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Fact Sheet

AB 493: Discounts for Cleaner Cars

Making Cleaner Cars More Affordable

California can significantly reduce global warming pollution by making cleaner cars and trucks more affordable. The California Clean Car Discount program does that by providing one-time rebates on the purchase of new cars, trucks and SUVs that emit relatively low levels of global warming pollution. The rebates are funded by surcharges on the purchase of dirtier new vehicles.

Union of Concerned Scientists (UCS) engineers calculate that the Clean Car Discount program can wipe out nearly a third of California’s global warming pollution from cars and trucks—over 75 million tons per year by 2030. This would be equivalent to taking almost 20 million vehicles off the road.

Transportation is California’s #1 Source of Global Warming Pollution

Programs such as the Clean Car Discount are needed because transportation accounts for more than 40% of the state’s global warming emissions.

If global warming continues at its current rate, California will face a sharp rise in extreme heat, a less reliable water supply, and decreased air quality—which could have a significant impact on public health and the economy. Fortunately, the most severe consequences of global warming can be avoided if emissions are reduced in time.

How the Clean Car Discount Works

If AB 493 is passed by the state legislature and signed into law by the governor, Californians will be able to receive rebates of up to $2,500 on the purchase of clean cars, trucks, and SUVs. The amount of the rebate is based on how much global warming pollution the vehicle emits—the less pollution, the higher the rebate. The average rebate or surcharge will fall somewhere between $900 and $1,450. A significant portion of vehicles, including many family-oriented minivans and smaller SUVs, will fall into a “zero dollar-band” receiving neither a surcharge nor rebate. Vehicles that emit high levels of global warming pollution will have surcharges of up to $2,500. The whole program is self-financing and applies only when you purchase a new vehicle.

Consumer Choice

All of the major consumer organizations in California support the Clean Car Discount program. Consumer Action calls the program “a creative approach to vehicle emission reductions that protects consumer choice.

Clean Car Discount Can Benefit Low-Income Californians

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 AB 493 because the less expensive new cars and trucks, on average, receive the greatest rebates.

Median Retail Price of New Vehicles

Those Receiving Rebates = $22,496

Those without Rebate or Surcharge = $27,623

Those Receiving Surcharge = $38,270

Californians Support the Clean Car Discount

According to a 2006 poll by Fairbanks, Maslin, Maullin, and Associates, 60% of likely voters support the Clean Car Discount program, with an overwhelming majority from every region, income level, and political affiliation indicating support.

graph of support for ab 493 by party graph of support for ab 493 by income level

AB 493 Endorsers (as of 01-09-2008)

Environmental

Political

Labor

Business

Public Sector

Faith-Based

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