Inside Manchin's war with Biden on electric vehicles

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Inside Manchin's war with Biden on electric vehicles
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The West Virginia Democrat says the president has betrayed him when implementing the Inflation Reduction Act. Other players paint a different picture.

Sen. Joe Manchin has been at war with the administration for months over its implementation of last year’s landmark climate law. He is even accusing President Joe Biden of breaking a promise to him.of White House officials.

“The president gave Manchin his word,” one top aide said, adding that congressional Democratic leaders made the same verbal agreement. A handful of staffers hammered out the final pieces of the Inflation Reduction Act over a 13-day period last summer. White House aides were not there. All the while, Manchin is claiming he was given a verbal promise from the highest levels of government that the bill would be implemented to his specific wishes.

“This was a difficult negotiation,” said one person familiar with the final Inflation Reduction Act drafting discussions,"[but] there was no such agreement, ... and there was an understanding there were elements that would be resolved in the implementation.”Manchin had earlier scuttled Democrats’ initial effort to craft a climate and social program law, known as the “Build Back Better Act.

They had to keep talks under wraps to avoid interference, and any bill they agreed to would have to be passed quickly to avoid scrutiny that could peel away support. Sen. Kyrsten Sinema at the Capitol last year as the Democrats' budget reconciliation bill was nearing passage. | Francis Chung/POLITICO

In the latter stages of negotiations, Manchin signed off on a title dubbed “clean vehicle credits,” laying out new, strict critical mineral sourcing requirements for EV batteries and battery materials in order to secure tax credits worth up to $7,500. Officials have also pulled a term from 2021’s bipartisan infrastructure law — “constituent material” — to allow metal powders used in EV battery electrodes to count as critical mineral processing, a move that Manchin argues will weaken the IRA’s domestic sourcing requirements.

At the same time, as Manchin fumes over the guidance — among other things, calling the new test for battery material sourcing “purely of the Treasury’s own making” — a person familiar with the negotiations said the reconciliation process is to blame for the administration’s interpretation of the language.

This section of the bill lays out which EVs are eligible for the full $7,500 credit without meeting strict battery and sourcing requirements laid out elsewhere in the law.According to the senator, extending the credit to companies that lease or rent cars — as the administration is doing now — is ignoring congressional intent and the law itself.

A Treasury official said eligibility for the commercial vehicle credit is being determined by a “straightforward reading” of the Inflation Reduction Act “as written by Congress and application of longstanding tax law regarding leased assets.”“I don’t know quite how Sen.

“Several of us looked at it and said, ‘Huh, there is no reference to the [sourcing] requirement, that is what we were expecting,” Carr recalled of his reaction upon seeing the final Inflation Reduction Act text. “People … are saying this bill was written weak,” one aide said. “If that’s a point they’re making, then at best [the administration is] saying, ‘We’re not going to do what the president agreed to do, because there is wiggle room in the law [and] we are going to betray that trust.”

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