Hinds Today

U.S. Senator Cindy Hyde-Smith (R-Miss.) joined U.S. Senator Kevin Cramer (R-N.D.) and others in filing a bicameral amicus brief against a final rule issued by the Securities and Exchange Commission (SEC) in March, which mandates publicly traded companies to disclose their greenhouse gas emissions data.

The bicameral amicus brief in Texas Alliance of Energy Producers, et al v. SEC requests the Eighth Circuit Court of Appeals to vacate the SEC climate rule, the first ever issued by the agency. Critics argue that the rule is “unlawful several times over,” with multiple lawsuits pending in the Eighth Circuit, including a petition for review filed 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' authority to enact 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,” stated 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,” continued the brief. “Specifically, the Climate Rule contravenes the principle of materiality, a cornerstone of federal securities law... The SEC’s historical stance and Supreme Court 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, its disclosure requirements conflict with established federal securities law precepts and should be vacated.”

In addition to Cramer and Hyde-Smith, U.S. Senators John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), Mike Braun (R-Ind.), Shelley Moore Capito (R-W.Va.), Bill Cassidy (R-La.), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Cynthia Lummis (R-Wyo.), Pete Ricketts (R-Neb.), Jim Risch (R-Idaho), Mike Rounds (R-S.D.), Marco Rubio (R-Fla.), Eric Schmitt (R-Mo.), Tim Scott (R-S.C.), and Dan Sullivan (R-Alaska) signed onto this brief.

U.S. Representative Kevin Hern led a similar effort in the House with at least 17 members signing.

Hyde-Smith has been critical of both this SEC rule and other Biden administration actions concerning future production of U.S. oil and natural gas resources.