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House Passes "Cash for Clunkers" Bill

WASHINGTON, DC - Today, Congressman Mike Michaud praised House passage of a bill, H.R. 2751, the Consumer Assistance to Recycle and Save Act (the "Cash for Clunkers" bill), that would allow consumers to 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. If passed into law, the program would help consumers starting July 1, 2009 and will be available for one year. Michaud is an original cosponsor of the bill.

"This bill will help Mainers, who otherwise might not be able to afford the purchase of a new more fuel-efficient car, replace an older more polluting model," said Michaud. "Passing this bill would be good for our environment, help create and sustain manufacturing jobs, and help Maine families reduce their total fuel costs."

Attached is a fact sheet on the bill.

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FACT SHEET ON H.R. 2751

The bill would establish the CARS program at National Highway Traffic Safety Administration under the Department of Transportation (DOT). DOT is required to promulgate regulations to implement the program within 30 days. The program will run for one year from the date the regulations are promulgated.

Older Trade-In Vehicles:

Must be in drivable condition;
Have been continuously insured to the same owner for at least one year immediately prior to trade-in;
Manufactured in model year 1984 or later; and
Have a combined fuel economy of 18 mpg or less.

New Vehicles (divided in to 4 categories) - The mpg values are EPA combined city/highway fuel economy as posted on the window sticker of the new vehicle.

Passenger Cars: 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.
Light-Duty Trucks: New light 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 truck, 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 truck, the voucher will be worth $4,500.
Large Light-Duty Trucks: New large trucks (pick-up trucks 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: 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. Vouchers are limited to 7.5 percent of total funds. 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 smaller light-duty truck weighing from 6,000 - 8,500 pounds.
Consumers must trade-in a vehicle with a maximum combined city/highway fuel economy of 18 mpg or less to be eligible for vehicle purchase vouchers. Work trucks must be traded in for work trucks.
Vehicle lease terms must be for minimum of five years.
Eligible new vehicles must have a MSRP of $45,000 or less.

        Passenger Car   Small Light-Duty Truck Large Light-Duty Truck Work Truck                         (8,500 - 10,000 pounds GVWR)
Minimum Fuel Economy for New Vehicle    22 mpg                     (EPA combined)       18 mpg                      (EPA Combined)      15 mpg                                                                                         (EPA Combined)   Not applicable, work truck to work truck only
$3,500 Voucher    - toward the lease or purchase of a new eligible vehicle      Mileage improvement of at least 4 mpg over trade-in vehicle     Mileage improvement of at least 2 mpg over trade-in vehicle     Mileage improvement of at least 1 mpg over trade-in; or trade-in a work truck for LLDT Trade-in vehicle must be a 2001 Model Year work truck or older Vouchers limited to 7.5% of total funds
$ 4,500 Voucher     - toward the lease or purchase of a new eligible vehicle    Mileage improvement of at least 10 mpg over trade-in vehicle    Mileage improvement of at least 5 mpg over trade-in vehicle     Mileage improvement of at least 2 mpg over trade-in vehicle     Not applicable

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