Tulsa Standard

Representative Kevin Hern (OK-01) and Senator Kevin Cramer (R-ND) have filed a bicameral amicus brief with colleagues in the House and Senate, urging the court to vacate the SEC's Climate Rule in the case of Texas Alliance of Energy Producers, et al v. SEC.

The Securities and Exchange Commission (SEC) adopted a finalized rule in March requiring publicly traded companies to disclose their greenhouse gas (GHG) emissions data. This marks the first instance of the SEC mandating climate-related information disclosure from companies. Critics argue that this regulation is "unlawful several times over." Multiple lawsuits are pending in the Eighth Circuit, including a petition seeking review of these regulations by the Texas Alliance of Energy Producers and the Domestic Energy Producers Alliance.

The amicus brief contends that the Climate Rule would significantly increase burdens on publicly traded companies, ultimately harming investors. It emphasizes Congress' institutional interests in enacting legislation governing securities markets and climate policy.

"The SEC, as a securities regulator, is not empowered to impose sweeping climate-related regulations on publicly traded companies," states the amicus brief. "Congress has demonstrated historical reluctance to pass broad climate legislation, particularly legislation that would dramatically impact federal securities law disclosure requirements. The SEC’s overreach into climate regulation violates the separation of powers and the major questions doctrine, warranting the rule’s invalidation."

"Further highlighting the absence of authorization for the SEC’s Climate Rule is its conflict with fundamental tenets of federal securities law that have existed for decades," continues the brief. "Specifically, the Climate Rule contravenes the principle of materiality, a cornerstone of federal securities law. [...] The SEC’s historical stance and the Supreme Court’s interpretation affirm that immaterial information should not be subject to mandatory disclosure. By focusing on environmental impacts rather than financial materiality, the Climate Rule deviates from the SEC’s statutory mandate. Consequently, the Climate Rule’s disclosure requirements conflict with established federal securities law precepts and should be vacated."

In addition to Hern and Cramer, U.S. Senators John Barrasso (R-WY), Marsha Blackburn (R-TN), Mike Braun (R-IN), Shelley Moore Capito (R-WV), Bill Cassidy, M.D. (R-LA), Ted Cruz (R-TX), Steve Daines (R-MT), Cindy Hyde-Smith (R-MS), Cynthia Lummis (R-WY), Pete Ricketts (R-NE), Jim Risch (R-ID), Mike Rounds (R-SD), Marco Rubio (R-FL), Eric Schmitt (R-MO), Tim Scott (R-SC), Dan Sullivan (R-AK); U.S Representatives Rick Allen (R-GA-12), Kelly Armstrong (R-ND), Jodey Arrington (R-TX-19), Beth Van Duyne (R-TX-24), Morgan Griffith (R-VA-09), Harriet Hageman (R-WY), Tom McClintock(R-CA-05). Dan Meuser(R-PA-09). Cory Mills(R-FL-07). Dan Newhouse(R-WA-04). Ralph Norman(R-SC-05). Andy Ogles(R-TN -05). August Pfluger(R-TX -11). John Rose(R-TN -06). Keith Self(TX -03). Jason Smith(MO -08) .and Ann Wagner(MO -02).

The amicus brief can be found here.

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