11 Jan 2024 PROVE It Act: Q&A on Advancing Clean Energy in Energy and Environment

The PROVE IT Act, led by Sens. Chris Coons (D-DE) and Kevin Cramer (R-ND), would “prove” that U.S. industry produces cleaner products than our foreign competitors.

What does the bill do?

The PROVE IT Act directs the Department of Energy (DOE), in coordination with the National Labs, to conduct a study to compare the greenhouse gas emissions intensity of certain covered products produced in the United States to the emissions of those same goods produced in certain foreign countries, like China.

Why is the bill needed? And how does it help U.S. manufacturers?

Starting in 2026, the European Union (EU) will impose a carbon tax on certain imported goods. The United Kingdom (UK) will follow the EU a year later. Independent studies indicate that U.S. production is more than 40% more carbon efficient than the world average. But, without an official federal dataset proving this efficiency, American producers will be subjected to EU and UK calculations, which can be designed to favor their industries over U.S. industry. This bill gives U.S. officials the ability to defend and promote U.S. commercial interests when foreign governments move to impose import taxes on the U.S. that are based on inaccurate data.

Read the full Q&A here and BPC Action’s stakeholder letter on the legislation here.