PROVE It Act - 118th Congress
(S.1863/H.R.8957)
The PROVE It Act directs the government to gather and assess emissions intensity data on U.S. production of specified industrial products and inputs with the ultimate objective of “proving” the American manufacturing sector’s high environmental standards and competitiveness in the global market. It would require the Department of Energy to conduct a study to determine the emissions intensity of a range of products compared with those produced elsewhere. The bill is solely concerned with studying the emissions intensity of certain products and would not establish any form of a carbon border measure. It also includes a provision that stipulates that nothing in the measure would provide authority to the government to impose a carbon tax or duty on emissions.
Bill explainer
The PROVE IT Act is distinct from other legislative proposals on trade and carbon in that it would not impose a fee or tariff on either domestic or imported emissions. Instead, it would direct the Department of Energy (DOE), in partnership with several other federal agencies, to study and compare the emissions intensity of certain industrial products in the U.S. and select foreign countries. The goal is to garner verifiable data to prove that U.S. production is cleaner than that of many trading partners across the globe. The bill also explicitly states that it does not authorize the federal government to impose a tax, fee, duty, price, or charge on carbon emissions.
The DOE study would be submitted to the Senate Energy & Natural Resources Committee and the House Energy & Commerce Committee within two years of the bill’s enactment and then readministered every five years. It would compare the average emissions of covered industrial products and inputs in the U.S. and covered countries, including an assessment of any gaps in emissions data. The products include aluminum, biofuels, cement, crude oil, fertilizer, iron and steel, glass, hydrogen, lithium-ion batteries, natural gas, paper/pulp, petrochemicals, plastics, refined critical minerals, refined petroleum products, solar cells/panels, uranium, and wind turbines, and the Secretary of Energy may decide whether additional products should be included. In the Senate version, the Energy and Commerce Secretaries are also required to establish a process for industry stakeholders to request a product be included in the study.
Covered countries include G7 members, free trade agreement partners, select foreign countries of concern, and those with significant global market share of a product or its inputs. DOE has the authority to add other countries if they determine that the country is a significant producer of a covered product. Additionally, DOE may limit the scope of products studied for foreign countries of concern to only products for which that country has a substantial share of the global market. Countries that are supportive of the study’s goals may be consulted to better assess emissions intensity and to address any data gaps DOE may find.
To conduct the study, DOE and each of the partnering agencies would need to develop procedures to establish efficient data sharing and they would be able to consult with institutions like the National Labs and the National Institute of Standards and Technology, among others, that have data relevant to the study or superior data collection and analysis capabilities. Similarly, the agency would be required to set up processes to collect data from industry partners. Upon completion, DOE is required to make its findings public and provide extensive details on their methodology and data sources.
The House bill also requires the Department of Commerce, in collaboration with other agencies, to conduct a separate study on how certain countries use forced labor and other labor rights violations to gain a competitive advantage. There are additional minor differences between the House and Senate versions of the bill.
About the sponsors
Sen. Chris Coons (D-DE)
Coons is the senior senator from Delaware and has served since 2010. He sits on the following Senate Committees: Foreign Relations, Appropriations, Judiciary, and Small Business; and he is the Ranking Member of the Senate Ethics Committee.
Sen. Kevin Cramer (R-ND)
Cramer is the junior senator from North Dakota and has served since 2019. He sits on the following Senate committees: Environment & Public Works, Banking, Veterans’ Affairs, and Armed Services.
Rep. John Curtis (R-UT-03)
Curtis spent four terms in the House, where he founded and chaired the Conservative Climate Caucus and sat on the House Energy and Commerce Committee before winning a seat in the U.S. Senate.
Rep. Scott Peters (D-CA-50)
Peters has served in Congress since 2013. He is a member of the following House committees: Energy & Commerce and Budget. He is also the New Democrat Coalition’s Climate Task Force Chair and serves on a number of climate-focused caucuses.
Rationale
The sponsors agree that hard data demonstrating that domestic production is cleaner and more efficient will improve U.S. competitiveness. Senate sponsors Coons and Cramer clearly identified that countries like China benefit from having less stringent regulations in their press release on the bill. They hope that through greater allied cooperation, the U.S. can begin to hold these countries accountable. Additionally, the House bill includes human rights and labor standards alongside environmental regulations in an attempt to address other ways that bad actors unfairly gain a competitive advantage in international trade.
Frequently asked questions
What is the goal of the bill?
The goal of the bill is to create a methodology to measure the American manufacturing sector’s carbon emissions in order to “prove” the country’s high environmental standards and competitiveness in the global market.
What industries would be affected?
The products covered in the scope include aluminum, biofuels, cement, crude oil, fertilizer, iron and steel, glass, hydrogen, lithium-ion batteries, natural gas, paper/pulp, petrochemicals, plastics, refined critical minerals, refined petroleum products, solar cells/panels, uranium, and wind turbines.
Does the bill provide exceptions or carveouts?
Yes. The Energy Secretary may decide to limit the products studied for foreign countries of concern to ones that the country holds a significant global market share.
Does the bill impose a domestic carbon tax?
No. The bill does not impose a domestic carbon tax or a tax on imports. In fact, the bill includes a provision that stipulates nothing in the measure would provide authority to the government to impose a tax, fee, duty, price, or charge on carbon emissions.
Which government agency would administer the bill?
The Department of Energy would lead the study in close partnership with other agencies. These include the Department of Commerce, the Environmental Protection Agency, the Office of the U.S. Trade Representative, the Department of Homeland Security, the Department of State, and the Department of Agriculture, among others as identified by the Energy Secretary.
