CA Governor Signs Emission Reporting Bill Into Law
Posted on 12/08/2023
California Governor Gavin Newsom has signed Senate Bill 253. According to the text of the bill: “This bill would require the state board, on or before January 1, 2025, to develop and adopt regulations requiring specified partnerships, corporations, limited liability companies, and other business entities with total annual revenues in excess of US$ 1,000,000,000 and that do business in California, defined as “reporting entities,” to publicly disclose to the emissions reporting organization, as defined, and obtain an assurance engagement on, starting in 2026 on a date to be determined by the state board, and annually thereafter, their scope 1 and scope 2 greenhouse gas emissions”
Companies will eventually be under the microscope of one of California’s public institutions or labs to ensure that the requirements of the state are carried out: “This bill would require the state board, on or before July 1, 2027, to contract with the University of California, the California State University, a national laboratory, or another equivalent academic institution to prepare a report on the public disclosures made by reporting entities to the emissions reporting organization.”
California’s legislature has big expectations from the state according to the bill: “California has demonstrated its leadership in the battle against climate change and the climate actions of the state have inspired and contributed to bold actions in other states and across the globe.”
The law will apply to over 5,000 companies in the state that meet the qualification of having US$ 1 billion in revenues.
