Jan. 13, 2024
There is a very serious National Security component to the NACs. Foreign adversaries – China, Iran Russia and should not be able to acquire “rights” over public or private air, land, or subsurface space. China has purchased farmland and other properties around our military installations and bases some of which are strategic bases – allowing our adversaries to own or invest in NACs is a very serious threat to our national and economic security and unacceptable. The proposed rule allows NACs to have management authority over assets held in the portfolio, including our public lands. The creation of an entirely new corporate taxonomy based on protecting public natural resources by placing them under the direction of NACs raises significant questions about the unique listing requirements relating to NACs. The SEC has not sufficiently demonstrated that it has the capabilities to oversee appropriate disclosures around air, land and water stewardship. The proposed rule could lead to a preservationist-only approach to federal land management instead of an “all-of-the-above” working lands approach as intended by the creation of our federal land programs. Therefore, it is important that the SEC rule be put on hold and Congress and State legislatures thoroughly assesses the proposed unique listing requirements for NACs and the SEC provide members of Congress and the State Legislatures and the public with a detailed evaluation of the potential risks and benefits associated with such investments, as well as how the Commission’s disclosure and regulatory requirements for NACs will appropriately account for the unique nature of land management and stewardship and be coordinated with the federal, states and local governments. I am not in favor of this ruling. Respectfully, Michael L. Rapp LtCol USMC (Ret)