Senator Tim Scott of South Carolina is leading an effort to overturn a recent climate disclosure rule issued by the Securities and Exchange Commission (SEC), which requires companies to report how their operations affect the climate.
This rule mandates that large and mid-sized companies disclose all greenhouse gas emissions, with these reports subject to external audits. Scott’s challenge to the rule is facilitated through a Congressional Review Act (CRA) resolution, which allows for an expedited process in Congress to review and potentially reject new federal regulations.
Joining Scott in this endeavor is Democratic Senator Joe Manchin of West Virginia, giving the resolution bipartisan support. This partnership is important as it enhances the chances of the resolution reaching President Joe Biden’s desk, given that Manchin’s support could sway other centrist votes in the closely divided Senate.
Senator Joe Manchin (Credits: Imperial Valley Press)
The resolution has already attracted 34 co-sponsors, sufficient for a discharge petition which is crucial for bypassing standard procedural hurdles in the Senate. Senator Scott has criticized the SEC’s rule as an example of federal overreach that could hinder economic opportunities nationwide.
He argues that SEC Chair Gary Gensler has consistently prioritized left-wing political objectives over practical regulatory governance, asserting that the new rule diverts from the SEC’s primary mission of regulating capital markets and ensuring equitable participation in America’s economic prosperity.
The resolution can be brought directly to the Senate floor without interference from Senate Majority Leader Chuck Schumer, thanks to the provisions of the CRA.
Joe Manchin (Credits: Semafor)
Potential support from other moderates like Senator Kyrsten Sinema of Arizona could further enable its passage in the Senate. The Republican-controlled House is also likely to approve it.
However, the ultimate fate of the resolution is uncertain, as President Biden has previously vetoed similar Congressional Review Act resolutions.
The outcome of this legislative push will not only affect regulatory practices but also signal the balance of power and political dynamics within Congress, particularly in relation to environmental and regulatory policies.
