Carbon Tax Study Bill Advances

Senate Environment and Public Works (EPW) Committee voted to advance the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act of 2023 by a vote of 14-5. The legislation would direct the Department of Energy to study and report on the greenhouse gas emissions released during the production of various commodities in the United States and other countries.

Introduced by Senators Kevin Cramer (R-ND)  and Chris Coons (D-DE), the act aims to establish whether U.S.-made goods are more climate-friendly compared to similar products made overseas.

The act specifically aims to gather data to counteract tariffs imposed by the European Union and the United Kingdom's carbon border adjustment mechanism (CBAM) on certain American exports.

The study would provide the necessary data to challenge these tariffs and prevent American businesses from being subject to Europe's calculations. This legislation is supported by a wide range of stakeholders, including the United States Chamber of Commerce, American Petroleum Institute, and the American Iron and Steel Institute..

Opponents of the bill include  Ranking Member Shelley Moore Capito (R-WV ) who suggests it could pave the way for a costly domestic carbon tax and emulate "failed European climate policies." Capito argued that the act could lead to the collection of redundant data, which might burden American industry and confuse policymakers. She also raised concerns about the potential misuse of the data collected through the act to implement future partisan policies, including taxes.