(Source: Detroit Free Press & Image: Jalopnik)

WASHINGTON — Congress appeared ready Wednesday to move forward on a bill to pay people to surrender their old gas-guzzlers for new, fuel-efficient models — but the auto industry hasn’t decided what it wants out of the program.

While backers of a cash-for-clunkers plan announced a deal earlier this month, the final bill has yet to be crafted because of a last-minute dispute between foreign and domestic automakers over incentives for leasing. Environmental groups aren’t thrilled with the compromise, saying it is weighted too heavily toward truck buyers.

But with House and Senate leaders, along with President Barack Obama, voicing support, industry officials say they are hopeful a bill that will boost a lethargic market for new vehicles will get through Congress in weeks. Backers say the compromise would cost about $4 billion — paid for by money from the economic stimulus plan passed earlier this year — and could boost sales by 1.3 million vehicles over a year, according to industry officials.

Owners of cars and trucks that get less than 18 m.p.g. could get a voucher of $3,500 to $4,500 for a new vehicle, depending on the mileage of the new model, but no trade-in value because the vehicles would be scrapped.

“This is a jobs bill that helps the environment,” said Ziad Ojakli, Ford’s group vice president for governmental affairs.

The plan does have several hurdles that will keep some potential buyers on the sidelines. The clunker being traded in has to be kept off the road — meaning it will have no trade-in value beyond the voucher. Far more trucks on the road will qualify for the vouchers than cars: even 15 years ago, only five models of midsize sedans managed just 18 m.p.g.

And while the compromise among U.S. House members was unveiled earlier this month, the actual bill will be kept under wraps until it is introduced with the House Democrats’ plan to control carbon emissions through a cap-and-trade system, expected no later than Monday.

Although cash-for-clunkers programs in other nations have been motivated by environmental goals to improve the mileage of vehicles on the road, environmental groups are lukewarm about the U.S. compromise.

 (Source: The Infrastructurist & Reuters)

Reuters has done a lot of interesting interviews this week from its Infrastructure Summit. In thenews service’s latest dispatch, the Senate’s transportation pointperson, Barbara Boxer, the California Democrat, who will marshal the bill through the Senate, discusses her plans for the highway bill.  

Snippets of the interview that would appeal to us are here: 

• “What I think is very important is to index the gas tax to inflation, because, obviously the gas tax is falling behind,”.
• “I also don’t want to increase the gas tax, but I want it to keep up.”
• Confident the bill would pass out of the Environment and Public Works Committee that she chairs and reach the full Senate by the end of the year.
• The Senate is also considering raising the tax on diesel, changing exemptions to the gas tax given to certain groups, taking a percentage of customs duties, relying on private finance, and charging drivers fees based on Vehicle Miles Traveled (The bill’s authors, though, have rejected attaching a small device to cars to measure VMT). 
• We’re looking at options. Are there ways for people to — an honor system, when they register their vehicles — just say, ‘This is the miles I had last year, this is the miles I have this year,’?

Related article:

Fear Growing Senator Boxer Won’t Deliver Progressive Transportation Act

(Source: Streetsblog)