The APP of Zhitong Finance has learned that it is well known that US President Joe Biden rarely mentions electric carmaker Tesla, Inc. in public, and that he and Elon Musk, chief executive of Tesla, Inc., have been at odds with each other several times. However, according to an email, the Biden administration still privately relies on Tesla, Inc. to help develop a new policy to allow electric vehicles to benefit from lucrative renewable fuel subsidies in the United States.
The Biden administration contacted Tesla, Inc. on its first day in office, and in the months that followed, federal officials and companies linked to the electric car industry held a series of further meetings on renewable fuel policy, according to emails. The Biden administration's extensive early engagement with companies suggests that expanding the scope of the US Renewable fuel Standard (RFS) as a tool for electrifying US cars is one of Biden's priorities in tackling climate change.
In addition to Tesla, Inc., the Biden administration was met with a group of biogas producers represented by US waste Management (WM.US) and Republican waste disposal (RSG.US), as well as ChargePoint (CHPT.US), a provider of electric vehicle charging services.
Data show that in 2005, the Energy Policy Act signed by former US President Bush formulated the Renewable fuel Standard (RFS), which requires the use of ethanol and other biofuels in transportation fuels, and encourages the development and utilization of renewable fuels from a high degree of law. The Renewable fuel identity Code (RINs) is a mechanism used in the US Renewable fuel Standard (RFS) project to track the use of renewable fuels and monitor the completion of the tasks of the responsible parties of the RFS project. The US Environmental Protection Agency (EPA) is responsible for supervising and implementing mandatory mixing requirements.
The EPA sells RINs to desired units, such as refineries and fuel importers, in the form of a trading platform. RINs ownership is convertible. Renewable fuel producers and existing identification number holders and institutions that wish to hold RINs can trade on the trading platform according to their actual needs.
Although there has been no confrontation between Biden and Musk, the Biden administration has long tried to involve Tesla, Inc. in the promotion of this key policy. The US Environmental Protection Agency, which manages the renewable fuel standards (RFS), is expected to announce proposed changes to the policy this year and have an impact on the multibillion-dollar RINs market.
The Biden administration has been a staunch supporter of the electric car industry and has pinned its hopes of tackling climate change on putting more electric vehicles on the road. Of the bipartisan infrastructure bill passed last year, $7.5 billion was spent on new electric vehicle charging piles. In addition, Biden is seeking to restore expired tax credits to help consumers buy new electric cars.
There are signs thatThe Biden administration tends to introduce a rule that favors electric car manufacturers such as Tesla, Inc. to maximize the use of the so-called "e-RINs". Industry insiders say the reform is also likely to extend subsidies to electric vehicle-related industries, such as car charging companies and landfills that supply renewable biogas to power plants. The EPA said it was consulting "all interested stakeholders" in the policy review of renewable fuel standards.
It is reported that as early as April last year, the Biden administration instructed the US Environmental Protection Agency to study whether the use of renewable fuels to charge electric vehicles should be considered to generate tradable RINs under the US biofuel program.The proposal could give a huge boost to the fledgling US electric vehicle industry, as it could bring new incentives and new sources of income to the industry。
The idea of including electric vehicles in renewable fuel schemes has been considered for years, but the idea is gaining support as the Biden administration uses electric vehicles as a job-friendly solution to the climate crisis.
However, the policy change has caused dissatisfaction among environmental groups. They believe that additional corn production (biofuel ethanol comes mainly from corn) will cause damage to land and water resources. Friends of the Earth, an environmental group, opposes the Biden administration's "e-RINs" project, arguing that the policy of renewable fuel standards fails to increase the production of a new generation of low-carbon fuels and harms the environment.