Jan

Caifornia Bill Would Tax Polluting Cars, Rebate Low-Emission Vehicles

Posted by admin Published in Auto Blog

They’re calling it “feebate.” A bill under debate in the California Assembly would slap a one-time $2,500 tax on the sale of big polluting vehicles such as the Hummer, the Chevy Tahoe or the Dodge Viper. Some cleaner SUVs, trucks and minivans would be exempt. And buyers of relatively low-polluting vehicles such as the Toyota Prius, Honda Civic, and Nissan Sentra would get hefty rebates.

Feebate laws have been enacted in Canada, Finland and parts of the EU. Proponents argue that the free market doesn’t supply sufficient incentives for consumers to buy low-greenhouse gas vehicles. Though a preceding version of the bill narrowly losed out to pass the California Assembly, many state lawmakers are

enraged at the Bush administration’s abrogation of a state law that would have reduced tailpipe emissions by 30 percent by the next eight years.

Automakers, as you might expect, are less than thrilled with the bill. But there is growing consensus in California that the law makes better sense than strict mandates for car emissions considering it works within the market system, allowing consumers to invent choices accordingly.

Sources: Los Angeles Times, San Jose Mercury News