Tesla is reportedly among several companies seeking entry into the highly lucrative U.S. renewable fuel credit market.
With the new Biden Administration’s drive to increase zero emission vehicle sales, a report by Reuters indicates there are at least eight new companies with pending applications at the Environmental Protection Agency (EPA) in regard to power generation and renewable credits.
The US renewable credit market was first established by the Bush administration in the early 2000’s. Created as a way to increase investment in the national biofuel industry, the program generated around 18 billion in credits last year, most of them to ethanol producers.
The report, which is based on two sources familiar with the matter, said Tesla’s application is likely tied to the production of electricity associated with biogas.
Without specifying a timeline, the sources said the Biden administration will review the applications and decide upon how electric vehicles (EVs) could qualify for tradable credits.
The credits could help spur the construction of new EV charging infrastructure across the US. But Tesla’s addition could ruffle some feathers in a perfect twist of fate where those in the U.S. refining industry would have to buy Tesla’s credits, essentially putting them in the position of subsidizing the automaker who may one day put them out of business.