For decades, the United States has identified itself as a leader in energy production and innovation, embracing a multi-faceted approach to powering not only our nation but also the world and setting a global standard for clean energy.
As senators hailing from strong coal-, oil-, and natural gas-producing states, we’re proud of the unimpeachable standards that our producers have set, and it’s our responsibility to ensure that our nation’s energy and manufacturing industries aren’t unjustly penalized by the European Union (EU)—and robbed of the ability to grow.
Since President Joe Biden was sworn into office, we have watched this administration repeatedly hand down onerous regulations that have crippled our domestic energy production. From shuttering the Keystone XL Pipeline on his first day in office to halting U.S. liquified natural gas (LNG) exports and beefing up permitting roadblocks, this administration has surrendered to climate change extremists at the expense of our producers, opting to push untenable energy policies instead of using the United States’ high standard as a model for the world to emulate.
Now, more than ever, we need commonsense legislation to fast-track U.S. energy production and make it easier to remain a global leader. This means taking a proactive approach to deals with foreign nations and being prepared to refute exaggerated statistics that may be used to charge exorbitant tariffs or bow out of a contract with U.S. companies.
In 2020, the French utility Engie, which is partially owned by the French government, canceled contract negotiations for U.S. LNG, claiming that it was dirty, ultimately opting for supplies from Russia and Algeria. Ultimately, amid the war in Ukraine, Engie reversed its decision and re-signed contracts for U.S. LNG, recognizing U.S. companies’ environmental leadership. Data from a Department of Energy (DOE) study was used to show that U.S. LNG is 40 percent less carbon intensive than even piped Russian natural gas.
Recently, in the Environment and Public Works Committee, we voted in support of the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act of 2023, legislation authorizing the DOE to publish a study of the comparative average emissions intensity of covered products from certain countries. This data will be used to protect U.S. manufacturers and producers, hopefully preventing what happened with Engie from happening again.
We recognize the devastating blow that a regressive domestic carbon tax would deal to our producers already grappling with this administration’s assault on domestic energy, which is why this bill expressly states that it will not lead to a carbon tax. Rather, it arms the United States with the data we need to shield our industries from unfair tariffs and taxes.
Moreover, this legislation positions U.S.-based companies to earn more business from global allies without granting any federal agency the authority “to impose, collect or enforce a greenhouse gas emissions tax, fee, duty, price or charge.”
That’s a direct quote from the PROVE IT Act, not political spin or jargon.
Our states set the bar for responsible energy production, and we need to be ready to defend our industries from unfair tariffs based on data that the EU is already collecting to enforce a carbon border adjustment mechanism in 2026. We can’t defer to the Europeans to do our math for us when they’re calculating taxes on our manufacturing and energy industries. We must have our own reliable data to fight back. It’s in our self-interest to be proactive against any tariff levied on American competitiveness.
Right now, we’re sitting ducks, and when U.S. producers and manufacturers get hit with a European tax in two years, they'll look to us. PROVE IT is a chance to be prepared.
As we keep fighting against the Biden administration’s war on domestic energy production, we must use every tool we have available to promote U.S. producers and ensure that we remain well-positioned to continue setting the standard for unparalleled global energy production.