EV Fair Trade Act of 2024

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.

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.

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.

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.

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.

In general— Any individual may submit a report to the Bureau alleging that a certification is false.

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—

False allegations— If the Secretary determines that—

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).

Each certification that the Bureau received during the preceding year.

A summary of audit results, including the number of certifications audited, any discrepancies found, and actions taken as a result.

A description of any instance in which Federal assistance was denied due to lack of certification or false certification.

Any challenges faced in the certification and audit processes and recommendations for improvements.

A description of collaborative efforts with other Federal agencies in the pursuit of ethical sourcing.

Any feedback from electric vehicle companies on the certification process and areas for improvement.

Bureau— The term Bureau means the Bureau of International Labor Affairs.

Electric vehicle— The term electric vehicle means a motor vehicle that—

Electric vehicle company— The term electric vehicle company means a person who is engaged in the business of manufacturing electric vehicles.

Executive agency— The term executive agency has the meaning given “agency” under section 551 of title 5, United States Code.

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.

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:

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:

Secretary— Except where otherwise specified, the term Secretary means the Secretary of Labor.

Slave or child labor— The term slave or child labor has the meaning given—

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:

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:

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.