In response to overwhelming public response to the Consumer Assistance to Recycle and Save Program — more commonly known as Cash for Clunkers — the U.S. House of Representatives approved a $2 billion extension for the program on July 31. The program was created as a way to improve overall fuel efficiency of U.S. cars currently being used and, as a result, reduce the total amount fuel required and greenhouse gas emissions introduced into the atmosphere, as well as to provide a boost for U.S. automakers.
Unfortunately for renewable energy producers, the Cash for Clunkers program’s success is their loss. The money given by the House to Cash for Clunkers was removed from a $6 billion chunk allocated earlier this year to the U.S. DOE for its loan guarantee program — an almost ironic move considering that the loan guarantee program was established to fund new technologies created to reduce greenhouse gas emissions.
According to Stephanie Mueller, press secretary for the DOE, Energy Secretary Steven Chu is not concerned about the shuffling of funds and continues to support the Cash for Clunkers program, however he does plan to work to restore the removed DOE funding. “In the meantime, we are moving ahead aggressively with the loan guarantee program,” she said, “including [the recent] announcement of more than $30 billion in loan guarantees available to support clean energy projects.” (Read “DOE solicits Loan Guarantee Program applications” for more information.)
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The U.S. Senate is expected to pass the extension by Aug. 7.
