Electric Car Discounts of $5,000 OKd

Debating whether California motorists should subsidize smog-fighting car technologies, the Southland’s air quality board Friday approved $6 million in discounts for electric vehicles purchased in the Los Angeles Basin.

In a program dubbed “Quick Charge,” car buyers will be offered $5,000 discounts on sticker prices for each of up to 1,200 electric vehicles sold between 1996 and 1998.

Oil companies and anti-tax groups lambasted the program as a “hidden tax” fostering unfair competition for gasoline-powered cars. But to the surprise of many observers, the South Coast Air Quality Management District board, which has a more conservative makeup than in the past because of new appointments, unanimously approved the program.

The electric vehicle “buy-downs” are the cornerstone of a $25-million, two-year subsidy for technologies approved Friday that reduce smog-causing exhaust from motor vehicles. Also included is $8 million for school districts and public transit to buy buses powered by alternative fuels, such as natural gas.

Southland cities also can apply for funds from a $1-million pool reserved for turning communities into “electric vehicle corridors.” To qualify, the cities must be located along the San Diego Freeway, Santa Monica Freeway, Interstate 215 or California 91 and pass ordinances requiring electric-vehicle charging equipment in new homes and commercial parking lots.

Another $5.5 million will go largely to providing new transportation modes, such as shuttles, between the region’s train stations.

The subsidies come from a $4 fee attached to annual vehicle registrations under a 1990 state law. Thirty percent of the statewide funds are allocated to the AQMD to fund anti-smog technologies for motor vehicles.

The only controversial part of the allocations was the $6 million set aside for the electric cars.

Anita Mangels, executive director of Orange County-based Californians Against Hidden Taxes, called it a “giveaway” to car dealers and “another bureaucratic black hole” she compared to the Pentagon’s overpriced ashtrays. She said electric cars will provide “minuscule benefits” to air quality “at maximum cost.”

Auto makers--from General Motors and Honda to small start-up manufacturers--will receive the funds, but, to qualify, they must pass the entire discount to consumers in the form of lower sticker prices.

Vehicles must be priced under $32,000--before figuring in the discount--and must be purchased in Los Angeles, Orange, San Bernardino or Riverside counties--the region suffering the nation’s most unhealthful air.

The goal of “Quick Charge” is to help companies sell new electric vehicles mass-produced from scratch, not those that are simply converted from traditional engines to electricity. Under California’s clean air plan, electric cars must begin to gain widespread acceptance in 1998 if the Southland is to clean up its smog by 2010.

Proponents told the board that such a revolutionary industry needs a jump-start to get new vehicles in showrooms and persuade consumers to try them.

“This is right on target to provide us the kind of support that is necessary for advanced technology,” said Newport Beach Councilman John Cox Jr.

Tom Doughty of the Los Angeles Department of Water and Power called the AQMD program a “crucial first step” toward “helping Southern California achieve clean air and promote economic vitality.”

But several speakers with anti-tax sentiments told the board it was inappropriate to use motorists’ fees to subsidize technology that perhaps only a small segment would use.

“The people who buy electric cars are going to be the same people who buy BMWs,” said Bill Ward. “Let them do it on their own nickel.”

But board members said using some of the motorists’ registration fees to discount electric cars ensures that everyone shares the burden of cleaning up smog.

The program is especially controversial because of its connection to a fiercely debated state mandate that requires major auto makers to mass-produce exhaust-free cars.

Beginning in 1998, 2% of cars sold by major manufacturers in California, or about 25,000 vehicles, must be exhaust-free, growing to 10%, or about 160,000 vehicles, in 2003.

Auto makers in Detroit and Japan are exerting substantial pressure on Gov. Pete Wilson to drop the mandate, which was imposed in 1990 by the California Air Resources Board.

The oil and auto industries say that the electric vehicle technology is not yet good enough for consumers, and that the costs of manufacturing the vehicles remain excessive. Most sticker price estimates for mass-produced electric vehicles run from $20,000 to $30,000.

Car manufacturers seeking the subsidies must comply with AQMD guidelines in a competitive bid process.

The money becomes available July 1, 1996, and the first cars to qualify will probably be offered for sale the next fall.

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AQMD Allocations

The Southland’s air board approved a $25-million program for the development of new smog-fighting technologies, such as electric cars. Here is a breakdown of the expenditures: Category: Reserve for Future Projects Amount: $3 million

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Alternative Fuels: Category: Public Transit Systems Amount: $4 million Category: School Bus Systems Amount: $4 million Category: Heavy-Duty Vehicles Amount: $1.5 million *

Specialized Areas: Category: Rail Connection Systems, Transportation Control Measures and Research and Development Amount: $5.5 million

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Quick-Charge, Zero-Emission Vehicle Program: Category: Outreach Coordinator Amount: $175,000 Category: Electric Vehicle Corridor Communities Program Amount: $825,000 Category: Buydown Incentive Amount: $6 million

Source: South Coast Air Quality Management District