This summer, California Governor Newsom had proposed that California delay the implementation date of its climate disclosure law for two years. The California legislature rejected this proposal, instead passing S.B. 219, which afforded the government regulatory agencies an additional six months to craft the regulation, but did not delay the effective date for the companies subject to the disclosure.

Governor Newsom has now capitulated to the legislature, as he has signed their bill which maintains the original effective dates of the climate disclosure law. Specifically, companies earning more than $500 million in revenue must report climate-related risks in 2026, and companies earning more than $1 billion in revenue must also disclose Scope 1 and Scope 2 greenhouse gas emissions in 2026--and Scope 3 emissions in 2027. As this regulation not only demands the disclosure of Scope 3 greenhouse gas emissions, but also applies to private companies doing business in California (not just public companies), it is arguably more intrusive than the SEC's climate disclosure regulations. 

However, this regulation has been challenged in the courts by the U.S. Chamber of Commerce, and it is uncertain whether it will withstand this legal attack. So the effective date of the California climate disclosure law may not ultimately matter, as it could be struck down by the courts before it is implemented. Nonetheless, the fact that the original date for the disclosure has been maintained, and that Governor Newsom has deferred to the California legislature in this matter--as he did when signing the original legislation, despite his publicly professed doubts--is certainly significant.