California Contractor Climate Transparency Act.

Plain English Breakdown

The official source material does not specify enforcement mechanisms or penalties for non-compliance, leaving this information uncertain.

California Contractor Climate Transparency Act

This act requires large and significant contractors in California to report their greenhouse gas emissions and climate-related financial risks annually starting January 1, 2027.

What This Bill Does

• Enacts the California Contractor Climate Transparency Act.
• Requires large contractors to disclose scope 1, scope 2, and scope 3 emissions and climate-related financial risk each year starting January 1, 2027.
• Requires significant contractors to report their scope 1 and scope 2 emissions annually beginning in 2027.

Who It Names or Affects

• Large contractors in California who must disclose more detailed information about their greenhouse gas emissions and financial risks related to climate change starting January 1, 2027.
• Significant contractors in California who need to report on their scope 1 and scope 2 emissions annually beginning in 2027.

Terms To Know

Scope 1 emissions

Direct greenhouse gas emissions from sources that are owned or controlled by the reporting entity, such as fuel burned in company vehicles.

Scope 2 emissions

Indirect greenhouse gas emissions resulting from the generation of purchased electricity, steam, heating and cooling consumed by the reporting entity.

Scope 3 emissions

All indirect emissions (not included in scope 2) that occur in the value chain of the reporting entity, including both upstream (e.g., from suppliers) and downstream emissions (e.g., use, disposal).

Limits and Unknowns

• The bill does not specify what happens if a contractor fails to comply with the reporting requirements.
• It is unclear how the State Air Resources Board will enforce these new regulations.

Official Summary Text

SB 755, as amended, Blakespear.
California Contractor Climate Transparency Act.
The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. Existing law, the Climate Corporate Data Accountability Act, requires, on or before July 1, 2025, the
state
board to develop and adopt regulations to require a reporting entity to, among other things, annually disclose all of the reporting entity’s scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law also requires, on or before January 1, 2026, and biennially thereafter, a covered entity 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.
This bill would enact the California Contractor Climate Transparency Act, which would require the
state
board, beginning
January 1, 2027,
one year after the effective date of regulations adopted pursuant to the Climate Corporate Data Accountability Act, as specified,
to require a large contractor and a significant contractor, as defined, to report annually specified information, including, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified.

Current Bill Text

Download Bill PDF