Cash for Clunkers Gets $2 Billion Extension
The federal Car Allowance Rebate System gets a hurried funding boost so Americans can continue cashing in their clunkers for cars that are more fuel-efficient.
Aug. 12, 2009
From EERE Network News
 |
Out with the old: Some dealerships, such as this one in Sierra Vista, Ariz., have set up creative and conspicuous displays to advertise their participation in the Cash for Clunkers program.
THREADEDTHOUGHTS/FLICKR
|
President Obama signed a bill last week that directs another $2 billion to the Cash for Clunkers program, officially known as the Car Allowance Rebate System (CARS).
RELATED CONTENT
Combining studies in sustainable agriculture, local food procurement, food system challenges and mo...
UN food agency says 1 billion people hungry, poor paying more for food despite recession...
Learn about how the government makes local, nutritious food available to those that can least affor...
MOTHER'S S EXPANDED SEMINAR PROGRAM FOR 1982 March/April 1982 Start planning a warm-weather vacatio...
YOU CAN STILL REGISTER FOR MOTHER'S SEMINAR PROGRAM March/April 1979 IF YOU HURRY... In MOTHER NO. ...
Originally funded at $1 billion, the CARS program officially took effect in late July, but dealers were permitted to provide rebates starting July 1. The program proved popular, raising concerns that the rebates would need to be halted in early August. To keep the program going, Congress hurried to pass HR 3435, which draws $2 billion from the U.S. Department of Energy (DOE) Innovative Technology Loan Guarantee Program, under the assumption that DOE will not spend all the money allocated to that program by the end of the year. The funds are available to the CARS program through September 30, 2010.
Although critics of the program thought the fuel economy requirements were too weak, the results from July indicate that consumers are voluntarily purchasing more fuel-efficient vehicles than those required by the program. As Obama noted, “The initial transactions are generating a more than 50 percent increase in fuel economy; they are generating $700 to $1,000 in annual savings for consumers in reduced gas costs alone; and they are getting the oldest, dirtiest and most air-polluting trucks and SUVs off the road for good.” Those results also drew support for the added funds from the American Council for an Energy Efficient Economy (ACEEE), which noted that vehicles purchased under the program are averaging close to 10 miles per gallon better than the vehicles they are replacing.
