Businesses are Afraid of the Lawless Democrat Party

even when it is not in power. From Yahoo News:

For years, Tesla Inc. has hauled in revenue by selling credits to other carmakers … These sorts of transactions have largely been shrouded in secrecy—until now.

General Motors Co. and Fiat Chrysler Automobiles NV disclosed to the state of Delaware earlier this year that they reached agreements to buy federal greenhouse gas credits from Tesla. …

GM’s agreement to buy greenhouse gas credits was dated Feb. 25 and reported to Delaware the following day. Pat Morrissey, a GM spokesman, said the company is buying the credits as insurance against “future regulatory uncertainties.”

Tesla has generated almost $2 billion in revenue from selling regulatory credits since 2010. Its home state of California has a mandate that requires carmakers to sell zero-emission vehicles, or ZEVs, in proportion to their share of the state’s auto market, which is the largest in the country.

If manufacturers don’t sell enough non-polluting vehicles [carbon dioxide isn’t pollution – LG], they have to purchase credits from competitors like Tesla to make up the difference. A similar credit system is administered at the federal level by the EPA and National Highway Traffic Safety Administration.

Cap-and-Trade and other hot air trade schemes failed in Congress. But what Democrats cannot achieve in Congress, they get through administrative overreach, or by threatening businesses about the future, when they get elected:

“This might not be a bad hedge,” said Mike Taylor, the founder and president of Emission Advisors, a Houston-based environmental credit consultant and broker. “If a Democrat gets elected in 2020, GM may need the credits and prices may go up.”

Leave a Reply

Your email address will not be published. Required fields are marked *