Read the full stored bill text
S679 1R
[First Reprint]
SENATE, No. 679
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator BOB SMITH
District 17 (Middlesex and Somerset)
Senator JOHN F. MCKEON
District 27 (Essex and Passaic)
Co-Sponsored by:
Senators Greenstein and Mukherji
SYNOPSIS
���� "Climate Corporate Data Accountability
Act"; requires certain business entities to publicize annual greenhouse
gas emissions data.
CURRENT VERSION OF TEXT
���� As reported by the Senate Environment and Energy
Committee on February 12, 2026, with amendments.
��
An Act
concerning greenhouse gas emissions and supplementing
Title 26 of the Revised Statues.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� This act shall be known
and may be cited as the "Climate Corporate Data Accountability Act."
����� 2.�
The Legislature finds and declares that:
����� a.�
New Jersey has demonstrated 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.
����� b.�
New Jerseyans are already facing devastating wildfires, sea level rise,
excessive rainfall, and other impacts associated with climate change that
threaten the health and safety of New Jerseyans, undermines the sustainability
of our communities, particularly those communities most affected by the
negative effects of climate change, and the economic well-being of the State
and its residents, including threatening many of the State�s largest
industries.
����� c.�
Climate change also poses a significant risk to companies� long-term economic
success and disrupts the value chains on which they rely.� Managing these risks
requires investments in decarbonization strategies that lead to emissions
reductions and provide economic benefits for New Jerseyans and the State
economy.
����� d.�
New Jersey has doubled its real gross domestic product growth rate since 2018,
is on track to be the 31st largest economy in the world, and is a highly
desirable market for the globe�s most profitable companies.
����� e.�
New Jersey investors, consumers, and other stakeholders deserve transparency
from companies regarding their greenhouse gas emissions to inform their
decision-making.
����� f.�
United States companies that have access to New Jersey�s tremendously valuable
consumer market by virtue of exercising their corporate franchise in the State
also share responsibility for disclosing their contributions to global
greenhouse gas emissions.
����� g.�
Companies can increase the State�s climate risk through emissions activities
that include, but are not limited to, company operations, supply chain
activities, employee and consumer transportation, goods production and
movement, construction, land use, and natural resource extraction.
����� h.�
Accurate and comprehensive data that is subject to an assurance engagement by
an independent third-party assurance provider is required to determine a
company�s direct and indirect greenhouse gas emissions, also known as its
carbon footprint, and to effectively identify the sources of the emissions and
develop means to reduce the emissions.
����� i.�
The current approach for the disclosure of climate emissions from public and
private corporate enterprises relies largely on voluntary reporting of
greenhouse gas inventories, goals, commitments, and agreements, and lacks the
full transparency and consistency needed by residents and financial markets to
fully understand these climate risks.
����� j.�
The people, communities, and other stakeholders in New Jersey, facing the
existential threat of climate change, have a right to know about the sources of
carbon pollution, as measured by the comprehensive greenhouse gas emissions
data of those companies benefiting from doing business in the State, in order
to make informed decisions.
����� k.�
The Greenhouse Gas Protocol is the globally recognized greenhouse gas emissions
accounting and reporting standard developed and updated by the World Resources
Institute and the World Business Council for Sustainable Development and
provides the framework for corporate greenhouse gas emissions accounting and
reporting.� The framework defines and categorizes emissions as scopes 1, 2, and
3 emissions. Many companies already partially or fully disclose their emissions
data.
����� l.�
Mandating annual
1
[
, full-scope
]
1
greenhouse gas emissions data reporting to the
emissions reporting organization for all United States companies with total
annual revenues in excess of $1 billion that do business in New Jersey, as well
as ensuring public access to the data in a manner that is easily understandable
and accessible, will inform investors, empower consumers, and activate
companies to improve risk management in order to move towards a net-zero carbon
economy and is a critical next step that New Jersey must take to protect the
State and its residents.
����� 3.�
As used in this act:
����� �Assurance
engagement� means a report, produced by an assurance provider, which certifies
the accuracy of a greenhouse gas emissions report.
����� �Assurance
provider� means an environmental consultant or other entity with expertise and
experience in measuring and verifying scope 1
1
[
,
]
and
1
scope 2
1
[
, and scope 3
]
1
emissions of reporting entities or other, similar
organizations.
����� �Department�
means the Department of Environmental Protection.
����� �Emissions
reporting organization� means a nonprofit emissions reporting organization
contracted by the Department of Environmental Protection pursuant to section 6
of this act that currently operates a greenhouse gas emission reporting
organization for organizations operating in the United States, and has
experience with greenhouse gas emissions disclosure by entities operating in
New Jersey.
����� �Limited
assurance level� means the degree of verification of greenhouse gas emissions
data that may reasonably be obtained by an assurance provider using exclusively
data that is provided by the reporting entity.
����� �Reasonable
assurance level� means the degree of verification of greenhouse gas emissions
data that may reasonably be obtained by an assurance provider that validates
data provided by a reporting entity.
����� �Reporting
entity� means a partnership, corporation, limited liability company, or other
business entity formed under the laws of this State, the laws of any other
state of the United States or the District of Columbia, or under an act of the
Congress of the United States, which has total annual revenues in excess of $1
billion and that does business in New Jersey.
����� �Scope
1 emissions� means all direct greenhouse gas emissions that stem from sources
that a reporting entity owns or directly controls, regardless of location,
including, but not limited to, fuel combustion activities.
����� �Scope
2 emissions� means indirect greenhouse gas emissions from consumed electricity,
steam, heating, or cooling purchased or acquired by a reporting entity,
regardless of location.
�����
1
[
�Scope 3 emissions� means indirect upstream and
downstream greenhouse gas emissions, other than scope 2 emissions, from sources
that the reporting entity does not own or directly control and may include, but
are not limited to, purchased goods and services, business travel, employee
commutes, and processing and use of sold products.
]
1
�
����� 4.�
a.� (1) Commencing three years after the effective date of this act, a
reporting entity shall annually disclose to the emissions reporting
organization and the department all of the reporting entity�s scope 1
1
[
,
]
and
1
scope 2
1
[
, and scope 3
]
1
emissions for the prior fiscal year.�
����� (2)
Commencing four years after the effective date of this act, a disclosure of
scope 1 or scope 2 emissions made pursuant to this subsection shall include an
assurance engagement performed by an independent third-party assurance
provider, which verifies the accuracy of the reported emissions.� The reporting
entity shall ensure that a copy of the complete assurance provider�s report on
the greenhouse gas emissions inventory, including the name of the third-party
assurance provider, is provided to the emissions reporting organization as part
of or in connection with the reporting entity�s disclosure.� The assurance
engagement for scope 1 emissions and scope 2 emissions shall be performed at a
limited assurance level until eight years after the effective date of this act,
and at a reasonable assurance level thereafter.
�����
1
[
(3)� No later than four years after the effective
date of this act, the department shall review and evaluate trends in
third-party assurance requirements for scope 3 emissions.� No later than five
years after the effective date of this act, the department may adopt, in
accordance with the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1
et seq.), rules and regulations as necessary to implement an assurance
requirement for third-party assurance engagements of scope 3 emissions,
provided that the rules and regulations require that the assurance engagements
for scope 3 emissions be performed at a limited assurance level and commence
eight years after the effective date of this act.
]
1
����� b.�
Commencing four years after the effective date of this act, and each year
thereafter, a reporting entity shall publicly disclose all of the reporting
entity�s scope 1 and scope 2 emissions for the prior fiscal year.
����� c.�
1
[
Commencing five years after the effective date of
this act, and each year thereafter, a reporting entity shall publicly disclose
all of the reporting entity�s scope 3 emissions no later than 180 days after
its scope 1 emissions and scope 2 emissions are publicly disclosed to the
emissions reporting organization for the prior fiscal year.
����� d.
]
1
� A partnership, corporation, limited liability
company, or other business entity shall annually calculate its revenue for the
prior fiscal year in order to determine if it qualifies as a reporting entity
pursuant to this act.
�����
1
[
e.� (1) Commencing four years after the effective
date of this act, a reporting entity shall measure and report its emissions of
greenhouse gases in conformance with the Greenhouse Gas Protocol standards and
guidance, including the Greenhouse Gas Protocol Corporate Accounting and
Reporting Standard and the Greenhouse Gas Protocol Corporate Value Chain (Scope
3) Accounting and Reporting Standard developed by the World Resources Institute
and the World Business Council for Sustainable Development, and including
guidance for scope 3 emissions calculations that detail the acceptable uses of
both primary and secondary data sources, including the use of industry average
data, proxy data, and other generic data in scope 3 emissions calculations.
����� (2)
Commencing 10 years after the effective date of this act and every five years
thereafter, the department may survey and assess currently available greenhouse
gas accounting and reporting standards.�� This assessment shall include
consultation with appropriate industry stakeholders.� At the conclusion of this
assessment, the department may adopt, in accordance with the �Administrative
Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as
necessary to implement a globally recognized alternative accounting and
reporting standard if it determines its use would more effectively further the
goals of this act.�
����� f.�
No later than eight years after the effective date of this act, the department
shall update, as necessary, the public disclosure deadlines established in
subsection c. of this section to evaluate trends in scope 3 emissions reporting
and consider changes to the disclosure deadlines to ensure that scope 3
emissions data is disclosed to the emissions reporting organization as close in
time as practicable to the deadline for reporting entities to disclose scope 1
emissions and scope 2 emissions data.� The public disclosure deadlines shall
consider industry stakeholder input and shall take into account the timelines
by which reporting entities typically receive scope 1, scope 2, and scope 3
emissions data, as well as the capacity for an independent assurance engagement
to be performed by a third-party assurance provider.
����� g.
]
d.
1
� A reporting entity shall format a public disclosure made pursuant to
this section in such a way as to maximize access for consumers, investors, and
other stakeholders to comprehensive and detailed greenhouse gas emissions data
across
1
[
scopes 1, 2, and 3 emission
]
scope 1 and scope 2 emissions
1
, and in a manner that is easily understandable and
accessible.� A reporting entity�s public disclosure shall include the name of
the reporting entity and any fictitious names, trade names, assumed names, and logos
used by the reporting entity.
�����
1
[
h.
]
e.
1
� Reporting entities that are required to report mandatory industrial
emissions pursuant to section 5 of P.L.2007, c.112 (C.26:2C-41) may provide
that data with the disclosure required pursuant to this section.
�����
1
[
i.
]
f.
1
� A reporting entity�s disclosure shall take into account acquisitions,
divestments, mergers, and other structural changes that can affect the
greenhouse gas emissions reporting.
�����
1
[
j.
]
g.
1
� A third-party assurance provider utilized pursuant to this section shall
have significant experience in measuring, analyzing, reporting, or attesting to
the emission of greenhouse gases and sufficient competence and capabilities
necessary to perform engagements in accordance with professional standards and
applicable legal and regulatory requirements. The assurance provider shall be
able to issue reports that are appropriate under the circumstances and
independent with respect to the reporting entity, and any of the reporting
entity�s affiliates for which it is providing the assurance report.� No later
than seven years after the effective date of this act, the department shall
review and, no later than eight years after the effective date of this act,
shall update as necessary, by adopting rules and regulations pursuant to the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), the
qualifications for third-party assurance providers, based on an evaluation of
trends in education relating to the emission of greenhouse gases and the
qualifications of third-party assurance providers.
�����
1
h.� Notwithstanding any provisions of this act to
the contrary, if a reporting entity is included as a consolidated subsidiary in
the consolidated financial statements of an ultimate parent entity, then the
parent entity shall be considered the reporting entity for the purposes of this
act, and the subsidiary shall not be required to submit a separate greenhouse
gas disclosure report, so long as the parent company submits a report that
includes the scope 1 and scope 2 emissions of the subsidiary.
1
���� 5.� A reporting entity, whenever
it files a disclosure to the department pursuant to subsection a. of section 4
of this act, shall pay an annual fee to the department for the administration
and implementation of this section.� The department shall set the fee in an
amount sufficient to cover the departments full costs of administrating and
implementing the provisions of this act. �The total amount of fees collected
shall not exceed the department's actual and reasonable costs to administer and
implement this section.
���� 6.� a.� No later than two
years after the effective date of this act, the department shall contract with
an emissions reporting organization to develop a reporting program to receive
and make publicly available disclosures required by section 4 of this act.
���� b.� The emissions reporting organization
shall create a digital platform, which shall be accessible to the public, that
will feature the emissions data of reporting entities and the report prepared
for the department pursuant to section 7 of this act. �The digital platform
shall be capable of featuring individual reporting entity disclosures, and
shall allow consumers, investors, and other stakeholders to view reported data
elements aggregated in a variety of ways, including multiyear data, in a manner
that is easily understandable and accessible to residents of the State. �All
data sets and customized views shall be available in electronic format for
access and use by the public.
���� c.� The emissions reporting
organization shall make the reporting entities' disclosures and the� report
available on the digital platform no later than 30 days after receipt.
���� 7.� No later than five years
after the effective date of this act, the department shall contract with
Rutgers, the State University of New Jersey, or another equivalent academic
institution in the State to prepare a report on the public disclosures made by
reporting entities to the emissions reporting organization pursuant to section
4 of this act and the regulations adopted by the department pursuant to section
10 of this act. �In preparing the report, consideration shall be given to, at a
minimum, greenhouse gas emissions from reporting entities in the context of State
greenhouse gas emissions reduction and climate goals. The entity preparing the
report shall not require reporting entities to report any information beyond
what is required pursuant to the other provisions of this act.
����� 8.�
Notwithstanding any provisions of this act to the contrary, a copy of a report
submitted to satisfy the requirements of the California "Climate Corporate
Data Accountability Act," California Health and Safety Code s.38532,
1
or a copy of a Climate Risk Disclosure Survey from
the National Association of Insurance Commissioners that discloses the
reporting entity�s scope 1 and scope 2 emissions,
1
for the appropriate fiscal year, may be utilized in
order to comply with the provisions of this act.
���� 9.� a.� If a reporting entity
violates the provisions of this act or any rule, regulation, or order
promulgated or issued pursuant to the provisions of this act, the department
may institute a civil action in a court of competent jurisdiction for
injunctive or any other appropriate relief to prohibit and prevent this
violation and the court may proceed in the action in a summary manner.
���� b.� Any reporting entity who
violates the provisions of this act or any rule, regulation or order
promulgated pursuant to this act is liable to a civil administrative penalty of
not more than $10,000 for the first offense, not more than $20,000 for the second
offense, and up to $50,000 for the third and each subsequent offense.� If the
violation is of a continuing nature, each day during which it continues
subsequent to receipt of an order to cease the violation constitutes an
additional, separate and distinct offense.� No civil administrative penalty
shall be levied except subsequent to the notification of the violator by
certified mail or personal service.� The notice shall include a reference to
the section of the statute, regulation, order or permit condition violated; a
concise statement of the facts alleged to constitute the violation; a statement
of the amount of the civil penalties to be imposed; and a statement of the
violator's right to a hearing.� The violator shall have 20 days from receipt of
the notice within which to deliver to the commissioner a written request for a
hearing.� Subsequent to the hearing and upon a finding that a violation has
occurred, the commissioner may issue a final order, after assessing the amount
of the fine specified in the notice.� If no hearing is requested, the notice
shall become a final order upon the expiration of the 20-day period.� Payment
of the penalty is due when a final order is issued or when the notice becomes a
final order.� The authority to levy a civil administrative penalty is in
addition to all other enforcement provisions in this act, and the payment of a
civil administrative penalty shall not be deemed to affect the availability of
any other enforcement provision in connection with the violation for which the
penalty is levied.
���� c.� The department is
authorized and empowered to compromise and settle any claim for a penalty under
this section in such amount in the discretion of the department as may appear
appropriate and equitable under all of the circumstances, including the posting
of a performance bond by the violator.
���� d.� Any reporting entity who
violates this act or an administrative order issued pursuant to subsection b.
of this section or a court order issued pursuant to subsection a. of this
section or who fails to pay a civil administrative penalty in full pursuant to
subsection b. of this section is subject, upon order of the court, to a civil
penalty not to exceed $10,000 per day of the violation, and each day's
continuance of the violation constitutes a separate and distinct violation.� Any
civil penalty imposed pursuant to this subsection may be collected with costs
in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999,"
P.L.1999, c.274 (C.2A:58-10 et seq.), or may be collected in a civil action
commenced by the commissioner.� In addition to any penalties, costs, or interest
charges, the Superior Court may assess against the violator the amount of
economic benefit accruing to the violator from the violation.
���� 10.� a.� The Department of
Environmental Protection shall, in accordance with the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and
regulations to implement this act.�
���� b.� The rules and regulations
shall:
���� (1) ensure that the emissions
reporting required by this act is structured in a way that minimizes
duplication of effort and allows a reporting entity to submit to the emissions
reporting organization reports prepared to meet other national and
international reporting requirements, including any reports required by the
federal government, as long as those reports satisfy all of the requirements of
this act; and
���� (2) ensure that the assurance
process minimizes the need for reporting entities to engage multiple assurance
providers and ensures sufficient assurance provider capacity, as well as timely
reporting implementation as required pursuant to subsection a. of section 4 of
this act.
���� 11.� This act shall take
effect immediately.