Plain English Breakdown
Checked against official source text during the last sync.
Exempting Climate Reporting Rules from Environmental Review
This law exempts regulations about corporate climate data and financial risk reports from the requirement to prepare environmental impact studies under CEQA.
What This Bill Does
- Removes the need for an environmental review report when creating rules that require companies with over $1 billion in revenue to disclose greenhouse gas emissions.
- Removes the need for an environmental review report when creating rules about climate-related financial risk reports for companies with over $500 million in revenue.
- Allows the State Air Resources Board to create these specific regulations without preparing documents required by CEQA.
- Sets aside $1,000 from the Greenhouse Gas Reduction Fund to help implement these provisions.
Who It Names or Affects
- State agencies that must follow the California Environmental Quality Act (CEQA) process
- Corporations and business entities with annual revenues over $1 billion subject to emissions reporting rules
- Corporations and business entities with annual revenues over $500 million subject to climate risk report requirements
Terms To Know
- CEQA (California Environmental Quality Act)
- A state law requiring agencies to study how projects or rules might affect the environment before they start.
- Scope 1, 2, and 3 emissions
- Categories of greenhouse gases released directly by a company, from energy it buys, or through its supply chain.
Limits and Unknowns
- The law takes effect immediately because it is related to the Budget Bill.
- This bill only changes how rules are made; it does not change what companies must report under existing laws.