Talks over President Biden's tax and spending package have been going on for months, but Senator Joe Manchin III's opposition to government incentives for electric vehicles remains a sticking point.
Billions of dollars in tax credits for consumers who purchase electric vehicles is what Mr. Biden and most Senate Democrats want.
A recent Supreme Court decision that limited the government's authority to cut pollution from power plants is critical to the administration's climate goals.
The proposed tax credits, which would be worth up to $12,500 per vehicle, have been denounced by Mr. Manchin, who has taken more campaign contributions from oil, gas and coal companies than any other senator. At a time of inflation, he is skeptical about increased government spending.
The oil industry would be threatened by a wholesale shift away from gas-powered cars and trucks if Mr. Manchin had his way. The fossil fuel industry's lobbying arm warned against a "rushed E.V. transition" that could limit transportation choices for Americans.
Efforts to subsidize E.V. adoption can be costly for taxpayers and consumers.
Scientists say a rapid transition to electric vehicles is needed to cut emissions that are dangerously heating the planet. Climate change is caused by pollution from transportation in the US.
The $4,500 incentive for consumers who purchase union-made American cars has been deleted by Mr. Manchin because of opposition from Toyota, which operates a non union plant in his home state.
Toyota supports tax credits for consumers to speed the transition to electric cars, but it would be wrong to award a premium for union-made cars.
The company asked if this would affect an American autoworker who decided not to join a union. Their work is worth less because of that choice. What does this mean to the consumer?
The money was intended to win support for Mr. Biden from American automakers and union voters in the Midwest and Northeast who helped him get elected.
According to people close to the talks, Democrats are considering a means test to limit tax credits to people who make less than a certain income level. He thinks the tax credits should be removed altogether.
At a Senate hearing this year, Mr. Manchin said that there was a waiting list for electric vehicles with a fuel price of $4, but they still wanted us to throw $5,000 or $7,000 or a $12,000 credit to buy an electric vehicle.
Mr. Manchin said it made no sense to him.
The number of electric vehicles purchased by West Virginia drivers is lower than the rest of the country. Only 600 electric vehicles were registered in the state as of 2020. Motorists in Wyoming and South Dakota drive less electric cars.
Barry Rabe, a professor of public policy, said that he didn't think there was a lot of public support for E.V. subsidies in that state.
According to a survey commissioned by the Fuels Institute, the typical buyer of an electric vehicle earns more than $100,000 a year and owns at least one other vehicle.
Josh Freed said, "These are people who aren't West Virginians, aren't people that he represents and he's raised real questions about why, in his mind, taxpayers should be subsidizing their ability to buy very pricey, new-to- market E.V.
Tax credits to purchase electric vehicles are critical to spur the market and encourage carmakers to produce a high volume of automobiles, which would bring down the price per unit. 51 percent of shoppers think electric vehicles are too expensive to seriously consider.
Mr. Biden wants 50 percent of new cars to be electric by the year 2030. He wants to combine tax credits with tough new auto fuel economy regulations that are being developed by the EPA.
The same people who won a Supreme Court decision limiting the E.P.A.'s authority to regulate greenhouse gas pollution from smokestacks are expected to challenge the rules for tailpipe emissions. Drew Kodjak is the executive director of the International Council on Clean Transportation.
Democrats need the support of Mr. Manchin in order to pass a budget bill. He's had sway over the substance of the legislation.
Schumer is trying to get a scaled-down domestic policy bill passed before August. An aide said that Mr. Schumer spoke with Mr. Manchin on Monday.
Supporters are expecting less than the $555 billion in climate and clean energy provisions that the House approved when it passed its version of the bill. Lawmakers were discussing a $300 billion ceiling for climate and energy measures, according to several people.
Mr. Manchin said that the lawmakers were not close to a deal.
He said that climate legislation should increase the supply of fossil fuels in order to address inflation.
Mr. Manchin was worried about the price at the pump. He asked how the price of gasoline could be brought about. You can't do it if you don't produce more. There is a problem if people don't want to produce more fossil. Reality is what that is. It's up to you to do it.
As Senate Democrats sought to reach a deal on a larger climate change and social policy bill, Mr. Manchin began his efforts to eliminate the electric vehicle tax incentive.
The union-made tax credit is one of the things Mr. Manchin wants to eliminate. There is only a $500 tax credit for electric vehicles with batteries made in the US.
Mr. Manchin would be at odds with Toyota. While Toyota is against the tax credits for union-made electric vehicles, the company joined with other manufacturers in a letter to congressional leaders asking them to increase the number of electric vehicle sales that would be eligible for the tax credits. The tax credits would be limited to the first 200,000 vehicles sold.
Eliminating the cap will provide much-needed certainty to our customers and domestic work force.
There is a chance that a new hydrogen research and development hub in West Virginia could be part of the negotiations between Senate Democrats and Mr. Manchin. The bipartisan infrastructure law allocates $8 billion to create fourhydrogen hubs.
Water Vapor can be created from hydrogen when it's converted into electricity. Natural gas is the source of most of the hydrogen produced today.
Mr. Manchin wants the Biden administration to choose West Virginia as a location for one of the hubs, where natural gas would be used to make hydrogen.
Mr. Manchin said this year that they haven't put the money into hydrogen research like they do on E.V.s.
A person with knowledge of Mr. Manchin's thinking said that he could support some electric vehicle tax credits in exchange for West Virginia being chosen as a hydrogen hub.
A spokeswoman for Mr. Manchin dismissed that suggestion. She said there was no truth to it.
The hydrogen industry coalition is backed by oil companies. The development of hydrogen fuel cell vehicles has been staked out by Toyota as an alternative to electric battery-powered cars.
John Kilwein is the chairman of the political science department at West Virginia University.
According to Mr. Kilwein, West Virginia is getting redder, dislikes D.C., and dislikes the federal government. The common sense West Virginian who keeps them under control is argued to be Manchin.
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