US House Energy Panel Approves 'Cash-For-Clunkers' Amendment
20 May 2009 - 7:31AM
Dow Jones News
A key U.S. House energy committee approved a provision Tuesday
as part of a landmark climate bill that would give subsidies to
people trading in old cars for newer, cleaner vehicles.
The provision - passed by a 50-4 vote in the House Energy and
Commerce Committee - is designed to stimulate auto sales and cut
greenhouse-gas emissions.
Dubbed "cash-for-clunkers," it would provide vouchers to people
with heavier-polluting cars looking to trade them in for new, more
fuel-efficient models. It comes as the U.S. auto industry suffers
one of its worst financial crises in its history.
The legislation is almost identical to a bill being considered
in the Senate and has broad support across partisan lines.
Specifically, it provides vouchers worth $3,500 to $4,500 to
consumers who trade in old cars for new ones that have an average
fuel economy that is between two and 10 miles per gallon higher
than those being trading in. It allows for rebates on around 1
million cars, costing taxpayers $4 billion for the program.
The amendment is part of a controversial and historic bill that
aims to cut greenhouse gases by 80% over the next half-century. The
Democratic leadership aims to pass the bill out of committee by the
end of the week and hopes to get approval for the legislation in
the full House in late June or early July.
-By Ian Talley, Of Dow Jones Newswires; 202-862-9285;
ian.talley@dowjones.com