California Contractor Climate Transparency Act.

Plain English Breakdown

The bill does not provide specific definitions or criteria for 'large contractor' and 'significant contractor'.

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 one year after the regulations from the Climate Corporate Data Accountability Act take effect.

What This Bill Does

• Enacts the California Contractor Climate Transparency Act.
• Requires large contractors to disclose scope 1, scope 2, and scope 3 emissions along with climate-related financial risk reports.
• Requires significant contractors to disclose scope 1 and scope 2 emissions.

Who It Names or Affects

• Large contractors in California
• Significant contractors in California

Terms To Know

Scope 1 emissions

Direct greenhouse gas emissions from sources that are owned or controlled by the reporting entity.

Scope 2 emissions

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

Scope 3 emissions

All other indirect greenhouse gas emissions that occur in a company's value chain and are not included in scope 2.

Limits and Unknowns

• The bill does not define what qualifies as a 'large contractor' or a 'significant contractor'.
• It is unclear how the State Air Resources Board will enforce these requirements.
• There is no information on penalties for non-compliance with reporting.

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