Proposed Law Pulls Plug on EPA Credits for Renewable Electricity in Transportation Fuel

The 'No Fuel Credits for Batteries Act of 2025' aims to draw a clear line in the sand for the Environmental Protection Agency (EPA). It explicitly prohibits the agency from issuing or authorizing credits for electricity produced from renewable sources when that electricity is used as transportation fuel, according to Section 2 of the bill. This action seeks to clarify the rules under the Clean Air Act's Renewable Fuel Program (RFP), and importantly, it would also halt the use or transfer of any such credits generated before the bill potentially becomes law.

Defining the Playing Field: What Counts as 'Renewable Fuel'?

The Renewable Fuel Program essentially mandates that a certain volume of renewable fuel gets blended into the nation's gasoline and diesel supply each year. Companies meet these requirements primarily using liquid biofuels like ethanol and biodiesel, generating credits called Renewable Identification Numbers (RINs) in the process. There's been ongoing discussion about whether electricity from renewable sources (think biogas powering an EV charger) should also generate these credits, often dubbed 'eRINs'. This bill answers with a firm 'no'. Section 2 states these electricity-based credits are not authorized for meeting the RFP volume requirements. This move clarifies the program's scope, potentially keeping the focus squarely on traditional liquid biofuels rather than expanding it to include electricity.

Shifting Currents: Impacts on Energy and EVs

This clarification isn't just regulatory housekeeping; it has real-world ripple effects. Companies investing in renewable electricity generation specifically for the transportation sector—like building large solar farms to power EV charging networks—would lose out on a potential revenue stream they might have anticipated from selling eRINs. This could make such projects less economically attractive, potentially slowing investment in this specific type of renewable infrastructure. While the direct impact on individual EV drivers isn't immediate, removing eRINs eliminates one potential pathway that could have theoretically helped lower the cost of renewable charging down the road. Conversely, producers of traditional biofuels could benefit from this clarification, as it limits the types of fuels competing for credits within the established RFP system. The bill is quite direct in Section 2, leaving little room for interpretation on the exclusion of these electricity credits.