The Biden administration has dropped, for now, a plan that would have awarded automakers such as Tesla Inc. credits for using renewable natural gas to power EVs.
That proposal was excluded from drafted regulation setting biofuel-blending quotas for the next three years that is undergoing final review at the White House, according to people familiar with the matter who asked not to be named because the decision isn’t public.
Under the proposal, carmakers would be folded into the 18-year-old Renewable Fuel Standard that requires refiners to blend biofuels into gasoline and diesel. EV manufacturers would be able to claim new, tradeable credits in exchange for using electricity generated from natural gas harvested from landfills or farms.
EPA spokeswoman Maria Michalos declined to comment, citing the proposed rule’s ongoing interagency review. The draft regulation could still change before its formal, final release.
EPA officials were concerned they could not finalize details of the complex EV initiative in time to meet a court-ordered June 14 deadline to issue the quotas, the people said. Agency officials have told stakeholders they intend to advance the EV measure on a separate track later this year.