Republicans probe Granholm role in EV credit guidance

By Nico Portuondo, Hannah Northey | 07/30/2024 04:16 PM EDT

The lawmakers want to know whether Energy Secretary Jennifer Granholm supported special allowances for graphite imports.

Rep. Cathy McMorris Rodgers (R-Wash.).

House Energy and Commerce Chair Cathy McMorris Rodgers (R-Wash.) and other panel leaders are investigating the Department of Energy's involvement in electric vehicle tax credit rules. Francis Chung/POLITICO

House Republicans are pushing Energy Secretary Jennifer Granholm to explain why the administration opted to give electric vehicle makers more time to secure a key battery component — graphite — under the Inflation Reduction Act.

Energy and Commerce Committee leaders asked Granholm in a letter Tuesday to say whether she weighed in or signed off on Treasury Department rules giving EV producers two additional years to secure Inflation Reduction Act-compliant graphite.

“By classifying graphite as ‘impracticable-to-trace’ until 2027, the Biden administration is violating the statute and giving a handout to the [Chinese Communist Party], at the expense of American taxpayers,” wrote Chair Cathy McMorris Rodgers (R-Wash.); Environment, Manufacturing and Critical Materials Subcommittee Chair Buddy Carter (R-Ga.); and Energy, Climate and Grid Security Chair Jeff Duncan (R-S.C.).

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The letter focuses on final regulations the Treasury Department released in May, which cemented requirements for automakers to receive lucrative tax incentives under the climate law, which provides up to $7,500 for the purchase of a new EV.

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