Description:  Adopt a clean vehicle rebate program such as California’s SB359, passed in 2013.  Rebates between $1,000 (all vehicle owners) and $1,500 (household income at or below 225 percent of federal poverty level) are provided for the voluntary retirement of high-polluting vehicles.  The program provided higher rebates to low income households.

Why This Should Be Supported:  Rebates would be given at the point of sale based on the combination of one or more of these factors: a) Reduced State health care costs resulting from each electric vehicle’s contribution to reduced rates of respiratory diseases; b) Reduced highway runoff mitigation construction costs and reduced annual fish kill-off due to toxic pollutants dripped onto non-mitigated roadways; c) Positive economic impact because electric vehicle’s retain 80-90% of dollars being spent on gas in state’s economy.


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Estimated State Costs: 

Legislative Summary:  California AB 118 created the Enhanced Fleet Modernization Program (EFMP), under which the Air Resources Board, in consultation with the Bureau of Automotive Repair (BAR), provides for the voluntary retirement of passenger vehicles and light and medium duty trucks that are high polluters. EFMP offers:

  • A $1,000 voucher to all vehicle owners to retire a high-polluting vehicle.
  • A $1,500 voucher to low-income vehicle owners (household income at or below 225 percent of federal poverty level) to retire a high-polluting vehicle.


AB 118 derives funding for these programs from additional fees on vehicle and vessel registrations, including a $1 increase in the annual vehicle registration fee for EFMP; and from a $4 increase in the Smog Abatement Fee, paid to register vehicles that are less than six model years old and therefore exempt from smog check.