(a)

1. (1) No later than July 1, 2009, the state board, in consultation with the bureau, shall adopt a program to commence on January 1, 2010, that allows for the voluntary retirement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. The program shall be administered by the bureau pursuant to guidelines adopted by the state board.
2. (2) No later than July 1, 2019, the state board shall update the guidelines for the program established pursuant to this subdivision to make applicable to light-duty pickup trucks the same standard for miles per gallon that is applicable to minivans. This subdivision shall apply to only purchasers who are retiring a light-duty pickup truck.

(c)

1. (1) The state board, in consultation with the bureau, shall take steps to meet the goals set forth pursuant to subdivision (b). The steps shall include, but need not be limited to, updating the guidelines for both the program and Clean Cars 4 All no later than January 1, 2019.
2. (2) The program shall continue to be administered by the bureau pursuant to guidelines adopted by the state board.

(d) The guidelines shall ensure all of the following:

1. (1) Vehicles retired pursuant to the program are permanently removed from operation and retired at a dismantler under contract with the bureau.
2. (2) Districts retain their authority to administer vehicle retirement programs otherwise authorized by law.
3. (3) The program is available for high-polluter passenger vehicles and light-duty and medium-duty trucks that have been continuously registered in California for two years prior to acceptance into the program or otherwise proven to have been driven primarily in California for the last two years and have not been registered in another state or country in the last two years. The guidelines may require a vehicle to take, complete, or pass a smog check inspection.
4. (4) The program is focused where the greatest air quality impact can be identified.
5. (5) The program is focused on achieving improvements to air quality and benefits to low-income state residents through the retirement of high-polluter passenger motor vehicles owned by low-income state residents.

6. (6)

   1. (A) Compensation for retired vehicles is at least one thousand five hundred dollars ($1,500) for a low-income motor vehicle owner and not more than one thousand dollars ($1,000) for all other motor vehicle owners.
   2. (B) Replacement or a mobility option may be an option for all motor vehicle owners and may be in addition to compensation for vehicles retired pursuant to subparagraph (A). For low-income motor vehicle owners, compensation toward a replacement vehicle or mobility option shall be no less than two thousand five hundred dollars ($2,500). Compensation toward a replacement vehicle for all other motor vehicle owners shall not exceed compensation for low-income motor vehicle owners.
   3. (C) Compensation for either retired or replacement vehicles or a mobility option for low-income motor vehicle owners may be increased as necessary to maximize the air quality benefits of the program while also ensuring participation by low-income motor vehicle owners. Increases in compensation amounts may be based on factors, including, but not limited to, the age of the retired or replaced vehicle, the emissions benefits of the retired or replaced vehicle, the emissions impact of any replacement vehicle, participation by low-income motor vehicle owners, and the location of the vehicle in an area of the state with the poorest air quality.

   4. (D)

      1. (i) Each replacement vehicle in the program shall be either a plug-in hybrid or zero-emission vehicle unless the state board determines, in consultation with the State Energy Resources Conservation and Development Commission, either of the following:

         1. (I) Electric charging and refueling capabilities are inadequate for drivers whose homes are located in rural areas, multifamily housing, or other use cases deemed appropriate by the State Energy Resources Conservation and Development Commission.
         2. (II) An adequate supply of affordable plug-in hybrid and zero-emission vehicles is not available in the new or secondary markets.
      2. (ii) The state board may use the assessment prepared pursuant to Section 25229 of the Public Resources Code, and may consult with districts, to make the determination pursuant to clause (i).
7. (7) Cost-effectiveness and impacts on disadvantaged and low-income populations are considered. Program eligibility may be limited on the basis of income to ensure the program adequately serves persons of low or moderate income.
8. (8) Provisions coordinate the vehicle retirement and replacement and mobility option components of the program with the vehicle retirement component of the bureau’s Consumer Assistance Program, established pursuant to other provisions of this chapter, and Clean Cars 4 All to ensure vehicle owners participate in the appropriate program to maximize participation and emissions reductions.
9. (9) If applicable, there is improved coordination, integration, and partnerships with other programs that target disadvantaged communities and receive moneys from the Greenhouse Gas Reduction Fund, created pursuant to Section 16428.8 of the Government Code.
10. (10) Provisions enhance the prescreening of applicants to the program, if determined by the state board to be appropriate.
11. (11) Specific steps ensure the vehicle replacement and mobility option component of the program is available in areas designated as federal extreme nonattainment.
12. (12) A requirement that vehicles eligible for retirement have sufficient remaining life. Demonstration of sufficient remaining life may include proof of current registration, completing a recent smog check inspection, or completing another test similar to a smog check inspection.