Tesla, Rivian Automotive Inc. and the Zero Emissions Transportation Association lobbied the EPA in favor of the plan, arguing it would advance President Joe Biden’s goals for decarbonizing the transportation sector. However, the proposal faces opposition from refiners, renewable fuel producers and some lawmakers who argue it flouts federal law. 

As initially proposed, the EV initiative would provide another layer of federal support for zero-emission vehicles on top of tax credits expanded in last year’s climate law and stringent proposed limits on tailpipe pollution. The benefit would come in the form of tradeable credits known as “renewable identification numbers” or RINs, which are used by refiners to prove they have fulfilled annual biofuel-blending quotas. 

Those credits are typically generated with each gallon of biofuel, but under the EPA plan, automakers could get eRINs when electricity from certain renewable sources is used as fuel to power EVs. 

The owners of truck stops and charging stations have balked at the approach, arguing that giving eRINs to automakers would further bolster EV production without spurring investment in charging infrastructure and biogas-to-electricity projects.

Fuel refiners, meanwhile, have argued that Congress never gave the EPA authority to create a new biofuel credit tied to electricity.