All Roll Calls
Yes: 166 • No: 18
CaliforniaAB 1542025-2026 Regular SessionHouseWALLET
Budget Act of 2025.
Sponsored By: Jesse Gabriel (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 3 benefits, 3 costs, 2 mixed.
Big companies must report emissions
The law requires large businesses that do business in California and make over $1 billion a year to report greenhouse gas emissions. Scope 1 and Scope 2 reports start in 2026 for the prior fiscal year. Scope 3 reports start in 2027 on a schedule set by the Air Resources Board. Companies must use the Greenhouse Gas Protocol and get independent reviews: limited assurance in 2026 and reasonable assurance by 2030 for Scopes 1 and 2. The Board must adopt the detailed rules by July 1, 2025.
Fees and fund for emissions reporting
Covered companies must pay an annual fee to the Air Resources Board to run the emissions‑reporting program. The Board sets the fee to cover its actual, reasonable costs and may adjust it each year for CPI. Fee money goes into the Climate Accountability and Emissions Disclosure Fund. The fund is continuously available to run the program and repay any start‑up loans.
Climate risk reports from large businesses
Starting January 1, 2026, a business with over $500 million in yearly revenue that does business in California must prepare a climate‑related financial risk report every two years. The report must follow the TCFD framework (or equivalent) and be posted on the company’s website. Covered entities must pay an annual fee that covers the Board’s full costs, deposited into a dedicated fund. The Board may contract with a nonprofit to review industry reports, analyze sector risks, and convene stakeholders. The Board can fine companies up to $500,000 per reporting year for failing to post or for inadequate reports, while considering good‑faith efforts. Insurance entities regulated by the Department of Insurance are excluded.
CEQA review waived for board rules
Regulations the Air Resources Board adopts for emissions disclosures are exempt from CEQA review. This speeds rulemaking and reduces procedural steps. It also reduces formal environmental review of those regulations.
Limits on emissions reporting penalties
The Air Resources Board can fine companies that fail to file or publish inadequate emissions reports. The law caps total fines at $50,000 per company for each reporting year. For Scope 3 from 2027 through 2030, fines apply only if a company does not file. Honest Scope 3 mistakes made with a reasonable basis and in good faith are not penalized. The Board must weigh past compliance and good‑faith efforts.
UC covered only if Regents opt in
The University of California follows these climate reporting laws only if the Regents pass a resolution to opt in. Without that vote, the UC system is not required to comply.
Public emissions data and research
The Air Resources Board will run a public online platform for company emissions reports. Reports and the Board’s analysis must be posted within 90 days of receipt. The Board may hire a nonprofit to build and run the platform, and that contract counts as non‑IT for purchasing. By July 1, 2027, the Board must hire a university or similar group to analyze the public disclosures.
Small one-time funding for implementation
The law provides a one‑time $1,000 appropriation in 2025–26 to the Air Resources Board. The money helps implement prior climate disclosure laws (SB 253 and SB 261).
Sponsors & Cosponsors
Sponsor
Jesse Gabriel
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 9/12/2025
Item 1000 — Assembly AFLOOR
Yes: 71 • No: 1
Senate vote • 9/12/2025
Item 77 — Senate SFLOOR
Yes: 29 • No: 0
legislature vote • 9/10/2025
Vote in CS62
Yes: 13 • No: 0
House vote • 3/20/2025
Item 84 — Assembly AFLOOR
Yes: 53 • No: 17
Actions Timeline
Chaptered by Secretary of State - Chapter 609, Statutes of 2025.
10/11/2025SenateApproved by the Governor.
10/11/2025legislatureEnrolled and presented to the Governor at 3 p.m.
9/24/2025legislatureSenate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 1. Page 3430.).
9/12/2025HouseAssembly Rule 63 suspended. (Page 3429.)
9/12/2025HouseIn Assembly. Concurrence in Senate amendments pending.
9/12/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 0. Page 2949.).
9/12/2025SenateRead second time. Ordered to third reading.
9/11/2025SenateFrom committee: Do pass. (Ayes 13. Noes 0.) (September 10).
9/10/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
9/8/2025SenateSenate Rule 29.3(b) suspended. (Ayes 28. Noes 8. Page 2568.)
9/8/2025SenateReferred to Com. on B. & F. R.
4/2/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
3/20/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 740.)
3/20/2025HouseRead second time. Ordered to third reading.
3/18/2025House(Ayes 53. Noes 17. Page 643.)
3/17/2025HouseOrdered to second reading.
3/17/2025HouseWithdrawn from committee.
3/17/2025HouseReferred to Com. on BUDGET.
2/3/2025HouseFrom printer. May be heard in committee February 8.
1/9/2025HouseRead first time. To print.
1/8/2025House
Bill Text
Chaptered
10/11/2025
Enrolled
9/16/2025
Amended Senate
9/8/2025
Introduced
1/8/2025