Friday, December 24, 2010

California Rebate For Coal-Powered Cars May Not Be Adequately Funded -- Not a Bakken Story

From the LA Times, December 24, 2010, page B1:

California consumers counting on a $5,000 state rebate for purchasing a coal-powered car may be in for a shock: the money may not be there when they go to collect.

The state has only $8 million left to pay for rebates for coal-powered cars. That's enough to pay out incentives to about 1,600 buyers, but that is well below the expected pace of sales for vehicles such as the Nissan Leaf, which is just now hitting the market. The funds are not expected to last past mid-2011, and the state of California's budget means that the state is unlikely to provide more funding.

According to the Nissan website, the Leaf has a manufacturer's recommended sales price of $32,780 which may qualify for a federal credit anywhere from $0 to $7,500, and as noted above, a California rebate of up to $5,000.

By the way, a Californian will pay state sales tax based on the price of the car before the rebate or credit. The LA Times estimates that to be about $1,200 in sales tax, due at time of sales, whereas one won't see the tax credit until they file their taxes, in some cases, almost a year later.

7 comments:

  1. For those who are wondering: a coal-powered car is a car that runs at least partially on an energy form derived at least partially from coal.

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  2. embraceyourinnerhillbillyDecember 24, 2010 at 4:54 PM

    FYI,
    We don't have Coal Fired plants in CA...though some energy companies own Coal fired plants in other states that send electricity to us...I believe the bulk of our energy is derived from hydroelectric and nuclear plants.

    Merry Xmas.

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  3. Yes, I was aware of that (no coal fired plants in California, or so I thought), that's why I was very careful to use "partially" throughout.

    Bottom line: most electric-powered cars in the US will, for the most part, get their energy ultimately from fossil fuels (coal, natural gas) for the foreseeable future.

    According to "1BOG.org" -- a site promoting renewable energy in California, this is the breakdown for electric energy source in California (2007):

    Natural gas: 45%
    Coal: 17%
    Nuclear: 15%
    Large hydro: 12%
    Renewables: 12%

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  4. i think they should entirely BAN the coal NON state producted Electricity from California.. Let the Residents of the state of fruits and Nuts generate this required 17 % by pedal power or a treadmill.. i think it is extremely hipocritical, to ban coal generation from MY state to then allow it to be produced in another state and shipped into california.. Just suck it up and reduce the power comsumption by 17 % if you do not like coal fired powered power plants.. Merry christmas to all..

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  5. Actually, I think there is a fairly large segment of Californians that want contracts with coal plants -- anywhere -- to be ended. The interesting thing is that as more electric powered cars are sold in California, the more electricity they are going to need, nothing to say fo new transmission lines, more transformers, more robust grid. As it is, brownouts during the summers are not a thing of the past.

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  6. embraceyourinnerhillbillyDecember 27, 2010 at 1:24 AM

    >>the more electricity they are going to need, nothing to say fo new transmission lines, more transformers, more robust grid.<<

    Developing a more efficient/lossless transmission lines would be a good place to start.
    Stop building Mega-mansions, 4000sq ft + homes for 2-4 people is another.

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  7. You are so correct.

    I am a conservative capitalist but I think often of Tolstoy's essay, "How Much Land Does A Man Need?"

    ReplyDelete

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