[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8495 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8495
To ensure electric vehicle companies do not use child or slave labor in
the manufacture of, or sourcing of materials for, electric vehicles.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 22, 2024
Mr. Duarte (for himself, Mr. Van Orden, and Mr. Owens) introduced the
following bill; which was referred to the Committee on Oversight and
Accountability, and in addition to the Committees on Education and the
Workforce, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To ensure electric vehicle companies do not use child or slave labor in
the manufacture of, or sourcing of materials for, electric vehicles.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``EV Fair Trade Act of 2024''.
SEC. 2. PROHIBITION OF GRANT.
(a) In General.--Beginning on the later of the date that is 2 years
after the date of enactment or the date on which the database required
under section 3(c)(1) is available, the head of an executive agency may
not award Federal assistance to any electric vehicle company that
develops, builds, or sells electric vehicles in the United States
unless a representative of the company fulfills the certification
requirement described in section 3(a) and complies with any other
requirement of this Act. This prohibition applies to each stage of
production, from mineral extraction to final assembly of the electric
vehicle.
(b) Compliance.--To comply with the requirement described in
subsection (a), the head of an executive agency shall review the status
of the certifications as maintained in the database established under
section 3(c) before awarding any Federal assistance to such electric
vehicle company. A company that does not have a certification in the
database and does not provide proof that a representative of the
electric vehicle company has submitted a certification to the Secretary
pursuant to section 3(a) shall not be eligible for Federal assistance
until such time as a certification has been submitted to the Secretary
of Labor. A company whose representative has submitted a certificate
that is determined to be false pursuant to an audit conducted under
section 4 shall not be eligible for any Federal assistance until 5
years after the date on which a new certification has been submitted
and audited.
SEC. 3. CERTIFICATIONS.
(a) Certification.--
(1) In general.--A representative of an electric vehicle
company shall submit a certification to the Bureau of
International Labor Affairs in a form and manner determined
appropriate by the Secretary.
(2) Expiration of certification.--A certification submitted
under paragraph (1) shall expire on the date that is 3 years
after the date on which the certification is submitted or upon
substantial change to a major component of an electric vehicle
manufactured by the electric vehicle company to which the
certification applies.
(b) Contents of Certification.--A certification submitted under
subsection (a)(1) shall include a statement that the electric vehicle
company does not utilize materials that have been sourced through
oppressive child or forced labor or slavery in its supply chain for
electric vehicles sold in the United States.
(c) Database.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall establish and
maintain a database, to be made available only to Federal
agencies, for the purpose of tracking and managing
certifications submitted under subsection (a).
(2) Public database.--The Secretary shall make available to
the public a summarized version of the certifications, which
shall consist of a list of the companies that submitted a
certification and whether such certification is valid.
SEC. 4. AUDITS.
(a) In General.--On an annual basis, the Secretary, acting through
the Bureau and in consultation with the Secretary of Homeland Security,
shall conduct an audit, on a random basis, of not less than 10 percent
of certifications submitted pursuant to section 3(a) to ensure that
such certifications are accurate.
(b) Additional Audits.--In addition to the audits required under
subsection (a), the Secretary shall conduct an audit of a certification
submitted by an electric vehicle company if the Secretary determines
that a report received under section 5(a) in relation to such company
is based on credible evidence.
SEC. 5. FALSE CERTIFICATION ALLEGATIONS.
(a) In General.--Any individual may submit a report to the Bureau
alleging that a certification is false.
(b) Review of Information.--The Secretary shall review a report
submitted under subsection (a) to verify that the report is based upon
credible evidence, which may include--
(1) internal company documents;
(2) whistleblower accounts; and
(3) verifiable supply chain documentation.
(c) False Allegations.--If the Secretary determines that--
(1) a report submitted under subsection (a) is not based on
credible evidence; and
(2) the report was submitted for competitive advantage,
the Secretary is authorized to impose up to a $250,000 fine on
entities that submit false allegations.
(d) Regulations.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall issue, after opportunity for public
comment, such regulations as are necessary to carry out subsections (a)
and (b).
SEC. 6. REPORT.
The Secretary of Labor shall submit to Congress, on an annual
basis, a report that includes each of the following:
(1) Each certification that the Bureau received during the
preceding year.
(2) A summary of audit results, including the number of
certifications audited, any discrepancies found, and actions
taken as a result.
(3) A description of any instance in which Federal
assistance was denied due to lack of certification or false
certification.
(4) Any challenges faced in the certification and audit
processes and recommendations for improvements.
(5) A description of collaborative efforts with other
Federal agencies in the pursuit of ethical sourcing.
(6) Any feedback from electric vehicle companies on the
certification process and areas for improvement.
SEC. 7. DEFINITIONS.
In this Act:
(1) Bureau.--The term ``Bureau'' means the Bureau of
International Labor Affairs.
(2) Electric vehicle.--The term ``electric vehicle'' means
a motor vehicle that--
(A) is capable of being powered wholly or in part
by an electric motor that draws electricity from one or
more batteries that are capable of being charged from
an internal or external source; and
(B) is manufactured primarily for use on public
streets, roads, and highways.
(3) Electric vehicle company.--The term ``electric vehicle
company'' means a person who is engaged in the business of
manufacturing electric vehicles.
(4) Executive agency.--The term ``executive agency'' has
the meaning given ``agency'' under section 551 of title 5,
United States Code.
(5) Federal assistance.--The term ``Federal Assistance''
means any grant, contract, loan, or any form of financial
assistance provided by an executive agency to an electric
vehicle company.
(6) Major component.--The term ``major component'' means
any part, material, or assembly that is integral to the
functionality, safety, or performance of an electric vehicle,
including the following:
(A) A battery cell or pack.
(B) An electric motor.
(C) Power electronics.
(D) A drivetrain assembly.
(E) A critical software module.
(7) Mineral.--The term ``mineral'' means a naturally
occurring inorganic substance extracted from the earth, which
is used directly or undergoes processing for utilization in the
production of electric vehicle components, including the
following:
(A) Lithium.
(B) Cobalt.
(C) Nickel.
(D) Rare earth elements.
(E) Copper.
(F) Graphite.
(G) Manganese.
(8) Secretary.--Except where otherwise specified, the term
``Secretary'' means the Secretary of Labor.
(9) Slave or child labor.--The term ``slave or child
labor'' has the meaning given--
(A) the term ``oppressive child labor'' in section
3(l) of the Fair Labor Standards Act of 1938 (29 U.S.C.
203(l)); and
(B) the term ``forced labor'' in section 307 of the
Tariff Act (19 U.S.C. 1307).
SEC. 8. PROHIBITION ON CREDIT OR DEDUCTION FOR EXPENDITURES IN
CONNECTION WITH NON-FAIR TRADE ELECTRIC VEHICLE
MANUFACTURING.
(a) In General.--Part IX of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 280I. EXPENDITURES IN CONNECTION WITH NON-FAIR TRADE ELECTRIC
VEHICLE MANUFACTURING.
``(a) In General.--No credit or deduction shall be allowed for any
amount which--
``(1) is paid or incurred in carrying on the trade or
business of an electric vehicle company in manufacturing
electric vehicles, and
``(2) is allocable to any period during the taxable year
during which the electric vehicle company fails to comply with
the EV Fair Trade Act of 2024.
``(b) Electric Vehicle Company; Electric Vehicle.--The terms
`electric vehicle company' and `electric vehicle' shall have the
respective meanings given such terms by the EV Fair Trade Act of
2024.''.
(b) Clerical Amendment.--The table of sections for part IX of
subchapter B of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 280I. Expenditures in connection with non-fair trade electric
vehicle manufacturing.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date that is 2 years after
the date of the enactment of this Act.
SEC. 9. SUNSET.
This Act, and the requirements under this Act, shall expire on the
date that is 7 years after the date of enactment of this Act, and no
person shall be treated as failing to comply with this Act for any
period beginning after such date.
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