US senators seek to reverse 'Buy America' waiver for EV charging stations

US senators seek to reverse 'Buy America' waiver for EV charging stations

Four Republican U.S. senators, namely Marco Rubio, Roger Marshall, Rick Scott, and Kevin Cramer, have taken a stance against a recent decision made by the Biden administration. The decision in question involves waiving the "Buy America" requirements for electric vehicle (EV) charging stations that are funded by the government.

The "Buy America" requirements mandate that a certain percentage of materials used in government-funded projects, such as steel, iron, and construction materials, must be sourced from the United States. However, the Federal Highway Administration's waiver has exempted EV charging stations from these requirements.

The senators expressed concern that this waiver could lead to U.S. taxpayers subsidizing products from foreign countries, particularly Chinese-made products. They argue that this move not only disadvantages American companies but also empowers foreign adversaries, like China, to gain control over the country's energy infrastructure.

In essence, these senators are pushing to reverse the waiver and uphold the "Buy America" requirements, to ensure that the materials used in government-funded EV charging stations are sourced domestically, supporting American businesses and safeguarding national interests.

The Federal Highway Administration has not yet provided a comment regarding the "Buy America" waiver. However, back in February, the agency stated that the short-term waiver was necessary to facilitate the immediate acquisition and installation of electric vehicle (EV) chargers.

The 2021 bipartisan infrastructure law has allocated $7.5 billion to fund electric vehicle charging stations. As per the law, federal infrastructure projects, including EV chargers, must obtain at least 55% of their construction materials, such as iron and steel, from domestic sources, and the chargers must be entirely manufactured in the United States. However, the enforcement of the 55% requirement is scheduled to begin in July 2024. Additionally, the chargers must be assembled at a U.S. factory.

Iron and steel are vital components in EV chargers, contributing to crucial parts like the internal structural frame, heating and cooling fans, and the power transformer. Cabinets that house the chargers necessitate even more steel, sometimes making up to 50% of the chargers' total cost.

However, concerns have been raised by U.S. states and companies regarding the global demand for EV chargers, which has strained the supply chain. Meeting the "made-in-America" standards and expediting the construction of new chargers has become challenging, if not impossible, due to these supply chain constraints.

The Kansas Department of Transportation conveyed to the Biden administration earlier this year that the capacity to fulfill the rapidly growing need for EV chargers was insufficient. Wait times for certain electrical components ranged from 60-80 weeks, and this was before accounting for the increased demand resulting from new federal funding.