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Clean Vehicles
California Clean Car Discount FAQs

1. What is achieved by having California apply rebates and surcharges to most new vehicle purchases?
2. How much will the rebates and surcharges be?
3. Will the Clean Car Discount Program affect used cars?
4. How much will this program reduce global warming pollution?
5. How might the Clean Car Discount Program impact low-income families?
6. Is the Clean Car Discount Program just another attack on monster SUVs?
7. Doesn't California already have strict emission standards for vehicles?
8. Why not just give tax incentives for clean vehicle purchases?
9. Is this just another program for hybrids?
10. Will our taxes pay for the rebates on cleaner vehicles?
11. What if I need a specific type of vehicle for my small business or lifestyle, such as a minivan or pickup truck? Will I have to pay a surcharge on my vehicle of choice?
12. Who has endorsed the Clean Car Discount bill?

1. What is achieved by having California apply rebates and surcharges to most new vehicle purchases?

The California Clean Car Discount achieves four goals: 

  • To encourage the purchase of cleaner cars that produce less global warming pollution.
  • To make cleaner cars more affordable for everyone.
  • To encourage automakers to manufacture cleaner vehicles.
  • To internalize some of the pollution costs imposed on society by high-polluting vehicles.

2. How much will the rebates and surcharges be?

Rebates and surcharges on new vehicles will not exceed $2,500. The average rebate or surcharge for most new vehicles will fall somewhere between $800 and $1,500, with a sizable number of new trucks, minivans, and SUVs falling into the designated “zero-band” where neither a surcharge nor a rebate will be applied. Rebates and surcharges are only applied to new vehicles at the time of purchase. 

3. Will the California Clean Car Discount affect used cars? 

No, the California Clean Car Discount deals only with new vehicle purchases; there will be no surcharge or rebate on used vehicle purchases. However, since today’s new vehicles are tomorrow’s used vehicles, this program would eventually improve the pool of used vehicles by creating an incentive to make cleaner cars more prevalent on our roads.  


4. How much will this program reduce global warming pollution?

The exact amount of emission benefits gained by this program will depend on its final structure and the mix of vehicles that are offered in the future.  UCS engineers calculate that a Clean Car Discount program, in conjunction with California's global warming standards for vehicles, can reduce global warming pollution from the tailpipe of new vehicles by an additional 21 percent. 

5. How might this program impact low-income families?

Most lower income car buyers can benefit from the California Clean Car Discount.  The bill does not apply to purchases of used vehicles. The Clean Car Discount program includes exemptions for vehicles purchased for small business purposes, paratransit, and low-income Californians. In fact many low and moderate income residents who buy new vehicles will benefit from this program because the less expensive new cars and trucks, on average, receive the greatest rebates.

Median Retail Price of New Vehicles
Those Receiving Rebates=$21,155
Those W/O Rebate or Surcharge=$30,805
Those Receiving Surcharge $35,754

 

6. Is the California Clean Car Discount Program just another attack on monster SUVs?

No, this program is based on each vehicle’s amount of global warming pollution regardless of vehicle type. While larger SUVs do emit more global warming pollution, the Clean Car program is designed so that some vehicles of nearly all types, including SUVs, will be eligible for a rebate or fall into the zero band. 

7. Doesn't California already have strict emission standards for vehicles?

California does have important standards for smog-forming pollution from cars and trucks.  However, global warming pollution from vehicles has actually increased over the past 15-20 years.  To this day, there continues to be a great disparity between the amount of global warming pollution emitted from the lowest and highest emission vehicles.  The California Clean Car Discount will provide incentives for consumers to buy cleaner vehicles and for manufacturers to make more of them available. 

8. Why not just give tax incentives for clean vehicle purchases?

The existing federal tax credit for hybrids impacts only a small portion of the market—and it expires soon.  By giving both rebates and surcharges, the program affects most vehicles and makes all types of cleaner cars more attractive, thereby having a greater impact on reducing harmful emissions. 

9. Is this just another program for hybrids?

This program provides incentives for any clean vehicle, not just hybrids. While most of the hybrid vehicles that are available will likely receive a rebate, so will a large number of conventional vehicles, including a number of minivans and SUVs.  Clean, alternative-fueled vehicles will also be incentivized. 

10. Will our taxes pay for the rebates on cleaner vehicles?

No. The Clean Car Discount program is designed to be self-financing, where the surcharges will pay for the rebates.

11. What if I need a specific type of vehicle for my small business or lifestyle, such as a minivan or pickup truck? Will I have to pay a surcharge on my vehicle of choice?

The Clean Car Discount program is designed to protect consumer choice. There will be a variety of vehicles to choose from, including SUVs, minivans, and pick-up trucks that will either receive a rebate or fall into the “zero-band” category, receiving neither a rebate nor a surcharge.

12.  Who Has Endorsed the Clean Car Discount Bill?

As of 1/20/08, the following groups have endorsed the California Clean Car Discount:

Environmental
o African American Environmentalist Association
o American Council for an Energy-Efficient Economy
o Amigos de los Rios
o Audubon California
o California Coastal Coalition
o California League of Conservation Voters
o California Native Plant Society
o Clean Air Now
o Clean Power Campaign
o Coalition for Clean Air
o Earth Day Los Angeles
o Earthjustice
o Energy Independence Now
o Environment California
o Environmental Defense
o Environmental Defense Center
o Environmental Working Group
o Friends of the Earth / Bluewater Network
o KyotoUSA
o National Hispanic Environmental Council
o Natural Resources Defense Council (NRDC)
o Planning and Conservation League
o Sierra Club California
o San Diego Audubon Society
o San Diego Environmental Foundation
o Steven and Michele Kirsch Foundation
o Transportation and Land Use Coalition

Environmental Justice
o Mujeres de la Tierra
o Pacoima Beautiful

Public Health and Science
o American Lung Association of California
o Breast Cancer Fund
o Breathe California
o California Medical Association
o California Science Teachers Association (CSTA)
o California Thoracic Society
o Our Children’s Earth
o Physicians for Social Responsibility – Los Angeles
o Physicians for Social Responsibility – SF Bay Area
o Union of Concerned Scientists

Faith-Based
o California Interfaith Power and Light
o Coalition on the Environment and Jewish Life (COEJL) of Southern California
o The Interfaith Environmental Council (Los Angeles)
o Orange County Interfaith Coalition for the Environment

Labor
o American Federation of State, County and Municipal Employees AFL-CIO (AFSCME)
o South Bay Labor Council, AFL-CIO
Consumer
o California Public Interest Research Group
o Consumer Action
o Consumer Federation of California
o Consumers for Auto Reliability and Safety
o Consumers Union
o Latino Issues Forum

Business
o Architects/Designers/Planners for Social Responsibility (ADPSR)
o Better World Club
o Better World Group
o CA Natural Gas Vehicle Coalition
o Conserv Fuel
o Environmental Entrepreneurs
o EV Rental Cars
o New Voice of Business
o Pacific Gas & Electric
o Sempra Energy (SoCal Gas Company/SDG&E)
o Silicon Valley Leadership Group
o Working Assets

Political
o Congresswoman Hilda Solis
o Democracy for America–Marin
o Democracy for America–Orange County
o Democratic Club of Claremont
o Democratic Club of the Pasadena Foothills
o Democratic Party of Orange County
o Democratic Party of the San Fernando Valley (DPSFV)
o Environmental Caucus of the CA Democratic Party
o Hubert H. Humphrey Democratic Club
o La Cañada Democratic Club
o Los Angeles County Democratic Party
o Julie Ruelas, Mayor of San Fernando, CA
o Northeast Democratic Club
o Republicans for Environmental Protection
o Sacramento for Democracy
o San Bernardino County Democratic Central Committee
o San Fernando Valley Mexican American Political
Association (SFVMAPA)
o San Fernando Valley Young Democrats
o Valley Democrats United

Public Sector
o Bay Area Air Quality Management District
o Calif. Air Pollution Control Officers Assoc. (CAPCOA)
o City of Baldwin Park
o Santa Clara Valley Water District
o South Coast Air Quality Management District 

 

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Page Last Revised: 06/10/08