Effort to Overturn Treasury Rule on EV Battery Content Introduced in Congress
A bipartisan effort has begun to undo Treasury rulemaking that allows automakers a longer period to move away from Chinese graphite and other critical minerals, and allows them to continue to use rollup methodology to calculate the percentage of qualifying critical minerals (see 2405030060).
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Although trade groups called the extended phase-in of restrictions on content for electric vehicle purchase tax credits one that recognized the realities of the EV battery supply chain, Sen. Joe Manchin, D-W.Va., who shaped the content requirements, is leading an effort to roll back the rule through a congressional resolution of disapproval.
For that effort to succeed, both the House and Senate would have to pass the resolution with veto-proof majorities.
Manchin and Sens. Sherrod Brown, D-Ohio, Deb Fischer, R-Neb., Marco Rubio, R-Fla., Lisa Murkowski, R-Alaska, and Mike Braun, R-Ind., co-introduced the resolution May 16. Reps. Carol Miller, R-W.Va., and Jared Golden, D-Maine, lead the effort in the House.
Manchin said in a news release that the Inflation Reduction Act "was written specifically to bring our energy and manufacturing supply chains back to the United States and eliminate our dependency on foreign adversaries, especially China."
Murkowski said, "While I certainly support electric vehicles, there is no question the Biden administration has significantly departed from the clear requirements of federal law in promulgating these rules." She said the loosening of content requirements was arbitrary.
Miller said, "Not only is this rule making clearly illegal, but it also undermines American manufacturing and economic growth."
Golden said, "This new Treasury rule misses the point of the IRA: We're supposed to be prioritizing American manufacturing, not using taxpayer dollars to reward our foreign competitors’ market distortions by cementing their position in our supply chain."