California
Businesses Must Determine Before 2025 If They Fall Under California Climate Reporting Law
California State Capitol building with state flag in Sacramento on a windy summer day with clear sky
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.
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.
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.
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.
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
- The company is “actively engaging in any transaction for the purpose of financial or pecuniary gain or profit”;
- The company is “organized or commercially domiciled” in the state;
- The company has annual sales in California exceed the lower of $711,538 or 25% of the company’s total sales;
- 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
- 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.
California
Dramatic explosion caught on video destroys homes, injures six, officials say
A natural gas line leak triggered a dramatic explosion that destroyed a Bay Area home on Thursday, injuring six people and damaging several other properties.
At least one person was inside the home before it was leveled in the blast. The individual managed to escape without injury, but six others were hurt, including three who suffered serious injuries, Alameda County Fire Department spokesperson Cheryl Hurd said.
“It was a chaotic scene,” Hurd said. “There was fire and debris and smoke everywhere, power lines down, people self-evacuated from the home. … Someone was on the sidewalk with severe burns.”
The leak started after a third-party construction crew working Thursday morning in the 800 block of East Lewelling Boulevard in Hayward struck a Pacific Gas and Electric underground natural gas line, according to a statement from the utility.
Fire crews were first dispatched to the scene at 7:46 a.m. after PG&E reported a suspected natural gas leak, Hurd said. PG&E officials were already on scene when fire engines arrived, and reportedly told firefighters their assistance was not needed, Hurd said.
Utility workers attempted to isolate the damaged line, but gas was leaking from multiple locations. Workers shut off the flow of gas at about 9:25 a.m. About ten minutes later an explosion occurred, PG&E said in a statement.
Fire crews were called back to the same address, where at least 75 firefighters encountered heavy flames and a thick column of smoke. Surrounding homes sustained damage from the blast and falling debris. Three buildings were destroyed on two separate properties and several others were damaged, according to fire officials.
Six people were taken to Eden Medical Center, including three with severe injuries requiring immediate transport. Officials declined to comment on the nature of their injuries.
Video captured from a Ring doorbell affixed to a neighboring house showed an excavator digging near the home moments before the explosion. The blast rattled nearby homes, shattered windows and sent construction crews running.
Initially, authorities suspected that two people were missing after the blast. That was determined not to be the case, Hurd said.
“They brought in two cadaver dogs looking to see if anyone was still trapped under the rubble, and the dogs cleared everything,” Hurd said.
Brittany Maldonado had just returned from dropping off her son at school Thursday morning when she noticed a PG&E employee checking out her gas meter. He informed her that there was an issue and they had to turn off the gas to her home.
She didn’t think twice about it.
“About 45 minutes later, everything shakes,” she told reporters at the scene. “It was a big boom…first we think someone ran into our house—a truck or something—and then we look outside and it’s like a war zone.”
The house across the street was leveled, Maldonado said. When she watched the footage from her Ring camera she said it looked as though a bomb inside the home had gone off.
“I’m very glad that no one lost their lives,” she said.
Officials with the Sheriff’s Office, PG&E and the National Transportation Safety Board are continuing to investigate the circumstances that led to the explosion.
In 2010, a PG&E pipeline ruptured in a San Bruno neighborhood, destroying 38 homes and killing eight people. California regulators later approved a $1.6-billion fine against the utility for violating state and federal pipeline safety standards.
Staff writer Hannah Fry contributed to this report
California
Neil Thwaites promoted to ‘Vice President of Global Sales & California Commercial Performance’ for Alaska Airlines and Hawaiian Airlines – Alaska Airlines, Hawaiian Airlines and Horizon Air
Thwaites will lead the strategy and execution of all sales activities for the combined Alaska Airlines and Hawaiian Airlines team. His responsibilities include growing indirect revenue on Alaska’s expanding international and domestic network, as well as expanding Atmos for Business, a new program designed for small- and medium-sized companies.
Thwaites joined Alaska Airlines in January 2022 as regional vice president in California. Since stepping into the role, Thwaites has significantly sharpened the airline’s focus and scale in key markets and communities across the state, strengthening Alaska’s position as we continue to grow in California. He will continue to be based at the company’s California offices in Burlingame. The moves take effect Dec. 13, with Thwaites also continuing to lead his current California commercial planning and performance function in addition to Global Sales.
Prior to Alaska, Thwaites worked in multiple positions within the airline industry, including a decade holding roles in London, New York, and Los Angeles for British Airways (a fellow oneworld member); most recently as ‘VP, Sales – Western USA’, where he was responsible for market development strategy and indirect revenue for both British Airways and Iberia across the western U.S.
Thwaites is originally from the United Kingdom and graduated from the University of Brighton with a double honors degree in Business Administration & Law.
California
Tiny tracker following monarch butterflies during California migration
SAN FRANCISCO (KGO) — When this monarch butterfly hits the sky it won’t be traveling alone. In fact, an energetic team of researchers will be following along with a revolutionary technology that’s already unlocking secrets that could help the entire species survive.
“I’ve described this technology as a spaceship compared to the wheel, like using a using a spaceship compared to the invention of the wheel. It’s teaching us so, so much more,” says Ray Moranz, Ph.D., a pollinator conservation specialist with the Xerces Society.
Moranz is part of a team that’s been placing tiny tracking devices on migrating monarchs. The collaboration is known as Project Monarch Science. It leverages solar powered radio tags that are so light they don’t affect the butterfly’s ability to fly. And they’re allowing researchers to track the Monarch’s movements in precise detail. With some 400 tags in place, the group already been able to get a nearly real time picture of monarch migrations east of the Rockies, with some populations experiencing dramatic twists and turns before making to wintering grounds in Mexico.
“They’re trying to go southward to Mexico. They can’t fight the winds. Instead, some of them were letting themselves be carried 50 miles north, 100 miles north, 200 miles the wrong way, which we are all extremely alarmed by and for good reason. Some of these monarchs, their migration was delayed by two or three weeks.
According to estimates, migrating monarch populations have dropped by roughly 80% or more across the country. And the situation with coastal species here in California is especially dire. Blake Barbaree is a senior scientist with Point Blue Conservation Science. He and his colleagues are tracking Northern California populations now clustered around Santa Cruz.
MORE: Monarch butterflies to be listed as a threatened species in US
“This year, there’s it’s one of the lowest, populations recorded in the winter. And the core zones have been in Santa Cruz County and up in Marin County. So we’ve undertaken an effort to understand how the monarchs are really using these different groves around Santa Cruz by tagging some in the state parks around town,” Barbaree explains.
He says being able to track individual monarchs could help identify microhabitats in the area that help them survive, ranging from backyard pollinator gardens to protected open space to forest groves.
“So we’re really getting a great insight to how reliant they are on these big trees, but also the surrounding area and people’s even backyards. And then along the way around the coast, how they’re transitioning among some of these groves. And we’re looking for some of the triggers for those movements. Right. Why are they doing this and what’s what’s driving them to do that? So those questions are still a little bit further out as we get to analyze some more some more of the data,” he believes.
And that data is getting even more precise. The tags, developed by Cellular Tracking Technologies, can be monitored from dedicated listening stations. But the company is also able to crowdsource signals detected by cellphone networks on phones with Bluetooth connectivity and location access activated. And they’ve also helped develop an app that allows volunteers, citizen scientists, and the general public to track and report Monarch locations themselves using their smartphones.
CEO Michael Lanzone says the initial response has been overwhelming.
MORE: New butterflies introduced in SF’s Presidio after species went extinct in 1940s
“We were super surprised to see 3,000 people download the monarch app. It’s like, you know, but people really love monarchs. There’s something that people just relate to,” says Lanzone who like many staffers at Cellular Tracking Technologies, has a background in wildlife ecology.
A number of groups are pushing to have the monarchs designated nationally as a threatened species. If that ultimately happens, researchers believe the tracking data could help put better protections in place.
“They’re highly vulnerable to, you know, some of the different things that that that we as humans do around using pesticides and also potentially cutting, you know, cutting down trees for various reasons. Sometimes they’re for safety and sometimes it’s, you know, for development. But so having an understanding of how we can do those things more sensibly and protect the places that they need the most,” says Point Blue’s Barbaree.
And it’s happening with the help of researchers, citizen scientists, and a technology weighing no more than a few grains of rice.
The smartphone app is called Project Monarch Science. You can download it for free and begin tracking.
Copyright © 2025 KGO-TV. All Rights Reserved.
-
Alaska6 days agoHowling Mat-Su winds leave thousands without power
-
Texas7 days agoTexas Tech football vs BYU live updates, start time, TV channel for Big 12 title
-
Ohio1 week ago
Who do the Ohio State Buckeyes hire as the next offensive coordinator?
-
Washington4 days agoLIVE UPDATES: Mudslide, road closures across Western Washington
-
Iowa6 days agoMatt Campbell reportedly bringing longtime Iowa State staffer to Penn State as 1st hire
-
Miami, FL6 days agoUrban Meyer, Brady Quinn get in heated exchange during Alabama, Notre Dame, Miami CFP discussion
-
Cleveland, OH5 days agoMan shot, killed at downtown Cleveland nightclub: EMS
-
World5 days ago
Chiefs’ offensive line woes deepen as Wanya Morris exits with knee injury against Texans