The Environmental Protection Agency will recommend delaying a program that would allow electric vehicle manufacturers to access tradeable credits under the Renewable Fuel Standard. Two sources told Reuters that the White House will review the EPA’s final rule. The plan would have given EV automakers credits for charging vehicles using power generated from natural gas or methane.
The threat of potential lawsuits also could have played a part in the postponement. The initial proposal last November could have generated as much as 600 million tradeable credits in 2024 and 1.2 billion in 2025. Prices for equivalent biofuel credits have recently traded over $2 each. The two sources also say the Biden Administration is still hoping to pass a final rule on the EV program before the end of 2023, even if it gets uncoupled from the yearly blending mandates. Biden is boosting the EV industry in an effort to reduce carbon emissions.