Bill
S 4117
Requires large NJ-are businesses to annually disclose their full GHG emissions (Scopes 1-3) with third‑party assurance, starting after year 3.
Status & procedural history
- Introduced: February 3, 2025.
- Committee action: Reported favorably with technical amendments by the Senate Environment & Energy Committee (Mar 17, 2025); referred to Senate Budget & Appropriations; printed as 4117A / 4117B and amended/recommitted to Codes (April–May 2025).
- Sponsors: Jessica Scarcella‑Spanton (primary), with Joseph P. Addabbo Jr., Monica Martinez, Christopher Ryan (cosponsors).
- Companion bill: A2074.
Purpose
- Establish statewide, mandatory annual disclosure of comprehensive corporate greenhouse gas (GHG) emissions data for large companies that do business in New Jersey to improve public transparency and inform investor/consumer decision‑making.
Who is covered
- “Reporting entity”: any partnership, corporation, LLC, or other business entity (formed under U.S. or state law) that (1) does business in New Jersey, and (2) has total annual revenues in excess of $1 billion.
Key definitions
- Scope 1: direct emissions from owned or controlled sources.
- Scope 2: indirect emissions from purchased electricity, steam, heating, or cooling.
- Scope 3: other indirect upstream and downstream emissions (e.g., purchased goods and services, business travel, employee commute, processing/use of sold products).
- Assurance engagement / assurance provider: third‑party verification of reported emissions.
- Limited assurance and reasonable assurance: tiers of verification described in the bill.
Main requirements & timelines
- Year 3 after enactment: reporting entities must annually disclose to the Department of Environmental Protection (DEP) and a DEP‑contracted nonprofit emissions reporting organization all scope 1, 2, and 3 emissions for the prior fiscal year.
- Year 4: scope 1 and scope 2 disclosures must include a third‑party assurance engagement. Assurance must be at a limited level until year 8, and at a reasonable assurance level thereafter. Scope 1/2 data must be publicly disclosed beginning in year 4.
- Year 5: public disclosure of scope 3 emissions begins.
- Entities may use reports filed under California’s Climate Corporate Data Accountability Act to satisfy New Jersey’s requirement (to ease compliance).
Administration, oversight, and reporting
- DEP may collect a fee with each annual disclosure set only at the level needed to cover DEP administrative costs.
- DEP must contract with a nonprofit emissions reporting organization experienced in U.S. and New Jersey disclosure to manage and publish the reports.
- DEP must contract with Rutgers University or another New Jersey academic institution to produce an analysis/report on the public disclosures.
Enforcement & penalties
- Civil administrative penalties for violations: up to $10,000 (first offense), $20,000 (second), and $50,000 (third and subsequent). Reporting entities may also be subject to other civil penalties as provided in the bill.
Potential impacts
- Transparency: creates a public, standardized dataset on large companies’ full‑scope emissions (including supply‑chain impacts).
- Compliance costs: affected companies will incur costs for data collection, third‑party assurance, and potentially for public reporting alignment; non‑U.S. firms doing business in NJ are included if revenue threshold met.
- State administration: DEP workload covered by user fees; data platform and periodic academic analysis supported by contracts.
Notes
- Committee amendments described in committee report are technical.
- The bill leverages established GHG accounting frameworks (Greenhouse Gas Protocol) and allows harmonization with California reporting to reduce duplicative burdens.
Compiled from official sources — confirm details with the bill’s official record.
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