Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2023

Floor Speech

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Mr. ROSE. 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.

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Mr. ROSE. 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.

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