“Cash for Clunkers bill”

Enthusiasts are likely to spread the word about the current “Cash for Clunkers” proposal introduced by Senator Diane Feinstein. The goal of the program is to reduce fuel usage while stimulating the industry, by giving people a credit when they trade in a vehicle with an EPA rating of under 18 miles per gallon (presumably using the “generous” older method still used for CAFE) when new. They would need to trade that in for a new or used vehicle whose gas mileage exceeds federal targets for its class by at least 25%, costing under $45,000. The program is estimated to cost between $1 billion and $2 billion per year; credits would be $3,000 or $4,500 for vehicles made in 1999 or later, or $2,000 for vehicles made in 1998 or earlier. 

The bill has not been officially supported by either party’s leadership or the White House, and has not passed the Senate.  (See an editorial on this bill.)