'Cash for Clunkers' deal near

Washington -- Congressional sponsors of two competing bills to offer cash vouchers to retire older vehicles and spur auto sales said Thursday they are nearing agreement on a compromise.

Rep. Steve Israel, D-N.Y., a sponsor of one of the bills, said officials were "90 percent" of the way to a compromise "Cash for Clunkers" program.

The program could cost as much as $4 billion and help retire at least 1 million older vehicles. Senior congressional aides and members of the Obama auto task force met earlier this month in search of the best way to pay for and structure it.

There are two sharply differing competing proposals in Congress to offer cash vouchers of up to $5,000.

One sponsored by Rep. Betty Sutton, D-Ohio, gives larger amounts to American-made vehicles, smaller amounts to North American vehicles, and nothing to other foreign-made vehicles.

Israel's would give vouchers to the biggest gas guzzlers to be used for highly fuel efficient models.

Both would require the scrapping of older vehicles to remove them from the roadways and both would give drivers the option of trading in an old car for a bus or subway pass.

In addition to promoting energy efficiency, the idea is to boost new car sales and get vehicles on the roads with updated safety features.

Sutton's bill, endorsed by the United Auto Workers and Detroit's Big Three automakers, would give motorists vouchers of up to $5,000 for vehicles at least eight years old, to be used to buy North American-built cars getting at least 27 mpg, and trucks getting 24 mpg or better.

Israel's bill and the Senate version sponsored by Charles Schumer, D-N.Y., Dianne Feinstein, D-Calif., and Susan Collins, R-Maine, would give drivers vouchers up to $4,500 in exchange for old vehicles that get 18 mpg or less. They could be used for those at least 25 percent more efficient than similar ones with a sticker price of $45,000 or less. The newer the turn-in auto, the greater the voucher.

Toyota spokesman Charles Ing said his company wants legislation to apply to all fuel efficient vehicles and adhere to U.S. obligations under the World Trade Organization.