Senator Dianne Feinstein (D-Calif.) has introduced a rival "Cash for Clunkers" bill to encourage drivers to trade in older, less fuel-efficient vehicles for new fuel-efficient ones.
It´s similar to a measure being considered in the House that has been criticized as little more than a way to help automakers clear their new inventory. However, the Senate bill is more strict–requiring trade-ins to have a fuel economy of 17 miles per gallon (mpg) or less instead of the 18 mpg in the House bill.
The Senate measure, co-sponsored by Sens. Susan Collins (R-Maine) and Charles Schumer (D-N.Y.) also requires that the newly purchased vehicle have above-average fuel economy for its class of vehicles, and vouchers would be tiered to provide more money for the purchase of vehicles with greater efficiency.
For instance, if the mileage of a new car is at least 7 mpg higher than the old vehicle, the voucher will be worth $2,500. 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 bill also allows for the purchase of used vehicles that achieve a minimum efficiency.
"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," Feinstein said.
Feinstein said her measure would save 11,451 barrels of oil per day, a 32% increase compared with the House compromise measure. In addition, her measure would reduce greenhouse gas emissions by 1.91 million metric tons per year, a 32% increase over the House measure, she said.
A detailed comparison is available at the link below.
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