Letter from Olver: House Passes Cash for Clunkers Legislation
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WASHINGTON, D.C.
As you may know, one of the top priorities of the 111th Congress has been to combat global climate change by stimulating a clean-energy economy. I am pleased to announce that on June 16, the House of Representatives took a major step toward this goal by passing H.R. 2346, the Supplemental Appropriations Act of 2009, which included the bipartisan Consumer Assistance to Recycle and Save Program, also known as Cash for Clunkers, with my support. H.R. 2346 is now awaiting President Obama's signature. This bill will stimulate the struggling auto industry, assist consumers in the market for new vehicles, and help pave the way toward a lower-carbon future.
H.R. 2346 will provide vouchers toward the purchase of new, fuel-efficient vehicles to people who trade in older, less fuel-efficient vehicles. When enacted, it is anticipated to spur the sale of up to one million more fuel-efficient vehicles that will reduce gas consumption by over 250 million gallons.
H.R. 2346 contains the following provisions for trade-ins:
Cars:
■ To be eligible for trade-in, old cars must have a rating of 22 mpg or less.
■ To receive a $3,500 voucher, consumers must buy a vehicle that gets at least 4 miles per gallon (mpg) more than their old one.
■ For a $4,500 voucher, consumers must buy a car that gets at least 10 mpg more.
Light Trucks and SUVs:
■ To be eligible, old trucks and SUVs must have a rating of 18 mpg or less.
■ To receive a $3,500 voucher, consumers must buy a vehicle that gets at least 2 mpg more than their old one.
■ For a $4,500 voucher, consumers must buy a vehicle that gets at least 5 mpg more.
The trade-in program will last one year beginning from the date the legislation is enacted and will only apply to vehicles made after 1984. Consumers must purchase new cars and trucks but they can either be foreign or domestically manufactured.
For those who wish to take advantage of this opportunity, within 30 days of the legislation's enactment, the secretary of transportation and the administrator of the Environmental Protection Agency will be required to create a Web site giving consumers directions for determining whether a vehicle is eligible for trade-in, instructions on participating in the trade-in program and a list of every new fuel efficient vehicle model eligible for vouchers. You may also contact my office for additional information.
For too long, public policy has encouraged the use of gas guzzlers. This approach has contributed to climate change, soaring gas prices, and the failure of our domestic auto industry. Cash for Clunkers is an opportunity to turn the page on these unsustainable policies by jump-starting a cleaner domestic economy.
Sincerely,
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Olver, an Amherst Democrat, represents the 1st Massachusetts District. He is the only Massachusetts representative on the House Appropriations Committee and is chairman of its Subcommittee on Transportation, Housing and Urban Development.
