When the House passed the $2 billion addition to "Cash for Clunkers" last week, President Obama touted the environmental benefits of the soon-to-be $3 billion taxpayer funded program, promising it will "help lessen our dangerous dependence on foreign oil, while reducing greenhouse gas emissions and improving the quality of the air we breathe."

But will buying a new Hummer H-3, Chevy Suburban or Ford F-250 Super Duty pickup really reduce America's craving for crude? Somebody thinks so, because they're all eligible new cars under the Cash for Clunkers program, which gives a $3,500 to $4,500 credit to car buyers trading in older gas guzzlers for more fuel-efficient cars.

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But a close look at what qualifies as "more fuel efficient" in the program reveals loopholes big enough to drive a GMC Yukon through (yes, that's eligible, too.)

The guidelines in the House-passed bill state that large SUVs and trucks, typically considered gas guzzlers in everyday conversation, qualify for the $3,500 credit, and in some cases the $4,500 credit, depending on the trade-ins that come through the door for them. New Category 2 trucks -- like the Hummer H-3, Ford Explorer, Chevy Silverado, and Toyota Tundra -- qualify if they get at least 15 MPG combined, and get at least one mile per gallon more than the car or truck being traded in.

The larger Category 3 trucks have no fuel-efficiency rules at all, since the EPA does not rate them for MPG. The only requirement for their purchase is that a buyer be trading in a pre-2002 Category 3 truck that is as large or larger than the one they're buying. For example, you can bring in your 2001 Chevy Suburban and buy a new Chevy Suburban, and still get the $3,500 credit. The bill has no requirement that the trucks, classified by the Federal Highway Administration as "work trucks," be used for farm or construction work.

(Although Congress did not specify makes and models, Edmunds.com has compiled a list of which cars and trucks fall into which categories.)

Some senators had balked at a second round of clunker funding to be debated in the Senate this week. Sen. Dianne Feinstein (D-Cali.), had insisted that the program set stricter fuel-economy standards before she'd back it. Feinstein dropped her opposition yesterday, along with Sen. Susan Collins (R-Maine), who had also opposed the bill based on its fuel-efficiency standards. Sen. John McCain (R-Ariz.), however, has maintained his threat to filibuster the bill because of its cost.

There are limits to the guzzler upgrades. The bill stipulates that only 7.5 percent of the overall funds can go toward the larger, Category 3 trade-ins and industry experts say the program is reducing overall gas consumption.

Bailey Wood, the director of legislative affairs at the National Automobile Dealers Association, noted that the program will take 250,000 older guzzlers off the roads, and said that his dealers have reported brisk business at the trade-in level that rewards the most fuel-efficient trade-in deals. "In a survey of our members, we found that two-to-one, consumers are doing the $4,500 trade-in over the $3,500," Wood said.

So is Cash for Clunkers a real investment in better fuel efficiency or a subsidy for car makers on top of the $110 billion they've already gotten?

Rep. Betty Sutton (D-Ohio) authored the bill in the House, while Sen. Debbie Stabenow (D-Mich.) sponsored it in the Senate. Nichole Francis Reynolds, Sutton's Chief of Staff, noted that the limit on money for Category 3 trucks was added to the bill because of the concerns over their fuel efficiency. Overall, she said, "Congresswoman Sutton is very happy with the success of this program, including the 65 percent increase in the effeciency of new cars over the old."

The White House have made clear they are keeping car country concerns on the front burner. Press Secretary Robert Gibbs said that President Obama will use his lunch with Democratic senators Tuesday to urge them to pass the $2 billion extension to the program, while Vice President Biden will travel to Detroit on Wednesday. According to the White House press office, he'll deliver a speech on "the immediate steps we have taken to rescue our economy and the long-term investments we are making to rebuild for the future."


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