Sen. Manchin Wants Legal Opinion on Treasury EV Rules' Reviewability
Sen. Joe Manchin is asking the Government Accountability Office to provide a legal opinion on whether Treasury Department guidance for implementing electric vehicle tax credits can be vetoed by Congress through the Congressional Review Act. Because these are proposed rules, they would typically not be subject to the CRA.
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Manchin, D-W.Va., who authored many of the provisions aimed at building up a domestic electric vehicle battery supply chain, complains that the Treasury's proposed rule extends "America’s reliance on foreign nations for battery and vehicle component supply chains, including China."
He complained that the "50% of value added test" cuts the needed amount of critical minerals in half; he complained that the free trade partners should not be expanded to Japan, the EU or other places where there is not a comprehensive free trade deal; and, he said, the administration is contradicting the clear language of the law that says "any vehicle placed in service after" Dec. 31, 2024 shouldn't qualify for a tax credit if any of the components in the battery were assembled in China.
"The Treasury’s proposal rewrites these clear statutory requirements by suspending the statutory prohibition in section 30D(d)(7)(A) from January 1, 2025, to January 1, 2027 and suspending the statutory prohibition in section 30D(d)(7)(B) from January 1, 2024, to January 1, 2027. This enables electric vehicles that contain critical minerals or battery components sourced from foreign entities of concern placed in service over the next 3 years to qualify for the tax credit in spite of the statutory prohibitions -- and this allowance is effective in a matter of weeks regardless of whether Treasury ever issues a 'final' version of the proposal at some later date," he wrote.