After much debate, the Congress has devised a cash-for-clunkers deal that would grant vouchers to up to 1 million new-car buyers who trade in an old car to be scrapped that gets 18 mpg or less, if the new car gets at least 22 mpg. Those who buy cars that are EPA-rated for more than 28 mpg would get a $4,500 voucher.

The program is modeled on a similar law in Germany which has been credited with boosting car sales there.

According to the Detroit Free Press, the measure does not contain any provision requiring the cars to be made in the United States. That measure had been controversial with import-branded automakers, and international groups claimed it was a violation of free trade agreements.

The fuel economy provision would both aid the environment and improve national fuel independence. Some groups have noted that accelerating the production of new cars, and thereby replacing older models before their time, will cause more environmental damage than driving less fuel-efficient older cars does, while others voices have called for even more aggressive mileage figures for new models. The vouchers could also be used for public transportation.

Here’s a chart that lays out the details of the program:

*Trade-in must be at least pre-2001.

Plus, getting older cars off the roads will get more people into cars with more safety equipment; older cars typically do not have stability or traction control; side- and head-protecting air bags; or even anti-lock brakes.

We think the proposal is a good start because it aims to take less efficient, and less environmentally friendly, vehicles off the road, while promising stimulus to the auto industry.

—Eric Evarts

Update: President Obama signs Cash for Clunkers bill.
For more information on the Cash for clunkers program, see our guide.