House Energy and Commerce Committee Democrats this week proposed a vehicle scrappage program that is significantly weaker than a similar program proposed in January.
The program announced this week by Rep. Edward J. Markey (D-Mass.), Chairman of the Energy and Environment Subcommittee, would offer vouchers of $3,500 or $4,500 for drivers to retire their gas-guzzling vehicles and purchase new ones.
As proposed, the program–dubbed "cash for clunkers"–will be authorized for up to one year and provide for approximately one million new car or truck purchases. The program divides these new cars and trucks into four categories: passenger cars, small trucks (and SUVs), large light-duty trucks and work trucks.
The proposal however, would only allow for the purchase of new vehicles and does not require significantly higher miles per gallon (mpg) averages.
The American Council for an Energy-Efficient Economy (ACEEE) said the program would do little more than assist automakers in clearing their inventory lots.
Under the program proposed in January, $5,000 vouchers could be applied to the purchase of a new or used vehicle that exceeds federal fuel economy standards by at least 25%. Alternatively, the voucher could have been applied toward the purchase of transit passes at participating local transit agencies.
The newly proposed program requires the new trucks only to be 1 or 2 mpg more efficient than the old vehicle–and cars only 4 mpg more efficient.
"A standard pickup could qualify with a sticker value of only 15 miles per gallon, well below the current corporate average fuel economy standard for trucks," the ACEEE said in a statement.
“I can’t see using taxpayer dollars to sell a Hummer H3T,” said ACEEE Transportation Program Director Therese Langer. “We would welcome incentives to retire gas guzzlers and encourage the purchase of efficient vehicles, but the proposal just isn’t there yet.”
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