Legislation Seeks to Overturn Burdensome SEC Climate Disclosure Rule, Protect U.S. Capital Markets

WASHINGTON - At the beginning of March, the Securities and Exchange Commission (SEC) finalized its Climate Disclosure Rule, requiring publicly traded companies to disclose their greenhouse gas (GHG) emissions data. Upon implementation, this final rule will stifle economic opportunity while raising costs for consumers.

U.S. Senator Kevin Cramer (R-ND), member of the Senate Committee on Banking, Housing, and Urban Affairs, joined Ranking Member Tim Scott (R-SC) in introducing a Congressional Review Act (CRA) resolution of disapproval to nullify the SEC's Climate Disclosure Rule. The resolution will protect small business owners and stakeholders from burdensome regulations and preserve U.S. capital markets. Further, the legislation will safeguard economic opportunity throughout the country.

"The SEC's climate disclosure rule is completely outside the scope of its mandate," said Cramer. "Under no circumstance should the SEC be concerned about direct or indirect emissions data because Congress never gave them this authority. The SEC rule is the embodiment of the president's extreme climate change agenda, designed to hinder American energy and bog down companies in endless, liability-laden reporting. It is already failing in court, and Congress should overturn it as well."

"The SEC's final climate disclosure rule threatens economic opportunity across the country, and it must be overturned. Over and over again, SEC Chair Gensler has disregarded the real-world impacts of his aggressive regulatory agenda in his dogged pursuit of left-wing political priorities. This rule is no exception. The SEC's mission is to regulate our capital markets and ensure all Americans can safely share in their economic success - not to force a partisan climate agenda on American businesses. This rule is federal overreach at its worst, and the SEC should stay in its lane,"said Ranking Member Scott.

Organizations supporting this legislation include Heritage Action for America, Americans for Tax Reform, American Energy Alliance, Americans for Prosperity, and the American Petroleum Institute.

In addition to Senators Cramer and Scott, cosponsors of the resolution include U.S. Senators John Barrasso (R-WY), John Boozman (R-AR), Mike Braun (R-IN), Katie Britt (R-AL), Ted Budd (R-NC), Shelley Moore Capito (R-WV), Bill Cassidy (R-LA), John Cornyn (R-TX), Tom Cotton (R-AR), Mike Crapo (R-ID), Steve Daines (R-MT), Deb Fischer (R-NE), Chuck Grassley (R-IA), Bill Hagerty (R-TN), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), John Kennedy (R-LA), James Lankford (R-OK), Cynthia Lummis (R-WY), Joe Manchin (D-WV), Mitch McConnell (R-KY), Jerry Moran (R-KS), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Rick Scott (R-FL), Dan Sullivan (R-AK), John Thune (R-SD), Thom Tillis (R-NC), Tommy Tuberville (R-AL), and J.D. Vance (R-OH).

In January, Senator Cramer joined Senator Capito in sending a letter to SEC Chair Gary Gensler, expressing their disapproval of the rule due to its negative impact on domestic energy producers, their access to capital, and higher energy prices. After the SEC announced its final climate disclosure rule in March, Senator Cramer issued a statement denouncing the mandate.

In April 2022, Senator Cramer led his Republican colleagues on the Senate Banking and Environment and Public Works (EPW) Committees in a letter to the SEC, requesting the withdrawal of the proposed rule.

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