California Contractor Climate Transparency Act.

Senator Blakespear's California Contractor Climate Transparency Act would establish new emissions reporting requirements for companies conducting substantial business with the state. The measure creates two tiers of reporting obligations based on annual state contract values: companies receiving over $25 million in state contracts would need to disclose direct emissions, indirect emissions from purchased energy, and other indirect emissions throughout their value chain, along with climate-related financial risks. Those receiving between $5 million and $25 million would report only direct emissions and indirect emissions from purchased energy.

The State Air Resources Board would oversee implementation beginning January 1, 2027, with reporting requirements aligned with existing greenhouse gas emissions disclosure frameworks under the Health and Safety Code. The bill defines climate-related financial risks to include impacts on operations, supply chains, employee safety, investments, and market conditions. Direct emissions encompass fuel combustion and other sources directly controlled by reporting entities, while indirect emissions cover purchased electricity, heating and cooling. For larger contractors, additional indirect emissions reporting would extend to areas like purchased goods, business travel, employee commutes, and product use.

The measure builds upon California's existing climate disclosure requirements, including the Climate Corporate Data Accountability Act, which mandates emissions reporting for certain entities and biennial climate risk reports. By extending similar obligations specifically to state contractors above specified contract thresholds, the bill would create parallel reporting standards for companies doing business with the state. The State Air Resources Board would be charged with developing detailed regulations to implement the new requirements while maintaining consistency with current emissions reporting systems.