AB 154: Greenhouse gases: climate corporate accountability: climate-related financial risk: regulations: California Environmental Quality Act exemption.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment.

Existing law, the Climate Corporate Data Accountability Act, requires, on or before July 1, 2025, the State Air Resources Board to develop and adopt regulations to require a reporting entity, defined to mean a corporation, partnership, limited liability company, or other business entity with total annual revenues in excess of $1 billion, as specified, to annually disclose to the emissions reporting organization, as defined, or the state board all of the reporting entity’s scope 1 emissions, scope 2 emissions, and scope 3 emissions, as defined. Existing law requires the state board to adopt regulations that authorize it to seek administrative penalties for nonfiling, late filing, or other failure to meet the requirements of the act, as provided.

This bill would exempt those regulations from CEQA.

Existing law requires, on or before January 1, 2026, and biennially thereafter, a covered entity, defined to mean a corporation, partnership, limited liability company, or other business entity with total annual revenues in excess of $500,000,000, as specified, to prepare a climate-related financial risk report, as specified, and to make this report available to the public on its own internet website. Existing law requires the state board to adopt regulations that authorize it to seek administrative penalties from a covered entity that fails to make the report publicly available on its internet website or publishes an inadequate or insufficient report.

This bill would exempt those regulations from CEQA.

(2)This bill would appropriate from the Greenhouse Gas Reduction Fund $1,000 to the State Air Resources Board for purposes of implementing the above-described provisions relating to climate corporate accountability and climate-related financial risk, as provided.

Sponsors

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 11, 2025Chaptered by Secretary of State - Chapter 609, Statutes of 2025.
2. October 11, 2025Approved by the Governor.
3. September 24, 2025Enrolled and presented to the Governor at 3 p.m.
4. September 12, 2025Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 1. Page 3430.).
5. September 12, 2025Assembly Rule 63 suspended. (Page 3429.)
6. September 12, 2025In Assembly. Concurrence in Senate amendments pending.
7. September 12, 2025Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 0. Page 2949.).
8. September 11, 2025Read second time. Ordered to third reading.
9. September 10, 2025From committee: Do pass. (Ayes 13. Noes 0.) (September 10).
10. September 8, 2025From 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.
11. September 8, 2025Senate Rule 29.3(b) suspended. (Ayes 28. Noes 8. Page 2568.)
12. April 2, 2025Referred to Com. on B. & F. R.