Republican members of the House Committee on Small Business issued the following joint statement after sending a letter to the Chairman of the U.S. Securities and Exchange Commission, Gary Gensler.

“Time and time again, Democrats always find a way to inflict damage on small businesses through unnecessary regulations. This time, Biden’s SEC is imposing a greenhouse gas disclosure for everyone up and down the value chain. This regulation will not only impact small businesses and small farmers, but also the lenders supporting all of our local communities. Plain and simple, the SEC is ignoring the needs of the nation’s smallest businesses who are struggling against the worst inflation in 40-years. Regulations by this Administration are piling up and, once again, small businesses are feeling the pain. To get our economy back on track, reckless spending and overly burdensome regulations must end. We call on the SEC Chairman to rescind this ill-advised regulation,” said the House Committee on Small Business Republicans.

Read the full letter here.

Read key excerpts of the letter:

“The proposed rule would require publicly traded companies to disclose enhanced climate-related information, including greenhouse gas (GHG) emissions as part of their Scope 1 and Scope 2 disclosures, respectively. The proposed rule goes one step further by requiring registrants to disclose Scope 3 emissions which would include ‘all indirect GHG emissions not otherwise included in a registrant’s Scope 2 emissions, which occur in the upstream and downstream activities of a registrant’s value chain.’

“Scope 3 emission information requirements threaten to extend GHG disclosures well beyond the SEC registrants to nearly every privately owned entity in the country, including countless small firms who often do not have the necessary resources to comply with the significant demands of scope 1 and 2 disclosures. For example, any manufacturer in the country who supplies parts to a publicly traded company would be required to supply GHG emission disclosures as part of the Scope 3 emission requirements of the publicly traded company. In addition, any farm that supplies feed to a publicly traded company would similarly be required to supply GHG emissions information to comply with the scope 3 requirements as a part of the ‘value chain’ of a publicly traded company.”

“The inability of small firms to produce this data and the wide reach of the proposed rule would not only burden small businesses, but also financial institutions. In public comment letters to the SEC multiple banking organizations pointed out their inability to collect GHG emission information from privately held companies. Furthermore, the lack of available data from private firms makes it nearly impossible for financial institutions to establish a comprehensive risk analysis.

“The Small Business Administration Office of Advocacy (Advocacy) was established by Congress to represent the views of small entities before Federal agencies and Congress. In fulfilling this duty, Advocacy submitted a comment letter to the proposed rule which directly states, ‘The climate disclosure rules impose fixed costs that will fall disproportionately on small entities’ and ‘Advocacy is concerned about the widespread economic impacts of the proposed climate disclosure rules on both public and privately owned small businesses.’

“Not only does Advocacy highlight the dramatic impact on small firms, but it also highlights how the SEC failed to conduct an adequate Initial Regulatory Flexibility Analysis (IRFA) as statutorily required under the Regulatory Flexibility Act (RFA). Specifically, Advocacy states ‘the IRFA in the proposed rules lacks essential information required under the RFA,’ and even more alarming, ‘the proposal does not consider indirect impacts to privately owned businesses that are not generally subject to SEC regulation.’ Considering the importance of small businesses to the U.S. economy, the failure of the SEC to consider the impact of this rule on privately owned businesses and small firms is egregious.”

Background:

All Members of the House Committee on Small Business are signatories of this letter: Ranking Member Blaine Luetkemeyer (R-MO), Vice Ranking Member Roger Williams (R-TX), Rep. Pete Stauber (R-MN), Rep. Dan Meuser (R-PA), Rep. Claudia Tenney (R-NY), Rep. Andrew Garbarino (R-NY), Rep. Young Kim (R-CA), Rep. Beth Van Duyne (R-TX), Rep. Byron Donalds (R-FL), Rep. Maria Salazar (R-FL), Rep. Scott Fitzgerald (R-WI), and Rep. Mike Flood (NE-01).

Groups Supporting:

  1. American Farm Bureau Federation
  2. American Financial Services Association (AFSA)
  3. American Highway Users Alliance
  4. American Petroleum Institute
  5. American Trucking Associations
  6. Americans for Tax Reform
  7. Arizona Farm Bureau Federation
  8. Committee for a Constructive Tomorrow (CFACT)
  9. Community Bankers Association of Georgia
  10. Community Bankers Association of Illinois
  11. Community Bankers Association of Ohio
  12. Community Bankers Association of Oklahoma
  13. Community Bankers of Michigan
  14. Community Bankers of Washington
  15. Community Bankers of West Virginia
  16. Competitive Enterprise Institute
  17. Connecticut Farm Bureau Association
  18. Delaware Farm Bureau
  19. Florida Bankers Association
  20. FreedomWorks
  21. Georgia Bankers Association
  22. Georgia Farm Bureau
  23. Heritage Action
  24. Idaho Farm Bureau Federation
  25. Illinois Farm Bureau
  26. Independent Bankers Association of New York State (IBANY)
  27. Independent Bankers Association of Texas
  28. Independent Banks of South Carolina
  29. Independent Community Bankers of America (ICBA)
  30. Independent Community Bankers of Minnesota
  31. Independent Community Bankers of South Dakota
  32. Independent Community Banks of North Dakota (ICBND)
  33. Independent Petroleum Association of America (IPAA)
  34. Indiana Chamber of Commerce
  35. Indiana Farm Bureau
  36. Iowa Bankers Association
  37. Iowa Farm Bureau
  38. Job Creators Network
  39. Kansas Bankers Association
  40. Kansas Farm Bureau
  41. Kansas Independent Oil & Gas Association (KIOGA)
  42. Kentucky Bankers Association
  43. Live Oak Bank
  44. Louisiana Bankers Association
  45. Michigan Bankers Association
  46. Michigan Farm Bureau
  47. Mid Atlantic Soybean Association
  48. Missouri Bankers Association
  49. Missouri Farm Bureau
  50. Missouri Independent Bankers Association
  51. Montana Independent Bankers Association
  52. Mortgage Bankers Association
  53. National Cattlemen’s Beef Association
  54. National Federation of Independent Business (NFIB)
  55. National Restaurant Association
  56. National Tank Truck Carriers
  57. National Taxpayers Union
  58. Nebraska Farm Bureau Federation
  59. Nevada Farm Bureau Federation
  60. New Hampshire Bankers Association
  61. New Mexico Farm & Livestock Bureau
  62. New York Farm Bureau
  63. North Carolina Bankers Association 
  64. North Dakota Bankers Association
  65. North Dakota Farm Bureau
  66. Ohio Bankers League
  67. Ohio Farm Bureau Federation
  68. Oregon Bankers Association
  69. Oregon Farm Bureau
  70. Owner-Operator Independent Drivers Association
  71. Pennsylvania Farm Bureau
  72. Permian Basin Petroleum Association
  73. Restaurant Law Center
  74. Small Business & Entrepreneurship Council
  75. Small Business Investor Alliance (SBIA)
  76. South Carolina Bankers Association
  77. South Dakota Bankers Association
  78. Texas Bankers Association
  79. The Fertilizer Institute
  80. The Heartland Institute
  81. The Petroleum Alliance of Oklahoma
  82. Truckload Carriers Association
  83. Truck Renting and Leasing Association (TRALA)
  84. U.S. Cattlemen’s Association
  85. Virginia Association of Community Banks
  86. Virginia Farm Bureau
  87. West Virginia Bankers Association
  88. Wisconsin Bankers Association
  89. Wisconsin Farm Bureau Federation
  90. Wyoming Bankers Association
  91. Wyoming Farm Bureau Federation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s