20250SB__075597AMD INTRODUCED 2025-02-21 AMENDED_SENATE 2025-04-01 AMENDED_SENATE 2025-05-05 SB AMD Introduced by Senator Blakespear (Coauthors: Senators Stern and Wiener) LEAD_AUTHOR SENATE Blakespear COAUTHOR SENATE Stern COAUTHOR SENATE Wiener

An act to add

Section to the Health and Safety Code, relating to greenhouse gases. greenhouse gases California Contractor Climate Transparency Act. The California Global Warming Solutions Act of 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 emissions, scope emissions, and scope 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 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 emissions, scope emissions, scope emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope emissions and scope emissions, as specified.

MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Section is added to the Health and Safety Code , to read: 38534. (

a) This

section shall be known, and may be cited, as the California Contractor Climate Transparency Act. (

b) For purposes of this section, the following

definitions apply: (1) “Climate-related financial risk” means material risk of harm to immediate and long-term financial outcomes due to physical and transition risks, including, but not limited to, risks to corporate operations, provision of goods and services, supply chains, employee health and safety, capital and financial investments, institutional investments, financial standing of loan recipients and borrowers, shareholder value, consumer demand, and financial markets and economic health. (2) “Large contractor” means any company doing business within the state as a vendor, contractor, or procurer that received more than twenty-five million dollars ($25,000,000) in state contract obligations in the prior state fiscal year. (3) “Reporting entity” means a large contractor or a significant contractor.

Applicability shall be determined based on the reporting entity’s state contract obligations in the prior state fiscal year. (4) “Scope 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. (5) “Scope emissions” means indirect greenhouse gas emissions from consumed electricity, steam, heating, or cooling purchased or acquired by a reporting entity, regardless of location. (6) “Scope emissions” means indirect upstream and downstream greenhouse gas emissions, other than scope 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. (7) “Significant contractor” means any company doing business within the state as a vendor, contractor, or procurer that received between five million dollars ($5,000,000) and twenty-five million dollars ($25,000,000) in state contract obligations in the prior state fiscal year. (

c) Beginning one year after the effective date of regulations adopted pursuant to paragraph (1) of subdivision (

c) of

Section 38532, the state board shall require a large contractor and a significant contractor to report the following information annually:

(1) For large contractors, annual disclosure of scope emissions, scope emissions, scope emissions, and climate-related financial risk, in alignment with Sections and and associated implementing regulations to ensure consistency in greenhouse gas emissions reporting.

(2) For significant contractors, annual disclosure of scope emissions and scope emissions, in alignment with

Section and associated implementing regulations to ensure consistency in greenhouse gas emissions reporting.