Mr. Chair, I would urge my colleagues to support my amendment, amendment No. 133 of division D, a part of en bloc No. 5. This amendment would prohibit the SEC from implementing provisions of its proposal entitled Enhancement and…
Mr. Chair, I would urge my colleagues to support my amendment, amendment No. 133 of division D, a part of en bloc No. 5.
This amendment would prohibit the SEC from implementing provisions of its proposal entitled Enhancement and Standardization of Climate- Related Disclosures for Investors that mandate disclosure of Scope 3 emissions.
Scope 3 emissions include emissions from activities in an organization's supply chain. Public companies have no ownership--and little to no control--of these emissions.
Recently, I led a bipartisan letter with 118 Members of Congress expressing concern about the proposed rule's impact on farmers.
Mr. Chair, I include in the Record the letter.
Congress of the United States,
House of Representatives,
Washington, DC, May 25, 2022.
Hon. Gary Gensler,
Chair, Securities and Exchange Commission,
Washington, DC.
Dear Chair Gensler: We write to express significant
concerns with the impact the Securities and Exchange
Commission's (SEC) proposed rule on ``Enhanced and
Standardization of Climate-Related Disclosures for
Investors'' will have on the agricultural community.
It is our strong belief that this proposed rule, if
promulgated, would be a significant and unworkable regulatory
burden, and a considerable departure from the SEC's mission
to protect investors, facilitate capital formation, and
foster fair, orderly, and efficient markets. It is not within
the purview of the SEC to regulate farmers and ranchers,
which is what this rule would do by requiring public
companies to disclose their Scope 3 greenhouse gas (GHG)
emissions. To do business with public companies, small farms
would be required to disclose a significant amount of
climate-related information. But unlike large corporations,
small farms do not have full-scale compliance departments.
Imposing these additional reporting requirements could
disqualify small, family-owned farms from doing business with
companies which could lead to more consolidation in the
agriculture industry.
Farmers are already regulated by agencies at the local,
state, and federal levels. There are currently multiple
programs at the federal level to help farmers implement
conservation practices. Bureaucrats in Washington, D.C.--
specifically unelected SEC staff--who have no jurisdiction
over environmental policy and who have never stepped foot on
a farm should not have such influence over how farmers take
care of their land.
We also have concerns about the specific information from
each farm that would have to be reported under this proposal.
The time and energy put into complying with this new
regulation will divert American farmers away from their
primary goal of producing our nation's food, fuel, and fiber.
As this rule is written, it is also unclear how farmers will
be protected from privacy concerns as they, unlike
corporations, live at their places of business where they
would now have to disclose significant amounts of
information. In American Farm Bureau Federation v. EPA, the
8th U.S. Circuit Court for Appeals affirmed that public
disclosure of farmers' personal information would constitute
a ``substantial'' and ``clearly unwarranted invasion of
personal privacy.'' Similarly, the SEC should consider how
the disclosure of Scope 3 GHG emissions could have privacy
implications for farmers and scrap this rule entirely to
ensure their private property information would not end up on
any public disclosures.
Finally, we are concerned that the comment period, although
recently extended until June, is inadequate given the
magnitude of this proposed rule, which totals 510 pages and
has 1,068 technical footnotes. The Commission's use of
abbreviated comment periods for complex rules like this as
well as the lack of consistency across rulemakings is
troubling, as it will result in less, much-needed input from
the public on these important issues.
We appreciate your attention to our concerns and request a
response no later than June 24, 2022.
Sincerely,
John Rose, Member of Congress; Scott DesJarlais, M.D.,
Member of Congress; David Kustoff, Member of Congress;
French Hill, Member of Congress; Glenn ``GT'' Thompson,
Member of Congress; Mark E. Green, MD, Member of
Congress; Elaine G. Luria, Member of Congress; Virginia
Foxx, Member of Congress; Ron Estes, Member of
Congress; Mariannette Miller-Meeks, M.D., Member of
Congress; Mo Brooks, Member of Congress; Barry Moore,
Member of Congress; Ben Cline, Member of Congress;
Thomas Massie, Member of Congress; Jerry L. Carl,
Member of Congress; Ted Budd, Member of Congress; Andy
Biggs, Member of Congress; Mary E. Miller, Member of
Congress.
Mike Carey, Member of Congress; Pete Sessions, Member of
Congress; Lance Gooden, Member of Congress; Tracey
Mann, Member of Congress; Jodey C. Arrington, Member of
Congress; William R. Timmons IV, Member of Congress;
Chris Jacobs, Member of Congress; Mike Rogers, Member
of Congress; Kelly Armstrong, Member of Congress; Doug
LaMalfa, Member of Congress.
David Rouzer, Member of Congress; Alex X. Mooney, Member
of Congress; Troy Balderson, Member of Congress; Paul
A. Gosar, D.D.S., Member of Congress; Beth Van Duyne,
Member of Congress; Ken Buck, Member of Congress;
Steven M. Palazzo, Member of Congress; Austin Scott,
Member of Congress; Louie Gohmert, Member of Congress;
Dan Bishop, Member of Congress.
Chip Roy, Member of Congress; Dan Crenshaw, Member of
Congress; Rodney Davis, Member of Congress; Michael
Guest, Member of Congress; Gary J. Palmer, Member of
Congress; John Katko, Member of Congress; Rick W.
Allen, Member of Congress; Richard Hudson, Member of
Congress; Trent Kelly, Member of Congress; Kevin Brady,
Member of Congress.
Yvette Herrell, Member of Congress; Jake Ellzey, Member
of Congress; Michelle Fischbach, Member of Congress;
Jackie Walorski, Member of Congress; Brett Guthrie,
Member of Congress; Robert J. Wittman, Member of
Congress; Bill Posey, Member of Congress; Michael
Cloud, Member of Congress; Eric A. ``Rick'' Crawford,
Member of Congress; Markwayne Mullin, Member of
Congress.
Debbie Lesko, Member of Congress; James Comer, Member of
Congress; Charles J. ``Chuck'' Fleischmann, Member of
Congress; Ann Wagner, Member of Congress; Harold
Rogers, Member of Congress; Russ Fulcher, Member of
Congress; A. Drew Ferguson IV, Member of Congress; Jay
Obernolte, Member of Congress; Mike Johnson, Member of
Congress; Adrian Smith, Member of Congress.
Stephanie Bice, Member of Congress; Matthew Rosendale,
Sr., Member of Congress; Daniel Meuser, Member of
Congress; Lisa C. McClain, Member of Congress; Julia
Letlow, Member of Congress; Dusty Johnson, Member of
Congress; Greg Pence, Member of Congress; Darin LaHood,
Member of Congress; Jake LaTurner, Member of Congress;
Vicky Hartzler, Member of Congress.
Sam Graves, Member of Congress; Guy Reschenthaler, Member
of Congress; Tim Walberg, Member of Congress; Tim
Burchett, Member of Congress; James R. Baird, Member of
Congress, Ranking Member, Research and Technology; Neal
P. Dunn, Member of Congress; Mark E. Amodei, Member of
Congress; Clay Higgins, Member of Congress; Pete
Stauber, Member of Congress; Andrew S. Clyde, Member of
Congress.
Ashley Hinson, Member of Congress; Andy Barr, Member of
Congress, Blaine Luetkemeyer, Member of Congress; Ralph
Norman, Member of Congress; Mike Bost, Member of
Congress; Anthony Gonzalez, Member of Congress; Diana
Harshbarger, Member of Congress; Randy Feenstra, Member
of Congress; Jack Bergman, Member of Congress; Gregory
F. Murphy, M.D., Member of Congress.
Warren Davidson, Member of Congress; John R. Moolenaar,
Member of Congress; Jim Jordan, Member of Congress;
Roger Williams, Member of Congress; Jim Banks, Member
of Congress; Troy E. Nehls, Member of Congress; Robert
B. Aderholt, Member of Congress; Brad R. Wenstrup,
D.P.M., Member of Congress; Brian Babin, D.D.S., Member
of Congress; Elissa Slotkin, Member of Congress.
Bill Huizenga, Member of Congress; David G. Valadao,
Member of Congress; Lee Zeldin, Member of Congress;
Bruce Westerman, Member of Congress; Steve Womack,
Member of Congress; Bryan Steil, Member of Congress;
Earl L. ``Buddy'' Carter, Member of Congress; Tom
McClincock, Member of Congress; David P. Joyce, Member
of Congress; W. Gregory Steube, Member of Congress.
Mr. Chair, the proposal would drive capital away from smaller suppliers that may not have the resources to measure their greenhouse gas emissions. SEC Chair Gensler points to significant investor demand for requiring this type of information, but the demand is coming from large asset managers and climate activists, not retail investors.
Mr. Chair, I urge my colleagues to support my amendment.