This 2017 UC Davis report explores the possibility of California imposing fees to less fuel efficient vehicles and smaller rebates to more fuel efficient cars and trucks. The goal of the proposed program is to design a revenue neutral program corrects market signs to consumers and provides an incentive to purchase higher fuel efficient vehicles. The paper lays out proposed fee levels and program design. The proposed feebate only applies to 30% of the fleet, half of which receive a rebate while the other half pay a fee. The remaining 70%of vehicle purchases are unaffected by the feebate program.