Senator Kevin Cramer (R-ND) recently joined us for a brief discussion about the Inflation Reduction Act (IRA) and the Providing Reliable, Objective, Verifiable Emissions Intensity and Transparency (PROVE IT) Act, which he introduced this summer with Chris Coons (D-DE).
The PROVE IT Act would direct the Department of Energy (DOE) to conduct a study and create a database that compares the average greenhouse gas (GHG) emissions of 22 products manufactured in the US with those of their international competitors. Our manufacturers already comply with some of the highest standards in the world; the Climate Leadership Council found that goods produced in the US are 40% more carbon-efficient than the world average. However, as Sen. Cramer argues, the problem is that without an official database that validates their emissions efficiencies, our manufacturers are liable to unfair border taxes based on arbitrary calculations. For example, the European Union (EU) plans to implement carbon border adjustments in 2026, meaning our products could face tariffs at rates decided by European bureaucrats.
Some Republicans have responded skeptically, arguing that collecting this data is a slippery slope to domestic carbon taxes or border tariffs. These concerns are fair when the media frames it as “laying the groundwork for America’s first carbon border tax.” However, as Cramer argues, the bill is simply about proving, with data, that our manufacturers already pay steep costs for strict standards. Transparency ultimately gives us leverage in global trade discussions. In that light, this data could prove particularly valuable to President Trump, especially when the EU starts enforcing carbon border adjustments in 2026.
The second part of our discussion revolved around the Republicans’ plans for the IRA. Cramer believes in a more nuanced restructuring of the IRA with a “scalpel, not a chainsaw”—an approach we’ve also advocated for recently. Like us, he is particularly keen on the 45Q tax credit for carbon capture and sequestration (CCS) and the production tax credit for nuclear energy.
Carbon Capture, Utilization, and Storage (CCUS) is the next step in the evolution of the oil and gas industry, with the world’s leading carbon engineers are working hard to commercialize these technologies on our soil. Most CCUS technologies capture carbon dioxide (CO2) at the point of emissions at fossil fuel power plants, refineries, and industrial factories. Others, known as Direct Air Capture (DAC), pull CO2 directly out of the air. The captured CO2 is sequestered deep into the earth or utilized in other ways, such as heavy industrial-process feedstock. Over the past few centuries, America’s oil and gas industry has accumulated unrivaled knowledge about managing and utilizing carbon to maximize efficiency – the last thing they want is to waste carbon that can be captured and used for something else. The question is how to scale these technologies to align efficiency with profitability, which is where the 45Q comes in.
We also join the Senator in supporting the IRA’s nuclear energy tax credits. Like oil and gas, America possesses the world’s best nuclear engineering knowledge, but the economics of building and generating nuclear power have been upended by misplaced activism from the left and an uneven playing field in electricity markets. In the meantime, Russia and China have taken advantage of this and are building reactors worldwide to gain geopolitical influence.
Sen. Cramer made the crucial point that we need to be examining energy and climate legislation in an “America First” context. Ultimately, “America First” is about protecting assets that propelled our country to greatness and advancing them so that future generations can enjoy the same benefits. We thank Senator Cramer for his time, and his leadership and willingness to drive these conversations on Capitol Hill.