The Cash for Clunkers bill move another step closer to becoming law as the measure, which was attacked to a climate change bill, was cleared by the US House Energy Committeeas reported by Dow Jones newswire. 

The Cash for Clunkers proposal passed with a 50-4 vote by members of the House Energy and Commerce Committee that is lead by Hon. Henry A. Waxman, Chairman

According to Dow Jones Newswire “  Specifically, it provides vouchers worth $3,500 to $4,500 to consumers who trade in old cars for new ones that have an average fuel economy that is between two and 10 miles per gallon higher than those being trading in. It allows for rebates on around 1 million cars, costing taxpayers $4 billion for the program.

The amendment is part of a controversial and historic bill that aims to cut greenhouse gases by 80% over the next half-century. The Democratic leadership aims to pass the bill out of committee by the end of the week and hopes to get approval for the legislation in the full House in late June or early July.”

Read full story by Ian Tally

Supporters of the Cash for Clunkers bill as well as automotive retailers across the United States are watching this bill closely.  With recent dealer locations being closed by Chrysler and GM, the bill could provide some needed relief for the battered auto industry.

Critics of the bill claim that the measure does not go far enough to mandate cars with higher fuel efficiency.  Some critcis contend that the bill should only be available for low income families and that the rich don’t need the cash incentives.

Tags: cash for clunkers, henry waxman, house energy committee