The United States Senate rejected President Biden's decision to waive some "Buy America" requirements for government-funded electric vehicle charging stations, with several Democrats joining Republicans in a 50-48 vote.
Sens. Sherrod Brown, D-Ohio, Joe Manchin, D-W.Va., Jon Tester, D-Mont., and Kyrsten Sinema, I-Ariz., voted for the Republican bill, which Biden has vowed to veto.
The White House says the bill to rescind his waiver would also eliminate a requirement that EV chargers paid for by the bipartisan infrastructure law be made in America, "thereby harming domestic manufacturing and American jobs."
Congress approved $7.5 billion to fund EV charging stations, which are critical to Biden's ambitious goal for half of all new car sales to be EVs by 2030. However, the installation of new EV chargers has been slow-going.
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In February, the Federal Highway Administration (FHWA) agreed to waive some Buy America requirements until July 2024, in order to allow "EV charger acquisition and installation to immediately proceed."
Republicans responded with a bill to rescind that waiver, arguing most of the parts for EV chargers would be bought from China.
The White House says the GOP bill would also overturn the FHWA decision to extend Buy America rules to EV chargers, pointing to a 1983 Reagan administration decision to exempt manufactured products from Buy America rules. The effect of the GOP bill, the White House argues, would be that EV chargers are not covered by Buy America requirements.
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Sen. Marco Rubio, R-Fla., challenged the White House argument, arguing the administration could separately rescind the 1983 decision at any time. Rubio said the waiver would allow government funds to "go into the hands of Chinese companies to build electric vehicle charging stations."
The 2021 bipartisan infrastructure law requires EV chargers to obtain at least 55% of construction materials, including iron and steel, from domestic sources and U.S. manufactured.
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The rules go into effect in July 2024. EV chargers produced by then can receive funding if installation begins by October 2024, according to Reuters.
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.
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U.S. states and companies warned 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.
Reuters contributed to this report.
