As the Biden administration works to have 50% of new car purchases be
EVsby 2030, all of the stops are seemingly being pulled to incentivize buyers to go electric.
The EPA recently reported that it is considering making EVs eligible for their Renewable Fuel Standard (RFS) Credit.
Is that enough to pull down the steep prices of EVs or will it take even greater incentivizing to bring the number of purchases to where the
current policymakerswant them?
What is the RFS?
Teslerati, the RFS policy requires transportation fuel to contain a minimum amount of renewable fuels in the U.S.
The result of this has been an ongoing debate between oil and corn manufacturers (historically, corn oil has been one of the major renewable fuel sources in America). Critics of ethanol-based oil have also argued that it has caused a rise in food prices.
Oil refineries have to blend a certain amount of renewable fuel into the larger fuel pool to meet the standard. If they choose not to, then they’re forced to buy credits, or RINs, from refiners that do.
Expanding to include EVs
EPAdoes decide to expand the RFS program to include EVs, it’ll have a similar quality to its fuel counterparts.
EVs would likely qualify for credits under the program's "D3" mandate pool, which includes cellulosic biofuels that can be
made from wood wasteand other feedstocks.
In its success, such inclusion for EVs could be a big boost to companies like Tesla that operate a purely EV operation as they will pick up the slack of others and qualify for e-RINS (a plan that Tesla helped to craft).
The credit might extend to car charging companies and landfills that supply renewable biogas to power plants.
The EPA is planning to discuss these matters in more detail as well as the potential term of its RFS mandate to multiple years rather than one year at a time. Such consistency will provide greater peace of mind for manufacturers and consumers alike.
Insurance for all cars
Whether you’re behind the wheel of a new EV or pushing a gas car, you’re going to want to make sure that you have comprehensive auto insurance. Super app,
Jerry, can get you loads of competitive quotes available in your area in a matter of minutes.
As a licensed broker, Jerry can even take care of the annoying paperwork involved in ending your current plan and beginning a new one. Switch now and start saving!