Sens. Dianne Feinstein (D-Calif.), Susan Collins (R-Maine) and Chuck Schumer (D-N.Y.) co-sponsored a measure today that would modestly increase the “clunker” requirement of the program and significantly raise the fuel-efficiency mandates.

The House measure would give a $3,500 voucher to a driver who trades in a car that gets 18 miles per gallon or less for one that gets at least 4 mpg more. The Senate proposal, on the other hand, sets the upper limit for the clunker at 17 mpg and requires that the new vehicle get at least 24 mpg. It would set a sliding scale, whereby a trade-in that achieves a 7-mpg improvement would earn a driver $2,500, while a 10-mpg gain would yield $3,500 and a 13-mpg increase would garner $4,500.

And while drivers could receive a voucher for a 1-mpg improvement in their trucks under the House plan, the minimum under the Senate proposal is 3 mpg.

“The ‘Cash for Clunkers’ proposal that I’m putting forward with Senators Collins and Schumer would place a greater emphasis on fuel economy improvements than the House compromise — which could allow for the scrapping of perfectly adequate vehicles in return for federal incentives to purchase gas-guzzling vehicles,” Feinstein wrote in a press release. “That’s unacceptable. Our proposal, on the other hand, would achieve between 32 to 38 percent greater oil savings, save drivers 176 gallons of gasoline per year, and cut greater greenhouse gas emissions by 32 percent more than the House compromise. In short, this would accomplish the dual goals of stimulating car sales and requiring more efficient vehicles. We believe this is a much better deal for American taxpayers.”

Ordinarily, I’d say that such an ambitious proposal would have little chance of passing, but with bipartisan sponsorship, it could actually shift the debate. The differences between the House and Senate measures will likely be reconciled in conference — that is, if the Senate is able to pass its version of the Waxman-Markey bill several months down the road. And as anyone who’s kept an eye on Washington recently can tell you, that’s a big if.

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From the Energy and Commerce Committee’s press release:

Under the agreement, consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will be authorized for up to one year and provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles per gallon figures below refer to EPA “window sticker” values.

· Passenger Cars: The old vehicle must get less than 18 mpg. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

· Light-Duty Trucks: The old vehicle must get less than 18 mpg. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

· Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

· Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.

Environmentalists will most likely be disappointed by this compromise, which draws on two competing bills. The weaker of the two original bills, sponsored by Rep. Betty Sutton (D-Ohio) and preferred by the auto industry, required that the new vehicle get at least 27 miles per gallon, while the bill favored by environmentalists mandated that the new vehicle be at least 25 percent more fuel efficient than the average vehicle in its class.

But according to standards imposed by the Department of Transportation in March, the average efficiency for cars and light trucks in 2011 will be 27.3 mpg. This compromise bill requires that a car get just 22 mpg in order for its new owner to receive a $3,500 voucher.

The clear winner in this arrangement is the auto industry, which will likely see its sales rise as people take advantage of the new incentives. The environment, it appears, will have to content itself with a distant second place.

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