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Car and trucks are responsible for more than 20 percent of America’s total global warming pollution. With automakers lagging in their efforts to offer cleaner, more efficient vehicles, and federal policy makers reluctant to demand that automakers produce such vehicles, we face a challenge as to how to reduce the environmental impact of the cars and trucks that will be on the road in years to come.
While comprehensive state and federal global warming regulations remain a top priority, UCS experts and others are exploring supplemental strategies for reducing the global warming pollution generated by the transportation sector specifically. One creative approach is known as “feebates”—a market-based program of fees and rebates assigned to new cars based on a vehicle’s emissions of heat-trapping gases such as carbon dioxide. Under such a program, consumers would receive a one-time rebate on the purchase of a new car that emits less global warming pollution, while consumers who bought a car with higher emissions would pay a one-time surcharge. The surcharges pay for the rebates, making the program self-financing.
California’s Clean Car Discount
In California, where cars and trucks account for 27 percent of the state’s global warming emissions, UCS helped state Assembly Member Ira Ruskin write and introduce feebate legislation earlier this year. The bill, known as the California Clean Car Discount (CCCD), proposes giving buyers of the cleanest new vehicles a rebate of up to $2,500, while imposing a one-time surcharge of up to $2,500 on the highest-polluting new vehicles. Most cars would be assigned smaller surcharges and rebates, likely averaging $1,000, and some vehicles, including some SUVs and many minivans, would fall in the “zero band” that receives neither a discount nor a surcharge. The CCCD was approved by the state assembly but faced some procedural hurdles that will force it to be reintroduced in 2007.
Estimated Fees/Rebates under the Proposed
California Clean Car Discount Program
| |
Vehicle Category |
Fee |
Not Affected |
Rebate |
|
|
Car |
Mercedes S600:
$1,396 |
Chrysler
300M:
$0 |
Honda
Accord:
$930 |
|
|
Minivan |
Volkswagen
Eurovan:
$1,158 |
Dodge
Caravan:
$0 |
Chevrolet
Venture:
$216 |
|
|
Pickup
Truck |
Chevrolet
Silverado:
$1,184 |
Toyota Tacoma:
$0 |
n/a |
|
|
SUV |
Jeep
Liberty:
$1,295 |
Ford
Escape:
$0 |
Toyota
RAV4:
$993 |
The CCCD has garnered support from a number of consumer, public health, and environmental groups, including Consumers Union and the American Lung Association. It also appears to be widely supported by the public—independent polling shows that 82 percent of likely voters support rebates for cleaner or alternative-fueled vehicles and 62 percent support fees for high-polluting new vehicles. Support was even stronger among low- to moderate-income voters, who would benefit from greater access to cleaner cars.
Consumer Choice Protected
According to research by the Consumer Federation of America, the CCCD would provide several surcharge-free options in every vehicle category, thus preserving choice for consumers searching for a specific type of vehicle. And since the program spurs automakers to improve the technology on their existing vehicle models, all new car and truck buyers would eventually benefit from greater access to affordable vehicles that reduce our contribution to global warming.
California’s Clean Car Discount program can be replicated in other states, giving consumers nationwide the opportunity to purchase cleaner, more efficient cars and trucks. As more states decide to compete in an environmentally conscious marketplace, the more our climate will benefit. Contact your state legislators and urge them to consider such a program. For more information on California’s program, visit the UCS website at www.ucsusa.org/clean_california.
Dan Kalb is California policy coordinator for UCS. Erin Rogers is California outreach coordinator.
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Cleaner Cars for All Consumers
