One bill that had passed the state Legislature on Sept. 13 requires companies that do business in California and have gross revenues exceeding $500 million annually to report on their climate-related financial risks beginning Jan. l, 2026, and biennially thereafter.
"This policy will illustrate the real risks of climate change for businesses operating in California and will encourage them to adopt practices that seek to minimize and avoid these risks," Newsom said in his signing message.
However, the governor said that the bill does not give the California Air Resources Board enough time to implement the requirements of the bill, and he directed his administration to work with the bill's author and the legislature to address the issue next year.
Newsom also said he was concerned about the overall financial impact of the law on businesses. He instructed the California Air Resources Board to monitor the cost of implementing the legislation and recommend ways to streamline the program.
The second bill signed by the governor directs the California Air Resources Board, by Jan. 1, 2025, to develop and adopt regulations requiring businesses with total annual revenues over $1 billion and operating in California to disclose their greenhouse gas emissions.
"This important policy, once again, demonstrates California's continued leadership with bold responses to the climate crisis," Newsom said in his signing message.
However, Newsom said he was concerned with that the implementation deadlines aren't feasible and the protocols would lead to inconsistent reporting. He directed his Administration to work with the bill's author and the state legislature next year on these issues.
Newsom added that he is concerned with the financial impact of the law on businesses of this law as well. He directed the California Air Resources Board to monitor the cost of the law's implementation and recommend ways to streamline the program.
The $316.7 billion California State Teachers' Retirement System, West Sacramento, board supported the bill. The board of the $457.9 billion California Public Employees' Retirement System, Sacramento, has not taken a position on the bill but provided technical assistance to the bills' sponsors.