Changes deadlines and rules for climate disclosure laws

Existing law, the Climate Corporate Data Accountability Act, requires, on or before January 1, 2025, the State Air Resources Board to develop and adopt regulations to require a reporting entity to annually disclose to the emissions reporting organization, as defined, all of the reporting entity’s scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law requires the state board to ensure that the regulations require a reporting entity, starting in 2027 and annually thereafter, to publicly disclose its scope 3 emissions no later than 180 days after its scope 1 emissions and scope 2 emissions are publicly disclosed to the emissions reporting organization. Existing law requires the reporting entities to pay an annual fee upon filing the disclosure. Existing law also requires the state board to contract with an emissions reporting organization to develop a reporting program to receive and make certain required disclosures publicly available, and sets forth other duties of the emissions reporting organization and the state board.

This bill would delay the requirement that the state board adopt regulations until July 1, 2025, and would require that the regulations adopted by the state board require, among other things, a reporting entity to make the annual disclosure to either the emissions reporting organization or the state board, and that the reporting entity publicly disclose its scope 3 emissions on a schedule specified by the state board, rather than no later than 180 days after its scope 1 emissions and scope 2 emissions are publicly disclosed. The bill would authorize reports to be consolidated at the parent company level and would delete the requirement that the annual fee be paid upon filing the disclosure. The bill would authorize, rather than require, the state board to contract with an emissions reporting organization to develop a reporting program to receive and make certain required disclosures publicly available. The bill would make other related changes to the duties of the emissions reporting organization and the state board, as provided.

Existing law requires, on or before January 1, 2026, and biennially thereafter, a covered entity, as defined to mean a corporation, partnership, limited liability company, or other business entity with total annual revenues in excess of $500,000,000, as specified, to prepare a climate-related financial risk report disclosing the entity’s climate-related financial risk and measures adopted to reduce and adapt to climate-related financial risk. Existing law requires the state board to contract with a climate reporting organization, as defined, to prepare a biennial public report on the climate-related financial risk disclosures and requires the climate reporting organization to be contracted to take other actions, including biennially preparing a public report that includes a review of the disclosure of climate-related financial risk contained in a subset of publicly available climate-related financial risk reports and monitoring federal regulatory actions, as specified. Existing law requires, on or before January 1, 2026, and annually thereafter, a covered entity to pay a fee upon filing its disclosure to the state board for the administration and implementation of these requirements.

This bill would authorize, rather than require, the state board to contract with a climate reporting organization to carry out the above-described actions that the state board deems appropriate. The bill would also delete the requirement that the entity’s fee be paid upon filing its disclosure.