ICYMI: Manchin, Colleagues Debate American Vehicle Security Act on Senate Floor

January 26, 2023

To watch Chairman Manchin and colleagues debate the American Vehicle Security Act on the Senate floor, please click here.

Washington, DC – Today, U.S. Senator Joe Manchin (D-WV), Chairman of the Senate Energy and Natural Resources Committee, took to the Senate floor to ask his colleagues’ unanimous consent to pass his bipartisan American Vehicle Security Act (AVSA). The legislation is in response to the U.S. Department of the Treasury’s failure to release guidance to implement the electric vehicle tax credits by the deadline required by the Inflation Reduction Act (IRA). The AVSA would fulfill Congressional intent by ensuring the 30D new consumer vehicle tax credit is only made available according to the IRA by requiring compliance with battery manufacturing and critical mineral sourcing requirements as of January 1, 2023.

Chairman Manchin said in part: “Let me explain what we’re trying to do and what we have done by passing the IRA. China has cornered the electric vehicle supply chain market. 80% of the world’s battery materials processing comes from China; 60% of the world’s cathode production comes from China; 80% of the world’s anode production comes from China; and 75% of the world’s lithium-ion battery cell production comes from China.

“The Treasury is failing to issue guidance and by law, the bill said [they must issue guidance] by December 31. They’re in violation. They don’t have the guidance ready, and they had plenty of time to do it, but they are now continuing to let the $7,500 credit go without any concerns at all about the critical mineral requirements. That is not what the legislation [the IRA] is about, that is not what we all voted for. Every Democrat voted for this. Now, all of a sudden, we say we’re not going to pay attention to the rules, regulations don’t mean anything, just go ahead and let them do what they want to do. And I’m sorry, that’s now the way it is and that’s not the way it should be.

“Being the birthplace of Henry Ford, who put the automobile in everyone’s affordability range and transitioned our country and how we move around, we’ve always been an automotive powerhouse. The sooner that we are able to source our own supplies that we need for our mode of transportation, we’ll maintain that powerhouse. That’s what the IRA has done, that’s the intent of the IRA. I’ve asked the Treasury to follow the law, follow the rule, follow the legislative intent and the bill that we passed. And they are defying that and this bill would correct that, and that’s all we’re asking for.”

Read the full text of the American Vehicle Security Act below or click here:

Title: To adjust the effective date for application of certain amendments made with respect to the credit for new clean vehicles.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “American Vehicle Security Act of 2023”.

SEC. 2. APPLICATION OF CERTAIN AMENDMENTS MADE WITH RESPECT TO THE CREDIT FOR NEW CLEAN VEHICLES.

(a) In General.—Section 13401(k) of Public Law 117-169 is amended—

(1) in paragraph (1), by striking “paragraphs (2), (3), (4), and (5)” and inserting “paragraphs (2), (3), and (4)”,

(2) by striking paragraph (3), and

(3) by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.

(b) Effective Date.—The amendments made by this section shall take effect as if included in the enactment of section 13401 of Public Law 117-169.

To watch Chairman Manchin and colleagues debate the American Vehicle Security Act on the Senate floor, please click here.