By David Shepardson
WASHINGTON (Reuters) – The White House said President Joe Biden would veto a Senate Republican effort on Wednesday to reverse his administration’s decision to waive some “Buy America” requirements for government-funded electric vehicle charging stations.
The White House said the Republican bill, which is set to be voted at 5:30 p.m. ET (1030 GMT), would have the effect of eliminating entirely the domestic manufacturing requirement for government-funded electric vehicle (EV) chargers “thereby harming domestic manufacturing and American jobs.”
The Federal Highway Administration (FHWA) in February agreed to waive some requirements through July 2024, saying it would enable “EV charger acquisition and installation to immediately proceed.”
The White House said the Republican bill to rescind that waiver would also overturn the FHWA decision to impose Buy America rules on EV chargers.
As a result, the 1983 Reagan administration decision to exempt manufactured products from Buy America requirements would again apply, meaning EV chargers would not be covered by any Buy America requirements, the White House said.
Republican Senator Marco Rubio challenged the White House argument, arguing they would separately rescind the 1983 waiver at any time.
“The Biden administration is waiving the law’s ‘Buy America, Build America’ provision, which means they are directing taxpayer dollars toward foreign-made EV chargers,” Rubio said.
Congress has set aside $7.5 billion to fund electric vehicle charging stations.
Under the 2021 bipartisan infrastructure law, federal infrastructure projects like EV chargers must obtain at least 55% of construction materials, including iron and steel, from domestic sources and be totally manufactured in the United States.
The rules adopted in February do not start imposing the 55% requirement until July 2024. The chargers must be assembled at a U.S. factory.
EV chargers require iron and steel for some of their most crucial parts, including the internal structural frame, heating and cooling fans and the power transformer. Chargers with cabinets that house the product require even more steel, making up to 50% of the total cost of the chargers in some cases.
U.S. states and companies had warned that global demand for EV chargers is straining the supply chain, making it difficult, if not impossible, to meet made-in-America standards and expedite construction of new chargers.
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