The Biden administration reached out to Tesla on its first day in office, emails show, and in the months that followed, a series of meetings between federal officials and companies tied to the electric vehicle industry furthered the topic of renewable fuel policy . The Biden administration’s extensive early engagement with related companies suggests that expanding the U.S. Renewable Fuel Standard (RFS) as a tool for electrifying U.S. vehicles is one of Biden’s priorities for addressing climate change.
In addition to Tesla, meeting with the Biden administration on this matter, there are also biological representatives represented by American Waste Management (WM.US) and Republic Waste Management (RSG.US).gasManufacturers groups, as well as electric vehicle charging service provider ChargePoint (CHPT.US) and so on.
According to the data, in 2005, the Energy Policy Act signed by former US President Bush established the Renewable Fuel Standard (RFS), which requires the use of ethanol and other biofuels in transportation fuels, and encourages the development and utilization of renewable fuels from a legal height. . The Renewable Fuel Identification Number (RINs) is a mechanism used in the US Renewable Fuel Standard (RFS) project to track the utilization of renewable fuels and monitor the completion of the tasks of the responsible party of the RFS project. Responsible for overseeing and enforcing mandatory blending requirements.
The EPA provides a trading platform to sell RINs to desired parties, such as refiners and fuel importers. The ownership of RINs is transferable. Renewable fuel producers and existing ID holders and institutions wishing to hold RINs can trade on the trading platform according to their actual needs.
The Biden administration has tried early on to involve Tesla in the push for this key policy, despite the ongoing feud between Biden and Musk. The U.S. Environmental Protection Agency, which administers the Renewable Fuels Standard (RFS), is expected to announce proposed changes to the policy this year, which will affect the multibillion-dollar market for RINs.
The Biden administration has been staunchly supportive of the electric vehicle industry, and has pinned its hopes on tackling climate change on getting more electric cars on the road. The bipartisan infrastructure bill passed last year included $7.5 billion for new electric vehicle charging stations. In addition, Biden is seeking to restore expired tax credits to help consumers buy new electric vehicles.
There are signs thatA Biden administration is leaning toward a rule that would benefit electric car makers like Tesla to maximize their use of so-called “e-RINs”. Industry insiders said the reform could also extend subsidies to electric vehicle-related industries, such as car charging companies and landfills that supply renewable biogas to power plants. The EPA said it was consulting “all interested stakeholders” in its policy review of renewable fuel standards.
It is reported that as early as last April, the Biden administration had directed the EPA to study whether the use of renewable fuels to charge electric vehicles under the U.S. biofuel program should be considered to generate tradable RINs.The proposal could give the fledgling U.S. electric vehicle industry a huge boost, as it could bring new incentives and new revenue streams to the industry.
The idea of including electric vehicles in renewable fuel plans has been under consideration for years, but has gained traction as a Biden administration embraces electric vehicles as a jobs-friendly solution to the climate crisis.
However, the policy change has sparked dissatisfaction among environmental groups. They argue that additional corn production, from which biofuel ethanol is primarily derived, will be damaging to land and water resources. Environmental group Friends of the Earth opposes the Biden administration’s “e-RINs” program, arguing that the Renewable Fuel Standard, a policy that fails to increase production of a new generation of low-carbon fuels, also harms the environment.