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Biden vetoes bipartisan bill protecting US EV industry from China

President Biden on Wednesday vetoed a bipartisan resolution that would have reversed his administration's decision to exempt taxpayer-funded electric vehicle (EV) charging stations from “Buy America” ​​requirements.

The resolution, authored by Florida Republican Sen. Marco Rubio and introduced in July, specifically seeks to overturn the Department of Transportation's (DOT) exemption from Buy America requirements for electric vehicle chargers. Ta. Vice Chairman Rubio and other Republicans on the Senate Select Committee on Intelligence argued that the DOT exemption would benefit Chinese manufacturers that control the EV charger supply chain.

“If passed, this resolution would have a negative impact on the administration's efforts to foster investment in critical industries and bring quality jobs back to America,” Biden said in a statement Wednesday. “It would not only hinder Congress and the administration's joint goal of establishing a domestic EV charger manufacturing industry, but it would also slow the significant progress our administration and state are making in establishing an EV charging network. ”

“Establishing resilient supply chains is critical to our nation's economy and energy security, and my administration will not support policies that undermine efforts to bring this critical manufacturing industry back to the United States,” the President continued.

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A driver charges an electric car at a charging station in Monterey Park, California, on August 31, 2022. (Frederick J. Brown/AFP via Getty Images)

Biden also argued that while the administration's actions would effectively boost domestic manufacturing, the Senate resolution would have the opposite effect. But he acknowledged that the DOT's waiver will give newly announced EV charger component manufacturing capacity “the necessary time to ramp up production.”

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DOT has been announced The Made in America EV charger exemption rule, finalized in February 2023, removes more stringent requirements and extends certain deadlines by several months, seen as a victory for green energy industry groups. Ta. The exemption establishes manufacturing and assembly requirements for EV charging companies that qualify for millions of dollars in federal grants.

This exemption is a modification of a more stringent proposal submitted by the DOT in August 2022. The proposed four-tier exemption would have eliminated all requirements immediately. It then required EV charger companies to assemble all products in the United States starting January 1, 2023. Starting July 1, 2023, we will manufacture chargers with at least 25% U.S.-made components at cost. Starting January 1, 2024, we will manufacture chargers with at least 55% U.S.-made components at cost.

President Biden previously set a goal of ensuring 50% of car purchases are electric by 2030. The White House says EPA's recent tailpipe regulations "We now have a clear path forward for continued growth in EV sales."

President Biden previously set a goal of making 50% of car purchases electric by 2030. (Anna Moneymaker/Pool/Getty Images | Sean Gallup/Getty Images)

The proposed exemption, finalized in 2023, was broken into a two-step process and delayed key deadlines.that Need an EV charger company This is to ensure that final assembly of the charger occurs in the United States and that starting July 1, 2024, the cost of the charger's U.S.-made parts will account for 55% of the total product cost. This exemption specifically eliminated the 25% domestic parts requirement.

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“The bottom line is, if we're going to spend $5 billion of taxpayer money to build electric vehicle charging stations for America, it should be built by Americans in America, using American products.” Rubio said in a floor speech. November.

“Joe Biden and his final American agenda will be investing taxpayer dollars faster in EV chargers made in communist China than in products made in the United States,” said House Republican Party Chair Elise Stefanik. (RN.Y.) added this month. She said, “The Buy America clause is intended to support American businesses and strengthen American manufacturing, but the pro-communist Chinese regime has no interest in either.”

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Sen. Marco Rubio, R-Sen. Marco Rubio: “The bottom line is this: If we spend $5 billion in tax dollars to build electric vehicle charging stations for America, Americans in the United States It should be made with products,” Florida said late last year. (Bill Clark/CQ-Roll Call, Inc, via Getty Images)

The Senate passed the resolution in November with a vote of 50-48, along with Sen. Sherrod Brown (D-Ohio). Joe Manchin, Virginia, Virginia. Jon Tester, Democrat, Mont. and Kyrsten Sinema of Arizona joins the Republican Party. On January 11, the House passed the bill by a vote of 209-198 between the two House Democrats. Rep. Jared Golden of Maine and Donald Davis of North Carolina joined the 207 Republicans who voted in favor.

The DOT waiver was finalized as part of the Biden administration's push for both countries. Expansion of EV manufacturing and the nationwide network of chargers needed to fuel zero-emission vehicles. Mr. Biden has set a goal of building an EV charging network of 500,000 chargers along U.S. highways and having 50% of all new vehicle sales be EVs by 2030.

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The Infrastructure Investment and Jobs Act, a major infrastructure package signed by Biden in 2021, allocates $7.5 billion for EV charging programs, and the Control Inflation Act of 2022 expands tax credits for EV and charger installations. There is.

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