Twenty-four Republican attorneys general are warning the Securities and Exchange Commission it faces a legal battle over a proposed rule for climate-related disclosures, the Washington Examiner reported.
The officials filed comments on the SEC's proposed rule on Wednesday. They maintain the rule will fly in the face of the recent Supreme Court decision limiting the Environmental Protection Agency's authority to set standards on climate-changing greenhouse gas emissions for existing power plants.
The court decided that Congress, not the EPA, has the authority to create a broad system of cap-and-trade regulations to limit emissions, according to CNBC.
The SEC proposal would require corporations to disclose climate change related risks to their business.
If the SEC fails to change course on its proposed rule in light of the recent high court ruling, the officials said, they would be "ready to act once again" as they did in the case of EPA v. West Virginia, the Examiner said.
"If this sort of regulatory overreach does not constitute a sweeping policy judgment on a major question, then we struggle to see what would," said the attorney's general in their comments filed with the SEC.
The Examiner noted Republicans and many business groups argue that the commission doesn't have the authority to require the proposed disclosures.
But SEC Chair Gary Gensler has maintained the proposed rule falls in line with the commission's history on disclosures.
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