Sutton's 'Cash for Clunkers' Bill Gaining Steam

U.S. Representative Betty Sutton (D-OH) has been pushing legislation that would give people vouchers as an incentive to trade in their old used vehicles for new, more fuel-efficient vehicles. The vouchers would be worth between $3500-$4500 depending upon the MPG differential of the cars exchanged in the transaction.

Sutton, a member of the House Energy and Commerce Committee, was successful a couple of weeks ago in having her legislation (H.R. 1550) be part of the larger climate change bill working its way through Congress. Now, she has decided to re-introduce the legislation back into the House as a stand-alone bill with Senator Debbie Stabenow (D-MI) following suit by sponsoring similar legislation in that body (S. 1135). According to a press release from Sutton's office, the bill is aimed at "helping consumers purchase more fuel efficient vehicles, helping boost sales of our domestic auto and related industries and helping our environment."

Sutton's leadership on this issue is important for her constituents and politically shrewd--the 13th Congressional District, which stretches from Barberton to Akron to Lorain, has many people and businesses directly dependent upon the American auto industry. Five of the top six industry contributor categories in her 2oo8 reelection campaign were unions and labor PACs composed a majority of her PAC contributions.

Here is a summary of the legislation (posted in the Plain Dealer's Open Blog):

• Passenger Cars: The old vehicle must achieve less than 18 mpg. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.


• Light-Duty Trucks: The old vehicle must achieve less than 18 mpg. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.


• Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.


• Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of 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 environmental quality. Consumers can also "trade down," receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 - 8,500 pounds.