Central ND News

On Thursday, the Senate Environment and Public Works (EPW) Committee passed the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act, introduced by U.S. Senators Kevin Cramer (R-ND) and Chris Coons (D-DE). The legislation received a vote of 14 to 5 in favor of its passage.

The bipartisan PROVE IT Act aims to address greenhouse gas emissions by requiring the U.S. Department of Energy (DOE) to conduct a comprehensive study on the emissions intensity of certain products produced in the United States and in certain foreign countries. The legislation recognizes that the United States has a distinct carbon advantage over its global competitors.

During the markup, Senator Cramer clarified that the PROVE IT Act is not a carbon tax or tariff, as it falls outside the jurisdiction of the Finance Committee. He emphasized his opposition to a domestic carbon fee and highlighted that the legislation explicitly prohibits the use of PROVE IT to authorize any such tax. Senator Cramer also drew attention to the implementation of a carbon border adjustment in Europe and stressed the importance of giving credit to American workers who adhere to high environmental standards. The PROVE IT Act ensures that their compliance is not undermined by foreign competitors with lower standards.

The PROVE IT Act is particularly significant in light of the impending carbon border adjustment mechanism (CBAM) being implemented by the European Union and the United Kingdom. This mechanism would result in unfair taxation of certain American goods and products exported to Europe. The PROVE IT Act study will compile the necessary data to challenge these tariffs. Failure to complete this study would subject American businesses to calculations determined solely by Europe. It is essential to note that the legislation explicitly states that the study does not authorize any new carbon taxes or regulations on domestic producers.

Senator Cramer expressed his satisfaction with the progress made, stating, "Today's markup is a productive step toward gathering the data we need to prove what we already know: we produce energy and manufacture goods cleaner than anyone else in the world. If the goal is to reduce global emissions, the answer is to produce more in America. Our bipartisan PROVE IT Act acknowledges American excellence while protecting workers and businesses from unfair tariffs and foreign competitors seeking to undercut them."

Senator Coons also expressed his delight with the EPW committee's support for the PROVE IT Act, emphasizing the importance of reliable data in quantifying the climate benefits of cleaner manufacturing practices. He also highlighted the need to hold countries like China accountable for their emissions-heavy production. Senator Coons believes that demonstrating the comparative advantage of the United States in emissions intensity, along with data sharing with allies and future legislation, will be a win for the climate, American workers and manufacturers, and global cooperation.

The PROVE IT Act has garnered support from various stakeholders, including the United States Chamber of Commerce, American Petroleum Institute, American Iron and Steel Institute, and other organizations committed to addressing climate change and promoting cleaner manufacturing practices.

The passage of the PROVE IT Act by the Senate EPW Committee marks a significant step towards gathering essential data to support the United States' commitment to reducing emissions and promoting cleaner manufacturing. The legislation acknowledges the country's carbon advantage and aims to protect American workers and businesses from unfair competition. With support from stakeholders across industries, the PROVE IT Act sets the stage for further action in addressing climate change and fostering global cooperation.