It has been well established that many Republican politicians are anti-electric vehicles (EVs). That could be due to the fact that many prominent party members have received significant campaign contributions from the oil and gas industry. Misleading statements and blatant attempts to slow down EV adoption have grown increasingly more common as the 2024 race to the White House has heaten up. But now the GOP is proposing a new policy change that could have drastic consequences extending far beyond EVs. In fact, the bill threatens to upend clean energy stocks across the board.
Yesterday, Electrek reported that “House Republicans have once again voted to poison you and cost you trillions.” That headline definitely sums it up. Specifically, Republicans are attempting to pass a new bill that will not only impact entire sectors but also leave many Americans with higher costs.
Of course, this is also bad news for clean energy investors. Let’s take a closer look.
Clean Energy Stocks Under the CARS Act
What exactly is this new bill that has experts sounding the alarm? In a nutshell, the bill — which is called the CARS act and passed the House on Wednesday — is an attempt to block the Environmental Protection Agency’s (EPA) new rules on emissions. The agency’s plans for this key area stand to save U.S. consumers trillions of dollars in both fuel and healthcare costs. They also avoid “nearly 10 billion tons of emissions.” According to projections by the EPA, the rules would result in “an EV market share of about 60% by 2030 and 67% by 2032.”
Indeed, per Electrek, the new rules “work out to $12,000 in savings for the average consumer over the average life of a vehicle, not to mention the hundreds of billions of dollars in health and climate benefits.” Of course, these new rules also stand to significantly boost clean energy stocks.
Now, though, Republicans are attempting to block all of these positive benefits for both Americans and the planet. Electrek reports:
“The bill […] was introduced by Representatives Tim Walberg (R-MI) and Andrew Clyde (R-GA). It passed the House on Wednesday by a vote of 221-197, with 216 Republicans and 5 Democrats voting to poison you and cost you trillions of dollars and 197 Democrats and zero Republicans voting to protect you from pollution and save you money.”
It should be noted that the U.S. Senate has not yet voted on this bill. If the bill reaches President Joe Biden’s desk, it is also very likely that he will veto it instantly. Given the Biden administration’s focus on clean energy development and spurring EV adoption, it would make sense for Biden to ensure the CARS act never sees the light of day.
Still, this development should serve as a warning. If former President Donald Trump or another Republican candidate is elected president in 2024, the consequences could be dire for clean energy stocks. Republican leaders are demonstrating once again that they won’t embrace renewable energy — even when it can save Americans trillions of dollars.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
