By Joseph J. Schatz Congressional Quarterly
Prospects remain uncertain for Senate action this week to refinance the popular cash for clunkers" program even though the House has acted and the Obama administration is pushing senators to quickly clear the legislation. With the program basically out of money and the level of Senate support for replenishing the funds still unclear Democratic leaders are discussing their options with the White House and could wait until late in the week to act a Senate Democratic aide said.
To keep the program running were going to need to see the Senate act and I think thats what the president wants the Senate to do" White House press spokesman Robert Gibbs said Monday.
The House left town Friday after passing a bill (HR 3435) to transfer $2 billion to the program from renewable energy loan guarantees in the stimulus bill enacted earlier this year (PL 111-5). The money would be available until the end of fiscal 2010.
Congress earlier this year appropriated $1 billion for the clunkers program which was to expire when the money ran out or Nov. 1 whichever came first.
But promotions and advertisements by automakers and car dealers fueled an overwhelming consumer response essentially depleting those funds just days after it went into effect in late July.
The Senate plans to recess at the end of this week after it votes on confirmation of Supreme Court nominee Sonia Sotomayor.
Whether it will vote by then on the clunkers program officially known as the Car Allowance Rebate System remains uncertain. It may be difficult for Senate Democratic leaders to cobble together the 60 votes needed to overcome likely attempts to block any extension of the auto trade-in program.
Conservatives such as Sen. Jim DeMint R-S.C. oppose the program as unwarranted government intervention to help one segment of the economy.
And
Sens. Dianne Feinstein D-Calif. and Susan Collins R-Maine who sponsored a more environmentally friendly version of the original bill say they will insist on changes to bolster fuel efficiency gains before theyll support an extension. Sen. Mark Warner D-Va. echoed that approach over the weekend.
The Democratic aide said Senate Democratic leaders are working through process questions including whether they would try to take up the House bill or craft their own legislation.
If the Senate were to make changes to the House bill it would require House leaders to call members back from their own August recess to keep the program running or more likely delay further action until September.
Ford the only U.S. automaker not receiving federal bailout funding credited the initiative with helping it post a 2.3 percent increase in sales in July the first year-to-year rise in sales of any of the biggest automakers this year.
We had another strong month in progress before the Cash for Clunkers program started" Ken Czubay Fords vice president for U.S. marketing sales and service said in a statement Monday.
Our products our dealers and our advance preparation enabled us to leverage the program and drive traffic and sales to another level" he added.
In addition we achieved a sales increase even though we decreased incentive spending in an increasingly competitive environment."
Enacted as part of the war supplemental funding bill (PL 111-32) the clunkers program offers up to $4500 in cash rebates to help people who trade in cars or sport utility vehicles with a combined fuel economy of 18 miles per gallon or less to buy newer more fuel-efficient vehicles.
