Company: PED
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001654954-25-003703
Chunk: 44

Company: PEDEVCO CORP
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 44
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 of funds appropriated through the Inflation Reduction Act, and also directed withdrew the United States from the Paris Agreement and all other agreements made under the United Nations Framework Convention on Climate Change. Consequently, future implementation and enforcement of these rules remains uncertain at this time.

In addition, a number of state and regional efforts have emerged that are aimed at tracking and/or reducing GHG emissions by means of carbon taxes, policies, and incentives to encourage the use of renewable energy or alternative low-carbon fuels, the development of greenhouse gas inventories, and cap and trade programs that typically require major sources of GHG emissions, such as electric power plants, to acquire and surrender emission allowances in return for emitting those GHGs.

Additionally, on March 6, 2024, the SEC issued its final rule regarding the enhancement and standardization of mandatory climate-related disclosures for investors, which requires large accelerated and accelerated filers to provide climate-related disclosures in their annual reports and registration statements beginning with annual reports for the year ending December 31, 2025 for calendar-year-end filers, and beginning with annual reports for the year ending December 31, 2027 for smaller reporting companies like ours. The final rule requires large accelerated and accelerated filers to provide Scope 1 and Scope 2 GHG emissions disclosures and more extensive GHG-related financial statement disclosure requirements. The most stringent disclosure and reporting provisions under the SEC’s final rule do not apply to the Company as it is a smaller reporting company, but should the Company become an accelerated filer, or should future SEC rules be issued that apply such disclosure requirements on smaller reporting companies, such rules could impose significant disclosure requirements and costs on our operations. The SEC’s Greenhouse Gas Rule is currently being challenged in litigation consolidated in the Eighth Circuit, and the SEC has stayed the effective date pending completion of that litigation. Additionally, then SEC Acting Chair Mark Uyeda, on February 11, 2025, issued a statement saying the Greenhouse Gas Rule is flawed and directed the SEC staff to notify the Court of the changed circumstances and request that the Court not schedule the case for argument to provide time for the SEC to deliberate and determine the appropriate next steps in the case. At this time the final outcome of the SEC’s Greenhouse Gas Rule is unknown.

In addition, a number of state and regional efforts have emerged that are aimed at tracking and/or reducing GHG emissions by means of carbon taxes, policies, and incentives to encourage the use of renewable energy or alternative low-carbon fuels, the development of greenhouse