Bill
Bill Summary • HR 7684

Summary of HR 7684 — SCOPE Act of 2026

Effective communication of the bill’s purpose, key provisions, affected parties, and timeline.

Overview

  • Full title: Standardized Calculation of Operational Polluting Emissions Act of 2026 (SCOPE Act of 2026)
  • Purpose: Establish a framework for studying and issuing guidance on how to calculate and report Scope 3 greenhouse gas (GHG) emissions for direct emitters, with the aim of standardizing methodologies, thresholds, monitoring frequency, data quality, and recordkeeping.
  • Status: Introduced in the House (February 25, 2026) and referred to the Committee on Energy and Commerce.
  • Sponsors: Primary sponsor(s) with two co-sponsors (Raja Krishnamoorthi and Kevin Mullin).

1) Main Purpose and Intent

  • To require the Environmental Protection Agency (EPA) Administrator to study and issue guidance on calculating and reporting Scope 3 emissions for direct emitters.
  • Scope 3 emissions refer to indirect GHG emissions in the broader value chain (upstream and downstream activities) associated with a facility.
  • The act aims to provide a standardized approach for assessing Scope 3 emissions, including practical thresholds and methodologies, while preserving existing federal, state, and presidential authorities.

2) Key Provisions and Changes

Definitions (Section 2)

  • Administrator: EPA Administrator.
  • Direct emitter: A facility that falls within source categories described in subparts C through JJ of Part 98 (GHG reporting rules) or another facility the Administrator designates.
  • Greenhouse gas: Defined as CO2, methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) – the same set typically covered under GHG reporting.
  • Scope 3 emissions: Indirect GHG emissions from upstream and downstream value chain activities as determined by the Administrator.

Study and Guidance ( subsection (b) and (c) )

  • Study obligation: Within 1 year of enactment, the EPA Administrator must conduct a study on calculating and reporting Scope 3 emissions for direct emitters and publish guidance.
  • Content of guidance: The guidance must address: 1) Thresholds for Scope 3 emissions above which reporting to the EPA is recommended. 2) Calculation methodologies for Scope 3 emissions by source category. 3) Recommended frequency of monitoring Scope 3 emissions. 4) Quality assurance and quality control (QA/QC) for Scope 3 data. 5) Methods for estimating missing Scope 3 data. 6) Recordkeeping requirements for Scope 3 data and reporting.

Savings Provision (subsection (d))

  • Ensures that nothing in this section limits or alters the President’s, federal agencies’, or States’ existing authorities under current law.

3) Affected Parties and Impacts

  • Direct emitters: Facilities currently subject to GHG reporting under Part 98 (and potentially other facilities identified by the EPA Administrator) would be the primary focus for Scope 3 consideration and reporting guidance.
  • EPA and federal regulators: Responsible for conducting the study and issuing guidance within the specified timeframe.
  • Upstream and downstream stakeholders: Indirectly affected through potential future reporting and monitoring of Scope 3 emissions, depending on how the guidance is adopted and applied.
  • States and other federal agencies: Retained authorities and potential alignment with existing regulatory frameworks, per the savings provision.

4) Procedural and Timeline Aspects

  • Timeline: EPA must complete the study and publish guidance within 1 year after enactment.
  • Process: Ballot of recommendations will cover thresholds, methodologies, monitoring frequency, QA/QC, data estimation for gaps, and recordkeeping practices.
  • Legislative footprint: The bill does not impose mandatory reporting of Scope 3 emissions itself at this stage; it requires study and guidance that could inform future regulatory actions.

5) Notable Details

  • The act places emphasis on standardization and quality of data, aiming to reduce uncertainty in Scope 3 accounting.
  • It explicitly preserves existing authorities, avoiding preemption or limit of power granted to the President, federal agencies, or states.

If you’d like, I can tailor this summary for a specific audience (e.g., policymakers, industry compliance teams, or general public) or add a quick comparison to current EPA GHG reporting practices.

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