Government Voucher up to $4,500 Cash for Clunkers Could Motorcycles be Added

Finally, the Senate voted today to pass the Cash for Clunkers legislation which was contained in the $106 billion war spending bill which is the money needed to continue the Iraq and Afghanistan war efforts. The bill now goes on to President Barack Obama's desk to be signed. President Obama has been a strong supporter of the fleet modernization program.

After signing the National Highway Traffic Safety Administration is allowed 30 days to create the final rules to implement this somewhat complicated program Cash for Clunkers. NHTS will also be coming out with a website for the consumer and dealers.

The passage of this program gives the consumer a strong incentive to replace their older gas-guzzling vehicle with a new, more fuel efficient car or truck. The $3,500 to $4,500 voucher to apply toward a new car purchase may put some families who could not afford a new vehicle in reach of now being able to make this purchase. The projections on new sales from this program are around 250,000 vehicles. Since the bill has only been approved for $1 billion the 250,000 vehicles would max out the program.

The program should begin by August 1 and end in November 2009.

House OKs Cash for Clunkers Legislation:

As expected, the House passed the legislation for Cash for Clunkers which will allow people to receive vouchers of up to $4,500 when they trade-in an old gas guzzling vehicle for a more fuel efficient new vehicle. The bill was part of the Wartime bill that was approved to further fund the wars in Iraq and Afghanistan.

As the bill goes before the Senate, it is a $1 billion program funded through the end of the fiscal year, which is Sept 30, 2009. Some are estimating that a minimum of 250,000 clunkers will be taken off the road due to this bill. Others are more optimistic that up to 600,000 people will take advantage of getting a new more gas efficient vehicle through the trade-in opportunity.

Again as a review, to take part in the program your older vehicle (1984 - 2001) must be drivable and continuously insured by the same owner for at least one year prior to trading the car or truck in. Also the car/truck must have a city-highway combined fuel rating of 18 mile-per-gal or less.

The Senate is expected to vote on the Wartime legislation, which contains the Cash for Clunkers bill, sometime on Weds.

Updated: 06/15/2009 12:44:50 PM EDT

If U.S. Sen. Robert Casey gets his way motorcycles will be part of the $1 billion stimulus bill.

U.S. Sen. Robert Casey said he has introduced a bill to make motorcycles part of the "Cash for Clunkers" effort to give people money if they trade in a less fuel-efficient vehicle for a more fuel-efficient one.

Senator Casey's Green Transportation Efficiency Act of 2009 (GreenTea) would provide vouchers to encourage consumers to trade in their older, less fuel-efficient vehicles for new, more fuel-efficient cars, trucks and motorcycles. Participants would receive a $2,500 voucher for the purchase of a new motorcycle. The vouchers for new cars and trucks would be a maximum of $4,500.

Casey, D-Pa., specifically mentioned Harley-Davidson's York County facility when unveiling the proposed legislation.

Harley-Davidson said last month it is considering moving operations to other U.S. locations to save costs as its motorcycle sales drop.

It is obvious Casey is trying to save jobs in PA. Who could blame him?

NEWS ALERT!

As of June 12, 2009 the House and Senate have agreed to a $1 billion appropriation for the "Cash for Clunkers" bill. The $1 billion funding is part of the much larger $106 billion Wartime spending bill. This bill is not yet law as the finalized bill must be passed by Congress. It is expected that a vote could come as soon as the week of June 15 (next week). It is felt President Obama would sign this into law immediately.

This Cash for Clunkers legislation is modeled after several programs that have already been successfully implemented in Europe. The program would offer vouchers for consumers, allowing them to save thousands of dollars on a new-car purchase if the new vehicle meets improved mpg requirements.

Cash for Clunkers is a means of getting funds into the hands of those who are most economically distressed, while simultaneously tackling the dual challenges of our oil addiction and the distressed auto industry. This program could be up and running quickly and immediately, and it would generate stimulative benefits for the economy without requiring a major new government bureaucracy. Cash for Clunkers will generate or maintain hundreds of thousands of jobs across the entire automotive supply chain. This plan would represents a another step towards our countries low-carbon future. Cash for Clunkers would also improve public health and quality of life in metropolitan areas, and begin to tackle America's debilitating dependence on oil.

Under legislation introduced Wednesday in both the House and Senate and called the "Cash for Clunkers" program, drivers could get vouchers of up to $4,500 when they turn in their old fuel-inefficient vehicles for scrapping and buy vehicles that get good gas mileage. It provides cash incentives (between $1,500-$4,500) for buying a car that exceeds the government's fuel-efficiency standards by at least 25 percent (or about 34 mpg given the current CAFE standard) and scrapping a car that gets no more than 18 mpg. The bill may also include a cash incentive for those who scrap their old car in favor of public transit. Taking the old gas-guzzler off the road and not replacing it with a car at all would have the biggest, and most immediate climate benefit.

As for a timeline, ABCNews seems to think cash for clunkers will fold into a larger climate change bill, which could be passed by the end of the year, if not sooner. This really depends on how much the opposition can sway the Senate, and to what piece of legislation this "fleet modernization" bill is attached.

If it becomes part of a larger bill that's likely to get lots of debate, it could take awhile. If it's attached to urgent, must-pass legislation, such as an appropriation bill, it could move quickly to President Obama's desk.

The current plan is to add the program as an amendment to climate change legislation now being considered.

The current proposal for this plan is to have it be in effect for one year.

Congressional Research Service Summary

The following summary was written by the Congressional Research Service, a well-respected nonpartisan arm of the Library of Congress. I did not write and have no control over this summary.

6/8/2009--Introduced.
Consumer Assistance to Recycle and Save Act - Establishes in the National Highway Traffic Safety Administration (NHTSA) a voluntary Consumer Assistance to Recycle and Save Program through which the Secretary of Transportation shall: (1) authorize the issuance of an electronic voucher to offset the purchase or lease price for a new fuel efficient automobile upon the surrender of an eligible trade-in vehicle to a participating dealer; (2) register dealers for Program participation; (3) make electronic payments to them for eligible transactions they accept between specified dates; and (4) establish and provide for the enforcement of measures to prevent and penalize fraud under the Program.
Prescribes requirements, including combined fuel economy, for $3,500 and $4,500 vouchers to offset the purchase or lease price for a qualifying passenger automobile or truck.
Limits the number of vouchers to one per customer, including joint registered owners of a single eligible trade-in vehicle.
Requires a dealer to certify about each eligible trade-in vehicle that the dealer: (1) will arrange for transfer to the United States of the vehicle's title; (2) will accept possession of the vehicle on behalf of the United States; (3) has not and will not sell, lease, exchange, or otherwise dispose of the vehicle for use as an automobile anywhere in the world; and (4) will transfer, on behalf of the United States, the vehicle and its title to an entity that will ensure that the vehicle will be crushed or shredded within the Program period, and has not been, and will not be, sold, leased, exchanged, or otherwise disposed of for use as an automobile anywhere in the world.
Prescribes standards which any regulations issued by the Secretary for the Program must meet.
Makes it unlawful for any person to violate this Act or any regulations issued under it, particularly by fraud. Prescribes civil penalties for any such violation.
Directs the Secretary to make Program information available on an Internet website and through other means.