Feinstein, Collins and Schumer Introduce "Cash for Clunkers" Bill
Full Article:

Washington, DC Jan. 14, 2009 - A measure introduced today 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 enable and encourage drivers to voluntarily trade in their older, less fuel efficient car, truck or SUV for a more fuel efficient vehicle.

Specifically, the so-called "Cash for Clunkers" program would reimburse drivers with a credit of $2,500 to $4,500 for drivers who turn in fuel-inefficient vehicles to be scrapped, and purchase a more fuel efficient vehicle. The traded-in vehicles must have a fuel economy of no more than 18 miles per gallon, be in drivable condition, 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.

"Last Congress, we successfully enacted legislation - which I authored with Senator Snowe and others - to improve the fuel efficiency of America's fleet of new cars, trucks and SUVs by at least 10 miles per gallon over 10 years. But we face real challenges with trying to encourage drivers to trade in their older, less fuel efficient vehicles - particularly in this tough economic climate," Senator Feinstein said.

"This bill will help address that problem. It will create a voucher program to reimburse drivers who trade in their old cars, trucks and SUVs with a coupon of $2,500 to $4,500, depending on the fuel efficiency of the purchased car. 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. I'd like to thank my colleague Senator Salazar for his leadership in helping to craft some of the bill's key concepts," Senator Feinstein added.