US Voucher Program to Scrap Gas Guzzlers

Cited: BBC

Car being scrapped for cash!  Many countries already have this type of a program.  However, the program in the US ended on July 30, only a week after it began because the money was gone.  A week before, the government gave details of its clunkers scheme that was aimed at getting people to trade in their “gas guzzlers” in exchange for greener vehicles.  Now the program may have an additional $2 billion to continue according to government.  Congress is set to vote the first week of August.

The $1bn program, which was to run until 1 November, offered vouchers worth up to $4,500 for people scrapping vehicles that do fewer than 18 miles per gallon.  They needed to buy a new car with a rating of at least 22 mpg or a light truck that manages at least 18 mpg.  Similar schemes in Europe have helped ailing firms sell more cars.

The car-making industry has suffered worldwide from the economic downturn, which has pushed two of the big three US auto firms into bankruptcy protection.

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Approved dealers

In order to qualify for the vouchers, car owners needed to visit the official Car Allowance Rebate System website (www.cars.gov) to find a list of approved dealers.  Vehicles to be traded in needed to be drivable, less than 25 years old and have been insured and registered to their owners for at least a year.

The replacement vehicle must be brand-new and should have a retail price of no more than $45,000.  Neither the old car nor the new one has to be US-made. The scheme covers domestic and foreign-made vehicles alike.  As the website makes clear, the stated purpose of the scheme is to promote fuel efficiency.

“Oil is a non-renewable resource and we cannot sustain our current rate of use indefinitely. Using it wisely now allows us time to find alternative technologies and fuels that will be more sustainable,” it says.

However, similar schemes in other countries, notably the UK and Germany, have acted as a stimulus to the economy by boosting car sales and production.  In fact, one dealership in Phoenix Arizona, Bill Luke Chrysler has stated that they doubled sales during the week.

The measure was introduced by US Senators Dianne Feinstein (D-CA), Susan Collins (R-ME), and Charles Schumer (D-NY) in January and was to establish a national voucher program to encourage drivers to trade in older, less fuel efficient cars, trucks or SUVs for a more fuel-efficient vehicles or to use mass transit. Companion legislation was also introduced in the House by Representatives Steve Israel (D-NY), Jay Inslee (D-WA), Barbara Lee (D-CA), and Dennis Moore (D-KS).

The Accelerated Retirement of Inefficient Vehicles Retirement Act of 2009 (ARIVA), also called the “Cash for Clunkers” program, would reimburse drivers with a credit of up to $4,500 for scrapping vehicles with a when-new fuel economy rating of less than 18 mpg US as reported by the original manufacturer for purposes of CAFE compliance. (CAFE compliance figures are lower than the adjusted EPA fuel economy ratings for consumers.)

Eligible drivers would receive a reimbursement voucher for the purchase of a new or used vehicle with a fuel economy rating that exceeds the CAFE target for that class of vehicle by at least 25%. The bill also requires that the voucher be used towards the purchase of a vehicle that has an MSRP of less than $45,000, is model year 2004 or later, and meets or exceeds federal emissions standards. Drivers who apply for the program must ensure that their vehicles are in driveable condition and are currently registered in the US.

Vouchers could also be redeemed for transit fares for participating local public transportation agencies. The program would operate for four years, from 2000-2012, and is expected to encourage the early retirement of up to one million vehicles per year.

The bill specifies that during the first year of the program, vouchers will be issued for the following amounts:

In each subsequent year (2010, 2011, and 2012), the model years would be advanced by one year. Vouchers would be eligible for redemption for up to two years after the date of issuance, and no individual would be eligible to obtain more than one voucher in any three-year period. Dealers, dismantlers and scrap recycling facilities would also be eligible for a payment of $50 per vehicle, or an alternative amount to be specified by the Department of Energy.

Once implemented, the program would, as estimated by the American Council for an Energy-Efficient Economy (ACEEE):

Save between 40,000 to 80,000 barrels per day of motor fuel by the end of the fourth year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

Reduce greenhouse gas emissions between 6.6 million metric tons to 7.6 million metric tons, or the equivalent of removing 1.1 million to 2.2 million vehicles from the road in one year, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

Reduce NOx by 3,043 short tons (2,761 metric tons) by 2013, (based on an estimated 500,000 to 1,000,000 vouchers issued per year).

While participation in the voluntary program was hard to gauge, ACEEE said, its preliminary estimates are that 575,000 vehicles would be retired annually, and that fuel savings would reach 46,000 barrels per day by 2013.  However, on July 30 the government stopped the program.  Many car dealerships are in a frenzy trying to make sure that they get their money from the program.

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My Take: It seems that somebody messed up somewhere!  This program was supposed to go on for several years until all the gas-guzzlers were off the road.  I guess the gas-guzzlers are here to stay.  Many people cannot afford to buy “green” vehicles because they cost too much.  That was another reason for the program, to help people purchase the vehicles.  After a couple a days, the government announces that it has another $2 billion program.

I guess all those new drivers will be looking for an academy driving school in NY.  That also means that the DMV in NY will still be passing out less license plates for gas-guzzlers.  Of course, that does not mean that anybody was learning to drive should not take driving safety courses.  Of course, now new and old drivers can take a defensive driving class online instead of actually going to a classroom.

I still think the government needs to get their sh-t together!  Maybe if some of these senators and congressmen took a cut in pay they could afford more programs like this.  You know, they might even be able to help the budget.  It seems like everybody else in the country is taking a pay cut why not them as well.  Even if people would just take the bus, metro rail or even the subway to work would help.

However, people like their independence too much.  People enjoy the ability to get out and go where they want when they want.  Even if that drive is to work and home again, many people enjoy it.  Although, in some cities I would never get into the traffic jams because too many people get angry and cause more problems.  This is one problem that will take longer to solve.

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