Sen. Joe Manchin wants to block the use of expanded consumer EV subsidies on cars that don’t meet strict battery sourcing mandates in the U.S. climate law, Ben writes.
Driving the news: His new bill would immediately impose limits the Treasury Department has delayed by failing to issue formal “guidance” on the requirements.
Catch up fast: The law tethers EV subsidies to Manchin-led provisions aimed at onshoring the supply chain.
- It sets escalating percentages for components and materials sourced, processed or recycled domestically or from free-trade partners.
- Few models currently meet the standards. But they’re not in place until Treasury acts, so purchase credits up to $7,500 are widely available.
What they’re saying: An aide to Manchin, who heads the Senate’s energy panel, said one motivation is concern Treasury will delay action beyond their March target for finishing the guidance.
- The “overarching concern” is reliance on foreign supply chains. “We really need to do this sooner rather than later,” the aide told reporters.
- Anyone who has already claimed the credit since Jan. 1 will need to refund it.
What we don’t know: Whether the bill has political legs. Manchin has not begun seeking co-sponsors, aides said.
