United States              Air and Radiation         EPA420-F-97-031
                    Environmental Protection                           December 1997
                    Agency

                    Office of Mobile Sources
SEPA        Environmental
                   Fact  Sheet
                    Accelerated Vehicle Retirement
                    Programs
                   Accelerated vehicle retirement programs offer incentives for voluntary
                   retirement of high-emitting vehicles, leading to the earlier reductions in
                   air pollution than would otherwise occur.
                   What is Accelerated Vehicle Retirement or
                   Scrappage?
                   In many cities across the country, the personal automobile is the single
                   greatest polluter, as emissions from all the vehicles on the road add up.
                   Old automobiles with no or few emission controls are typically a source
                   of high emissions. Newer vehicles possessing emission controls which
                   have been tampered with, maintained improperly, or have otherwise
                   been rendered ineffective are also significant contributors of emissions.
                   While normal attrition of the vehicle fleet helps, some high emitting
                   vehicles remain in operation and contribute to the problem for long
                   periods of time.

                   Accelerated vehicle retirement (scrappage) programs, through rebates
                   and other incentives, encourage vehicle owners to voluntarily retire their
                   vehicle sooner than they would have otherwise. These programs are
                   entirely voluntary, and vehicle owners decide whether or not the com-
                   pensation is sufficient to induce them to turn in their vehicles.
                                                            I Printed on Recycled Paper

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 EPA's Role
 Scrappage programs are not mandatory, and are not run by the EPA.
 These programs are part of an overall U.S, Environmental Protection
 Agency initiative to give state and local governments and industry
 flexibility in meeting Clean Air Act emission reduction requirements in
 the most efficient and effective manner possible. A program can be run
 by a state or local government as part of their overall strategy to reduce
 emissions in its air quality plan (state implementation plan or SIP) or by
 a private company, with approval from the state to satisfy existing or
 new stationary source-specific requirements for industry.

 In February, 1993, EPA released a guidance document entitled Guidance
for the Implementation of Accelerated Retirement of Vehicles Programs.
 The guidance document is intended to assist state, municipal or industry
 program sponsors in the design and implementation of scrappage pro-
 grams.
 How Do Scrappage Programs Impact the Supply of
 Older, Antique Vehicles, and the Availability of Parts
 for These Vehicles?
 EPA encourages the maintenance and upkeep of older vehicles. Scrap-
 page programs are aimed at highly polluting cars, rather than indiscrimi-
 nately targeting old cars in general. In addition, since vehicle owners are
 always compensated for scrapping their vehicles, they would turn in
 their vehicles only if the level of the compensation is greater than the
 value of vehicle.

 EPA has also taken several steps to ensure that scrappage programs do
 not diminish the supply of parts for older vehicles. Programs are al-
 lowed to strip vehicles for parts prior to scrappage, thus providing a
 source of parts to keep other old clean cars running and used parts
 suppliers and repair shops in business. Non-emission producing parts can
 be recycled directly while emission producing parts must be dismantled
 and rebuilt.
 How Extensively Has Scrappage Been Used?
 Several areas have implemented scrappage programs which range in size
 and contain various design features. In addition, a few areas have devel-

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oped legislation setting up rules for the implementation of scrappage
programs.


For Further Information

For more information on accelerated vehicle retirement programs, please
contact John Hall at:

  U.S. Environmental Protection Agency
  2565 Plymouth Road
  Ann Arbor, MI 48105
  Phone: (734)741-7856
  FAX:  (734)668-4531
  E-mail:  hall.johnm@epamail.epa.gov

The 1993 EPA guidance on accelerated vehicle retirement programs can
be found on EPAs Internet World Wide Web (WWW) site at:

  http://www.epa.gov/OMSWWW/market.htm.

EPAs Directory of Air Quality Economic Incentive Programs, also
located at this site, has additional information on state and local scrap-
page programs and legislation. The directory includes descriptions of a
number of programs, as well as contact names and phone numbers for
more information.

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