California Proposes to Enhance 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 vehicle scrappage program.  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.  CARB is specifically targeting for scrappage pre-1976 vehicles that are not currently required to undergo Smock Check inspections.  
According to CARB, 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 per vehicle 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 an immediate compensation of $1,000 - $1,500 for vehicle retirement. Consumers could then redeem their voucher at participating car 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.   
CARB will conduct a public hearing to consider adoption of the proposed Enhanced Fleet Modernization Program Regulation (Car Scrap).
DATE:  June 25-26, 2009
TIME:   9:00 a.m.
PLACE:  California Environmental Protection Agency
Air Resources Board, Byron Sher Auditorium
1001 I Street
Sacramento, California 95814
This item will be considered at a two-day meeting of the Board, which will commence at
9:00 a.m., June 25, 2009, and may continue at 8:30 a.m., on June 26, 2009. This item
may not be considered until June 26, 2009.
Comments to the proposal are due June 24.  To read the full proposal, go to:
Written comments must be received no later than 12:00 noon, Pacific Standard Time, June 24, 2009, and addressed to the following:
Clerk of the Board, Air Resources Board
1001 I Street
Sacramento, California 95814
Electronic submittal:
Fax submittal: (916) 322-3928