Sponsors
The bill would create clearer, standardized EPA guidance and QA/QC recommendations that improve transparency and data quality for scope 3 emissions, but it also raises compliance costs for value‑chain actors, confidentiality risks, and potential uncertainty if guidance is rushed to meet the one‑year deadline.
Utilities and energy companies would receive clear EPA guidance on how to calculate and report scope 3 emissions, reducing regulatory uncertainty for compliance and corporate GHG accounting.
Financial institutions, investors, and consumers would gain standardized reporting methods that improve transparency and enable better comparison of corporate value‑chain emissions for investment and purchasing decisions.
State and local governments would obtain more reliable emissions data because recommended QA/QC and recordkeeping practices increase data quality for policymaking and environmental planning.
Small suppliers and utilities would incur increased administrative costs to collect, estimate, and report scope 3 data, raising compliance burdens across value chains.
State and local governments and regulated companies could face compliance uncertainty because the one-year deadline may force the EPA to issue rushed or incomplete guidance that requires later revision.
Financial institutions, firms, and their suppliers/customers could face confidentiality and competitive risks because scope 3 reporting recommendations may pressure disclosure of sensitive supplier or customer data.
Based on analysis of 4 sections of legislative text.
Introduced February 26, 2026 by Adam Schiff · Last progress February 26, 2026
Directs EPA to study and publish guidance within one year on standardized methods for calculating and reporting scope 3 (value‑chain) greenhouse gas emissions for facilities considered direct emitters.
Requires the Environmental Protection Agency to complete, within one year of enactment, a study and publish formal guidance on how facilities that are "direct emitters" should calculate and report scope 3 greenhouse gas emissions (indirect upstream and downstream value‑chain emissions). The guidance must recommend reporting thresholds, calculation methods by source category, monitoring frequency, quality assurance/quality control practices, methods for estimating missing data, and recordkeeping and reporting practices, while preserving existing federal, state, and executive authorities. The bill does not itself impose new reporting requirements on regulated facilities; it directs EPA to produce standardized, recommended approaches to improve consistency and comparability of scope 3 emissions data across value chains and sectors.