California Is At It Again!

The following press release has been sent out to SEMA members warning of California's latest attack on the classic car industry. Below is SEMA's Press release followed by the letter we have sent to the California Air Resources Board.

California Proposes to Enhance Vehicle Scrappage Program
State to Target Pre-1976 Vehicles

SEMA is opposing a California Air Resources Board (CARB) proposal to spend roughly $30 million annually for an Enhanced Fleet Modernization Program (EFMP) to augment the State's existing vehicle scrappage program. The proposal would provide incentives statewide for vehicles not currently eligible under the Consumer Assistance Program by removing the existing requirements that vehicles be subject to and fail Smog Check to participate. CARB is specifically targeting for scrappage pre-1976 vehicles that are not currently required to undergo Smock Check inspections. According to CARB, allowing vehicles that are not currently undergoing registration or that have passed their Smog Check to participate greatly expands the vehicle population that can be retired.

Participants would receive $1,000 per vehicle or $1,500 per vehicle if they meet low-income requirements. The proposal would also establish a pilot voucher program in the South Coast and San Joaquin Valley air basins that targets the highest-emitting vehicles and requires their replacement with newer, cleaner vehicles. The local air districts would work with the Bureau of Automotive Repair (BAR) to determine vehicle eligibility and low-income status. Once approved, the districts would provide the applicant a Letter of Eligibility from BAR and a redeemable voucher. Consumers would retire their vehicle at a participating dismantler, receiving an immediate compensation of $1,000 - $1,500 for vehicle retirement. Consumers could then redeem their voucher at participating car dealerships toward the purchase of a replacement vehicle. CARB is proposing that the voucher compensation be $2,000 or $2,500 per vehicle depending on income level.

CARB will conduct a public hearing to consider adoption of the proposed Enhanced Fleet Modernization Program Regulation (Car Scrap).

DATE: June 25-26, 2009
TIME: 9:00 a.m.
PLACE: California Environmental Protection Agency
Air Resources Board, Byron Sher Auditorium
1001 I Street
Sacramento, California 95814

Comments to the proposal are due June 24. To read the full proposal, go to:

Written comments must be received no later than 12:00 noon, Pacific Standard Time, June 24, 2009, and addressed to the following: (updated link):
http://www.arb.ca.gov/regact/2009/carscrap09/carscrapisor.pdf

Clerk of the Board, Air Resources Board
1001 I Street, Sacramento, California 95814

Electronic submittal:
http://www.arb.ca.gov/lispub/comm/bclist.php
Fax submittal: (916) 322-3928

Here is the response we submitted.

To: California Air Resources Board

From: Hot Rods & Custom Stuff

Subject: The Proposed Enhanced Fleet Modernization Program Regulation (Car Scrap).

Once again, we would like to voice our opposition to proposed vehicle scrappage program increases. Not only will this proposal hurt already struggling businesses in California, it proposes to spend an additional 30 million dollars or so annually—money the state does not have. All to achieve a result based on a faulty premise, that pre-1976 vehicles produce the lion’s share of pollution in the state.

It is a false premise because it assumes that all or most of these vehicles are driven on a daily basis. This is not the case except for a handful of these vehicles. Most of them are driven only to shows or on occasional weekend cruises. Our business caters to the owners of these older vehicle and we know this to be a fact. We not only perform full restorations here, we service these classic cars and speak with their owners daily.

Here are some facts not in your report.

1. The restoration of one classic automobile can generate as much as $20,000 in tax revenue to the state and keep a dozen people employed for a year.

2. Many makes and models of pre-1976 autos are highly sought after collectible cars which will change hands many times, generating tax revenue in each instance. When no longer restorable, their parts are salvaged to restore others, generating more tax revenue. When these vehicles no longer have value to the industry they or their remains end up being scrapped by their owners.

3. Pre-76 California cars are among the most highly valued because, as your report states, “California’s mild climate contributes to the longer survival rates…”. In other words, they tend to be easier to restore, which generally means less rust repair which requires welding (carbon emissions). And many of these vehicles are purchased by out of state buyers where the climate is not so friendly. So, restored or not, many leave the state anyway.

4. Restoration and repair of these vehicle helps support a large after-market parts industry comprised of companies large and small.

5. Many towns, like here in Escondido, have revitalized their downtown summer business by sponsoring cruise nights that encourage locals to bring out their classic cars and show off these pieces of rolling Americana, much to the delight of local restaurants and other small business.

6. Car shows and swap meets generate large amounts of revenue which will go away when there are no more classic cars left to restore.

The economic benefits of the classic car industry are many, and the environmental impacts few, when objectively analyzed.

And yet, each year, CARB attempts to exercise its bureaucratic muscle and short-sightedness to put an end to the economic activity that revolves around the restoration and salvage of these vehicles. Instead, it would rather dole out millions of dollars we don’t have in order to provide the Chinese with cheap steel to build their economy (yes, that’s where most metal from the scrappers goes).

We urge the board to drop this scrappage proposal. If it is truly concerned about the economy forcing people to drive older cars longer, do something about California's outrageous licensing fees, runaway taxes, and excessive regulations (environmental and otherwise), that make new cars too expensive to buy each and every year. Or perhaps CARB could focus its efforts on trying to clean up the environmental disaster it foisted on Californians in the form of MTBE as a fuel additive.

Need we say more?

Randy G. Clark
Hot Rods & Custom Stuff
2324 Auto Park Way
Escondido, CA 92029
http://www.hotrodscustomstuff.com

We urge everyone who cares about this industry and the hobby of classic automobile restoration to contact the board and voice opposition to this proposal.

For additional legislative updates you can go to this page of our website our website: http://www.hotrodscustomstuff.com/legislation.html