The Senate voted June 18 to approve the Cash for Clunkers legislation, which was contained in a $106-billion war-spending bill. It passed after a failed attempt to remove the vehicle incentive language from the bill.

The legislation will proceed to the White House, where President Obama, who has previously called for passage of a fleet-modernization program, is expected to sign the bill into law.

Once signed into law, the National Highway Traffic Safety Administration (NHTSA) is allowed 30 days to create the rules to implement the Cash for Clunkers program and to establish an informational Web site for consumers and dealers. Cash For Clunkers will provide up to $4,500 to car owners who trade in their present vehicle for a more fuel-efficient and environmentally friendly model.

Owners of cars that get less than 18 miles per gallon or who buy a car with at least a 10-mpg improvement would be eligible for the maximum voucher. Those who choose a car with a 4-mpg improvement would qualify for a $3,500 voucher. SUV and truck owners qualify for the program under slightly different qualifications.

The official name of the program is CARS – “Consumer Assistance to Recycle and Save Program” (www.ConsumerAssistanceToRecycleAndSaveProgram.org) – and is Title XIII of Bill H.R. 2346. The program will receive an initial allocation of $1 billion funded by the U.S. government as a part of a war appropriations bill.