TheCorporateCounsel.net

Over the course of the past weekend, the California legislature passed Senate Bill 219, which contemplates amendments to the Climate Accountability Package, including extending the rulemaking deadline from January 1, 2025, to July 1, 2025. SB 219 differs from Governor Newsom’s proposed amendments to the California climate requirements that John had discussed back in July, which did not go anywhere in the California legislature. This WilmerHale alert notes:

At the close of California’s legislative session, on August 31, 2024, the state legislature passed Senate Bill 219, which proposes several amendments to the Climate Accountability Package, including extending the rulemaking deadline from January 1, 2025, to July 1, 2025. If these amendments are passed, details about disclosure obligations under SB 253 may not become available until July 1, 2025. SB 219 differs from Governor Newsom’s proposed amendments to the Climate Accountability Package, outlined in a budget trailer bill, which did not advance in the legislature. Governor Newsom’s trailer bill would have delayed SB 253’s emissions disclosure requirements by two years. Instead, SB 219 maintains that a reporting entity, starting in 2026, or another set date to be determined by the California Air Resources Board (CARB), as the first year for reporting entities to begin publicly disclosing their scope 1, 2 and 3 emissions.

In addition, SB 219 would require CARB to prepare a schedule for disclosure of scope 3 emissions, rather the current timeline requiring scope 3 emissions disclosure no later than 180 days after scope 1 and 2 emissions disclosure. Finally, SB 219 would expressly allow a covered entity to consolidate emissions disclosure reports at the parent company level, relieving the subsidiaries of any requirement to submit a separate report.

SB 219 would eliminate the filing fee requirements for corporations when filing their GHG emissions disclosure report for SB 253 and SB 261. Finally, SB 219 would authorize, rather than require, CARB to contract with a climate reporting organization to develop a program through which the required disclosures would be made public.

Governor Newsom has until September 30, 2024, to sign or veto SB 219. If signed, the bill will take effect on January 1, 2025

It looks like we might remain in a climate disclosure holding pattern for a little while longer in California.

– Dave Lynn