Vehicle Emission Cleanup Funds Largely Unclaimed

Rarely is it so difficult for the government to get rid of money.

The state's Bureau of Automotive Repair has a kitty of $100 million in pollution reduction funds that it is trying with all its might to give to qualifying California motorists.

Since the program's 1999 launch, BAR has had to try and try harder still to get rid of the money, twice sweetening its offer to help California vehicle owners in the hopes of attracting more takers.

"We are trying to reach as many consumers as we can," said Michael Lafferty, head of BAR's consumer assistance programs.

The bureau's repair assistance program provides low-income motorists with up to $500 for repairs to their car's emission systems if they fail the biennial smog check. The vehicle replacement program provides $1,000 to motorists who scrap qualifying cars that fail the biennial smog certification test.

BAR chief Douglas Laue said he hopes the $100-million fund will be depleted over the next four years--a problem if consumer participation doesn't pick up.

Under the repair program, the vehicle owner must pay the first $20 for repairs before the state's portion kicks in. To qualify, motorists must have an annual household income at or below 185% of the federal poverty guideline, or $32,653 for a family of four.

The program also will provide assistance to owners of specially targeted high-pollution vehicles, without respect to their income, after they pay a $100 co-payment. Owners of such vehicles receive a "smog-test only" notice with their vehicle registration renewals.

About 7,400 consumers obtained assistance between the start of the current government fiscal year July 1, 2000, and the end of March this year. That's something of a disappointment.

In the first eight months of the program, when BAR provided as much as $450 of assistance months after low-income motorists paid for the initial $250 in repairs, just 35 people obtained the repair assistance. The lackluster interest was an embarrassment because BAR was funding the program with receipts from a highly unpopular and regressive $300-per-car smog tax slapped on motorists moving into California. The tax, collected by the Department of Motor Vehicles, recently was ruled unconstitutional and most of it has been refunded.

But BAR got to keep its kitty for the assistance program, Laue said. In addition, it collects about $22 million per year from an annual $6 smog fee levied on owners of new cars for the first four years of ownership.