Congressional Republicans are taking rapid action in an attempt to thwart a new
Securities and Exchange Commission (SEC) regulation that would compel companies to reveal their greenhouse gas emissions to investors.
Representative Bill Huizenga (R-Mich.) and Senator Tim Scott (R-S.C.) have spent nearly two years preparing for a congressional action to retract this regulation since it was first proposed, according to Huizenga. The lawmakers have indicated they’ll employ the Congressional Review Act, a legislative protocol that permits the majority of Congress to reject an agency regulation of which they disapprove.
The efforts coincide with the SEC finalizing its rule, which excluded a significant section from the initial proposal aimed at obligating companies to disclose emission data from their suppliers and consumers – the Scope 3 reporting.
Senator Scott has expressed his intent to leverage the Congressional Review Act to “oppose this rule and uphold economic opportunity for all Americans,” as per his recent press release. This move follows a similar playbook that Republicans used to nullify another regulation by the Department of Labor related to environmental, social, and governance considerations for investment professionals guiding their clients. Despite being passed in both the House and Senate, this regulation was
vetoed by President Joe Biden.
On the Democratic side, views on this issue are mixed. Outgoing Senator Joe Manchin (D-W.Va.) stated he would vote in favor of a Congressional Review Act resolution as he believes the SEC rule represents an overreach. Meanwhile, fellow moderate Senator Jon Tester (D-Mont.) applauded the SEC’s final rule for sparing his constituents, primarily farmers, excessive paperwork by excluding Scope 3.
Despite these developments, Hogan Lovells Partner Brian O’Fahey suggested that courts could potentially issue an injunction against the rules, delaying their implementation and possibly providing more time for Congress and a future administration to repeal them. However, he expressed skepticism about the chances of the Congressional Review Act playing a significant role in impeding these rules in the real sense. Nonetheless, he anticipates numerous
court challenges to the rules.
For more details, refer to the original article
here.