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Saturday, September 21, 2024

Congressional Review Act targets Biden's electric vehicle credit rules

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Rep. Carol Miller, U.S. Representative for West Virginia 1st District | Official U.S. House headshot

Rep. Carol Miller, U.S. Representative for West Virginia 1st District | Official U.S. House headshot

Congresswoman Carol Miller (R-WV), Congressman Jared Golden (D-ME), and Senators Joe Manchin (D-WV) and Deb Fischer (R-NE) have introduced a Congressional Review Act (CRA) Resolution that disapproves of the Clean Vehicle Credit rule from the Department of Treasury. The resolution aims to repeal what they term as an "illegal rule."

“Actions speak louder than words. The Biden Administration’s final rule on the Electric Vehicle Credit makes it clear that they are prioritizing misguided Green New Deal products coming from China over American investment in our domestic supply chain," said Congresswoman Miller. She further criticized the rule for undermining American manufacturing and economic growth, accusing it of allowing Chinese entities to flood the United States with products that could be made domestically.

Congressman Golden expressed his support for the CRA, stating, "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."

Senator Manchin echoed these sentiments, emphasizing that the Inflation Reduction Act was designed to bring energy and manufacturing supply chains back to America and reduce dependency on foreign adversaries like China. He criticized the current administration for ignoring this law.

Senator Fischer added her voice to those opposing President Biden's approach, stating, “President Biden wants to prop up America’s transition to EVs by keeping Chinese graphite flowing into the United States. As usual, China will profit richly off the administration’s ‘green’ energy dreams."

The lawmakers argue that despite legal provisions stating that electric vehicles with batteries containing any critical minerals or components from a foreign adversary are ineligible for tax credits under sections 30D and 25E starting in 2025, the final rule released by the Biden Administration allows Chinese materials to be used in electric vehicle manufacturing while still qualifying for credit.

If passed, the CRA would compel the Biden Administration to re-write this rule in a substantially different manner, excluding adversaries from receiving American tax credits.

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