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Biden Administration Leans On Tesla For Guidance In Renewable Fuel Policy Reform

Biden Administration Leans On Tesla For Guidance In Renewable Fuel Policy Reform

But privately his administration has leaned on the company to help craft a new policy to allow electric vehicles (EVs) to benefit from the nation's lucrative renewable fuel subsidies, according to emails reviewed by Reuters.The Biden administration contacted Tesla on its first day in office, marking the start of a series of meetings on the topic between federal officials and companies linked to the EV industry over the months that followed, according to the emails.The administration's early and extensive outreach reflects that expanding the scope of the U.S.

Until now, it has been primarily a subsidy for corn-based ethanol.The White House's outreach to Tesla also shows that, despite a public grudge match between Biden and Tesla founder Elon Musk, the Biden team tried early on to involve the carmaker in one of its key policy pushes.

Environmental Protection Agency, which administers the RFS, is expected to unveil proposed changes to the policy sometime this year, defining new winners and losers in a multibillion-dollar market for credits, known as RINs, that has supported corn growers and biofuels producers for more than a decade.Early signs are that the administration is leaning toward a rule that benefits carmakers like Tesla, giving them the greatest access to so-called e-RINS, or electric RINs.

But the reform could also spread the subsidy to related industries too, like car charging companies and landfills that supply renewable biogas to power plants, according to industry players."We have heard through the grapevine that car companies are really, really going to like this rule," said Maureen Walsh, director of federal policy with the American Biogas Council, speaking at a conference in May.

That policy has spurred an economic boom in Farm Belt states.

The group sees the RFS as a policy that has failed to increase production of new generation lower-carbon fuels, while also harming the environment.

They scheduled a meeting for a week later, records show.Since then, the Biden EPA has had additional meetings on the topic with Tesla, groups representing biogas producers like Waste Management Inc (WM.N) and Republic Services Inc (RSG.N) and charging station companies like ChargePoint Holdings Inc (CHPT.N), according to the documents.The EPA has also set up at least one meeting with White House staff members, including climate adviser Ali Zaidi, to discuss the reforms, according to the emails.

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Original Story on: PeaceFMOnline


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