U.S. federal policies to promote electric vehicles will cost $7.5 billion through 2019 and have “little to no impact” on overall national gasoline consumption over the next several years, the Congressional Budget Office said in a report issued on Thursday.
Consumer tax credits for buying electric vehicles, which can run as high as $7,500 per vehicle, will account for about 25 percent of the $7.5 billion cost, the CBO said.
The rest of the cost comprises of $2.4 billion in grants to battery makers and projects to promote electric vehicles as well as $3.1 billion in loans to auto companies designed to spur production of fuel-efficient vehicles.
Many of these initiatives were initiated in 2009 under President Barack Obama, but the loan program was authorized in 2007 under the Bush administration.
(Gratuitous “Blame Bush” reference included)
U.S. government standards mandate that by 2025, automakers to show corporate average fuel economy (CAFE) of 54.5 miles per gallon or about 39 miles per gallon in real world driving.
The tax credits will increase sales of EVs, hybrids and more fuel-efficient gas-powered models and help boost the average fuel economy of automakers’ fleets, the CBO said. The federal tax credits apply to the first 200,000 electric vehicles sold by each manufacturer.
But these sales will leave room for automakers to continue to sell models with low fuel economy, the CBO said.
“The more electric and other high-fuel-economy vehicles that are sold because of the tax credits, the more low-fuel-economy vehicles that automakers can sell and still meet the standards,” according to the report.
So the government knows that we (the consumers) still want big, gas guzzling (and VERY SAFE) vehicles and the only way under the EPA’s incredulous, fantasy driven CAFE standards is to use taxpayer monies to REDISTRIBUTE to the
suckers purchasers of the go carts.
The real “money” quote:
As a result, tax credits will have “little or no impact on the total gasoline use and greenhouse gas emissions of the nation’s vehicle fleet over the next several years.”
In other car news.
If you drive a clown car and have an accident, you are more likely to be hurt: