34 am
    19 Jun 2009

    I have not read the bill, but I hope there is a provision that the car be in running condition and be in your name for some period of time.  If not, couldn't someone potentially buy a 'car' from a junk yard just to get the money towards a new car?  And in that sense, the bill might just help more people get more cars... something the world doesn't need.

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  3. ecle17 Posted 8:28 am
    20 Jun 2009

    From what I've read, the making and shipping of vehicles takes on average between 1/4-1/3 of the entire embodied energy used over the vehicle's lifespan (from its construction to its disposal).  The exact figure of course depends on the vehicle itself and the mileage it gets during its use.   Therefore, this bills weak requirements for purchasing a vehicle that only gets 4 more mpg (or 2 for lights trucks and SUVs) will likely lead to no net gain in energy or greenhouse emissions saved.  In fact, it will likely do the opposite, by stimulating the construction of 1 million new automobiles.  It seems to me that this is entirely another one of the Obama administration's efforts at keeping the auto industry afloat, wrapped in nice, shiny, green packaging.

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  4. scarletlew Posted 7:52 pm
    23 Jun 2009

    This is actually a good bill. I do hope that it gets implemented soon. At least you get to trade your old car and even earn from it. I hope the same goes for old car parts. I have some junk here in the garage that I want to get rid of like my iron cross running board. If it could be the same for car parts, many would be delighted too.

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  5. karamp Posted 9:00 am
    24 Jun 2009

    This bill doesn't make any sense.  The odds that someone who is currently driving an '84 or older vehicle that gets 18mpg or less, but is suddenly able to afford a new model vehicle are just very minimal.  I think it was a good idea but got lost in the details.

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  6. splashy's avatar

    splashy Posted 1:17 am
    26 Jun 2009

    So, our 87 Nissan small pickup could be traded in, and we could get a voucher for a new used vehicle that gets better gas mileage? Or does it have to be a brand new vehicle? That would be a deal that the poor might be able to get going.Enquiring minds want to know.

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