Scott Joins Cramer, Hern and Colleagues in Bicameral Amicus Brief Against SEC Climate Disclosure Rule

June 25, 2024

Washington DC Today, Ranking Member Tim Scott (R-S.C.) joined Sen. Kevin Cramer (R-N.D.), a member of the Senate Banking Committee, Rep. Kevin Hern (R-Okla.-01), and 32 other members of Congress in filing a bicameral amicus brief in Texas Alliance of Energy Producers, et al v. DRY, asking the U.S. Court of Appeals for the Eighth Circuit to strike down the agency's climate disclosure rule. Ranking Member Scott led the fight in Congress against the radical regime.

The memorandum states, The SEC, as a securities regulator, does not have the authority to impose sweeping climate-related regulations on publicly traded companies.. Congress has demonstrated a historic reluctance to pass broad climate legislation, particularly legislation that would significantly impact the disclosure requirements of the federal securities laws. The SEC's excesses in climate regulation violate the separation of powers and major issue doctrine, justifying the invalidation of the rules.

The file continues, The lack of authorization for the SEC's climate rule is also underscored by its conflict with fundamental principles of federal securities law that have existed for decades. More specifically, the climate rule contravenes the principle of materiality, a cornerstone of federal securities law. [] The SEC's historical position and the Supreme Court's interpretation affirm that intangible information should not be subject to mandatory disclosure. By focusing on environmental impacts rather than financial materiality, the Climate Rule departs from the SEC's statutory mandate. Therefore, the Climate Rules' disclosure requirements conflict with established precepts of federal securities law and should be rescinded.

Click here to read the amicus brief.

BACKGROUND:

Under Gensler's leadership, the SEC has pursued one of the most aggressive regulatory programs in the agency's history, with the agency on track to propose and finalize more than 60 rules with limited public comment periods and inadequate cost-benefit analyses. Through rigorous congressional oversight, Ranking Member Scott continued to oppose the widespread impact and confusion created by the agencies' proposed rules on our capital markets, America's retirement savers and businesses of all sizes.

In February 2023, Ranking Member Scott, House Financial Services Committee Chairman Patrick McHenry (R-N.C.-10), and Oversight and Investigations Subcommittee Chairman Bill Huizenga (R-Mich.-04), sent a letter to Speaker Gary Gensler demanding records and other information related to the proposed climate disclosure rule, including responses to previous requests from numerous House members and of the Senate which Chairman Gensler did not provide. Republican leaders stressed that the proposed rule exceeds the mission, expertise and authority of the SEC and that if finalized in any form, it will needlessly harm consumers, workers and the U.S. economy .

Last June, Ranking Member Scott joined with the chairman of the House Committee on Oversight and Accountability, Rep. James Comer (R-Ky.-01), to demand answers from the SEC on its role in facilitating the European Union (EU). a progressive climate agenda, which could be imposed on American businesses. Despite constant requests, the SEC has failed produce documents on their involvement in climate-related EU disclosure policies, as well as labor and social justice initiatives, that would harm a wide range of US companies and weaken US capital markets . The SEC's actions and repeated obstruction of Congressional oversight are particularly concerning given that enforcing EU policies would circumvent US regulatory and legal processes and allow foreign governments to dictate their climate and economic policy to companies. American.

At a hearing in September, the Ranking Member pressed Chairman Gensler about the agency's aggressive rules, lack of transparency, and lack of response to Congressional requests. Ranking Member Scott had requested the President to testify since February 2023. Following the hearing, Capitol Account Underlines Chairman Gensler's refusal to respond to requests for congressional oversight from minority members of the Senate Banking Committee.

Following the SEC's announcement of the final climate disclosure rule, Ranking Member Scott stated his intention to use the Congressional Review Act (CRA) process to fight the rule and its enforcement. work, calling it the worst abuse of federal power. In April, Ranking Member Scott introduced the CRA resolution to rescind the rule with the support of all Republicans on the Senate Banking Committee, members across the Republican conference, and Sen. Joe Manchin (IW.Va. .).

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