From The Detroit Free Press: “WASHINGTON — The U.S. House approved an emergency $2-billion infusion for the cash-for-clunkers program this afternoon, with a plethora of lawmakers from around the country calling it a runaway success that should not be ended.”

The National Association of Auto Dealers is very supportive of the concept, but worries that a rushed or unclear process could leave dealers not reimbursed:

NADA Chairman John McEleney, an Iowa dealer, said the organization had been assured by the Obama administration that all transactions consummated through today will be honored.

“Nonetheless, until further definitive guidance on the availability of funding is provided by the administration, dealers who accept additional ‘clunkers’ deals may face a risk that they will not be reimbursed,” McEleney said.

At National Review Online, Henry Payne points to provisions of the law that merit some tough questions. From “Crush for Clunkers“:

[A] little noticed provision of the program requires that the trade-in vehicles be “scrapped, crushed or shredded.” The 136-page rulebook [PDF] by which NHTSA administers the Clunkers program is a revealing window into the planet-first ideologues that are now running our country….

[Demands] that the guzzlers be permanently shredded means that already hurting used-car and -parts businesses will suffer. By insisting that the cars not only be crushed — but also that their engines be disabled — Congress’s decree will penalize the industry at time when a dozen U.S. parts suppliers have filed for bankruptcy this year.

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A news release from the National Automobile Dealers Association, “DEALERS URGE OBAMA TO EXAMINE STATE AUTO EMISSIONS RULES FOR UNINTENDED CONSEQUENCES.”

WASHINGTON, DC— As President Obama today pushed the Environmental Protection Agency (EPA) to review state efforts to regulate vehicle emissions, the National Automobile Dealers Association (NADA) urged the administration to closely examine how those rules would actually be implemented.

NADA’s VP of Legislative Affairs, David Regan issued the following statement:

“We welcome a close examination of how the California Air Resources Board’s (CARB) rule to regulate fuel economy is in competition with the federal CAFE program.

“With almost 1,000 auto dealerships closing last year at a cost of over 50,000 jobs, we are hopeful the President and the EPA Administrator will realize that a single national fuel-economy standard set by his Administration is smarter than a patchwork of state regulations that further endanger the struggling auto industry.

“Today’s announcement provides the President a much-needed opportunity to discuss the unintended consequences by permitting a patchwork state fuel economy rules.  NADA welcomes the Administration’s analysis of the adverse effects on the national environmental, energy, and economic policies which would result from implementing a state-by-state approach that was conceived and launched without any national analysis.

“For example, apart from being completely contrary to the federal method of regulating fuel economy, CARB’s regulation would create a “cross-border” sales loophole that not only threatens the economic well-being of our dealers who sell in “California” states, it also allows CARB’s rule to be easily and legally evaded, resulting in no environmental benefit.  Congress needs to hold hearings to ascertain how many jobs are going to be lost because of this loophole, so the true cost of CARB’s rule can be known before a decision is made.”

Last week NADA released a comprehensive report, entitled “Patchwork Proven: A Single National Standard is Best for America,” on the numerous unintended consequences that will cause economic harm and provide little or no environmental benefit over standards by allowing individual states to regulate fuel economy.  The analysis clearly shows that the exemptions, loopholes, and unforeseen outcomes will come at a high price and not reduce greenhouse gases (GHGs) nationally.  The report can be found at www.NADA.org/patchwork.

Yes, it is smart for California to, in effect, set standards for Wyoming, Florida or Maine? The record of the Golden State’s policymakers isn’t so great lately: “California facing bankruptcy”

We’ll read the NADA analysis and report back…

The prepared testimony from today’s House Financial Services Committee hearing, “Stabilizing the Financial Condition of the American Automobile Industry.”

Panel 2

• Mr. G. Richard Wagoner, Jr., Chairman and Chief Executive Officer, General Motors Corporation
• Mr. Robert Nardelli, Chief Executive Officer, Chrysler, LLC.
• Mr. Alan Mulally, President and Chief Executive Officer, Ford Motor Company
• Mr. Ron Gettelfinger, President, United Auto Workers 

Panel 3

• Mrs. Annette Sykora, Chairman, National Automobile Dealers Association
• Mr. James S. McElya, Chairman and Chief Executive Officer, Cooper-Standard Automotive, Inc.
• Professor Jeffrey D. Sachs, Director, The Earth Institute; Quetelet Professor of Sustainable Development and Professor of Health Policy and Management, Columbia University
• Dr. Matthew J. Slaughter, Professor of International Economics, Tuck School of Business, Dartmouth College

And relevant coverage..

• Big Three press bailout case for second day
  MarketWatch - 54 minutes ago
  If the domestic auto industry were allowed to fail, Wagoner said, “the societal costs would be catastrophic.” Congress is in a lame-duck session in part to …
• Democrats seek to lower expectations for bailout
  The Associated Press - 1 hour ago
  CEO Rick Wagoner told the House Financial Services Committee that collapse of the US auto industry could lead to a loss of 3 million jobs within the first …
• Jockeying Continues Over Aid to US Auto Industry
  CQPolitics.com, DC - 1 hour ago
  By Joseph J. Schatz and David Clarke, CQ Staff The Senate’s top Democrat Wednesday sought to shift the burden of helping the auto industry onto the White …
• Senate seeks compromise on auto bailout as CEOs testify for a 2nd day
  USA Today - 1 hour ago
  “There is a way forward that will help protect the jobs in the auto industry, while also protecting taxpayers,” McConnell, a Kentucky Republican, said. ..

The latter refers to a statement made by Minority Leader McConnell, “A Bipartisan Path Forward to Protect Jobs, Taxpayers“:

So let me suggest a bipartisan path forward that has not yet been offered by the majority. It’s a compromise being worked on by Senators Voinovich and Bond which repurposes funds already appropriated by this Congress to fund a $25 billion loan program for automakers to build advanced technology vehicles—coupled with new taxpayer protections and federal oversight of how the money is spent. This is a proposal which I believe has support from both sides of the aisle, and that actually has the potential to pass right now—not next year.