| May 21, 2007 |
New Study Finds CA Clean Car Discount Would Save Car Buyers Money, Cut Global Warming Pollution
New Study Finds CA Clean Car Discount Would Save Car Buyers Money, Cut Global Warming Pollution
BERKELEY (May 21, 2007) — A proposed bill in the California legislature would save car buyers money, significantly reduce global warming pollution, and boost revenues for auto dealerships, according to a study released today by the University of Michigan. (The study, written by Dr. Walter S. McManus, a former automotive economist and the head of the Transportation Research Institute's Automotive Analysis Division at the university, is available at http://www.umtri.umich.edu/news.php?id=1455.)
The Clean Car Discount Bill (AB 493), introduced by Assembly member Ira Ruskin (D-Redwood City), would establish a self-financing system of one-time rebates and one-time surcharges for new cars based on the amount of global warming pollution they emit.
"This bill is smart policy that can put money back in drivers' pockets and deliver cuts in global warming pollution at the same time," said Spencer Quong, a senior vehicles analyst at the Union of Concerned Scientists (UCS). "California has been leading the way on innovative environmental policy and the clean car discount would be another huge step forward."
Under the bill, new car buyers would have a wide array of options, Quong said. Models in each vehicle type—cars, minivans, pickups, and SUVs—would qualify for rebates or fall into a "zero band" where no rebate or surcharge would apply.
"The bill uses the power of the market to put cleaner cars on the road," he added. "No matter what kind of vehicle Californians would want to buy, they would have a ton of options and the opportunity to save money on a clean car."
UCS has compiled a list of example vehicle models from the 2002 model year to demonstrate how the bill would assign rebates and surcharges if it had been implemented at that time. According to Quong's analysis, very clean cars like the Toyota Corolla would qualify for a rebate over $2000, while highly polluting ones such as the Dodge Viper would incur a maximum $2,500 surcharge.
Popular SUVs such as the Toyota RAV-4 and Honda CR-V would qualify for rebates of nearly one thousand dollars. Consumers would still be able to purchase other SUVs, such as the Toyota Highlander and Ford Escape, without a surcharge.
Minivans such as the Dodge Caravan, Chrysler Town & Country and Honda Odyssey also would fall into the zero band along with several pickups, such as the Toyota Tacoma, Ford Ranger, and GMC Sonoma. Highly polluting vehicles such as the Ford Excursion and Hummer H2 would incur the maximum surcharge of $2500.
The clean car discount bill contains provisions to exempt small businesses, emergency responders, low-income drivers and disabled drivers from vehicle surcharges.
The Union of Concerned Scientists puts rigorous, independent science to work to solve our planet's most pressing problems. Joining with citizens across the country, we combine technical analysis and effective advocacy to create innovative, practical solutions for a healthy, safe, and sustainable future.

