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[Moderator moved from Photoshop to PS Elements.]
Start with the Eraser brush tool.
Sample the sky color first and put it into your background color palette. See this short video for more details.
Hope that helps.
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There are several different tools and techniques that can be used. Here are a few:
Make sure that Content-Aware is selected in the Use dropdown and click OK. The selected area should be replaced by some "white sky".
Now having gone through all these steps, I have remembered that Elements actually has a Restore Old Photo Guided Edit which will guide you through using these tools and others.
Hope this helps.