Biden delays electric car fuel credit program.

The Biden Administration Drops Proposal to Benefit Carmakers Creating Renewable Fuel for Electric Vehicles

The Biden administration has recently dropped a proposal that would have benefited carmakers creating renewable fuel used to charge up electric vehicles. This proposal would have required carmakers, such as Tesla and Rivian, to be included in the 18-year-old Renewable Fuel Standard requiring refiners to mix biofuels into gasoline and diesel. The credit program would have allowed electric car manufacturers to meet the requirements by claiming credits if they use electricity generated from natural gas.

Why Was the Proposal Dropped?

The proposal hit a speed bump after U.S. Environmental Protection Agency officials expressed concern over not being able to finalize details of the electric vehicle initiative to meet the deadline set for June 14, according to Bloomberg. The benefit automakers would have enjoyed from this proposal would have been tradeable credits known as “renewable identification numbers,” which refiners use to show they are meeting quotas. Under the now-dropped plan, automakers could receive e-renewable identification numbers, or eRINs, when electricity was used as fuel for electric vehicles.

Who Opposed the Proposal?

Truck stop and charging station owners criticized the plan, saying that giving eRINs to automakers would fuel electric-vehicle production but would not do anything to help investment in charging infrastructure. The proposal has also been criticized by fuel refiners, who have argued that the EPA was never given permission by Congress to create a new biofuel credit in the first place.

What Does This Mean for the Future of Electric Vehicles?

The delay of this credit program comes as lawmakers across the United States are seeking to find ways to make automakers more environmentally friendly. In April, the state of California became the first in the U.S. to approve regulation of ending diesel truck sales by 2036. The phasing out of medium and heavy-duty diesel truck sales by the year 2036 ties into Gov. Gavin Newsom’s (D-CA) plan of having all such trucks travel in California producing zero emissions by 2045.

“The future happens here first, and California is once again showing the world what real climate action looks like,” Newsom said. “Last year, our state approved one of the world’s first regulations requiring all new car sales to be zero emissions. Now, with these actions requiring all new heavy-duty truck sales to be zero emission and tackling train pollution in our state, we’re one step closer to achieving healthier neighborhoods and cleaner air for all Californians.”

Conclusion

Although the proposal has been dropped, the push for more environmentally friendly vehicles continues. It remains to be seen what other initiatives will be put in place to encourage the production and use of electric vehicles, but it is clear that the future of transportation is moving towards a more sustainable and eco-friendly direction.

• Tesla, Rivian Automotive Inc., and the Zero Emissions Transportation Association had all been in favor of the plan.
• Truck stop and charging station owners criticized the plan.
• Fuel refiners have argued that the EPA was never given permission by Congress to create a new biofuel credit in the first place.
• The state of California became the first in the U.S. to approve regulation of ending diesel truck sales by 2036.

Stay tuned for more updates on the future of electric vehicles and the push towards a more sustainable future.