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

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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