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AB 405

Fashion Environmental Accountability Act of 2025.

2025-2026 Regular Session Introduced by Dawn Addis

AB 405 would require large fashion sellers to perform and report annual environmental due diligence, cut emissions, and meet chemical thresholds, with enforcement and penalties.

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
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Bill Summary · AB 405

AB 405 — Fashion Environmental Accountability Act of 2025

Author: Addis
Status (as of 2025-05-23): In committee — hearing postponed by committee

Summary — purpose and intent

AB 405 would create a framework to hold large fashion companies accountable for environmental harms by (1) requiring fashion sellers to conduct and report “effective environmental due diligence” covering greenhouse gas (GHG) emissions and other environmental risks, and (2) restricting regulated chemicals in covered fashion products. The bill combines emissions disclosure requirements (building on State Air Resources Board work) with product-chemicals limits and enforcement by the Department of Toxic Substances Control (DTSC) and the State Air Resources Board (CARB).

Key provisions

  • Reporting entities: A “reporting entity” is any partnership, corporation, LLC, or other business with total annual revenues > $1,000,000,000 that does business in California. The definition explicitly includes “fashion sellers.”
  • Emissions disclosure and due diligence:
    • CARB must have regulations (statutory reference to rules to be adopted on/before July 1, 2025) requiring reporting of Scope 1, 2, and 3 GHG emissions (scopes defined in the bill).
    • Fashion sellers must carry out “effective environmental due diligence” following minimum guidelines: embed responsible business conduct in policies/management systems; identify significant societal and ecological risks across operations and supply chains; prioritize and assess potential and actual adverse impacts; and cease, prevent, or mitigate those risks.
    • Beginning July 1, 2027, and annually thereafter, fashion sellers must submit an Environmental Due Diligence Report to DTSC and CARB covering the prior calendar year. Reports must include a quantitative emissions baseline and near‑term and long‑term reduction targets for Scopes 1, 2, and 3.
    • The bill references third‑party assurance requirements consistent with CARB’s emissions disclosure regime.
  • Chemical restrictions for products:
    • Fashion sellers must ensure, on or before January 1, 2027, that “covered fashion products” do not contain regulated chemicals above thresholds established by the act (thresholds to be set in implementing regulations).
    • Starting January 1, 2028, it would be unlawful to manufacture, sell, or distribute in commerce any covered fashion product exceeding those chemical thresholds.
  • Agency authority and enforcement:
    • DTSC is given jurisdiction to enforce product chemical thresholds and may adopt implementing regulations.
    • CARB (the “state board”) has jurisdiction over emissions-related due diligence and enforcement of those aspects.
    • DTSC or the Attorney General may enforce product‑chemical provisions.
  • Penalties and fund:
    • Violations enforced by DTSC: administrative or civil penalties not to exceed $5,000 for a first violation and $10,000 for each subsequent violation (subject to statutory specifics).
    • Violations enforced by CARB: civil penalties up to 2% of the fashion seller’s annual revenue (as provided in the bill).
    • CARB civil penalties are deposited into a newly established Fashion Environmental Remediation Fund (General Fund). Moneys, upon appropriation, must be used to implement the act and to fund environmental benefit/remediation projects that directly and verifiably benefit impacted communities, where practicable at the injury location.

Who is affected

  • Large fashion sellers and brands (those doing business in California with > $1 billion in annual revenue) — required to perform due diligence, set emissions baselines and targets, file annual reports, and ensure products meet chemical thresholds.
  • Manufacturers, distributors, and retailers of “covered fashion products” who may be subject to the product prohibition beginning Jan 1, 2028.
  • State agencies (DTSC, CARB), the Attorney General, third‑party assurance providers, and communities affected by fashion-sector environmental harms.

Timeline and procedural notes

  • Key statutory dates in the bill: CARB regulations by July 1, 2025; product chemical compliance ensured by fashion sellers by Jan 1, 2027; product sales/manufacture prohibition effective Jan 1, 2028; annual due‑diligence reporting beginning July 1, 2027 (reporting calendar year data).
  • Legislative action to date includes multiple committee referrals and amendments; most recent status (2025-05-23): hearing postponed by committee. The bill has been amended several times and referred to Appropriations, Natural Resources, and Environmental Safety & Toxic Materials committees.

Notes / uncertainties

  • The bill text refers to “regulated chemicals,” “covered fashion products,” and chemical “thresholds,” but specific chemical lists and numeric thresholds are to be defined in implementing regulations (DTSC).
  • Implementation details (report format, assurance standards, precise enforcement mechanisms) will depend on regulations and guidance issued by DTSC and CARB.

Compiled from official sources — confirm details with the bill’s official record.

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