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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 provide sufficient incentives for consumers to buy low-greenhouse gas vehicles. Though a previous version of the bill narrowly failed 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 over 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 because it works within the market system, allowing consumers to make choices accordingly.
Sources: Los Angeles Times, San Jose Mercury News
