NEW YORK (Reuters) -The U.S. Environmental Protection Agency has recommended delaying a scheme that would give electric vehicle (EV) manufacturers tradable credits under a federal biofuel program, in a final rule that the White House will now review, two sources familiar with the matter said.
The plan would have given EV automakers such as Tesla credits for charging vehicles using power generated from renewable natural gas, or methane collected from sources such as cattle or land fills. Reuters first reported in early May that the EPA was considering the delay over concerns the plan could trigger lawsuits.
The EPA proposed last year the inclusion of EVs into the nation’s Renewable Fuel Standard (RFS) program, a major rehaul of an often contentious law that mandates the amount of biofuels oil refiners must blend into the nation’s fuel mix.
The EV industry had expected the new scheme to be finalized under a June deadline, along with final biofuel blending obligations for the years 2023-2025. The delay, however, now throws the EV scheme into political limbo.
The EPA did not comment on the delay, but told Reuters it is currently considering comments on the proposed rule and working to finalize the rule by a June 14 deadline. The agency sent the final rule to the White House for review last week.
(Reporting by Stephanie Kelly and Jarrett Renshaw)
