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Businesses Must Determine Before 2025 If They Fall Under California Climate Reporting Law

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Businesses Must Determine Before 2025 If They Fall Under California Climate Reporting Law


In 2023, California approved the Climate Accountability Package, a pair of bills aimed at creating climate reporting requirements. Reporting is set to begin in 2026 for data collected during 2025. Companies need to determine now if they are required to report and establish the processes to collect the data. However, delays in drafting the standards and ambiguous language are making it difficult for businesses to determine if they qualify.


The Rise of Climate Reporting

California’s climate reporting regulation is part of a global movement to require companies to disclose their greenhouse gas emissions, climate policies, and to evaluate climate risks. Driven by the net zero 2050 goal of the Paris Agreement, jurisdictions around the world are looking to reduce GHG emissions.

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The European Union has been leading the way with the Corporate Sustainability Reporting Directive. Initially adopted in 2022, the CSRD requires climate and environmental, social, and governance reporting by most companies that operate within the EU. Reporting for large companies began in 2024. Reporting for non-EU companies and small and medium-sized enterprises has been delayed to 2026.

In the U.S., the Securities and Exchange Commission adopted a Climate-Risk Disclosure Rule in early 2024, only to delay implementation while it faced legal challenges. California and other states are moving forward with their own reporting requirements.

California’s Climate Accountability Package established the broad parameters for the reporting standards. The responsibility of drafting specific regulations and implementing the reporting standards was delegated to the California Air Resources Board. CARB was initially given until January 1, 2025 to draft the rules and processes. In September, the Legislature extended the deadline by six months to July 1.

The original legislation states that CARB shall develop and adopt regulations requiring for the reporting entity’s prior fiscal year.” Meaning, while the reporting does not take place until 2026, the data is from 2025. Businesses must determine before January 1, 2025 if they qualify as a reporting entity so they can begin collecting the required information.

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Reporting requirements are divided into two categories, based on the total annual revenue of the company. Unlike the SEC, the California reporting requirements apply to both publicly traded and privately held companies. Only U.S. companies will have to report.


Reporting Entities

The highest level of reporting is required of large companies. Senate Bill 253 required companies who do business in California and have an excess of $1 billion in revenue, defined as “reporting entities”, to submit an annual report for Scope 1 and Scope 2 starting in 2026. Scope 3 reporting will begin in 2027.

Generally, Scope 1 GHG emissions are those that come directly from the company. Scope 2 are indirect GHG emissions from the company’s power source. Scope 3 are GHG emissions from the value chain, both from suppliers and consumers.

Scope 3 has been highly debated as it is considered by the business community as being overly burdensome. When the SEC implemented their rule, they chose to not require Scope 3. The EU requires it.


Covered Entities

Senate Bill 261 required companies who do business in California and an excess of $500 million in revenue, defined as “covered entities”, to submit a biennial climate-related financial risk report.

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Climate risk is defined as “material risk of harm to immediate and long-term financial outcomes due to physical and transition risks, including, but not limited to, risks to corporate operations, provision of goods and services, supply chains, employee health and safety, capital and financial investments, institutional investments, financial standing of loan recipients and borrowers, shareholder value, consumer demand, and financial markets and economic health.”

This is a much lower requirement as it does not include any level of GHG emission reporting.


What Classifies As “Doing Business in California”?

In the development and interpretation of law, words matter. Codes, ordinances, laws, and regulations typically begin with a list of definitions of key terms. Frequently, those definitions are prefaced with the phrase “for purposes of this section.” This allows lawmakers to define a term for limited use in that section of the law preventing new legislation from negatively impacting established law. Definitions bring clarity, allowing those subjected to the law, regulators, attorneys, and judges to know the exact intent of the lawmakers.

In the Climate Accountability Package, the phrases “covered entity” and “reporting entity” are both defined in their respective sections. The only notable distinction between the definitions is the annual revenue threshold. Both include the phrase “that does business in California.”

While the dollar amount thresholds are clear, there is a question as to what classifies as “doing business” in California. The definition varies by section of the state code and by state agency. The Climate Accountability Package amended the state’s Health and Safety Code, that does not have a definition of doing business.

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Presumably, CARB will provide a clear definition when they release the standards in July. However, companies will need to determine by January 1 if they need to collect data. In the interim, there are two key definitions that help provide some guidance.

California Corporations Code

Section 191 (a) of the California Corporations Code gives a definition of “entering into repeated and successive transactions of its business in this state, other than interstate or foreign commerce.” However, that definition is for the phrase “transact intrastate business” and is only for “the purposes of Chapter 21”, requiring registration with the Secretary of State.

Notably, “a foreign corporation shall not be considered to be transacting intrastate business merely because its subsidiary transacts intrastate business.” This leaves raises a question as to if a subsidiary can trigger reporting by the parent company. The 2024 amendment clarified that a subsidiary does not have to file separate from the parent company, but did not address this question.

California Revenue and Taxation Code

Article 1, Section 23101(a) of the California Revenue and Taxation Code gives a definition of “doing business.” The California Franchise Tax Board interprets the definition to mean meeting one of five conditions. The board updates the dollar thresholds annually. A company is considered doing business in California if

  1. The company is “actively engaging in any transaction for the purpose of financial or pecuniary gain or profit”;
  2. The company is “organized or commercially domiciled” in the state;
  3. The company has annual sales in California exceed the lower of $711,538 or 25% of the company’s total sales;
  4. The company has real property or tangible personal property in California exceeds the lower of $71,154 or 25% of the company’s total; or
  5. The company has payroll compensation in California exceeds the lower of $71,154 or 25% of the company’s total payroll.

The Struggle For Businesses

While there will likely be a delay in implementing California’s climate reporting requirements, companies have to decided soon how to respond. The choice comes with a hefty price tag. The SEC estimated compliance with their rule would cost a company approximately $1 million the first year. There is no reason to think California’s will be any different. As a result, companies are faced with a difficult decision – move forward with costly programs or hope for a delay.

There are a lot of unanswered questions while CARB drafts the climate reporting standards. However, given the current timeline, companies need to act now to evaluate if they meet the minimums and get their process in place by January 1.

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Missing California 9-year-old Melodee Buzzard found dead, grandmother says

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Missing California 9-year-old Melodee Buzzard found dead, grandmother says


Melodee Buzzard, the 9-year-old whose disappearance was reported by Santa Barbara County educators in October, has been found dead, a relative confirmed to The Times on Tuesday.

Melodee vanished during an unusual road trip with her mother earlier this year, sparking a months-long investigation.

Her disappearance captivated and confounded true crime watchers around the nation as FBI investigators and armchair detectives alike tried to solve the puzzle of what happened.

On Tuesday, Melodee’s paternal grandmother confirmed to The Times that her body has been found by investigators.

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“The detective called me this morning to let me know that they found the baby and the baby is with her dad,” said Melodee’s grandmother Lilly Denes. “I knew he was telling me that the baby is dead.”

Melodee’s father, Rubiell “Pinoy” Meza, died in a motorcycle accident in 2016.

Local TV news station KSBY captured video of Melodee’s mother Ashlee Buzzard being taken into custody shortly before 7:45 a.m. Tuesday. During the road trip earlier this year, Buzzard changed out the license plates on her rental car and wore wigs in what detectives described as possible attempts to avoid detection, according to the Santa Barbara County Sheriff’s Office.

The Sheriff’s Office did not immediately respond to a request for comment, but has planned a 2 p.m. news conference to provide updates on the case. Here is what we know about the events that led up to Tuesday’s tragic discovery.

Ashlee Buzzard’s ‘hard knock’ childhood

When Ashlee Buzzard was just 9 years old — the same age as her daughter Melodee when she went missing — she and her mother, Lori Miranda, became homeless after fleeing Buzzard’s abusive father, Miranda told the Santa Maria Times in 1995.

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The article, titled “Lessons From the School of Hard Knocks,” describes how Miranda and her daughter arrived on the streets of Santa Maria with no job, home or car and only $40 to support them.

They had previously moved from place to place to get away from Miranda’s husband, who she said struggled with substance use and episodes of violence. In June 1994, Miranda decided to take her daughter from Orange County to the Central Coast to be farther away from him, and they briefly lived at the Good Samaritan Shelter in Santa Maria before moving into an apartment.

“I was so scared,” Ashlee told the paper, describing her early days in Santa Maria. “I knew no one [here]. I felt very uncomfortable.”

According to Melodee’s paternal relatives, Buzzard had a contentious relationship with her mother.

When Buzzard was in the 11th grade at Santa Maria High School, she filed a petition to be emancipated from Miranda, according to court records. The judge rejected the petition, noting that Buzzard was still living with her mother and had not submitted adequate information pertaining to her income and expenses.

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A birth and a sudden death

Melodee was born Feb. 10, 2016, to Buzzard and Meza. Six months later, Meza died.

In Melodee’s early years, Meza’s family continued to have a relationship with the girl, according to Denes. She was a lovable child, always smiling and well-behaved, Denes said.

Lilly Denes, the paternal grandmother of missing California girl Melodee Buzzard, in her home in Orcutt on Nov. 6.

(Carlin Stiehl / For The Times)

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In 2021, another of Denes’ sons took care of Melodee while Buzzard was hospitalized for several weeks, she said.

During this period, Denes said she was working with social services to gain custody of Melodee as she was concerned about Buzzard’s ability to care for the child. But before Denes had finished the background check process, Buzzard was discharged from the hospital, picked up her daughter from school and left Santa Maria, Denes said.

After that, Buzzard relocated to the nearby neighborhood of Vandenberg Village and refused to let the girl’s paternal relatives see her. She did, however, occasionally visit Denes to ask for money over the years, Denes said.

Federal court records show that Buzzard filed for Chapter 7 bankruptcy in 2017. She’s also had five collections and one small claims lawsuit for alleged unpaid debts filed against her in Santa Barbara County Superior Court, the most recent of which was filed by Capital One Bank in May.

In August, Buzzard enrolled Melodee in an independent study program at the Lompoc Unified School District. Sheriff’s detectives believe that she had previously been homeschooling the girl for several years, but the California Department of Education has no record of her submitting the required paperwork to do so, according to a department spokesperson.

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A strange cross-country road trip

Lompoc, Calif. - Sheriff's detectives are releasing an updated timeline

Melodee Buzzard was captured on surveillance camera apparently wearing a wig at a car rental location in Lompoc on Oct. 7.

(Santa Barbara County Sheriff)

On Oct. 7, Buzzard and Melodee left their Vandenberg Village home and traveled to Nebraska, according to the Sheriff’s Office. During the trip, Buzzard switched out the California license plates (9MNG101) on the car with New York plates (HCG9677). When she returned home Oct. 10, the original plates were reaffixed, according to the Sheriff’s Office.

Both Melodee and Buzzard were apparently wearing wigs during the journey and the mother reportedly changed wigs throughout, according to the Sheriff’s Office. The last confirmed sighting of Melodee was on Oct. 9, when she was seen on surveillance video near the Utah-Colorado border.

The investigation

On Oct. 14, school administrators reported Melodee’s prolonged absence from her independent study program to the Sheriff’s Office.

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Investigators then visited Buzzard’s home, where the mother refused to answer questions about her daughter’s whereabouts, according to the Sheriff’s Office.

On Oct. 30, the FBI joined the case and assisted the Sheriff’s Office in serving search warrants for Buzzard’s home, the rental car and a storage locker.

Detectives then mapped out Buzzard’s road trip route and focused on the return route, from where Melodee was last seen in Utah to Vandenberg Village.

Investigators believe that Buzzarde traveled through the following areas on or around October 9, 2025

Investigators believe that Buzzard traveled through the following areas on or around Oct. 9: Green River, Utah; Panguitch, Utah; Northwest Arizona; Primm, Nev.; Rancho Cucamonga.

(Santa Barbara County Sheriff)

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During October, relatives and concerned community members often gathered around Buzzard’s home, chanting, “Where is Melodee” and leaving posters with messages such as “Bring her home.” The investigation became a national sensation, with videos produced by true crime sleuths racking up thousands of views on TikTok and Instagram.

Buzzard arrested following accusations of false imprisonment

Buzzard was arrested Nov. 7 in an incident unrelated to the investigation into her daughters disappearance, according to the Sheriff’s Office.

She was accused of unlawfully violating the personal liberty of Tyler S. Brewer after disclosing sensitive information to him.

Brewer, a paralegal and acquaintance of Buzzard, said in a statement that he visited Buzzard at her home to offer assistance in the search for the missing girl, and that the situation quickly escalated.

But at a hearing in November, a Santa Barbara County Superior Court judge dismissed the case after new evidence came to light that called his version of events into question.

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“After the initial report to law enforcement and the filing of the complaint, further investigation yielded additional evidence that was contradictory to the information that was initially provided to detectives,” said Amber Frost, a spokesperson for the Santa Barbara district attorney’s office.

“That evidence was brought out at the hearing and inconsistencies were examined by both sides. Ultimately, it was determined that the evidence was not sufficient to move this case forward to trial,” Frost said.

Times staff writer Terry Castleman contributed to this report.





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Placer County crews rescue baby, family from home surrounded by raging river

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Placer County crews rescue baby, family from home surrounded by raging river


PLACER COUNTY, Calif. (KGO) — Heavy rain and flooding impacted Northern California over the weekend, leading to rescues and evacuations throughout the region.

In Placer County, emergency crews carefully and slowly rescued a baby in a carrier, sliding it on a ladder over a rushing river.

The raging South Yuba River overtook the home, where nine people were rescued by the Truckee Fire Protection District.

As of Monday morning, the Placer County Sheriff’s Office said an evacuation warning continues to be in effect for areas along the South Yuba River between Donner Pass Road and Cisco Road.

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The storm is also swamping parts of Humboldt County, where the sheriff’s office shared pictures of goats stranded on someone’s doorstep.

This is near the Freshwater area – near Arcata, where high water forced several evacuations.

Crews arrived in jet skis to assist residents.

In Redding, one person died after major flooding.

Water took over streets and entire neighborhoods.

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Several people had to be rescued, and Interstate 5 was also flooded, impacting holiday drivers.

LIVE UPDATES: Storms flood parts of NorCal with heavy rain as alerts expand to entire Bay Area

In Mendocino County, Willits received more than 6 inches of rain in 48 hours, flooding parks in the area.

With more rain in the forecast, rescue crews are prepared and people are reminded not to ever drive through standing water.

Copyright © 2025 KGO-TV. All Rights Reserved.

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Flash flooding in Northern California leads to soaked roads, water rescues and a death

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Flash flooding in Northern California leads to soaked roads, water rescues and a death


Dekoda Cruz walks through flood water while helping a friend who’s tire shop flooded during heavy rains on Monday, Dec. 22, 2025, in Redding, Calif. (AP Photo/Noah Berger)

REDDING, Calif. — Heavy rain and flash flooding soaked roads in northern California, leading to water rescues from vehicles and homes and at least one confirmed death, authorities said Monday.

In Redding, a city at the northern end of the Central Valley, one motorist died after calling 911 while trapped in their vehicle as it filled up with water, Mayor Mike Littau posted online Monday. Police said they received numerous calls for drivers stranded in flooded areas.

“Redding police officer swam out into the water, broke the windows and pulled victim to shore. CPR was done but the person did not live,” Littau wrote.

The weather in the coming days could be even more dangerous, he warned.

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The National Weather Service expected more rain through the Christmas week as a series of atmospheric rivers was forecast to make its way through Northern California. A large swath of the Sacramento Valley and surrounding areas were under a flood watch through Friday.

The weather pattern was expected to intensify by midweek, which could lead to potential mudslides, rockslides and flooding of creeks and streams, forecasters warned. Up to 6 feet of snow was predicted for parts of the Sierra Nevada and winds could reach 55 mph in high elevations by Wednesday.

Southern California can also expect a soggy Christmas, with heavy rain in the forecast starting Tuesday evening. The National Weather Service urged people to make backup plans for holiday travel.

In Redding and surrounding areas, between 3 and 6 inches had fallen by Sunday night, the National Weather Service said.

As of Monday morning, local roads in Redding remained flooded as street crews worked to clear debris and tow out abandoned cars.

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Dekoda Cruz waded in knee-deep muddy water to check on a friend’s flooded tire business, where the office was littered with a jumble of furniture and bobbing tires.

In the mountain pass area of Donner Summit, firefighters in Truckee extended a ladder to stranded residents at a house along the South Yuba River, the fire department posted online Sunday. No injuries were reported.

Atmospheric rivers are long, narrow bands of water vapor that form over an ocean and flow through the sky, transporting moisture from the tropics to northern latitudes.

Earlier this month, stubborn atmospheric rivers that drenched Washington state with nearly 5 trillion gallons of rain in a week, threatening record flood levels, meteorologists said. That rainfall was supercharged by warm weather and air plus unusual weather conditions tracing back as far as a tropical cyclone in Indonesia.





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