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Energy Updates


Nov 20, 2024
Blog

Top Moments from COP29

Republicans Advocate for American Energy on World Stage Energy and Commerce Committee Member August Pfluger (R-TX) led a bipartisan Congressional delegation to Baku, Azerbaijan, for COP29. Members met with world leaders to discuss efforts to build a cleaner energy future. Throughout bilateral meetings and panel discussions on the international stage, E&C Members not only highlighted America's energy leadership but also underscored our commitment to environmental stewardship. Check out these top photos from the trip: At a press conference , Members highlighted how America has led the world in reducing emissions without sacrificing innovation, economic development, or national security. Our allies and partners benefit from America’s energy exports, technological leadership, and environmental stewardship. At a bipartisan panel moderated by Heather Reams, President of Citizens for Responsible Energy Solutions (CRES), Members highlighted how a robust nuclear energy industry is critical for providing affordable clean energy to communities across the country and around the world. Members also underscored the significance of the ADVANCE Act, signed into law July 2024, which will modernize and improve licensing processes at the Nuclear Regulatory Commission (NRC).  Meeting with COP 29 President Minister of Ecology Mukhtar Babayev    and Lead Negotiator Yalchin Rafiyev Meeting with the President of Azerbaijan   Meeting with U.S. Ambassador Mark Libby Meeting with South Korean officials Meeting with Taiwanese officials



Apr 10, 2024
Blog

Don’t Miss from Port Arthur, Texas: “You are who the Biden administration should have consulted”

Highlights from the Energy Subcommittee Field Hearing on Biden’s De Facto LNG Export Ban The Energy and Commerce Committee’s Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC) led a field hearing in Port Arthur, Texas, this week. Local leaders celebrated the economic and public benefits of American energy production in the community—and the country as a whole—while also warning of the dangers of President Biden’s decision to halt American LNG exports. Check out these stories from the hearing: The impacts of President Joe Biden’s LNG export permit freeze has reverberated across the nation’s oil/gas industry. But nowhere are its impacts felt more acutely than in southeast Texas, where as many as 24 job-generating petrochemical infrastructure projects, including several already under way, are now in limbo. The uncertainty fostered by the Biden administration’s Jan. 26 implementation of a “temporary pause” in LNG export permits most notably threatens to derail economic development in Port Arthur and Beaumont, two port cities where billions in planned job-generating investments by private industries have been tailored to benefit local residents and redress long standing community environmental concerns. Local officials outlined how the LNG permit freeze has paralyzed economic development across southeast Texas during a 90-minute April 8 congressional field hearing at Lamar State College in Port Arthur. The administration’s “stopping or suspending LNG exports has an obvious and direct impact on maritime commerce and the jobs it supports” in the region, Port of Port Arthur Port Director/CEO Larry Kelley told the House Energy & Commerce Committee’s Energy, Climate & Grid Security Subcommittee.   At a field hearing on Monday held at Lamar State College in Port Arthur Texas, members of the Congressional Subcommittee on Energy, Climate, and Grid Security listened to testimony from witnesses regarding the impact that the pause has had on the community.   The first witness who spoke was Thurman Bill Bartie, Mayor of Port Arthur. He called for both sides to reach a compromise but was firm in his stance that the pause will have a negative impact on the economy of Port Arthur.   “The rush to green concept that is being applied to the said LNG supplier will have a negative impact on the economic growth and stability of Port Arthur, Texas. The jobs Arthurans have during this construction phase will be compromised negatively if the permitting is continued to be disallowed,” said Bartie.   Dr Betty Reynard, President of Lamar State College testimony addressed the growth in scholarship opportunities that are being provided for students by the LNG industry. She also spoke of the growth in college programs for LNG related careers and internships from LNG companies.   The fight continues between Southeast Texas lawmakers and the Biden administration's halt on all future liquified natural gas (LNG) exports.   U.S. Representative Randy Weber joined the Energy and Commerce Subcommittee on Energy, Climate, and Grid Security for a hearing to discuss the effects of the ban.   Weber says he refuses to give in and wants Southeast Texas to remain on the frontlines of energy exports.   "Joe Biden's ban directly jeopardizes Port Arthur's LNG which broke ground in construction last month," Weber said.   Weber continues to stand firm with other Southeast Texas leaders including Port Arthur Mayor Thurman Bill Bartie against the Biden administration's decision to halt permits on all major LNG exports. Energy Subcommittee Chair Jeff Duncan (R-SC) said , “Port Arthur and the folks here today are the backbone of the American energy industry. It is a major energy hub, home to many oil and gas facilities, including several LNG export terminals. “You all are who we have to thank when we turn our lights on, start our engines, and blast our AC in the hot summer months. You are who the Biden administration should have consulted with prior to his decision.”   Rep. Randy Weber (R-TX) added , “Just a few miles away from here is the home of Port Arthur LNG and Golden Pass LNG, both of which provide THOUSANDS of direct jobs and BILLIONS of dollars back into our community.”  Prior to the field hearing, Members toured Cheniere’s Sabine Pass LNG Export facility.   From left to right: Reps. Randy Weber (R-TX), Morgan Griffith (R-VA),   Jeff Duncan (R-SC), and Lizzie Fletcher (D-TX)  CLICK HERE to watch the hearing.  CLICK HERE to read Rep. Randy Weber’s (R-TX) op-ed on Biden’s LNG export ban.  CLICK HERE to distinguish LNG myths from fact.  CLICK HERE to read about the letter more than 150 House Republicans sent to President Biden demanding he end his LNG export ban.



Feb 26, 2024
Letter

E&C Republican Leaders Demand Answers on the Biden Administration’s Ineffective EV Infrastructure Program

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Oversight and Investigations Subcommittee Chair Morgan Griffith (R-VA) sent a letter to Department of Energy Secretary Jennifer Granholm and Department of Transportation Secretary Pete Buttigieg regarding growing concerns over the Biden administration’s inability to implement the National Electric Vehicle Infrastructure (NEVI) Formula and the Charging and Fueling Infrastructure (CFI) Discretionary Grant programs, as well as the implications for American taxpayers. KEY QUOTE:   “The Infrastructure Investment and Jobs Act (IIJA) provided $5 billion for the NEVI Formula Program ($1 billion annually from FY22-FY26), and a total of $2.5 billion from FY22-FY26 for the CFI Discretionary Grant Program. Despite recent award announcements, little progress has been made in the buildout of electric vehicle (EV) infrastructure. On December 15, 2023, the Department of Energy and Department of Transportation announced the opening of America’s first EV fast charging stations funded through the NEVI Formula Program: in Ohio and New York. This announcement for merely eight charging stations comes more than two years after the passage of the IIJA.  “The problems with these programs continue to grow – delays in the delivery of chargers, concerns from States about labor contracting requirements and minimum operating standards for chargers, the fact that 22 States (44 percent) have not issued solicitations for NEVI funding, and the limited and questionable delivery of awards from the CFI Discretionary Grant Program.”  Members asked Secretaries Granholm and Buttigieg to answer the following questions by March 7, 2024: How many EV chargers does the administration expect to be constructed using NEVI Formula Program and CFI Discretionary Grant Program funds in 2024?   Because private sector deployment of EV chargers is outpacing the federal government, how is the Joint Office of Energy and Transportation updating its review of State plans to ensure federal dollars do not overbuild private sector investments?   In the Federal Highway Administration’s January 11, 2024, press release, it stated, “More than 70 percent of the CFI funding announced today will support project sites in disadvantaged communities.” Understanding EVs are extremely cost prohibitive for many, expensive to maintain, and have high insurance costs, can you please share how the Joint Office of Energy and Transportation is ensuring charging stations being awarded will receive maximized usage?   What changes is the Joint Office of Energy and Transportation making to ensure the timely review of State plans and delivery of awards?  Regarding the Joint Office of Energy and Transportation:   How many employees does the office have? What is the administrative budget for the office for each year since it has been in existence? Considering the Biden administration’s waiver of Buy America requirements for steel, iron, manufactured products, and construction materials in EV chargers, how will you ensure federal funds are not supporting Chinese or Chinese-affiliated entities?  IN THE NEWS:   “Republican leaders on the House Energy and Commerce Committee are demanding answers from two federal agencies regarding the Biden administration’s lagging electric vehicle (EV) charger subsidy program.”   […] “Beyond noting that the rollout has been sluggish to date, the lawmakers asked the agencies to provide estimates of how many chargers the administration is anticipating the program will help build by the end of the year and steps the agencies are taking to ensure that taxpayer dollars do not benefit Chinese interests in light of the administration’s ‘Buy America’ requirement waiver for certain charger components.”   CLICK HERE to read the full article from the Daily Caller.  CLICK HERE to read the full letter.



Jan 23, 2024
Press Release

E&C Republicans Threaten to Subpoena Documents Amidst Energy Official's Stonewalling of Investigation

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA), and Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC), on behalf of the Oversight and Energy Subcommittee Republicans, today wrote to Department of Energy (DOE) Loan Program Office (LPO) Director Jigar Shah.  In the letter, the Chairs note Mr. Shah’s failure to adequately respond to multiple requests for information from the Energy and Commerce Committee and other Congressional Committees. KEY LETTER EXCERPT :  “Recent reports, your testimony before the Senate Energy and Natural Resources Committee, and the exponential expansion of the LPO’s loan authority of over $400 billion have raised legitimate questions regarding how the program plans to spend taxpayer dollars. As the LPO continues publicly to emphasize its commitment to transparency, full cooperation would have provided this program office with an opportunity to address these issues. However, you have failed to cooperate in a meaningful way with the Committee’s efforts to exercise its constitutionally based oversight responsibilities.”  The Chairs request Mr. Shah provide the previously requested information by February 6, 2024, or they will be forced to consider compulsory measures.  CLICK HERE to read the letter.  BACKGROUND ON PREVIOUS REQUESTS :  October 18, 2023 : Chair Rodgers and Senate Energy and Natural Resources Ranking Member John Barrasso requested more information about the nature of Director Shah’s involvement with Cleantech Leaders Roundtable during his time leading the LPO. CLICK HERE to read the letter.  December 4, 2023 : Chairs Rodgers, Griffith, and Duncan requested more information about the LPO’s process for vetting and approving loan applications in light of reports of the poor financial position of Li-Cycle, a company that received a conditional commitment for a loan. CLICK HERE to read the letter.  December 7, 2023 : Chair Rodgers and Ranking Member Barrasso wrote to Director Shah seeking more information about the LPO’s review and awareness of troubling business practices by Sunnova, a recent partial loan guarantee recipient. CLICK HERE to read the letter.



Nov 8, 2023
Energy

Chairs Rodgers, Duncan, and Johnson Warn FERC about Grid Security Ahead of Commission’s Reliability Conference

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Environment, Manufacturing, and Critical Materials Subcommittee Chair Bill Johnson (R-OH) sent a letter to the Federal Energy Regulatory Commission (FERC) Chair and Commissioners regarding the risks posed to the country’s electric grid by the Environmental Protection Agency’s (EPA) Clean Power Plan 2.0 proposal and other power plant regulatory actions.   This letter—which was sent on behalf of both the Energy, Climate, and Grid Security Subcommittee and the Environment, Manufacturing, and Critical Materials Subcommittee Republicans—comes ahead of FERC’s 2023 Annual Reliability Technical Conference on Thursday, November 9, 2023. A significant focus of this conference will be on the EPA’s Clean Power Plan 2.0 proposal that could have a severe negative effect on electric reliability in the U.S.  KEY EXCERPT:   "The voices expressing concern to the Committee about the reliability of the nation’s electric grid continue to grow in number and in volume, from States to grid operators to utilities. Many of those concerns stem from the Environmental Protection Agency’s (EPA) suite of regulations on the power sector, self-branded the 'EGU Strategy' by the EPA […] If we continue to retire and force the closure of dispatchable electric generation – like coal, natural gas, and nuclear – and fail to replace it with comparable dispatchable generation, the instability and precariousness of the U.S. electric grid will increase.    "Given the looming threats to reliability from EPA regulations, the importance of this year’s Annual Reliability Technical Conference cannot be overstated. A major focus of this technical conference is proposed regulations that have a severe negative effect on electric reliability. It is appropriate and necessary that Federal Energy Regulatory Commission step up and evaluate the impact of EPA proposals." BACKGROUND:   Under the Clean Power Plan 2.0, the EPA has introduced policy proposals to set strict, costly, and untested standards on both new and existing natural gas and remaining coal generators.   These changes will have a chilling effect on American natural gas and coal—which account for about 60 percent of U.S. electricity generation—making life unaffordable for Americans and increasing risks for blackouts.    Energy and Commerce Committee members heard from seven Regional Transmission Organizations and Independent System Operators (RTOs/ISOs) at a hearing in September, who overwhelmingly agreed that these proposed regulations from the EPA threaten to force retirement of a substantial share of their power generation sources.  Further, the North American Electric Reliability Corporation (NERC), who will be participating in the reliability conference, has also noted in recent studies that large swaths of the U.S. are under threat of blackout risks in the coming months and years.  The letter reinforces a growing number of concerns expressed to the committee that the EPA failed to perform adequate and thorough analysis of the impacts of its policy proposals on electric reliability and strongly encourages FERC to take action to ensure these misguided policies do not further undermine reliability.  The Chairs asked the FERC Chair and Commissioners to respond to the following questions:  In light of the importance of FERC’s upcoming technical conference on reliability, including the Clean Power Plan 2.0 proposal, and the information the Commission will gather at the conference, will FERC commit to requesting that the EPA open up a supplemental comment period for the proposed Clean Power Plan 2.0?   Given the electric grid reliability obligations of FERC and NERC, will FERC ensure that the information from its upcoming technical conference be added to the docket in the EPA’s proposed Clean Power Plan 2.0?  FERC’s November 9, 2023, technical conference does not include comparable and sufficient time allotments for all stakeholders, including States, Public Utility Commissions, and utilities. Will FERC commit to hosting an additional technical conference on the Clean Power Plan 2.0 proposal, providing more time for the Commissioners to hear from the various stakeholders?  Will FERC commit to having a technical conference(s) on the other rules (proposed and final) or actions in the EPA’s EGU Strategy, in order to examine their impacts on our electric grid?   Please describe any communications you have had with the EPA on the Clean Power Plan 2.0 proposal, as well as any of the proposed or final rules or actions in the EPA’s EGU Strategy.  CLICK HERE to read the full letter. 



Sep 5, 2023
Press Release

E&C Republicans Press Ford for Information on Planned EV Battery Plant with Ties to China

Washington, D.C. — House Energy and Commerce Committee Republicans, led by Chair Cathy McMorris Rodgers, wrote to Ford President and CEO James Farley regarding a new partnership with Chinese-owned Contemporary Amperex Technology Co., Limited (CATL) to build lithium iron phosphate batteries in the United States.  CLICK HERE to read FOX News's coverage: BACKGROUND :  Earlier this year, Ford announced it would invest $3.5 billion to construct a lithium iron phosphate battery plant in Marshall, Michigan.  According to Ford, its wholly-owned subsidiary will manufacture the battery cells using Chinese company CATL’s technology and services.  KEY LETTER EXCERPTS :  “While Ford has labeled this project a ‘commitment to American manufacturing’ and asserts it will create 2,500 new American jobs, we are concerned that Ford’s partnership with a Chinese company could aid China’s efforts to expand its control over United States electric vehicle supply chains and jeopardize national security by furthering dependence on China.”  […]  “Additionally, Members learned at this hearing that Chinese companies often supply their own workers to projects in Latin America and Africa, reinforcing fears that CATL will import workers for this facility rather that creating jobs for United States workers.”  […]  “We seek to learn more about whether this partnership, and others like it, will potentially exacerbate our reliance on China. Should China gain control of domestic electric vehicle production, the United States would be exposed to serious national security risks at a time of escalating geopolitical tensions.”  The Members requested information and answers to the following questions by September 18, 2023:  A copy of the complete licensing agreement between Ford and CATL, including any appendices, amendments, or addenda.  All documents and communications exchanged between Ford officers or employees and officials, appointees, employees, contractors, or consultants of the United States government referring or relating to Ford and CATL’s partnership and eligibility for tax credits and federal incentives.  Did Ford consider making a similar investment in a partnership with a non-Chinese company? If so, why did Ford ultimately decide to partner with CATL? If not, why did Ford not consider other partners?  How many CATL employees will CATL supply to the Facility?  What steps did Ford take to prevent or limit CATL’s ability to halt production unilaterally, such as at the direction of the Chinese government?  CLICK HERE to read the letter. 



Aug 31, 2023
Energy

E&C Republican Leaders Open Investigation into Hawaiian Electric Following Deadly Maui Fires

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Energy, Climate, and Grid Security Subcommittee Chair Jeff Duncan (R-SC), and Oversight and Investigations Subcommittee Chair Morgan Griffith (R-VA) sent a letter to Hawaiian Electric seeking information regarding the role of electric infrastructure in the August fires that broke out on the island of Maui and in the town of Lahaina. Letters were also sent to the Hawaii Public Utilities Commission and the Hawai’i State Energy Office. KEY EXCERPT: “Our hearts are with the people of Maui as they confront immense grief, sadness, and despair, especially for those who are still searching for their missing loved ones. The pain is unimaginable and the road to recovery is long. We must come to a complete understanding of how this disaster started to ensure Hawaii and other states are prepared to prevent and stop other deadly wildfires.” […] “In our capacity as Chairs of the Committee on Energy and Commerce of the U.S. House of Representatives and its respective energy policy and oversight subcommittees, we are empowered to oversee energy supply, reliability of all power, and regulation of energy resources throughout the country. To that end, we seek a fuller understanding of the role, if any, of the electric infrastructure in this tragic event.” BACKGROUND: On Tuesday, August 8, 2023, a series of deadly fires broke out on the island of Maui and in the town of Lahaina, resulting in the tragic loss of many lives and the destruction of entire communities. The fires are the deadliest in modern U.S. history, with the current death toll at over 100 lives and many hundreds more still missing. Reported evidence of a downed power line sparking dry grass in Lahaina indicates that Hawaiian Electric equipment may have contributed to the fires. Information is also coming to light about actions taken – or not taken – by Hawaiian Electric to harden and modernize the electric grid of Maui in response to the growing risk of wildfires in recent years. Chairs Rodgers, Duncan, and Griffith asked Hawaiian Electric to respond to the following requests for information: What is your understanding of the sequence of events and actions on August 8, 2023, involving the Lahaina fire, including actions taken by Hawaiian Electric? Please describe all actions taken by Hawaiian Electric to address fire risks to the electric grid on Maui prior to August 8, 2023 (going back through 2013). Please describe all actions taken by Hawaiian Electric, Hawaii Public Utilities Commission, Hawai’i State Energy Office and any other applicable entities to mitigate invasive grasses and other vegetation on the island of Maui, in order to prevent or minimize fire risks. Please provide Hawaiian Electric spending on Maui for the past ten years, including, but not limited to, specific spending for utility infrastructure, for energy generation, to meet Hawaii’s renewable energy mandates, and to address identified fire risks. What Hawaiian Electric actions regarding fire risks to the Maui electric grid are pending before the Hawaii Public Utilities Commission? What is the status of those actions? Has the Hawai’i State Energy Office been involved in grid modernization, hardening, and resilience efforts by Hawaiian Electric? If yes, please describe those efforts. In July 2021, the Maui county government assessed and issued a report on the growing threat of fire to the island. Did the report involve any recommendations regarding the electric grid? If yes, what is the status of implementing those recommendations? What orders has the Hawaii Public Utilities Commission issued, or actions taken, since 2018, to address fire risks to the electric grid on Maui? What actions did Hawaiian Electric take after the Maui fires on August 8, 2023, relating to the removal of any equipment, including but not limited to, damaged power lines and poles? Did Hawaiian Electric, Hawaii Public Utilities Commission, and/or the Hawai’i State Energy Office receive any funds from the Infrastructure Investment and Jobs Act of 2021 or the Inflation Reduction Act of 2022? If so, please provide the amount of money, the program under which the funding was awarded, and the type of funding (grant, loan, etc.). CLICK HERE to read the full letter.



Aug 23, 2023
Blog

District Update: E&C Republicans are Leading to Restore America’s Energy Dominance

House Republicans are fulfilling our Commitment to America to address the most pressing issues facing our nation. This month, Energy and Commerce Committee Republicans are back home in their districts talking about Republican solutions to lower the cost of living, improve people’s quality of life, boost our energy security, create jobs, cut China out of our supply chains, and reduce emissions. Check out these updates: Rep. August Pfluger (R-TX) , Rep. Michael Burgess (R-TX) , and Rep. Randy Weber (R-TX) participated in the West Texas Legislative Summit to discuss how, to win the future, America must lead in energy production and innovation. Oversight and Investigations Subcommittee Chair Morgan Griffith (R-VA) hosted a roundtable discussion with America’s Coal Association. Unlike the Biden administration’s radical rush-to-green energy agenda that threatens our energy security and makes us more reliant on China, House Republicans are leading on an all-of-the-above energy approach to restore American energy dominance. For example, Energy and Commerce Republicans are pushing back on harmful EPA regulatory proposals, like the Clean Power Plan 2.0, which threatens the reliability of our grid. Rep. Bill Johnson (R-OH) met with Orion Engineered Carbons to talk about their innovative, specialty chemicals that are used for lithium-ion batteries. Right now, China produces around 75 percent of all lithium-ion batteries and is dominating the electric vehicles market. E&C Republicans are leading on solutions to ensure America—not China—is in the driver’s seat of our automotive future. Rep. Rick Allen (R-GA) spent time with the Jefferson Energy Cooperative to talk about the need for affordable, reliable energy, which is foundational for a strong economy. When the price of energy goes up, everything else costs more. H.R 1 is projected to lower energy bills by $795 per year for American   families. Rep. Troy Balderson (R-OH) visited the Guernsey Power Station, a critical natural gas-fired energy facility, to learn how their operations are helping deliver clean, reliable, and affordable energy to millions of Americans. Republicans are leading to stop President Biden’s war on natural gas, including by repealing his natural gas tax and de facto ban on natural gas cooking appliances. Rep. Kat Cammack (R-FL) joined J&J Gas Service, a local and family-owned business, to hear about the challenges they are facing as a result of President Biden’s war on American energy production. Under the Biden administration, gas prices have increased nearly 62% and natural gas prices are up more than 40% . Energy Subcommittee Chair Jeff Duncan (R-SC) wrote an op-ed in The Washington Times about the future of clean, reliable, and affordable nuclear power. E&C Republicans are leading solutions for efficient, predictable licensing and deployment which will allow for the expansion of nuclear energy.  Don’t miss: Chair Rodgers is leading on H.R. 1042, the Prohibiting Russian Uranium Imports Act, to ban fuel imports from Russia and send a strong signal to the market that will help restore American nuclear leadership. Rep. John Joyce (R-PA) met with a local car dealership to talk about H.R. 1435, the Preserving Choice in Vehicle Purchases Act, a bill he is leading to prevent the Biden administration from banning the sale of internal combustion engine vehicles. Rep. Russ Fulcher (R-ID) had similar conversations with the Idaho Automobile Dealers Association about preserving people’s freedom to buy reliable, affordable vehicles. Unlike the Biden administration, Republicans are leading on solutions to increase—not limit—people's choices and access to vehicles. Click here to watch our June 22, 2023, Environment Subcommittee hearing with the EPA on the impacts of Biden’s rush-to-green agenda on transportation affordability. Communications and Technology Subcommittee Chair Bob Latta (R-OH) wrote an op-ed for The Washington Times highlighting why, instead of regulating the choice out of Americans’ lives, we should trust that Americans will make the best choices for themselves. As Rep. Latta said, “with the average cost at $64,000, most American families cannot afford to make the quick transition to an electric vehicle.” 



Jun 23, 2023
Press Release

E&C Republicans to EPA: IRA’s EV Loopholes May Lead to Increased Reliance on China for Critical Minerals for Car Batteries

Washington, D.C. — House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA); Subcommittee on Energy, Climate, and Grid Security Chair Jeff Duncan (R-SC); Subcommittee on Oversight and Investigations Chair Morgan Griffith (R-VA); and Subcommittee on Environment, Manufacturing, and Critical Materials Chair Bill Johnson (R-OH), on behalf of the Energy, Oversight, and Environment Subcommittees, today sent a letter to Environmental Protection Agency Administrator Michael Regan. The Chairs’ letter raised concerns that loopholes in the so-called “Inflation Reduction Act’s (IRA) electronic vehicle (EV) tax provisions might lead to an increased reliance on China.  KEY EXCERPT:   “We are concerned that EPA potentially overestimates the impact of the IRA’s tax credits in supporting domestic supply chains for critical minerals and electric vehicle batteries. EPA asserts that widespread vehicle electrification ‘will not lead to a critical long-term dependence on foreign imports of minerals or components’ and that increased demand will not threaten national security. However, increased adoption of electric vehicles to meet the demands of this rule could force the United States to rely on foreign adversaries such as China, which dominates much of the electric vehicle supply chain.”  BACKGROUND:   The IRA permits individuals to claim a federal income tax credit for purchasing a qualifying new clean vehicle.  The IRA placed restrictions on which vehicles are eligible for this credit, including:  Critical Minerals Requirement: A certain percentage of the vehicle’s battery be extracted or processed in the United States or any country with which the United States has a free trade agreement, or recycled in North America, starting with 40 percent for vehicles placed in service on or after April 18, 2023, and before January 1, 2024, and escalating to 80 percent for vehicles placed in service after December 31, 2026;  Battery Components Requirement: A certain percentage of the value of the vehicle’s battery components must be manufactured or assembled in North America (battery components requirement), starting with 50 percent for vehicles placed in service on or after April 18, 2023, and before January 1, 2024, and escalating to 100 percent for vehicles placed in service after December 31, 2028; and   Final Assembly Requirement: Final assembly of the vehicle must occur in North America.   The IRA also added a credit for qualified commercial clean vehicles, which allows businesses to claim a federal income tax credit for clean vehicles dedicated to commercial use, and not for resale.   Note: This credit, the Commercial Clean Vehicle Credit, does not include tax credit eligibility limitations—such as the critical minerals requirement, the battery components requirement, or the final assembly requirement.  As Members discussed at a recent hearing on the Committee’s Subcommittee on Oversight and Investigations, car manufacturers may exploit the absence of the critical minerals requirement, the battery components requirement, and the final assembly requirement in the Commercial Clean Vehicle Credit.  Reportedly this “loophole” is “quickly changing the behavior of foreign automakers.”  For example, Hyundai is “direct[ing] many more of its [electric vehicle] customers to leases.”  The Chairs requested that Administrator Regan respond to the following questions by July 10, 2023:  Prior to issuing this final rule, does the EPA plan to analyze the extent to which vehicle manufacturers and retailers may focus on increasing leases of electric vehicles, as compared to those purchased?  If so, how does the EPA plan to do so?  If not, why not?  Has the EPA communicated, or does it plan to communicate, with any other relevant entities or agencies, such as the Department of Treasury, regarding the extent to which stricter requirements for vehicles eligible for the Clean Vehicle Credit than the Commercial Clean Vehicle Credit may lead to an increase in the number of leased electric vehicles, as compared to those purchased?  CLICK HERE to read the full letter.