NEW YORK, Oct 5 (Reuters) - The U.S. Environmental
Protection Agency is expected to propose that electric vehicles
be eligible for renewable fuel credits in an upcoming proposal
on biofuel blending mandates, three sources familiar with the
The inclusion of electric vehicles into the federal
Renewable Fuel Standard (RFS) would be one of the largest
changes to the program since it began more than a decade ago.
The EPA is expected to send the proposal, which will address
mandates for after 2022, to the White House for approval by the
end of next week, two of the sources said.
The EPA did not confirm details, but said the agency intends
to meet the deadlines to implement the RFS program, said EPA
spokesperson Tim Carroll.
The Biden administration has set a goal to decarbonize the
U.S. economy by 2050 to fight climate change, a target that
would require widespread adoption of electric vehicles.
The inclusion of the electric vehicle industry into the RFS
would also add another powerful player into an already
contentious policy that has largely pitted the corn and oil
lobbies against each other.
Under the RFS, oil refiners must blend billions of gallons
of biofuels into the nation's fuel pool, or buy tradable
credits, known as RINs, from those that do.
If EPA expands the RFS program to include electric cars,
carmakers such as Tesla Inc could benefit and gain
access to a new type of credit, known in the industry as e-RINs,
or electric RINS. The subsidy could spread to related industries
too, like car charging companies and landfills that supply
renewable biogas to power plants, according to industry players.
Reuters previously reported that the Biden administration
has leaned on Tesla, meeting with the company to help craft the
e-RIN program, according to emails reviewed by Reuters.
Electric vehicles would likely qualify for credits under the
program's "D3" mandate pool, which includes cellulosic biofuels
that can be made from wood waste and other feedstocks, the three
The EPA is expected to detail in its proposal annual biofuel
blending mandates for multiple years instead of just one,
Reuters previously reported, attributing the information to
The switch to a multi-year target would be aimed at
providing longer-term certainty to the refining and biofuels
industries, which have battled nearly constantly over the annual
The EPA has been ordered to propose a rulemaking for 2023
mandates by Nov. 16, according to a legal document in July.
(Reporting by Stephanie Kelly and Jarrett Renshaw
Editing by Marguerita Choy)