A bipartisan bill that could open the doors to a carbon imports tax was introduced in the House on Tuesday.
The PROVE IT Act, led by Reps. John Curtis (R-UT) and Scott Peters (D-CA), would require the Department of Energy, in coordination with other agencies, to publish a study that would identify the emissions intensity of products produced in the United States compared to those produced internationally. The measure is a companion bill to a Senate version introduced by Sens. Chris Coons (D-DE) and Kevin Cramer (R-ND) and has been previously passed by the Senate Environment and Public Works Committee.
“This bill is not just about proving our energy dominance; it’s about leveling the playing field in international competition,” Curtis said in a written statement. “This legislation will help American businesses compete globally, strengthen our trade relationships, and provide our allies with a reliable energy partner.”
The bill represents an effort to intertwine trade and climate change policy. Although the measure explicitly states it would not create an authority to impose new taxes or establish mandatory emissions reporting requirements on domestic production, it could provide data to justify the creation of carbon tariffs, especially considering European allies have enacted their own version of carbon tariffs. The bill, however, faces opposition from fossil fuel groups, putting Republicans who seek to curb emissions in a corner.
The measure is expected to provide data that show U.S. products have a lower emissions intensity than other countries, bolstering arguments for supporting U.S. manufacturers and energy producers over foreign competitors, namely China and Russia.
Covered products include aluminum, cement, iron, steel, plastic, biofuels, lithium-ion batteries, natural gas, and others.
Oil and gas industry players have been campaigning heavily against the bill. E&E News reported an email from the American Petroleum Institute, which supports the measure, listing the House Republicans who were likely to be co-sponsors of the PROVE IT Act. Following the list’s publication, representatives from oil refiners urged these offices not to support the bill, arguing that it could lead to a carbon tax, the publication reported.
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Although there are 10 Republicans signing on to the bill, the measure faces long odds of passing in a divided Washington and faces an uphill battle with Republicans, many of whom are skeptical of the idea of a carbon tariff. Republicans are generally staunchly opposed to the idea of a carbon tax, a separate but related policy that would apply to domestic emissions.
Another measure, introduced by Sen. Bill Cassidy (R-LA), would impose a fee on products imported from high greenhouse gas-emitting countries, such as China. The legislation was one of the first Republican-led measures to address climate change and trade policy simultaneously. However, one Republican lawmaker, Sen. Roger Wicker (R-MS), withdrew his support of the measure following pushback from conservative groups, outlining the obstacles advocates face in gaining GOP support for carbon tariffs.