Section 2627 - Scrap and Replace Program(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.(g) A district implementing the Scrap and Replace program may contract with vehicle dealers, financial institutions, public transit agencies, and other entities as necessary for redemption of the Scrap and Replace incentives. (1) The Scrap and Replace incentive may not be redeemed for the purchase of a dismantled vehicle or a vehicle with a salvaged title (as described in Vehicle Code section 544).(2) The Scrap and Replace incentive may only be redeemed for replacement vehicles 8 years old or newer that meet one of the following criteria: (A) A replacement vehicle with a USEPA combined fuel economy rating that meets or exceeds 35 miles per gallon.(B) A replacement minivan or truck that meets or exceeds 21 miles per gallon USEPA combined fuel economy rating. A participant must scrap a minivan or truck to receive an incentive for a replacement minivan or truck. The USEPA combined fuel economy rating used to determine eligibility shall be the rating calculated by the USEPA using the 2017 methodology. The USEPA combined fuel economy rating may be found on the "EPA Fuel Economy Estimates" window sticker of any new vehicle, and the ratings for all vehicles are currently available at http://www.fueleconomy.gov
(C) A plug-in hybrid replacement vehicle.(D) A zero-emission replacement vehicle.(h) A vehicle owner or joint vehicle owner may not receive more than one Scrap and Replace incentive.(i) A vehicle must meet the requirements of section 2624(c) at an address in the district where the Scrap and Replace incentive is issued.(j) In order to participate in the EFMP Scrap and Replace incentive program, an individual must have a household income less than or equal to 400% of FPL.(k) A scrapped vehicle must pass a functionality test.(l) An applicant determined to be eligible under the EFMP Scrap and Replace incentive program may receive one of the following minimum incentives depending on income eligibility: Scrap and Replace Program Incentives
| Income Eligibility | Equal to or 35+ MPG | Plug-in Hybrid or Zero-Emission Vehicle | Mobility Options |
| | | |
| Low Income Less than or equal to 225% Federal Poverty Level | $4,500 | $4,500 | $7,500 Face Value |
| | | |
| Moderate Income Less than or equal to 300% Federal Poverty Level | $3,500 | $3,500 | $7,500 Face Value |
| | | |
| Above Moderate Income Less than or equal to 400% Federal Poverty Level | $2,500 | $2,500 | $7,500 Face Value |
(1) For eligible participants with household income less than or equal to 225% of FPL, payment of $4,500.00 toward the purchase of a replacement vehicle with a minimum 35 mpg fuel economy.(2) For eligible participants with household income less than or equal to 225% of FPL, payment of $4,500.00 toward the purchase of a hybrid, plug-in hybrid, or zero-emission replacement vehicle.(3) For eligible participants with household income less than or equal to 225% of FPL, payment of $7,500 toward the purchase of mobility options.(4) For eligible participants with household income greater than 225% of FPL and less than or equal to 300% of the FPL, payment of $3,500.00 toward the purchase of a replacement vehicle with a minimum 35 mpg fuel economy.(5) For eligible participants with household income greater than 225% of FPL and less than or equal to 300% of the FPL, payment of $3,500.00 toward the purchase of a hybrid, plug-in hybrid, or zero-emission replacement vehicle.(6) For eligible participants with household income greater than 225% of FPL and less than or equal to 300% of the FPL, payment of $7,500 toward the purchase of mobility options.(7) For eligible participants with household income less than or equal to 400% of the FPL, payment of $2,500.00 toward the purchase of a hybrid, plug-in hybrid, or zero-emission replacement vehicle.(8) For eligible participants with household income less than or equal to 400% of the FPL, payment of $7,500 toward the purchase of mobility options.Cal. Code Regs. Tit. 13, § 2627
1. New section filed 8-12-2010; operative 8-12-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 33).
2. Amendment of section heading and section filed 4-9-2015; operative 4-9-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 15).
3. Amendment of section heading and section filed 6-7-2019; operative 6-7-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 23). Note: Authority cited: Sections 39600, 39601 and 44125, Health and Safety Code. Reference: Sections 39600, 39601 and 44125, Health and Safety Code.
1. New section filed 8-12-2010; operative 8-12-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 33).
2. Amendment of section heading and section filed 4-9-2015; operative 4/9/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 15).
3. Amendment of section heading and section filed 6-7-2019; operative 6/7/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 23).