Feebate

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A feebate is a policy to strengthen the market for environmentally preferable vehicles by charging a fee or paying a rebate to purchasers, depending on environmental performance and fuel efficiency of the vehicles. Policy priorities will shape a feebate: whether it targets greenhouse gas emission, oil consumption, or criteria pollutant emission; the selection of the set of subject vehicles; revenue objectives; manufacturer impacts: and equity.



Contents

Status (2005)

Cunnecticut

A bill was signed directing the Commissioner of Environmental Protection to “develop a plan for the implementation” of a feebate by Governor in June 2005. Based on their emission of greenhouse gases, the plan allows an increase or decrease of up to 3% in the state sales tax on vehicles. The Commissioner is required to consult with stakeholders, including the auto industry, in developing a plan that is to be submitted to the General Assembly by the start of year 2006.

Here is the text of the bill[2]

District of Columbia

In 2004, the D.C. Council raised from 7 to 8% the excise tax on "luxury" SUVs, defined as those weighing 5000pounds or more, and increased registration fees for these vehicles by $40. Fees for hybrids were reduced by comparable amounts.

Maine

Bill LD305 was introduced in 2005. This bill levy a 5% surcharge on the purchase or lease of a new vehicle that does not achieve 27.5 MPG (CAFE Standard). It failed in the Senate in March 2005.

Massashusetts

Here is the text of the bill[3]

North Carolina

Senator Jenkins introduced Bill 1038, Mobile source Emissions Reduction Program. This program would charge vehicles a registration fee based on miles traveled, emissions of pollutants, and fuel consumption. The bill was sent to the Agricultural/Environmental/Natural Resource Committee in March 2005. The legislative session us nearly over, and the bill will not be acted upon in 2005.

Here is the text of the bill[4]

Rhode Island

In 2003 and 2004 legislative session, bills to establish a feebate based on carbon dioxide emissions were introduced, however, they did not pass. The 2004 bill set an initial rate of $2400 per pound of carbon dioxide per mile (approximately $470 per gallon per mile for gasoline vehicle) and a pivot point of 0.78lbs. per mile (approximately 25.1 miles per gallon, using combined city/highway fuel economy adjusted by EPA). The pivot point was set at a level that require well over half of all vehicles to pay a fee.

In 2005, no bill related to feebate was introduced.

Here is the text of the bill[5]

Vermont

Canada

For many years, feebates have been under consideration at the national level in Canada. In March 2005, the government has announced its intention to investigate adoption of a feebate to complement an agreement reached with automakers on carbon dioxide reduction. The National Round Table on the Environment and the Economy has been asked to develop feebate options for the next budget cycle. The government is also interested in extending the concept of feebates beyond vehicles to home appliances.

Here is the text of their budget plan[6]

E.U.

In France, the environment ministry proposed a feebate. The fee is based on carbon dioxide emissions, ranging from a fee of €3500 to a rebate of €700.

Manufacturer Impact

Fees and Rebates for Most Popular Vehicles and Hybrids at $1000 per 0.01 Gallons per Mile


Cars Type Est. MPG (lab55/45) Single pivot point Separate car and truck pivot points
Toyota Camry 31.4 $880 $275
Honda Accord 30.7 $808 $203
Honda CIvic 38.9 $1,494 $890
Nissan ALtima 29.8 $709 $105
Chevrolet Impala 28.1 $506 -$99
Toyota Collora 39.0 $1,501 $896
Ford Taurus 26.3 $263 -$342
Chevrolet Cobalt 33.1 $1,044 $439
Chevrolet Malibu 31.0 $839 $234
Ford Focus 32.9 $1,026 $431
Toyota Prius 65.8 $2,545 $1,940
Honda Civic Hybrid 56.3 $2,289 $1,684


Trucks Type Est. MPG (lab55/45) Single pivot point Separate car and truck pivot points
Ford F-150 18.2 -$1198 -$568
Chevrolet Silverado 19.1 -$743 -$113
Dodge Ram 17.5 -$1,370 -$740
Ford Explorer 18.3 -$1,143 -$513
Dodge Caravan 24.8 $33 -$633
GMC Sierra 19.2 -$743 -$113
Chevrolet TrailBlazer 18.4 -$1,116 -$487
Jeep Grand Cherokee 20.5 -$630 $0
Chrysler Town & Country 24.3 -$50 $580
Honda Odyssey 25.7 $174 $804
Ford Escape Hybrid 36.7 $1,533 $2,163

Negative numbers are fees

Act of Congress

References

[1] VEHICLE EFFICIENCY INCENTIVES: AN UPDATE ON FEEBATES FOR STATES

[2] AN ACT CONCERNING A CONNECTICUT CLEAN CAR INCENTIVE PROGRAM

[3] Senate NO.2438

[4] North Carolina General Assembly: Senate Bill 1038

[5] STATE OF RHODE ISLAND IN GENERAL ASSEMBLY - Relating to Motor and Other Vehicles -- Greenhouse Gas Bill

[6]Here is the text of their budget plan Moving Toward a Sustainable Environment and Sustainable Communities