News: A bipartisan group of lawmakers is preparing to introduce a resolution that would throw out the Biden administration’s clean vehicle tax credit rules over concerns about using materials from China.
Reps. Carol Miller (R-W.Va.) and Jared Golden (D-Maine) are leading the Congressional Review Act resolution in the House with Joe Manchin (D-W.Va.) and Deb Fischer (R-Neb.) doing the same in the Senate, according to a person familiar with the effort. Sen. Sherrod Brown (D-Ohio) is also expected to sign on.
Read the draft text of the CRA resolution here.
The Treasury Department and IRS finalized rules earlier this month for new EV tax credits included in the Democrats’ 2022 Inflation Reduction Act. But critics like Manchin and Brown were quick to blast the regulations, arguing they give automakers too much flexibility on sourcing rules meant to force supply chains out of China.
“Our adversaries should not have access to American tax credits, plain and simple,” Miller said in a statement.
The bipartisan backing for the CRA effort is a big deal. It would likely clear both chambers. Manchin and Brown’s votes would be enough for success in the Senate as long as Republican senators are on board.
Remember: CRA resolutions to overturn agency rulemakings get special treatment in the Senate. Supporters can force a floor vote even if leadership isn’t on board.
Eyes on Biden: The CRA effort is the latest headache for the Biden administration as it’s rolling out hundreds of billions of dollars in IRA tax credits for clean energy. Manchin has been a thorn in the administration’s side, repeatedly arguing it’s not following the intent of the IRA.
The administration has had to balance climate and domestic manufacturing goals, particularly with the EV credits. Treasury and IRS offered some flexibility for sourcing critical minerals needed in EV batteries in the final rules. China currently dominates some of the supply chains for those minerals, like graphite, so automakers were worried about being able to access credits in the near term.
But this all comes as President Joe Biden and former President Donald Trump are each trying to pitch themselves to voters as being the toughest on China. In his latest move, Biden this week announced major new tariffs on Chinese-made EVs, solar panels and semiconductors. Those efforts haven’t spared Biden a fight with some Democrats over the EV rules.
Biden has already vetoed a series of CRA resolutions this Congress, including one to nullify a waiver on sourcing requirements for EV chargers.
Manchin said he expected the CRA effort would succeed in the Senate, but conceded that it would still likely face a veto. “[Biden’s] got some radical climate advisers over there telling him some really bad stuff,” Manchin said.
