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House Republicans Focus on Four Themes in 2023

September 26, 2022

Around 50 days before the midterms, House Republicans released their vision for the next Congress — ‘Commitment to America.’ Rather than a specific agenda, Republicans plan to focus on four themes if they win a House majority:

1. The economy, focused on reducing inflation and energy costs and strengthening supply chains
2.  Safety, including reducing crime and securing the border;
3. Freedom, which relates to parental rights in schools and confronting big tech; and
4. Government accountability, “a nod to planned scrutiny of Biden administration officials,” reports The Wall Street Journal, which notes:

Why it matters: To many Republicans, the platform feels like a turning point for their conference after four years stuck in the House minority, echoing their strongest campaign-trail points, Politico says.

Yes, but: President Joe Biden called the plan a “thin series of policy goals with little or no detail,” while House Speaker Nancy Pelosi described it as an “alarming new extreme MAGA platform,” citing the abortion stance and other parts of the proposal.

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SEC Investor Advisory Committee Recommends More Climate Risk Disclosure

September 26, 2022

On September 21, the SEC’s Investor Advisory Committee (IAC) shared its support of the SEC’s May 2022 climate risk disclosure proposal and recommended a couple of additional disclosures. (The IAC is not part of the SEC. It was established by Dodd-Frank to advise the SEC on a variety of topics, including the effectiveness of disclosure and initiatives related to investor protection. Please see here for current IAC members.)

In addition to encouraging the use of the Task Force on Climate-Related Financial Disclosures (TCFD) framework and the GHG Protocol, the IAC supports requiring:

• Disclosure of Scope 1 and Scope 2 greenhouse gas (GHG) emissions, and disclosure by large companies of material Scope 3 GHG emissions;
• Attestation report for accelerated and large accelerated filers at the reasonable assurance level for Scope 1 and Scope 2 emissions;
• Disclosure of climate-related risks and impacts on business strategy, model, and outlook;
• Disclosure of risk management, targets, and goals; and the
• Presentation of disclosures in financial statements.

The IAC also recommends that companies:

• Provide a “Management Discussion of Climate-Related Risks and Opportunities” in the annual 10-K. (This information need not be audited or subject to internal controls over financial reporting); and
• Disclose material facility locations, including owned facilities and facilities used by key suppliers.

What's next: According to the SEC’s agenda, the climate disclosure rules will be finalized in October 2022, although market participants believe this deadline might slip.

• The SEC has received tremendous pushback from many parties, including several key Republican lawmakers, and will likely faces a slew of lawsuits upon the publication of the final rule.
• However, it is hard to gauge how much SEC Chair Gary Gensler will pull back on the proposed requirements.
• At a recent Senate Banking Committee oversight hearing, he stayed the course on some of the more controversial elements, including GHG emissions reporting requirements.
• CREFC will keep you apprised of any developments.

Please click here for CREFC’s response to the climate disclosure proposal and contact sburki@crefc.org with any questions.

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Government Shutdown Unlikely But Down to the Wire

September 26, 2022

Permitting reform continues to hold up a Continuing Resolution (CR) to fund the government past Friday’s fiscal year deadline. A test vote in the Senate on Tuesday will determine whether the CR includes permitting reform.

Why it matters: The government is at low risk of a shutdown, but lawmakers are down to the wire.

The big picture: Permitting reform supporters say the federal permitting process for both fossil fuel and renewable energy projects (like electric transmission) come with too much red tape under the National Environmental Policy Act, Clean Water Act, and Endangered Species Act. This red tape prevents projects that create jobs, increase domestic energy production, and make the US energy-independent.

Yes, but: Reform opponents fear fewer and less robust environmental reviews, harming low-income communities of color who suffer from pollution by fossil fuel projects in their neighborhoods.

What's next: If the CR does not include permitting changes, lawmakers could add the provisions in a year-end omnibus spending bill or must-pass defense bill later this year.

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