California Code of Regulations › Title 13 - Motor Vehicles › Division 3 - Air Resources Board › Chapter 13 - Voluntary Accelerated Vehicle Retirement Enterprises › Article 2 - AB 118 Enhanced Fleet Modernization Program › Section 2627 - Scrap and Replace Program

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The Scrap
				  and Replace program will be offered in districts that choose to participate and
				  contract with CARB. Participation is limited to districts with populations
				  greater than one million people.
(b) The Board shall contract with the
				  districts to implement the Scrap and Replace program.
(c) The districts shall use not more than 10%
				  of grant funds received to cover the cost of program administration.
(d) The districts may use an additional 5% of
				  grant funds received to contract with third party entities to address issues
				  associated with participation of lower-income participants.
(e) The districts must submit a Scrap and
				  Replace program implementation proposal to the Board prior to receiving initial
				  grant disbursements.
(f) The Scrap
				  and Replace program must include the following elements:
(1) Targeted outreach in low-income and
				  disadvantaged communities. The program must target outreach and restrict
				  program eligibility to motorists with household incomes of 400% of the federal
				  poverty level or less. This does not prohibit outreach being conducted in
				  conjunction with one or more other programs that are targeted at other
				  populations.
(2) Methods for
				  ensuring that scrapped vehicles have sufficient remaining useful life. The
				  program must include a mechanism to ensure vehicles with sufficient
				  functionality to be currently driven. This could include, but is not limited
				  to, the completion of a smog check test.
(3) Methods to target high-emitting vehicles.
				  The program must include a mechanism for targeting high-emitting vehicles to be
				  scrapped. This could include, but is not limited to, emissions testing, remote
				  sensing, determination of a model year limitation or other
				  mechanisms.
(4) Methods for
				  providing significant assistance to program participants to complete Scrap and
				  Replace transactions. This assistance could take the form of incentives from
				  other programs, financial education, access to low cost loans, or other ways to
				  address the challenges to vehicle ownership faced by low-income
				  participants.
(5) Consumer
				  protections during the purchase and financing of the vehicle to ensure that the
				  benefits of the incentives accrue to the final participant. These could
				  include, but are not limited to the following:
(A) Require or encourage program participants
				  to borrow from reputable lending institutions and/or join credit unions to
				  establish credit prior to purchase;
(B) Prohibit vehicle loans by a selling
				  dealership;
(C) Leverage financial
				  counseling offered by most credit unions by directing participants to those
				  resources;
(D) Require or encourage
				  program participants to receive lending pre-approval before visiting a
				  dealership;
(E) Collaborate with
				  consumer advocacy groups that provide financial counseling;
(F) Direct program participants to
				  California's low-cost auto insurance program;
(G) Require an estimate for total cost of car
				  ownership with the truth-in-lending statement;
(H) Establish pre-approved pricing for used
				  or new vehicles;
(I) Require
				  vehicle inspection and disclosure by an independent auto mechanic;
(J) Require vehicle history be provided and
				  attached to paperwork;
(K) Require
				  vehicle warranty for a specified timeframe; and
(L) Prohibit applications completed in full,
				  or in part, by any organization that charges the applicant for this
				  service.
(6) Regular
				  review of contractors and partners to ensure that the requirements of the plan
				  and of these regulations are being met.
(7) Provisions to require contractor and
				  partners to provide information to be used in the quarterly reporting to CARB
				  as required by section
				  2622.
(8) Scrapped vehicles shall be dismantled at
				  a dismantler operating under contract with the Bureau. Districts shall develop
				  and enter into a separate contract or agreement with the
				  dismantler.