The Biden administration is opening the door to a sweeping rewrite of 17-year-old America biofuel mission, including a plan to encourage the use of renewable energy nature Air come to power tramthis could benefit Tesla and other automakers.
An Environmental Protection Agency proposal released on Thursday invites public feedback on a series of changes to the Renewable Fuels Standard, originally designed in 2005 to promote more ethanol. , biodiesel and other plant-based alternatives to vehicles. The proposal could spur an overhaul that could shift the program from a gas-only, diesel oil and other liquid fuels for a widely-aimed initiative to decarbonize transportation.
The EPA will also seek public feedback on how best to promote next-generation low-carbon biofuels while protecting U.S. refining assets following a wave of pandemic shutdowns. and Russia’s invasion of Ukraine underscored the strategic importance of these facilities.
The measure “will set the stage for further growth and development of low-carbon biofuels in the coming years,” the EPA said in its proposal. During the transition, “maintaining a stable fuel supply and refining assets will continue to be critical to achieving our nation’s energy and economic goals and providing consistent investments in a skilled and growing workforce.”
increase biofuel
The agency is proposing to increase the amount of biofuels that must be mixed into gasoline and diesel over the next three years to 22.68 billion gallons by 2025, up from 20.87 billion gallons this year. Under the bill, conventional ethanol could be used to meet up to 15.25 billion gallons. But that number exceeds what refiners call a “blend wall” or a 10% ceiling on how much can be blended into the most common E10 gasoline available.
The EPA is asking the public for feedback on whether it actually puts the conventional renewable fuel requirement under the blending wall. It also wants to comment publicly on how the quota plan will affect “the continued viability of domestic refining assets,” including so-called commercial refineries with Limited blending facilities cannot easily generate compliant credits.
Refiners use those credits — “renewable identifiers” or RINs generated with each gallon of biofuel — to demonstrate that they have fulfilled their annual blending quota.
By court agreement, the EPA is obligated to complete its biofuel quota by June 14 of the following year. A senior management official said public feedback could determine the form of the final rule, prompting EPA to revise the original proposed blending requirements or even review key decisions. The policy was previously tied to RIN holding thresholds, disclosure requirements, and market liquidity.
eRIN . credit
EPA will also create an eRIN credit that is awarded when electricity from certain renewable sources — such as natural gas harvested from landfills and on farms — is used as fuel. fuel to power electric vehicles. Under the proposal, that credit could be split between EV manufacturers and biogas-powered electricity producers.
By design, the eRIN plan will add another incentive for automakers to produce electric vehicles, building on tax support in the recently enacted Inflation Reduction Act and other air pollution policies. But the advantage for companies like Ford and General Motors will come at the expense of charging station owners and operators and other stakeholders.
The plan is likely to spark intense lobbying as charging station operators, biogas producers and utilities vie for a larger share of the eRIN credit.
