California's Plan to Electrocute the Automobile Industry

Real Clear Markets ^ | 06/20/2011 | Bill Frezza

[SeekAndFind]

Just when you think the People's State of California couldn't possibly inflict more damage on its own economy, out comes a regulatory proposal so astonishing you have to wonder whether the destruction of an entire industry is its actual intent.

So-called zero emissions vehicles, which could more accurately be labeled coal burning cars given the source of most of our nation's electricity, are part of a troika of green fetishes that have captured the fevered imaginations of central planners. Not content with the incentives provided by a $7,500 federal tax rebate attached to cars like Government Motors' Chevy Volt, California is proposing a rule that would fine auto makers $5,000 per vehicle if at least 5.5% of the new cars they sell in the state are not electric. The new rule, which would start siphoning money from the economy in 2018, would hike the green sales quota to 14% by 2025.

Nevermind that the charging infrastructure to support that many electric cars doesn't exist and can only be conjured up with massive taxpayer subsidies. Nevermind that California's own Clean Vehicle Rebate Project designed to transfer an additional five thousand taxpayer dollars into the pockets of electric car buyers goes broke in July. Nevermind that the only way switching to an electric fleet could reduce carbon emissions would be by ripping out every fossil fuel power plant in the state while covering the countryside with taxpayer subsidized windmills and solar plants - presumably the next stage of some master plan.

Nevermind that the resulting leap in electricity rates would both impoverish consumers and drive away even more businesses, further collapsing state tax revenues.

[Lurker]

A better solution - don’t sell cars in California

Who is John Galt?

[Spktyr]

So, you prefer giving your tax dollars to people who use them to f**k you. Nice to know.

I left CA once I figured out what they were doing.