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| 1 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 755Introduced by Senator Blakespear(Coauthors: Senators Stern and Wiener)February 21, 2025 An act to add Article 6 (commencing with Section 3506) to Chapter 3 of Part 1 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 755, as introduced, Blakespear. California Procurement Climate Information Act. The California Global Warming Solutions Act of 2006 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 Air Resources Board to develop and adopt regulations to require a reporting entity to, among other things, annually disclose all of the reporting entitys scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law also states the intent of the Legislature for all state agencies, as defined, to aim to achieve net-zero emissions of greenhouse gases resulting from their operations, including scope 1 and scope 2 emissions, no later than January 1, 2035, or as soon as feasible thereafter. Existing law requires the Department of General Services, in consultation with the State Air Resources Board, in making progress toward the above-described goal, to, among other things, publish on its internet website or other publicly available location an inventory of the greenhouse gas emissions of state agencies for the prior calendar year, as specified. Existing law, the Buy Clean California Act, requires the Department of General Services, by January 1, 2022, to establish and publish in the State Contracting Manual, in a department management memorandum, or on the departments internet website a maximum acceptable global warming potential for each category of eligible materials, as defined, in accordance with specified requirements. By January 1, 2025, and every 3 years thereafter, existing law requires the department to review the maximum acceptable global warming potential for each category of eligible materials, as provided. This bill, the California Procurement Climate Information Act, would require the department, beginning January 1, 2027, to require a large contractor and significant contractor, as defined, to report their greenhouse gas emissions and climate-related financial risk, as specified. The bill would require the report to include, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Article 6 (commencing with Section 3506) is added to Chapter 3 of Part 1 of Division 2 of the Public Contract Code, to read: Article 6. California Procurement Climate Information Act 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act.3507. For purposes of this article, the following definitions apply:(a) 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. (b) Department means the Department of General Services.(c) 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.(d) Reporting entity means a large contractor or a significant contractor.(e) 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.(f) 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.(g) 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. (h) 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.3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c).(b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements.(2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines.(c) The report shall include the following information:(1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 755Introduced by Senator Blakespear(Coauthors: Senators Stern and Wiener)February 21, 2025 An act to add Article 6 (commencing with Section 3506) to Chapter 3 of Part 1 of Division 2 of, the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTSB 755, as introduced, Blakespear. California Procurement Climate Information Act. The California Global Warming Solutions Act of 2006 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 Air Resources Board to develop and adopt regulations to require a reporting entity to, among other things, annually disclose all of the reporting entitys scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law also states the intent of the Legislature for all state agencies, as defined, to aim to achieve net-zero emissions of greenhouse gases resulting from their operations, including scope 1 and scope 2 emissions, no later than January 1, 2035, or as soon as feasible thereafter. Existing law requires the Department of General Services, in consultation with the State Air Resources Board, in making progress toward the above-described goal, to, among other things, publish on its internet website or other publicly available location an inventory of the greenhouse gas emissions of state agencies for the prior calendar year, as specified. Existing law, the Buy Clean California Act, requires the Department of General Services, by January 1, 2022, to establish and publish in the State Contracting Manual, in a department management memorandum, or on the departments internet website a maximum acceptable global warming potential for each category of eligible materials, as defined, in accordance with specified requirements. By January 1, 2025, and every 3 years thereafter, existing law requires the department to review the maximum acceptable global warming potential for each category of eligible materials, as provided. This bill, the California Procurement Climate Information Act, would require the department, beginning January 1, 2027, to require a large contractor and significant contractor, as defined, to report their greenhouse gas emissions and climate-related financial risk, as specified. The bill would require the report to include, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | Amended IN Senate April 01, 2025 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate April 01, 2025 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill | |
| 12 | 12 | ||
| 13 | 13 | No. 755 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator Blakespear(Coauthors: Senators Stern and Wiener)February 21, 2025 | |
| 16 | 16 | ||
| 17 | 17 | Introduced by Senator Blakespear(Coauthors: Senators Stern and Wiener) | |
| 18 | 18 | February 21, 2025 | |
| 19 | 19 | ||
| 20 | - | An act to add Article 6 (commencing with Section 3506) to Chapter 3 of Part 1 of Division 2 of, the Public Contract Code, relating to public contracts. | |
| 20 | + | An act to add Article 6 (commencing with Section 3506) to Chapter 3 of Part 1 of Division 2 of, the Public Contract Code, relating to public contracts. | |
| 21 | 21 | ||
| 22 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 25 | 25 | ||
| 26 | - | SB 755, as | |
| 26 | + | SB 755, as introduced, Blakespear. California Procurement Climate Information Act. | |
| 27 | 27 | ||
| 28 | - | The California Global Warming Solutions Act of 2006 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 Air Resources | |
| 28 | + | The California Global Warming Solutions Act of 2006 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 Air Resources Board to develop and adopt regulations to require a reporting entity to, among other things, annually disclose all of the reporting entitys scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law also states the intent of the Legislature for all state agencies, as defined, to aim to achieve net-zero emissions of greenhouse gases resulting from their operations, including scope 1 and scope 2 emissions, no later than January 1, 2035, or as soon as feasible thereafter. Existing law requires the Department of General Services, in consultation with the State Air Resources Board, in making progress toward the above-described goal, to, among other things, publish on its internet website or other publicly available location an inventory of the greenhouse gas emissions of state agencies for the prior calendar year, as specified. Existing law, the Buy Clean California Act, requires the Department of General Services, by January 1, 2022, to establish and publish in the State Contracting Manual, in a department management memorandum, or on the departments internet website a maximum acceptable global warming potential for each category of eligible materials, as defined, in accordance with specified requirements. By January 1, 2025, and every 3 years thereafter, existing law requires the department to review the maximum acceptable global warming potential for each category of eligible materials, as provided. This bill, the California Procurement Climate Information Act, would require the department, beginning January 1, 2027, to require a large contractor and significant contractor, as defined, to report their greenhouse gas emissions and climate-related financial risk, as specified. The bill would require the report to include, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified. | |
| 29 | 29 | ||
| 30 | - | The California Global Warming Solutions Act of 2006 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 Air Resources | |
| 30 | + | The California Global Warming Solutions Act of 2006 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 Air Resources Board to develop and adopt regulations to require a reporting entity to, among other things, annually disclose all of the reporting entitys scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law also states the intent of the Legislature for all state agencies, as defined, to aim to achieve net-zero emissions of greenhouse gases resulting from their operations, including scope 1 and scope 2 emissions, no later than January 1, 2035, or as soon as feasible thereafter. Existing law requires the Department of General Services, in consultation with the State Air Resources Board, in making progress toward the above-described goal, to, among other things, publish on its internet website or other publicly available location an inventory of the greenhouse gas emissions of state agencies for the prior calendar year, as specified. | |
| 31 | 31 | ||
| 32 | 32 | Existing law, the Buy Clean California Act, requires the Department of General Services, by January 1, 2022, to establish and publish in the State Contracting Manual, in a department management memorandum, or on the departments internet website a maximum acceptable global warming potential for each category of eligible materials, as defined, in accordance with specified requirements. By January 1, 2025, and every 3 years thereafter, existing law requires the department to review the maximum acceptable global warming potential for each category of eligible materials, as provided. | |
| 33 | 33 | ||
| 34 | - | ||
| 35 | - | ||
| 36 | - | This bill, the California Procurement Climate Information Act, bill would enact the California Contractor Climate Transparency Act, which would require the department, board, beginning January 1, 2027, to require a large contractor and a significant contractor, as defined, to report their greenhouse gas emissions and climate-related financial risk, as specified. The bill would require the report to include, annually specified information, including, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified. | |
| 34 | + | This bill, the California Procurement Climate Information Act, would require the department, beginning January 1, 2027, to require a large contractor and significant contractor, as defined, to report their greenhouse gas emissions and climate-related financial risk, as specified. The bill would require the report to include, for large contractors, an annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, as specified, and for significant contractors, an annual disclosure of scope 1 emissions and scope 2 emissions, as specified. | |
| 37 | 35 | ||
| 38 | 36 | ## Digest Key | |
| 39 | 37 | ||
| 40 | 38 | ## Bill Text | |
| 41 | 39 | ||
| 42 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 40 | + | The people of the State of California do enact as follows:SECTION 1. Article 6 (commencing with Section 3506) is added to Chapter 3 of Part 1 of Division 2 of the Public Contract Code, to read: Article 6. California Procurement Climate Information Act 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act.3507. For purposes of this article, the following definitions apply:(a) 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. (b) Department means the Department of General Services.(c) 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.(d) Reporting entity means a large contractor or a significant contractor.(e) 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.(f) 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.(g) 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. (h) 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.3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c).(b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements.(2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines.(c) The report shall include the following information:(1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. | |
| 43 | 41 | ||
| 44 | 42 | The people of the State of California do enact as follows: | |
| 45 | 43 | ||
| 46 | 44 | ## The people of the State of California do enact as follows: | |
| 47 | 45 | ||
| 48 | - | SECTION 1. Section | |
| 46 | + | SECTION 1. Article 6 (commencing with Section 3506) is added to Chapter 3 of Part 1 of Division 2 of the Public Contract Code, to read: Article 6. California Procurement Climate Information Act 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act.3507. For purposes of this article, the following definitions apply:(a) 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. (b) Department means the Department of General Services.(c) 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.(d) Reporting entity means a large contractor or a significant contractor.(e) 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.(f) 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.(g) 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. (h) 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.3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c).(b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements.(2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines.(c) The report shall include the following information:(1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. | |
| 49 | 47 | ||
| 50 | - | SECTION 1. Section | |
| 48 | + | SECTION 1. Article 6 (commencing with Section 3506) is added to Chapter 3 of Part 1 of Division 2 of the Public Contract Code, to read: | |
| 51 | 49 | ||
| 52 | 50 | ### SECTION 1. | |
| 53 | 51 | ||
| 54 | - | ||
| 52 | + | Article 6. California Procurement Climate Information Act 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act.3507. For purposes of this article, the following definitions apply:(a) 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. (b) Department means the Department of General Services.(c) 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.(d) Reporting entity means a large contractor or a significant contractor.(e) 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.(f) 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.(g) 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. (h) 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.3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c).(b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements.(2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines.(c) The report shall include the following information:(1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. | |
| 55 | 53 | ||
| 56 | - | ||
| 54 | + | Article 6. California Procurement Climate Information Act 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act.3507. For purposes of this article, the following definitions apply:(a) 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. (b) Department means the Department of General Services.(c) 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.(d) Reporting entity means a large contractor or a significant contractor.(e) 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.(f) 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.(g) 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. (h) 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.3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c).(b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements.(2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines.(c) The report shall include the following information:(1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. | |
| 57 | 55 | ||
| 58 | - | 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 entitys state contract obligations in the prior state fiscal year.(4) 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.(5) 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.(6) 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.(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 January 1, 2027, 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 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 and associated implementing regulations to ensure consistency in greenhouse gas emissions reporting.(2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 and associated implementing regulations to ensure consistency in greenhouse gas emissions reporting. | |
| 56 | + | Article 6. California Procurement Climate Information Act | |
| 57 | + | ||
| 58 | + | Article 6. California Procurement Climate Information Act | |
| 59 | + | ||
| 60 | + | 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act. | |
| 59 | 61 | ||
| 60 | 62 | ||
| 61 | 63 | ||
| 62 | - | ||
| 64 | + | 3506. This article shall be known, and may be cited, as the California Procurement Climate Information Act. | |
| 63 | 65 | ||
| 64 | - | (b) For purposes of this section, the following definitions apply: | |
| 65 | - | ||
| 66 | - | (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. | |
| 67 | - | ||
| 68 | - | (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. | |
| 69 | - | ||
| 70 | - | (3) Reporting entity means a large contractor or a significant contractor. Applicability shall be determined based on the reporting entitys state contract obligations in the prior state fiscal year. | |
| 71 | - | ||
| 72 | - | (4) 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. | |
| 73 | - | ||
| 74 | - | (5) 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. | |
| 75 | - | ||
| 76 | - | (6) 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. | |
| 77 | - | ||
| 78 | - | (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. | |
| 79 | - | ||
| 80 | - | (c) Beginning January 1, 2027, the state board shall require a large contractor and a significant contractor to report the following information annually: | |
| 81 | - | ||
| 82 | - | (1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 and associated implementing regulations to ensure consistency in greenhouse gas emissions reporting. | |
| 83 | - | ||
| 84 | - | (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 and associated implementing regulations to ensure consistency in greenhouse gas emissions reporting. | |
| 66 | + | 3507. For purposes of this article, the following definitions apply:(a) 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. (b) Department means the Department of General Services.(c) 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.(d) Reporting entity means a large contractor or a significant contractor.(e) 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.(f) 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.(g) 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. (h) 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. | |
| 85 | 67 | ||
| 86 | 68 | ||
| 87 | 69 | ||
| 70 | + | 3507. For purposes of this article, the following definitions apply: | |
| 71 | + | ||
| 72 | + | (a) 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. | |
| 73 | + | ||
| 74 | + | (b) Department means the Department of General Services. | |
| 75 | + | ||
| 76 | + | (c) 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. | |
| 77 | + | ||
| 78 | + | (d) Reporting entity means a large contractor or a significant contractor. | |
| 79 | + | ||
| 80 | + | (e) 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. | |
| 81 | + | ||
| 82 | + | (f) 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. | |
| 83 | + | ||
| 84 | + | (g) 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. | |
| 85 | + | ||
| 86 | + | (h) 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. | |
| 87 | + | ||
| 88 | + | 3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c).(b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements.(2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines.(c) The report shall include the following information:(1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. | |
| 88 | 89 | ||
| 89 | 90 | ||
| 90 | 91 | ||
| 91 | - | ||
| 92 | - | This article shall be known, and may be cited, as the California Procurement Climate Information Act. | |
| 93 | - | ||
| 94 | - | ||
| 95 | - | ||
| 96 | - | ||
| 97 | - | ||
| 98 | - | For purposes of this article, the following definitions apply: | |
| 99 | - | ||
| 100 | - | ||
| 101 | - | ||
| 102 | - | (a)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. | |
| 103 | - | ||
| 104 | - | ||
| 105 | - | ||
| 106 | - | (b)Department means the Department of General Services. | |
| 107 | - | ||
| 108 | - | ||
| 109 | - | ||
| 110 | - | (c)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. | |
| 111 | - | ||
| 112 | - | ||
| 113 | - | ||
| 114 | - | (d)Reporting entity means a large contractor or a significant contractor. | |
| 115 | - | ||
| 116 | - | ||
| 117 | - | ||
| 118 | - | (e)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. | |
| 119 | - | ||
| 120 | - | ||
| 121 | - | ||
| 122 | - | (f)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. | |
| 123 | - | ||
| 124 | - | ||
| 125 | - | ||
| 126 | - | (g)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. | |
| 127 | - | ||
| 128 | - | ||
| 129 | - | ||
| 130 | - | (h)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. | |
| 131 | - | ||
| 132 | - | ||
| 133 | - | ||
| 134 | - | ||
| 135 | - | ||
| 136 | - | (a)Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c). | |
| 137 | - | ||
| 138 | - | ||
| 92 | + | 3508. (a) Beginning January 1, 2027, the department shall require a large contractor and a significant contractor to report their greenhouse gas emissions and climate-related financial risk pursuant to subdivision (c). | |
| 139 | 93 | ||
| 140 | 94 | (b) (1) The report shall be submitted annually, beginning before December 31, 2027, at a date decided by the department to align with other reporting and contracting requirements. | |
| 141 | 95 | ||
| 142 | - | ||
| 143 | - | ||
| 144 | 96 | (2) The department shall provide a reporting entity with no less than 180 days notice of reporting deadlines. | |
| 145 | - | ||
| 146 | - | ||
| 147 | 97 | ||
| 148 | 98 | (c) The report shall include the following information: | |
| 149 | 99 | ||
| 150 | - | ||
| 151 | - | ||
| 152 | 100 | (1) For large contractors, annual disclosure of scope 1 emissions, scope 2 emissions, scope 3 emissions, and climate-related financial risk, in alignment with Sections 38532 and 38533 of the Health and Safety Code. | |
| 153 | - | ||
| 154 | - | ||
| 155 | 101 | ||
| 156 | 102 | (2) For significant contractors, annual disclosure of scope 1 emissions and scope 2 emissions, in alignment with Section 38532 of the Health and Safety Code. |