California Greenhouse Gas Emissions Bill Moves Forward

• Published date: 16 August 2022
• Subject Matter: Environment, Government, Public Sector, Environmental Law, Constitutional & Administrative Law, Climate Change
• Law Firm: Allen Matkins Leck Gamble Mallory & Natsis LLP
• Author: Mr Keith P. Bishop

As the current California legislative biennium enters its closing weeks, SB 260 (Wiener & Stern) is moving forward despite strong opposition from business groups. As has been previously noted in this space, the bill would require any U.S.-based business with annual revenues in excess of $1 billion and that does business in California to annually report the full range of greenhouse gas (GHG) emissions attributable to the business, including direct emissions, electricity use, and indirect emissions from the business's supply chain and other sources. Although the bill appears to be limited to very large businesses, its costs will be felt by all businesses in their supply chain.

One headwind for the bill is the opposition of the Department of Finance. The DOF does not like the bill because it results in significant General Fund costs not included in the 2022 Budget Act, creates future General Fund cost pressures, and may create significant implementation challenges. The DOF is the Governor's chief fiscal policy advisor. Yesterday, the authors amended the bill in attempt to this concern by making implementation contingent upon an appropriation by the Legislature in the annual Budget Act or another statute for its purposes.

If enacted, SB 260 may face...