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Report regarding authorizing the Mayor to send a letter in support of Senate Bill 260. (Christina Fernandez, Assistant to the City Manager and Niccolo De Luca, Townsend Public Affairs)
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RECOMMENDATION
Recommendation
It is recommended that the City Council receive a report on Senate Bill 260 and authorize the Mayor to send a letter in support.
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BACKGROUND/DISCUSSION
From worsening wildfires to rising seas, Californians are already feeling the effects of climate change. Senator Wiener believes Senate Bill 260 will reduce corporate pollution by providing an accurate representation of corporate emission data and creating strong market incentives for companies to lower their emissions. Currently, many corporations are not subject to carbon reporting laws, and those who do report their emissions do not report their full carbon footprint. The lack of transparency makes it difficult to regulate emissions and set appropriate reduction targets.
In January 2021, Senator Scott Wiener introduced Senate Bill 260, the Climate Corporate Accountability Act (CCAA). SB 260 would be the first law in the country to require U.S. based companies to disclose all of their greenhouse gas emissions and set science-based targets to reduce those emissions. Publicly traded domestic and foreign corporations with annual revenues in excess of $1 billion dollars that do business in California would be required to disclose their greenhouse gas emissions from the prior calendar year.
SB 260 requires companies to make annual public disclosures with a complete carbon emissions inventory encompassing three scopes: 1) corporations’ direct emissions, including fuel combustion; 2) emissions from purchasing and using electricity; and 3) indirect emissions stemming from the corporation’s supply chain. CCAA requires the most comprehensive set of emissions reporting requirements for large corporations. The bill impacts the majority of the nation’s largest corporations, who almost all do business in California.
The California Air Resources Board (CARB) will manage this process and has one year to create a reporting structure, and companies will have one year to comply. CCAA provides companies until 2025 to begin setting their emissions reduction targets-a process overseen by CARB. Companies will also be required to use a CARB approved third party auditor to conduct their carbon emissions inventory and to determine their emissions targets. Disclosures are required to be provided to the public in a widely available digital platform.
FISCAL IMPACT
There is no fiscal impact to the City.
RELATIONSHIP TO STRATEGIC PLAN
Support of Senate Bill 260 supports the City’s strategic plans to provide a healthy and sustainable environment for our residents, businesses, and community.
CONCLUSION
It is recommended that the City Council receive a report on Senate Bill 260 and authorize the Mayor to send a letter in support.
Attachment: Senate Bill 260 (Wiener)