Bill > SB154

This bill amends existing California law to strengthen climate corporate accountability and climate-related financial risk reporting, while exempting the related regulations from the California Environmental Quality Act (CEQA). Specifically, the bill requires corporations with annual revenues over $1 billion to annually disclose their scope 1, 2, and 3 greenhouse gas emissions, starting in 2026 for scope 1 and 2 emissions and 2027 for scope 3 emissions. Companies with annual revenues over $500 million must also prepare and publicly disclose biennial climate-related financial risk reports, detailing potential financial risks from climate change and their adaptation measures. The bill requires these disclosures to be made using established international reporting standards, with third-party verification. The State Air Resources Board is authorized to impose administrative penalties for non-compliance, with penalties up to $500,000 for emissions reporting and $50,000 for climate risk reporting. The bill also appropriates $1,000 from the Greenhouse Gas Reduction Fund to the State Air Resources Board to implement these provisions and declares itself immediately effective as a budget-related bill. A key innovation is the explicit exemption of these new regulatory requirements from CEQA review, which could streamline the implementation process.

Budget and Finance

Budget and Fiscal Review (Senate)

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB154