California proposes $22 million for climate change disclosure law

by rear garden

May 16, 2024

California Governor Gavin Newsom Revised state budget proposal for 2024-2025 Includes $22 million to fund the state’s Corporate Climate Disclosure Act, SB 253 and SB 261, and other climate change programs.

Specifically, the governor’s plan would move funding from the state’s general fund to the Greenhouse Gas Reduction Fund (GGRF). The latter is Greenhouse cap-and-trade programcharging industrial polluters for their emissions.

“It’s reasonable to assume CARB.” [the California Air Resources Board] We will temporarily hire staff to actually sit down and write the rules to implement SB 253 and 261,” said Christina Wyatt, general counsel and CSO at carbon accounting firm Persephoni.

Wyatt believes this funding is based on and expanded upon rules that are broadly established in the law, calling the law the “chapter header” and the rules details within the page. .

“For example, questions about the details of what it means to do business in California will be taken up by the executive branch that administers the law, which will create more detailed rules to help companies better understand the law. Deaf,” Wyatt said. .

The revised budget proposes transferring a total of $3.6 billion from the General Fund to the GGRF over the next five years. This funding will be used to implement the Freedom of Information Act and other climate change programs, including funding for transportation, clean energy, zero-emission vehicle projects, and nature-based solutions programs.

Both SB 253 and SB 261 would require companies operating in California to disclose their emissions and climate-related risks. SB 253 would require companies making $1 billion a year in revenue to report their emissions, and SB 261 would require companies making $500 million a year to disclose climate risks to their operations.

Back in January 2024, Newsom omitted funding for climate change programs from the upcoming budget, sparking a backlash from environmentalists and businesses. Last month, 35 of his companies participated, including Globe, Patagonia, REI and Heirloom. He signed a letter urging the governor to: “Securing full funding for timely implementation” of the two climate disclosure laws.

Companies wanted the new legislation to streamline disclosure reporting, as many companies prepare to report similar information under the European Union’s Corporate Sustainability Reporting Directive. SEC’s new climate risk disclosure rules.

The companies said in the letter that they “welcome the interoperability of the California law with other disclosure regimes.”

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