Senator Shelley Moore Capito, U.S. Senator for West Virginia | Official U.S. Senate headshot
Senator Shelley Moore Capito, U.S. Senator for West Virginia | Official U.S. Senate headshot
WASHINGTON, D.C. – Ranking Member Shelley Moore Capito of the U.S. Senate Environment and Public Works (EPW) Committee expressed her opposition to the PROVE IT Act, a piece of legislation that aims to implement a domestic carbon tax on American families and consumers. In her remarks at a committee business meeting, Ranking Member Capito raised concerns about the bill and offered amendments to address its harmful provisions.
Ranking Member Capito acknowledged the committee's history of finding common ground on climate legislation and highlighted the successful bipartisan bills that have been advanced. However, she stressed that the PROVE IT Act does not align with her vision for climate policy. She stated, "Supporters have named different reasons for this bill, study American emissions on behalf of Europe, prepare for carbon tariffs, or facilitate a domestic carbon tax. All three of those rationales concern me."
One of the main issues raised by Ranking Member Capito is the bill's directive for the Department of Energy to report on the average emissions of various industrial sectors and compare them to other countries. She expressed concerns about the vagueness of the authorities to be used for the review and the potential burden it could impose on American industries. Ranking Member Capito also questioned the bill's alignment with the European Union's carbon border adjustment mechanism (CBAM), noting that PROVE IT goes beyond the categories covered by the EU without providing a clear explanation.
Ranking Member Capito emphasized the importance of understanding the existing repositories of greenhouse gas emissions data collected by the federal government, such as the Greenhouse Gas Inventory and the Greenhouse Gas Reporting Rule. She argued that before considering the establishment of another greenhouse data study, it is necessary to better understand the ones already in place.
Drawing from her experience opposing the EPW portions of the Inflation Reduction Act, Ranking Member Capito expressed concerns about the potential weaponization of innocuous data collection responsibilities. She cited the example of Subpart W and the methane emissions reduction program (MERP), which started as a reporting requirement but was later transformed into a tax on the American oil and gas industry. Ranking Member Capito warned that the same could happen with the study and reports generated by the PROVE IT Act.
Although the revised bill includes a provision clarifying that it does not directly authorize new taxes or fees, Ranking Member Capito highlighted that Congress could still impose such measures through future legislation, including the reconciliation process. She noted the history of Democrats using reporting frameworks to impose taxes without running up against the Byrd Rule and overriding savings clauses.
In conclusion, Ranking Member Capito expressed her opposition to the PROVE IT Act due to its initial premise, construction, and potential costs for American households and businesses. She stated, "I will offer a couple of amendments to try to cure some of the worst issues with this legislation, but fear that its initial premise, construction, and significant potential costs for American households and businesses require me to oppose it."
The PROVE IT Act continues to be a subject of debate and scrutiny as lawmakers navigate the complex terrain of climate policy and its potential impacts on the economy and American citizens.