Barring an administrative stay, the SEC’s climate rules will become effective on May 28th because the rules were published in the Federal Register last Thursday. This also means that the SEC’s adopting release has shrunk by a single page – so it’s now weighing in at just 885 pages (as the SEC has replaced the PDF posted with a “conformed to the Federal Register” version).

Remember that the rule’s effective date doesn’t impact the timing of the various compliance dates that are phased in over time. However, the rule’s effective date does impact the timing of any review under the Congressional Review Act. This Act has a “look back” provision that provides Congress with an opportunity to review and overturn rules promulgated by any federal agency. To overturn a rule, both houses of Congress must pass a joint resolution of disapproval – and then the President must sign it. So with the timing of this rule’s May 28th effective date, it’s unlikely that such a joint resolution would go anywhere given that Act’s timing mechanisms and the fact that the Democrats control the Senate and the Presidency – and thus this rule is “safe” from being killed by action pursuant to this Act.

But bear in mind that, as we blogged last week, a new challenge to the SEC’s rules was recently filed so that the administrative stay levied – and then lifted – by the 5th Circuit could be reinstated by the 8th Circuit. We’ll see how that plays out…

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Photo of Broc Romanek Broc Romanek

As a strategist for the firm’s Corporate & Securities practice, Broc Romanek has a deep understanding of the regulatory and environmental, social, and governance (ESG) marketplace. Prior to joining Perkins Coie, Broc served as editor at TheCorporateCounsel.net, CompensationStandards.com, and DealLawyers.com, where he oversaw…

As a strategist for the firm’s Corporate & Securities practice, Broc Romanek has a deep understanding of the regulatory and environmental, social, and governance (ESG) marketplace. Prior to joining Perkins Coie, Broc served as editor at TheCorporateCounsel.net, CompensationStandards.com, and DealLawyers.com, where he oversaw and managed coverage on issues related to ESG, corporate governance, executive pay, deals, and market trends and analysis.

In addition to his nearly two decades of working as a journalist and publisher, Broc served as assistant general counsel at a Fortune 50 company, worked in the Office of Chief Counsel of the U.S. Securities and Exchange Commission’s (SEC) Division of Corporation Finance, was a counselor to former SEC Commissioner Laura Unger, and worked in private practice. He also is the author, or co-author, of four legal treatises, and has authored several books focused on the legal industry.