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1 1 (September 16, 1996)

handle is hein.crs/crsaagh0001 and id is 1 raw text is: 96-766 ENR September 16, 1996 A Clean Air Option: Cash for Clunkers David M. Bearden Environment and Natural Resources Policy Division Summary The Clean Air Act Amendments of 1990 encourage states to pursue market-based approaches to improve air quality.1 An Accelerated Vehicle Retirement (AVR) program, commonly referred to as Cash for Clunkers, is designed to provide an economic incentive for the owners of highly polluting vehicles to retire their automobiles permanently from use and to provide greater flexibility for private industry to reduce emissions by sponsoring such a program. As an alternative to retiring vehicles, some programs also may offer to pay for repairing certain automobiles to comply with a state's emissions standards. A small number of states have tested AVR programs or are developing ones for future use. This report includes information on completed pilot projects in California, Colorado, Delaware, and Illinois and on the current status of AVR programs in California, Illinois, Texas, and Virginia. Other states may be considering AVR programs. So far, states have implemented these programs on a small scale as an experiment to assess their ability to reduce emissions. AVR programs could benefit private industry, state governments, and the public by providing a potentially more economical and flexible approach to improving air quality. However, implementing an AVR program can be controversial. Automobile collectors and the automobile repair industry frequently oppose retiring vehicles. Misunderstandings over the voluntary nature of these programs have contributed to other opposition. AVR programs encourage owners to voluntarily retire highly polluting vehicles from use but do not require owners to do so. Background The objective of an AVR program is to provide an economic incentive for owners of highly polluting vehicles to retire their automobiles permanently from use or to repair them to comply with a state's emissions standards and to provide private industry with greater 1 42 U.S.C. 7410. State Implementation Plans for National Primary and Secondary Ambient Air Quality Standards. Congressional Research Service o.o The Library of Congress CRS Report for Congress Received through the CRS Web