House Dems Agree On Cash For Clunkers, Not Cap And Trade

House Democrats wrapped up their meeting with President Obama, saying they’ve reached an agreement on the cash for clunkers program, but cap and trade is still a long ways away.

Cash for clunkers provides rebates for drivers unloading their old gas guzzling cars for new, better for the environment types. In April, a FBR Capital analysis said the program would be ineffective, as “less than 5% of U.S. vehicles will be able to participate.”

This program is part of the 600+ page energy bill that’s moving through the House of Representatives that includes the cap and trade program.

The Democrats still can’t come to terms with the cap and trade program. The problem is that different Reps think the cap and trade program will add more costs for their regions.

Poitico: Rust Belt state Democrats want protections to keep manufacturing jobs and factories at home, particularly for the most energy-intensive industries like paper, steel, and aluminium. Southern Democrats, who argue that their region is “solar and wind-poor,” want to minimize the requirements for renewable energy production and give credits for a wider range of fuels, including nuclear and hydropower. And Oil Patch Democrats want help for oil refineries dealing with new regulations.

The Dems are optimistic after the meeting, hoping that the cash for clunker compromise will provide a framework work to establishing the cap and trade program.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.