The U.S. Environmental Protection Agency plans to include electric cars in the Renewable Fuel Standard (RFS), which actually regulates the blending of renewable fuels, according to the agency. Big electric car manufacturers like Tesla could benefit from this.
The RFS actually ensures that refineries must either add a certain quota of biofuels to the fuel pool or purchase tradeable credits called RINs from companies that contribute biofuels to the pool.
Multiple insiders have now reportedly confirmed to Reuters that the EPA wants to expand the RFS program to electric cars. This means that “Electro-RIN” or e-RIN can be used to offset the feed of fossil fuels. This will bring in new revenue for e-RIN vendors. According to the report, electric vehicles will be “eligible for credit under the ‘T3’ mandate of the scheme, which includes cellulosic biofuels.”
Reuters previously reported that the Biden administration had reportedly met with Tesla to collaborate on drafting the e-RIN program. Tesla, as a pure electric car maker, will be one of the beneficiaries if the new regulation comes into effect, as described by Reuters.
The EPA declined to comment on the information when asked by Reuters. EPA spokesman Tim Carroll said the agency intends to meet the deadline for implementing the RFS program. The EPA has until Nov. 16 to propose the correct rules for 2023. However, the EPA is expected to submit its proposals to the White House for approval as early as next week.