```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8495 Introduced in House (IH)]

<DOC>

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.
                                 <all>
```