'Feebate' helps environment with market forces

Mercury News Editorial
28th Jan 2008

California's path-breaking effort to cut global warming emissions from cars is stalled by an epic battle between the state and the U.S. Environmental Protection Agency.

That's all the more reason California legislators should pass an innovative law that would go just as far in fighting climate change caused by vehicles.

AB 493 would establish a "feebate" system encouraging consumers to buy clean, fuel-efficient cars. Consumers purchasing high-emissions gas guzzlers would pay surcharges, while those buying fuel-sipping, low-emissions vehicles would get rebates.

The legislation, by Assemblyman Ira Ruskin, D-Los Altos, is likely to come up again for a vote in the Assembly this week, after failing to advance in June. The vote was 35 to 35, with 10 Democrats from Southern California abstaining. This time, the Assembly should pass it so it can move to the Senate.

The measure represents a creative, market-based approach to fighting climate change. It encourages consumers to make socially responsible purchasing decisions. It would help force car companies to produce more fuel-efficient, cleaner cars. And it would make a big difference without requiring taxes or costing the government money.

Starting with the 2011 model year, consumers buying new cars, pickups, minivans and sport-utility vehicles would receive rebates or pay surcharges of $100 to $2,500, depending on the amount of emissions. A Toyota Prius hybrid would come with a $2,500 rebate, while a Hummer would come with a $2,500 surcharge. The fees would pay for the rebates.

Car-makers and dealers have opposed the bill, saying it isn't necessary and would limit consumer choice.

But the measure has been carefully crafted, and preserves choice and flexibility. Among all vehicles sold in 2006, 24 percent would have fallen in the middle, without a fee or rebate, while 41 percent would have received a rebate, and 35 percent would have been subject to a surcharge, according to the Union of Concerned Scientists, the bill's sponsor. The measure also exempts vehicles purchased by businesses with less than 25 employees, the poorest consumers, and operators of emergency vehicles.

Most important, the bill would let California move ahead in reducing global warming even as it battles the EPA over tough new state standards for tailpipe emissions. That court fight could take years, delaying implementation of a 2002 state law that would cut greenhouse-gas emissions from vehicles 28 percent by 2016.

But the feebate legislation is ready to go and could cut emissions 27 percent by 2016.

California must reduce emissions sharply and quickly to meet the targets of AB 32, its landmark global warming law. So when lawmakers again consider AB 493, they should vote to give California another tool to combat global warming.

http://www.mercurynews.com/opinion/ci_8098395?nclick_check=1