SEMA eNews Vol. 12, No. 22, June 4, 2009

California Proposes to Enhance State Vehicle Scrappage Program

SEMA is opposing a California Air Resources Board (CARB) proposal to spend roughly $30 million annually for an Enhanced Fleet Modernization Program (EFMP) to augment the state's existing voluntary accelerated vehicle retirement program (scrappage).

The proposal would provide incentives statewide for vehicles not currently eligible under the Consumer Assistance Program by removing the existing requirements that vehicles be subject to and fail smog check to participate. Allowing vehicles that are not currently undergoing registration or that have passed their smog check to participate greatly expands the vehicle population that can be retired.

Participants would receive $1,000 or $1,500 per vehicle if they meet low-income requirements. The proposal would also establish a pilot voucher program in the South Coast and San Joaquin Valley air basins that targets the highest-emitting vehicles and requires their replacement with newer, cleaner vehicles. The local air districts would work with the Bureau of Automotive Repair (BAR) to determine vehicle eligibility and low-income status.

Once approved, the districts would provide the applicant a Letter of Eligibility from BAR and a redeemable voucher. Consumers would retire their vehicle at a participating dismantler, receiving immediate compensation for vehicle retirement. Consumers could then redeem their voucher at participating dealerships toward the purchase of a replacement vehicle. CARB is proposing that the voucher compensation be $2,000 or $2,500 per vehicle depending on income level. Comments to the proposal are due June 24.

For more information, visit http://eshist.bna.com/cgi-bin/eshstate?ca_19346p1.

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