(Source: Detroit Free Press & Image: Jalopnik)

WASHINGTON – The Obama administration and U.S. House members have reached a compromise over a “cash for clunkers” bill that would offer as many as one million vehicle buyers a voucher for up to $4,500 each to spur car and truck sales.

(Source: Autoblog & The Detroit News)

It’s looking increasingly likely that the United States will soon have its own Cash-for-Clunkers program. According to The Detroit News, two bills are currently competing for Congressional votes, and while they would both offer sizable rewards for turning in older vehicles, they vary in what new cars and trucks would qualify for the program.

One bill, sponsored by Rep. Betty Sutton (D-Ohio) would give the largest voucher – up to $5,000 – to purchasers of new vehicles made in the United States. Slightly smaller amounts would be granted for other vehicles made in the rest of North America, and no cash would be granted for the purchase of foreign-made cars. All cars would need to manage at least 27 mpg to qualify, and trucks would need to hit at least 24 mpg.
 
The other bill, sponsored by Rep. Steve Israel (D-New York), would offer up to $4,500 for the purchase of a new vehicle, assuming that the vehicle being traded-in gets 18 mpg or less, and the new vehicle’s fuel efficiency is at least 25% better than average for its class. No distinction would be made based on the vehicle’s country of origin.

Both would require the scrapping of older vehicles to remove them from the roadways and both would give drivers the option of trading in an old car for a bus or subway pass.

In addition to promoting energy efficiency, the idea is to boost new car sales and get vehicles on the roads with updated safety features.

The program could cost as much as $4 billion and help retire at least 1 million older vehicles. Senior congressional aides and members of the Obama auto task force met earlier this month in search of the best way to pay for and structure it.

Toyota spokesman Charles Ing said his company wants legislation to apply to all fuel efficient vehicles and adhere to U.S. obligations under the World Trade Organization.

(Source: Autoblog, Telegraph UK) 

After weeks of dithering, the Government announced a car scrappage scheme in yesterday’s Budget.  Anyone with a car registered after July 31, 1999 will get a cash incentive of £2,000 to trade in their old vehicle for a brand new one.

However, only £1,000 will come from the Government, with the remaining £1,000 coming from car firms; the motor industry had hoped that the Government would foot the entire £2,000 bill.

Participants will be able to buy any new vehicle, including small vans, rather than just low pollution models. Motorists taking advantage of the scheme must have owned the car for at least one year; it will also have to be taxed, insured and have a current MoT in order to qualify.

About £300 million has been set aside to fund the scheme, to be launched in mid-May. About 300,000 consumers are expected to benefit until the scheme ends in March 2010, unless funding runs out before then.

In the below video, you can hear Mr. Tony Whitehorn, Managing Director of Hyundai UK, welcoming Chancellor Alistair Darling’s ‘cash for bangers’ scheme announcement in the Budget.

(Source: USDOT – Office of Planning, Environment and Realty, Federal Highway Administration)

 (Source: Time)

A Lot Full of Old Clunkers For Sale

It’s no secret that one of the biggest reasons the U.S. auto industry is teetering on collapse is that, quite simply, Americans have stopped buying cars. U.S. auto sales were down 37% in March from 2008, the latest in a nearly unbroken year-and-a-half streak of falling sales. And if the cratered economy is the main culprit behind backed-up inventory at U.S. car dealers, another is that American automakers have failed to produce the more fuel-efficient vehicles that gas-price-conscious car buyers are beginning to demand. As a result, the U.S. still sends hundreds of billions of dollars overseas for oil — and adds ever more greenhouse-gas pollution into the atmosphere. 

Now what if there were a way to tackle both these problems with one policy: to stimulate demand for American cars while making the U.S. auto fleet cleaner, greener and more efficient? It sounds like the kind of slick two-for-one pitch you might hear from a used-car salesman, but that’s exactly what proponents of a “cash for clunkers” program are promising.

But is cash-for-clunkers really two-for-one? That depends. There are currently two main bills in the House and Senate, which, according to greens, are not created equal. One, sponsored by Democratic Ohio Representative Betty Sutton, allows any car from model year 2000 or earlier to be traded in, without any restriction on fuel economy. In return, car buyers will get $4,000 if they buy a new U.S. car that gets a minimum mileage of 27 m.p.g. and $5,000 if they buy a U.S. car with at least 30 m.p.g. Crucially, the new cars have to be made in the U.S. — foreign brands can qualify, but only if they’re manufactured on U.S. soil, which would disqualify super-efficient vehicles like Toyota’s Prius hybrid, made only in Japan.

Whichever bill is chosen — and others are being circulated as well — a successful cash-for-clunkers program wouldn’t be cheap. Germany’s program may end up costing the government some $6 billion, three times the initial price tag. Since Obama has said that money for the cash-for-clunkers program needs to come out of existing stimulus spending, that might take some creative accounting. But a cash-for-clunkers program, whatever its environmental benefits, would provide the government with a way to aid the domestic auto industry without giving Detroit any more direct handouts. “There’s a lot of justifiable taxpayer reluctance to keep helping the auto industry,” says Goldstein of the Center for American Progress. “Politically this is a viable alternative to sending them additional loan money.”

(Source: Washington Post) 

Without higher gas taxes, ‘cash for clunkers’ won’t do the job 

CAR SALES in Germany jumped an astonishing 40 percent in March, thanks in large part to a “cash for clunkers” program in which the government gave those handing over old-model cars roughly $5,000 toward the purchase of newer, more fuel-efficient vehicles. Lawmakers in the United States have crafted similar proposals, hoping both to provide a boost to the U.S. auto industry and to spur sales of environmentally friendlier cars. But even the best of these proposals is not likely to provide the punch of the German initiative.

Click here to read the entire article (free regn. required).  

Note:  Below is a list of articles on this issue, previously published on TransportGooru.  This compilation of articles offer an insight into state of various “Cash for Clunkers” style programs implemented (or currently being debated) across the globe (Germany, UK, etc,). Stay plugged in to TransportGooru for more on this topic in the days to come.

 Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

Britain mulls implementation of “Cash for Clunkers” scheme to boost ailing auto sales 

Where the US stands in pushing “Cash for Clunkers”- Four bills in Congress; Details Needed

(Source: Tree Hugger)

Leader in the Pack 
Rep. Sutton’s Consumer Assistance to Recycle and Save (CARS) Act would give consumers incentives of $3,000 to $5,000 for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher. She says that support is growing every day. The bill has gathered 21 co-sponsors so far, up from 19 a couple of weeks ago. The bill is still working out the metric of how cars would need to be traded in and what fuel efficiency would need to be for the new car. Sen. Dianne Feinstein has a similar proposal (with a short title of Accelerated Retirement of Inefficient Vehicles Act of 2009) that would mandate that the new car be 25% aboveCAFE standards . There has not been anything mentioned about how many cars one person or family can switch for the credit. Also, some states already have incentives for buying cleaner cars, so will individuals be able to get both state and federal credits? If so, in places like Texas , a person could get a combined total of as much as $8,500.00 for a new car.

Click here to read the entire article.  Here is the CNBC video of  the Cash for Clunkers featuring industry experts Dave McCurdy, Alliance of Automobile Manufacturers and John Wolkonowicz, IHS Global Insight.

 Note:  Below is a list of articles published on TransportGooru, offering insight into state of various “Cash for Clunkers” style programs implemented (or currently being debated) across the globe (Germany, UK, etc,).

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

Britain mulls implementation of “Cash for Clunkers” scheme to boost ailing auto sales

(Source: Spiegel Online via Business  Week)

To boost ailing carmakers, the British government is expected to offer customers a premium to exchange clunkers for new vehicles—as Germany has done

The paper writes that Darling and officials in the Treasury have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier. In Germany, Treasury officials noted, the precipitous drop in auto sales has been reversed.

The Times reported that details are still being hashed out between the Economics Ministry and the Treasury in London, but that the plan will look a lot like Germany’s. According to the paper, a £2,000 (€2,200) scrapping premium is to be given on trade-ins of any car over nine years old.

In contrast to Germany, though, Darling and Economics Minister Peter Mandelson are also seeking industry participation in the program. At the very least, they want a binding commitment that existing rebates will not be dropped because of the government program. So far though, the paper reports, the British automobile industry is resisting the government’s push for it to support the program with its own means.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal and Spain also have stimulus programs in place for carmakers suffering from thecredit crunch and global financial crisis—and the success of these stimulus efforts has been measurable. China and Brazil have also succeeded in increasing car sales again.

“A scrapping scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand,” Britain’s Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt told the Times. “The UK is the only major European market not to implement a scheme.” SMMT estimates the one-year program would cost about £160 million.

Last week, the United States also said it would adopt the successful European recipe. During a dramatic speech to the auto industry, US President Barack Obama praised the scrapping premiums as exemplary and “successful” and pledged to introduce a similar program in the US. But the program could be a lot more expensive for the United States than Britain: Already, an estimated 250 million cars and trucks are driven in America. Of those, close to 30 percent are at least 15 years old, meaning the country could have as many as 75 million candidates for scrapping.

In Germany, demand has been so strong that the government plans to extend its scrapping bonus through the end of the year. Last week, Chancellor Angela Merkel’s cabinet moved to extend the scheme until Dec. 31 and to provide €5 billion in government funding—enough to cover up to 2 million cars.

Click here to read more.   Transportgooru has already published a number of articles on this topic in earlier months.  Please feel free to explore them:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

(Source: Telegraph, UK) Germany is more than tripling the incentives on offer to buyers of new cars as it attempts to boost its auto industry, which employs around 15pc of the nation’s workforce.

The scheme offers German consumers €2,500 for trading in vehicles more than nine years old if they buy a car that is less than one year old.

Click here to read the entire article.  

TransportGooru has compiled several articles in the past reporting on similar efforts in UK (which is now contemplating introduction of  a similar program after watching the Germans successfully implement the program) & USA.  Here are the links to some of the earlier articles:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

(Source: Office of Planning, Environment and Realty Federal Highway Administration)

Recent Events

U.S. Senator Barbara Boxer Announces Principles for Global Warming Legislation. On February 3, Sen. Barbara Boxer (D-CA) announced her intent to move quickly on global warming legislation and issued principles that she would like to see included. These include setting short and long term emissions targets that are certain and enforceable, using a carbon market to fund various efforts to reduce GHG emissions, and ensuring a level global playing field so that countries contribute their fair share to GHG emissions reductions. For more information including a link to Sen. Boxer’s Principles, see the Committee’s press release.

House Subcommittee Receives Testimony on Surface Transportation Energy Reduction.On January 27, the House Transportation and Infrastructure Subcommittee on Highways and Transit heard from nationally recognized transportation experts and a panel of industry representatives about ways to reduce energy consumption and promote sustainability in the surface transportation sector.  Video of the proceedings and written testimonies (scroll down) are available on the Subcommittee website.

United Nations Conference on Trade and Development Holds Meeting on Maritime Transport and the Climate Change Challenge. On February 17, FHWA’s Mike Savonis presented (via videoconference) results from USDOT’s Gulf Coast Study Phase I to an international audience in Geneva.  Additional information and presentations from the three-day event are available on the meeting website.

U.C. Davis Provides Congressional Briefing on Low-Carbon Transportation Policies & Strategies. On January 12, 2009, the University of California at Davis (UC Davis) Institute of Transportation Studies provided a briefing to Congressional staffers on the future of low-carbon transportation. More information about UC Davis climate change activities is available on the UC Davis ITS website. (TransportGooru is proud to share a video of UC Davis’s Dan Sperling Talk about the current Transportation system and its effect on Climate change. See below)

 House Subcommittee Conducts Hearing on Monitoring GHG Emissions.  On February 24, the House Science and Technology Subcommittee on Energy and Environment conducted a hearing on how to monitor, report and verify greenhouse gas emissions.  The purpose of the hearing was to determine the federal role in the funding of research and development of monitoring technologies as well as models to support reliable baseline data for GHG emissions.  The subcommittee heard testimony from businesses, government agencies, and localities on procedures and methods that can be used to monitor, report, and verify greenhouse gas emissions.  More information can be found on the Committee’s website at: http://science.house.gov/publications/hearings_markups_details.aspx?NewsID=2359

State News

Oregon Governor Introduces VMT Fee Legislation. Following a study on charging a Vehicle Miles Traveled (VMT) fee in place of a state gas tax, the Governor of Oregon introduced legislation that could move the state closer to adopting a per mile road user fee in place of the 24-cent per gallon gas tax. Governor Kulongoski’s Jobs and Transportation Act of 2009 requires the Oregon DOT to develop VMT fee collection technology that could be used to replace the gas tax.  The Act also directs Oregon DOT to further study gas tax alternatives.

Regional Greenhouse Gas Initiative Enters First Compliance Period. The ten signatory states to the Regional Greenhouse Gas Initiative (RGGI) began their first compliance period on January 1, 2009 and the period ends in December 2011. At that time the ten Mid-Atlantic and New England states will be required to submit emissions allowances equivalent to their carbon dioxide emissions. For more information on the program, see the Pew Climate Center RGGI website.

Announcements

New Energy and Climate Change Database for Planners.  The American Planning Association has launched a new database of energy and climate change activities in planning.  You can search the database by a variety of criteria such as state, topic, planning tool, timeframe, or geographic scale.  The database includes many examples relating to transportation.  The database website iswww.planning.org/research/energy/database.

Summit on America’s Climate Choices, March 30-31 in Washington, D.C. Congress has tasked the National Academies with setting the stage for national action on climate change. In response, the Academies have launched America’s Climate Choices, a suite of activities that will provide policy advice, based on science, to guide the nation’s response to climate change. Experts representing various levels of government, the private sector, nongovernmental organizations, and research and academic institutions have been selected to serve on four panels and an overarching committee.    The Summit on America’s Climate Choices provides an opportunity for study participants to interact with major thought leaders and key constituencies to frame the questions and issues that the study will address.  Registration and webcast information are available on the Summit website.  In addition to the summit, NAS is soliciting public input on the questions and content to be considered by the America’s Climate Choices Committee through the America’s Climate Choices website through April 17. 

Reminders

Washington State Department of Transportation Climate Change Weekly Digest, The Washington State DOT has an extensive Climate Change program and the Climate Change Team issues a weekly digest on climate change issues. For more information on WSDOT’s climate change activities see WSDOT’s climate change website. To be put on the email list to receive the weekly digest, please send a note to:StarkS@wsdot.wa.gov.

U.S. DOT Launches Web-Based Clearinghouse of Transportation, Climate Change Resources. The USDOT has launched a new, web-based clearinghouse of information on transportation and climate change. The site provides an introduction to climate change and transportation and related information on greenhouse gas inventories and forecasts, methodologies for analyzing greenhouse gases from transportation, climate change and adaptation, and federal, state and local actions on transportation and climate change. The site also includes a calendar of events and will soon be enhanced to provide an opportunity for users to post and respond to discussions and receive updates by email. To access the site, go to: http://climate.dot.gov. 

Transportation Research Board Starts a New Climate Change website. Transportation Research Board (TRB) has a new website offering information on TRB activities and products addressing transportation and climate change.