Presented by BP — The administration’s latest tax credit rules are aimed at cracking down on China.
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Energy & Environment
Energy & Environment
The Big Story
Treasury rule could mean fewer EVs eligible for new tax credit
The Biden administration’s new proposed rules for which electric vehicles (EV) qualify forInflation Reduction Act tax credits seek a balancing act between avoiding reliance on China and slowing down the transition.
The rules on “foreign entities of concern,” which are ineligible for the credits, disqualify entities whose boards are at least 25 percent controlled by China or other affected countries, which include North Korea, Iran and Russia.
The rules, set to take effect in January, represent a tightrope the administration has attempted to walk that creates domestic jobs while running up against China’s market dominance for much of the refining and production of critical minerals used in batteries.
White House renewable energy adviser John Podesta struck an optimistic note, telling reporters the rules will “support good-paying U.S. jobs … paving the way for an electric transportation future that’s built here in America.”
Welcome to The Hill’s Energy & Environment newsletter, we’re Rachel Frazin and Zack Budryk — keeping you up to speed on the policies impacting everything from oil and gas to new supply chains.
Senate Energy Committee Chair Joe Manchin (D-W.Va.) blasted the Biden administration’s new guidance on “foreign entities of concern” (FEOCs) ineligible for the Inflation Reduction Act’s (IRA) electric vehicle (EV) tax credits, calling them contradictory to the text of the landmark climate law.
United Nations Secretary-General António Guterres called on world leaders gathered at the annual U.N. climate conference Friday to plan for a future without fossil fuels.
As the 28th United Nations climate change conference (COP28) begins in Dubai, the venue itself is facing scrutiny over the influence of the United Arab Emirates’s (UAE) oil industry and reported human rights abuses in the country.
Three members of Pennsylvania’s congressional delegation have asked the Department of Justice to investigate how foreign hackers breached a water authority near Pittsburgh, which prompted warnings to other water treatment facilities.
California Supreme Court rules against case seeking damages from utility over its planned power outages (Santa Rosa Press-Democrat)
On Our Radar
Upcoming news themes and events we’re watching:
Saturday
Vice President Harris is expected to appear at the COP28 summit and deliver remarks on climate change
Tuesday
The House Energy and Commerce Committee is slated to hold a hearing titled “Leading a New Era of Energy Dominance, Security, and Environmental Stewardship.”
The House Natural Resources Committee will hold a hearing on opportunities for tribal land management
The House Natural Resources Committee will hold a hearing examining the National Parks Air Tour Management Program
Wednesday
The Senate Environment and Public Works Committee will hold a hearing on the Bipartisan Infrastructure Law’s investments in habitats and ecosystems. The director of the Fish and Wildlife Service is slated to testify.
Florida Gov. Ron DeSantis (R) and California Gov. Gavin Newsom (D) went head-to-head in a Fox News debate Thursday as the governors — one a current presidential contender and the other seen as a future White House prospect — clashed over their records and policy. Read more
The House voted Friday to expel Rep. George Santos, ending the New York Republican’s tumultuous tenure in Congress and officially etching his name in the history books as the sixth lawmaker ever to be ousted from the lower chamber. Read more
