Markey Statement on 'Cash for Clunkers' Agreement

WASHINGTON, D.C. – Rep. Edward J. Markey (D-Mass.), Chairman of the Energy and Environment Subcommittee issued the following statement after members of the House Energy and Commerce Committee reached an agreement on a fleet modernization, or “cash-for-clunkers,” proposal:

“This deal is a triple play for our country,” said Rep. Markey. “Consumers can trade in their old gas-guzzlers for a new, more efficient vehicle, we can reduce our dangerous dependence on imported oil, and help the struggling American auto industry get back on its feet. This deal is about saving American consumers money both at the pump and at the dealership.”

“As with most compromises, this one took a great deal of work and time, and I salute my Colleagues – Ms. Sutton, Mr. Inslee, Mr. Stupak, Mr. Dingell, and of course Chairman Waxman, for all their leadership. I also want to thank the President for his support and White House assistance as we worked through the details.”

“This deal also demonstrates how Representatives from both coasts and the Rust Belt can reach agreement on difficult issues, and I expect more of the same as we continue to negotiate comprehensive energy and climate legislation.”

Below is a fact sheet on the details of the agreement:

“Cash for Clunkers” Agreement

Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, 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.  The agreement divides these new cars and trucks into four categories.  All mpg below relate to the values displayed on new vehicle window stickers.

Passenger Cars:  The old vehicle must get 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.

Small Trucks (and SUVs):  The old vehicle must get less than 18 mpg.  New small 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 vehicle, 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 vehicle, the voucher will be worth $4,500.

Large Light-Duty Trucks:  The old vehicle must get less than 18 mpg.  New large trucks (pick-ups 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 pick-up or van weighing between 6,000-8,500 lbs.

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