WASHINGTON DC (2/2/26) – Today, a coalition of 37 organizations, led by the American Energy Alliance and the Competitive Enterprise Institute, sent a letter to Department of Energy Secretary Chris Wright, alerting him to language surreptitiously included in a report attached to the Energy and Water Development Appropriations Bill, which requests that the Department lay the groundwork for a national energy tax.
American Energy Alliance President Tom Pyle released the following statement:
“Behind closed doors, and without any transparency, a small group of Republican House and Senate members used a legislative sleight of hand to set the wheels in motion for a carbon dioxide tax on American families. Though the language is not enshrined in law, the proponents, including Senators Kevin Cramer and Bill Cassidy, have already indicated that they will use the report language to try to force the Trump administration to build a case for eventually establishing the tax.
“Today, we joined with 37 like-minded organizations to alert Secretary Wright to this agenda. The Trump administration has been very vocal and consistent in its prioritization of American energy security and affordability; the language that these Senators slipped into the committee report only hinders that agenda. The simple fact is that an energy tax based on carbon dioxide will be regressive and harm American families, businesses, workers, the poor, the elderly, those on fixed incomes, and local institutions such as schools, libraries, hospitals, and first responders.
“No logical-thinking person can be in favor of such a thing.
“Some in Washington seem eager to quietly set the stage for a carbon dioxide tax without ever having to take accountability by casting their vote to raise energy prices on their constituents. That’s unfortunate, but not surprising. The Secretary should know he has a stable of supporters ready to push back against this backdoor provision and develop a proper response.”
Background:
The recently enacted minibus appropriations package includes report language reflecting elements of the PROVE IT Act. The PROVE IT Act was originally a standalone bill in the 118th Congress that stalled due to conservative opposition as AEA, with several other organizations, argued it would lay the groundwork for carbon taxes or border adjustments.
Specifically, the report language instructs the National Energy Technology Laboratory (NETL) to conduct a study comparing U.S. emissions intensity for certain goods to those from other countries, specifically mirroring items covered by the EU’s Carbon Border Adjustment Mechanism. While presented as a mere study, this lays critical groundwork for a potential U.S. carbon tax.
AEA Experts Available For Interview On This Topic:
- Tom J. Pyle, President
- Kenny Stein, Vice President of Policy
- Alex Stevens, Manager of Policy and Communications
Additional Background Resources From AEA:
- Letter to Secretary Wright
- Facts About the PROVE IT Act
- “Prove It” Act Lays the Groundwork for a Carbon Tariff
- PROVE IT Act Policy Brief
For media inquiries please contact:
THOMAS.PYLE@ENERGYDC.ORG