Sen. Tim Scott (R-SC) launched an effort Wednesday to overturn the Securities and Exchange Commission’s climate disclosure rule with the help of a key Democrat.
Scott, who is the ranking member of the Banking Committee, introduced the Congressional Review Act resolution after previously announcing he would challenge the rule. The Congressional Review Act allows Congress to vote down administrative rules through an expedited process.
The SEC voted 3-2 to adopt the controversial rule, which sets requirements for how and what companies must report to investors about how their operations affect the climate. It requires large and mid-sized companies to report greenhouse gas emissions, reports that would be audited by an outside party.
Scott’s resolution has 34 co-sponsors, including one Democrat, Sen. Joe Manchin (D-WV). That is more than enough needed for a discharge petition and gives the legislation bipartisan backing, making it more likely to make its way to President Joe Biden’s desk.
In a statement, Scott said the SEC rule is “federal overreach at its worst.”
“The SEC’s final climate disclosure rule threatens economic opportunity across the country, and it must be overturned,” the South Carolina senator said. “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 Congressional Review Act allows for resolutions to be brought to the floor of the Senate through an expedited process, meaning that it could not be stopped by Senate Majority Leader Chuck Schumer (D-NY). The success of the vote would hinge on Democratic centrists like Manchin and Kyrsten Sinema (I-AZ). The vote would almost certainly be approved by the House, which is controlled by Republicans.
If the resolution gets pushed through Congress, Biden is likely to veto it as he has with other Congressional Review Act resolutions narrowly approved by the Senate.
While still controversial, the new SEC climate rule is significantly scaled down from a proposed version by omitting a requirement that corporations disclose emissions generated by suppliers and customers.
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Republicans have been highly critical of rulemaking under Biden, arguing that his administration is using the process to circumvent the legislative process.
“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,” Scott said.
