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AB 154

Greenhouse gases: climate corporate accountability: climate-related financial risk: regulations: California Environmental Quality Act exemption.

2025-2026 Regular Session

AB 154 mandates large corporations in California to disclose greenhouse gas emissions and climate risks, enhancing accountability and promoting environmental sustainability.

Chaptered by Secretary of State - Chapter 609, Statutes of 2025.
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Bill Summary · AB 154

Summary of AB 154: Greenhouse Gases and Climate Corporate Accountability

Bill Overview

Bill Number: AB 154
Title: Greenhouse gases: climate corporate accountability: climate-related financial risk: regulations: California Environmental Quality Act exemption
Status: Chaptered by Secretary of State - Chapter 609, Statutes of 2025
Introduced: January 08, 2025
Classification: Bill, Appropriation
Subject Areas: California Environmental Quality Act (CEQA) exemption, greenhouse gases, climate-related financial risk, climate corporate accountability, regulations

Purpose and Intent

AB 154 aims to enhance climate corporate accountability in California by requiring large corporations to disclose their greenhouse gas emissions and climate-related financial risks. The bill seeks to streamline the regulatory process by exempting specific regulations from the California Environmental Quality Act (CEQA), thereby facilitating timely implementation of climate accountability measures.

Key Provisions

  1. CEQA Exemption:

    • The bill exempts regulations developed under the Climate Corporate Data Accountability Act from CEQA requirements. This exemption applies to:
      • Regulations requiring corporations with annual revenues exceeding $1 billion to disclose their scope 1, scope 2, and scope 3 emissions.
      • Regulations requiring entities with revenues over $500 million to prepare and publicly disclose climate-related financial risk reports.

  2. Emissions Disclosure Requirements:

    • The State Air Resources Board (CARB) is mandated to develop regulations by July 1, 2025, requiring large corporations to disclose:
      • Scope 1 Emissions: Direct emissions from owned or controlled sources.
      • Scope 2 Emissions: Indirect emissions from the consumption of purchased electricity, steam, heating, and cooling.
      • Scope 3 Emissions: Other indirect emissions, including those from the supply chain and product use.
    • Corporations must obtain third-party assurance for their emissions disclosures.

  3. Reporting Timeline:

    • Starting in 2026, corporations must annually disclose their scope 1 and scope 2 emissions.
    • Starting in 2027, corporations must disclose their scope 3 emissions.

  4. Funding:

    • The bill appropriates $1,000 from the Greenhouse Gas Reduction Fund to CARB for implementing the provisions related to climate corporate accountability and climate-related financial risk.

  5. Immediate Effect:

    • The bill is declared to take effect immediately as it relates to appropriations.

Impact

  • Affected Entities: The regulations will primarily impact corporations with total annual revenues exceeding $1 billion and those with revenues over $500 million, requiring them to enhance transparency regarding their greenhouse gas emissions and climate risks.
  • Environmental and Economic Implications: By streamlining the regulatory process and enhancing corporate accountability, the bill aims to promote environmental sustainability and mitigate climate-related financial risks.

Legislative Timeline

  • 2025-10-11: Approved by the Governor and chaptered.
  • 2025-09-24: Enrolled and presented to the Governor.
  • 2025-09-12: Passed in the Senate and Assembly with significant support.
  • 2025-04-02: Referred to the Committee on Budget and Fiscal Review.

This summary provides a clear overview of AB 154, highlighting its objectives, key provisions, and potential impacts on corporate accountability regarding climate change in California.

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

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