SCOPE Act of 2026

S.3928, the Standardized Calculation of Operational Polluting Emissions Act of 2026, was introduced in the Senate on February 26, 2026, by Senator Adam B. Schiff (D-CA). It was subsequently read twice and referred to the Committee on Environment and Public Works. The bill's current status is "Referred to committee — early stage," indicating it is in the initial phases of the legislative process. The bill does not authorize or appropriate any specific funding amounts. Instead, it directs the Administrator of the Environmental Protection Agency (EPA) to conduct a study and publish guidance within one year of the Act's enactment. This guidance will focus on calculating and reporting Scope 3 emissions for "direct emitters," which are defined as facilities in specific source categories under 40 CFR part 98 or other facilities determined appropriate by the Administrator. The guidance is mandated to include thresholds for reporting, calculation methodologies, monitoring frequency recommendations, quality assurance, estimation methods for missing data, and recordkeeping guidance. Structural winners and losers are not immediately apparent as the bill focuses on a study and guidance, not direct regulation or enforcement. However, companies in sectors identified as "direct emitters" that currently have robust Scope 3 emissions tracking and reporting mechanisms may face lower compliance costs if this bill progresses. Conversely, companies lacking such infrastructure may incur future costs to meet potential reporting requirements. The bill's impact is primarily on future regulatory frameworks rather than immediate financial flows. There is a companion bill, H.R.7684, which is an identical bill introduced in the House, increasing the probability of legislative movement on this topic. The Presidential Memorandum on Domestic Petroleum Production, Refining, and Logistics Capacity, issued on April 20, 2026, aims to stimulate investment in the petroleum sector. While this memorandum focuses on increasing production, the SCOPE Act, if enacted, would introduce new reporting requirements for emissions, including Scope 3, which could eventually add compliance burdens to the energy sector. This creates a potential conflict where the executive branch encourages expansion while the legislative branch considers increased environmental reporting. However, given the early stage of S.3928, this conflict is currently theoretical. The next legislative steps for S.3928 involve committee consideration, potential hearings, markups, and a vote within the Committee on Environment and Public Works. If approved, it would then proceed to a vote by the full Senate. The timeline for these steps is uncertain, as the bill is still in an early stage.