Wall Street Journal: Electric Car Subsidies A Drain on California's Budget
California's green regulations often drive national policies, so it's worth pointing out how its programs to cut vehicle emissions have become a gravy train for the 1%. You'll enjoy this if you live in the other 49 states.
To meet the state's goal of cutting its greenhouse emissions to 80% below 1990 levels, effectively all new cars sold in California by 2040 will have to be electric or plug-in hybrids. As a regulatory weigh station, Governor Jerry Brown has ordered that 1.5 million zero-emission vehicles "be on California roads" by 2025. That last bit is the immediate rub.
Car makers are compelled by the California Air Resources Board to increase their electric fleets to meet these mandates. However, the battery-powered cars have been duds with most consumers. So the board has graciously allowed manufacturers to comply with its diktats by buying "credits." Palo Alto-based electric car maker Tesla has made a $119.5 million killing (300% of its net income) this year from hawking its excess credits.
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