SENATE ENVIRONMENT AND ENERGY COMMITTEE

STATEMENT TO

SENATE, No. 4117

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 17, 2025

      The Senate Environment and Energy Committee reports favorably and with committee amendments Senate Bill No. 4117.

The bill, as amended, would be known as the "Climate Corporate Data Accountability Act," and would require certain business entities to publicize data about their annual greenhouse gas emissions.

     Specifically, the bill would apply to "reporting entities," defined by the bill to mean any partnership, corporation, limited liability company, or other business entity formed under state or federal law that has total annual revenues in excess of $1 billion and that does business in New Jersey.  Reporting entities would be required to provide a report on their greenhouse gas emissions to the Department of Environmental Protection (DEP) and a nonprofit organization selected by the DEP annually, commencing three years after the bill's enactment.  Reporting entities would be required to publicly disclose their scope 1 and scope 2 greenhouse gas emissions commencing four years after the bill's enactment, and they would be required to publicly disclose their scope 3 greenhouse gas emissions five years after the bill's enactment.  "Scope 1 emissions" refers to the direct emissions of a reporting entity's facilities.  "Scope 2 emissions" refers to the emissions attributable to the electricity, heat, and cooling used by a reporting entity's facilities.  "Scope 3 emissions" refers to the total greenhouse gas emissions of the reporting entity, including purchased goods and services, business travel, employee commutes, and the processing and use of sold products.

     The bill would authorize the DEP to collect a fee along with each annual disclosure made by a reporting entity.  The fee would be required to be set at a sufficient level to pay the DEP's administrative costs for implementing the bill's provisions, and no higher.  The bill would require the DEP to contract with a nonprofit organization to manage and publicize the reports required under the bill.  The bill would also require the DEP to contract with Rutgers or another academic institution in the State to produce a report on the public disclosures required under the bill.

      The bill would allow reporting entities to use reports they provide to the California state government under the California "Climate Corporate Data Accountability Act" to satisfy the provisions of the bill, in order to ease compliance.  Business entities that violate the bill's provisions would be liable for civil administrative penalties of up to $10,000 for the first offense, $20,000 for the second offense, and $50,000 for the third and each subsequent offense.  A reporting entity could also be liable for civil penalties, under the bill.

COMMITTEE AMENDMENTS:

      The committee amendments make technical changes to the bill.