U.S. EPA Eliminates Key Scope 3 Role, Leaving Gap Ahead of SB 253 Compliance
On July 28, 2025, the U.S. Environmental Protection Agency (EPA) eliminated the positions and unit responsible for maintaining the Extended Input-Output (EEIO) model, a key federal tool used to calculate Scope 3 greenhouse gas (GHG) emissions. The move signals a likely end to federal support for EEIO emissions factors, presenting challenges for companies preparing to comply with California’s landmark climate disclosure law, SB 253 (as amended by SB 219). As federal involvement recedes, the private sector and California regulators may fill the gap, introducing uncertainty about how Scope 3 emissions will be quantified going forward.
Extensive Climate Disclosure Requirements Proposed for Federal Contractors
On November 10, 2022, the Federal Acquisition Regulatory Council, composed of the Department of Defense, the General Services Administration, the National Aeronautics and Space Administration, and chaired by the Office of Federal Procurement Policy in the Office of Management and Budget, issued a proposed rule that would require certain federal contractors to disclose climate-related information to the System for Award Management (SAM) and, in certain instances, make such information publicly available on its website. (more…)
U.S. SEC Deals With the Shadow of West Virginia v. EPA
The U.S. Securities and Exchange Commission (SEC) has missed its self-imposed October deadline for finalizing the proposed rule titled “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” The commission had to reopen the public comments period for this rulemaking in October following a technical glitch that kept a number of public comments from reaching it. Adding to the delay is the significant number of comments that the commission has received relating to the proposal that, if finalized, would require companies to delineate how climate change would put their operations at risk and, perhaps more importantly, would require disclosures regarding Scope 3 emissions — emissions generated by their supply chain and customers when using their products. As proposed, the rule would impose an increased reporting burden starting with data collection as early as January 2023. When asked about this increased burden in a recent Senate hearing, SEC Chair Gary Gensler said that the commission is “trying to balance … out” the need for standardizing the reporting with the burden imposed by it. (more…)
