2023-05-21 07:00:55
Read in this article
- Biden is delaying a proposal to give electric car companies renewable fuel credits.
- The Environmental Protection Agency has been unable to finalize details of the electric vehicle initiative.
- A strong rise in the growth of electric car sales in America.
- Truck and charging station owners are rejecting the strategy of pinpoint identification numbers.
- The American inflation law has the greatest credit for reviving electric car sales in America.
US President Joe Biden has postponed a proposal that would have provided electric car companies with credits for using electricity generated from “biomethane” to power their carbon-neutral vehicles.
And in light of the rush of many countries to reach carbon neutrality goals, electric cars are an ideal option to reduce carbon emissions in the transport sector, according to what was seen by the specialized energy platform.
In a move in the opposite direction, US President Joe Biden’s administration ignored a plan that was supposed to give electric car companies, such as Tesla, credits for using renewable natural gas “biomethane” to power their clean vehicles, according to the network.bloomberg“.
However, this proposal was excluded from a draft regulation that sets biofuel blending quotas for the next 3 years, and is currently undergoing final review at the White House, according to informed sources who spoke on condition of anonymity due to the confidentiality of the decision.
renewable fuel standard
Under the proposal, automakers would have adhered to the 18-year-old renewable fuel standard, which requires refiners to blend biofuels with gasoline and diesel.
Electric vehicle companies were able to obtain new, tradable credits for using electricity generated by natural gas produced from landfills or farms.
Maria Michalos, a spokeswoman for the US Environmental Protection Agency – an agency of the US federal government charged with protecting human health and the environment – declined to comment, simply referring to the ongoing review of the regulation at the present time by the relevant agencies.
The draft regulation may change before its official final version is issued.
U.S. Environmental Protection Agency officials were concerned that they might not finalize the details of a complex electric vehicle initiative in time to meet the deadline set by a court ruling on the June 14 (2023) quota issuance, the sources said, and the energy platform followed.
constant pressure
Electric car companies Tesla, Rivian Automotive and the Carbon Neutral Transportation Association have lobbied the Environmental Protection Agency to pass the plan, saying the latter would advance Biden’s goals to decarbonize transportation.
However, the proposal faces fierce opposition from oil refineries, renewable fuel producers, and some lawmakers in Congress who see it as breaking federal law, according to the specialized energy platform.
Under the proposal, the initiative would provide another package of federal support for carbon-neutral vehicles, in addition to the carbon credits expanded in last year’s Climate Act (2022) and proposed strict limits on carbon pollution.
Renewable identification numbers
The interest takes the form of negotiable credits known as “renewable identification numbers” or “RINs” that refineries use to prove they meet their annual biofuel blending quotas.
Renewable identification numbers indicate a pattern of “regulatory credits,” a legal requirement that US states place on companies to reduce emissions.
If the company’s emissions are below a certain limit, or its use of renewable energy is higher than the specified limit; It can sell the difference to companies that exceed the permitted emissions limit, or that their use of renewable energy was less than the required percentage.
It is noteworthy that electric car companies that do not meet the required limit end up having to buy “renewable identification numbers” from the companies that own them in order to avoid legal penalties imposed by the government.
These credits are usually awarded with every gallon of biofuel, but under the US Environmental Protection Agency’s plan, automakers might earn “renewable identification numbers” when they use electricity generated from renewable sources as fuel to power electric vehicles.
Meanwhile, refiners indicated that Congress never gave authority to the US Environmental Protection Agency to create credits related to biofuels, according to the Specialized Energy platform.
In contrast, owners of trucks and charging stations rejected this approach, claiming that granting renewable identification numbers to car companies would boost the production of electric cars without stimulating investments in infrastructure projects, and – also – the project to convert biogas to electricity.
The chart below – prepared by the Energy Research Unit – reviews electric passenger car sales in the world between 2015 and 2022:
Promising future
On May 15 (2023), a report issued by the US Energy Information Administration predicted that electric vehicles – electric cars and plug-in hybrids – will account for between 13% and 29% of all light vehicle sales in the United States by the middle of the current century (2050). .
The same report predicted that electric cars would account for between 11% and 26% of the total number of light passenger cars on the roads by the same period, depending on different scenarios, according to information collected by the specialized energy platform.
The EIA identified a mix of factors that shape electric vehicle sales growth scenarios in America, including future government policies and emissions restrictions, technological developments, charging infrastructure, and citizen behavior toward purchasing low-emission vehicles.
Electric car sales in America
Electric vehicle sales in the US rose a solid 55% year-on-year over the past year (2022), touching nearly 800,000 units, with battery-powered vehicles accounting for 70% of the total.
Accordingly, the total number of electric cars on the road in the United States of America reached 3 million, which constitutes 10% of the global total, according to figures released by the International Energy Agency.
The American inflation reduction law is credited with the rise in sales of electric cars in America to 320,000 cars during the first 3 months of this year (2023), an increase of 60% on an annual basis.
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