Congress Considering a 'Cash for Clunkers' Fleet Modernization Program

Anonymous
Motor

Dec 31, 2008 19:00 EST

The policy of the government paying to remove older, less-fuel-efficient or high-polluting vehicles from America's highways - referred to as "Cash for Clunkers" by Princeton University's Dr. Alan Blinder in a New York Times article published last year - is receiving renewed attention from policymakers.

The "Cash for Clunkers" policy has been discussed during testimony before the House of Representative Committee on Financial Services, included in draft climate legislation by the House Committee on Energy and Commerce and proposed by General Motors in its business plan recently submitted to Congress.

The Automotive Service Association (ASA) has indicated to policymakers its support for a fleet modernization program that includes the following key points:

* Any such program must include a vehicle repair option for consumers.

* The program should be administered by the states.

* Vehicle participation should be tied to emissions and improving air quality.

* Repair cost allowances should be sufficient to address emissions repairs.

Both California and Texas have state fleet modernization programs that could serve as models for other states, and ASA is encouraging Congress to review them to determine how best to structure such a program. If a new federal law is passed that includes funds for fleet modernization programs, states would be well-served, says ASA, to set up advisory committees made up of consumers, independent repairers and new-car dealers to determine the most effective program.

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Source: Motor