Sponsors
The bill directs the EPA to issue standardized scope 3 GHG reporting guidance that should improve data quality and comparability but will impose compliance costs and potential market consequences on businesses and may be rushed by a one-year deadline.
Investors, consumers, and companies will get more comparable, higher-quality corporate GHG inventories because EPA guidance standardizes methods for scope 3 calculations, improving transparency and enabling better emissions performance comparisons.
Facilities and companies (including utilities and small businesses) will receive standardized EPA guidance that reduces uncertainty about how to calculate and report scope 3 emissions for compliance and voluntary disclosure.
Companies will have clearer procedures on monitoring frequency and missing-data estimation, which can lower long-term reporting burdens and make compliance more predictable.
Small businesses and utilities will face new costs to collect, calculate, and retain scope 3 data to follow EPA guidance, increasing compliance expenses.
Companies (especially utilities) that disclose higher scope 3 emissions could suffer market or procurement consequences, reducing competitiveness or access to contracts.
Federal and state agencies, and stakeholders, may face rushed implementation because the one-year deadline could limit stakeholder engagement and technical development, risking guidance that needs revision or causes implementation challenges.
Based on analysis of 4 sections of legislative text.
Directs EPA to study and publish guidance within one year on calculating and reporting scope 3 GHG emissions for specified direct‑emitting facilities, including methods, thresholds, and QA/QC.
Introduced February 26, 2026 by Adam Schiff · Last progress February 26, 2026
Directs the Environmental Protection Agency to complete, within one year of enactment, a study and publish guidance for calculating and reporting scope 3 greenhouse gas emissions for specified “direct emitter” facilities. The guidance must cover recommended reporting thresholds, source‑category calculation methods, monitoring frequency, quality assurance/quality control (QA/QC), methods to estimate missing data, and recordkeeping and reporting procedures. Defines greenhouse gases by established statute (including CO2, HFCs, methane, N2O, PFCs, and SF6) and applies to facilities in the federal greenhouse gas reporting regulation subparts identified as direct emitters, plus any additional facilities the EPA Administrator designates. The provision also states it does not alter existing authorities of the President, federal agencies, or States under current law.