Bill Text: CA AB1305 | 2023-2024 | Regular Session | Amended

California Assembly Bill 1305

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Voluntary carbon market disclosures.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2023-10-07 - Chaptered by Secretary of State - Chapter 365, Statutes of 2023. [AB1305 Detail]

Download: California-2023-AB1305-Amended.html

Amended IN Assembly April 18, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1305

Introduced by Assembly Member Gabriel

February 16, 2023

An act to add Part 10 (commencing with Section 44475) to Division 26 of the Health and Safety Code, relating to carbon offsets.

LEGISLATIVE COUNSEL'S DIGEST

AB 1305, as amended, Gabriel. Voluntary carbon offset disclosures.

Existing law imposes various limitations on emissions of air contaminants for the control of air pollution from vehicular and nonvehicular sources.

This bill would require a business entity that is selling voluntary carbon offsets, as defined, to disclose on the business entity’s internet website specified information about the applicable carbon offset project and details regarding accountability if a project is not completed or does not meet the projected emission reductions or removal benefits, as provided. The bill would also require a purchaser of voluntary carbon offsets that makes claims regarding the achievement of net-zero emissions or other, similar claims, as specified, to disclose on the purchaser’s internet website specified information. The bill would make a person who violates these provisions subject to ~~an unspecified~~ a civil penalty in the amount of $5,000 per day, as specified, for each violation, not to exceed a total amount of $500,000, which would be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by a district attorney, county counsel, or city attorney in a court of competent jurisdiction.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Part 10 (commencing with Section 44475) is added to Division 26 of the Health and Safety Code, to read:

PART 10. Voluntary Carbon Offset Disclosures

44475.

A business entity that is selling voluntary carbon offsets shall disclose on the business entity’s internet website all of the following information:

(a) Details regarding the applicable carbon offset ~~project~~ project, including all of the following information:

(1) The specific methodology used to estimate emission reductions or removal benefits.

(2) The location of the offset project site.

(3) The project timeline.

(4) The date when the project started or will start.

(5) The date when the emission reductions or removals started or will start.

(6) The type of project.

(7) Whether the project meets any standards established by law or by a nonprofit entity.

(b) Details regarding accountability if a project is not completed or does not meet the projected emission reductions or removal benefits, including, but not limited to, details regarding what happens under all of the following circumstances:

(1) If carbon storage projects are reversed.

(2) If future emission reductions do not materialize.

(3) If past reductions are reversed.

44475.1.

A purchaser of voluntary carbon offsets that makes claims regarding the achievement of net-zero emissions, claims to be “carbon neutral,” or other claims implying the company does not add net carbon dioxide to the climate or has made significant reductions to its carbon dioxide emissions shall disclose on the purchaser’s internet website all of the following information:

(a) The offset registry or program.

(b) The project identification number, if applicable.

(d) The offset project type and site location.

(e) The specific methodology used to estimate emission reductions or removal benefits.

(f) How a “carbon neutral,” “net-zero emission,” or other similar claim was determined to be accurate or actually accomplished.

44475.2.

A person who violates this part is subject to a civil penalty of not more than ~~____ dollars ($____)~~ five thousand dollars ($5,000) per day, for each day that information is not available or is inaccurate on the person’s internet website, for each violation, not to exceed a total amount of five hundred thousand dollars ($500,000), which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General or by a district attorney, county counsel, or city attorney in a court of competent jurisdiction.

44475.3.

For purposes of this part, “voluntary carbon offset” means any product sold in the state that claims to be a “greenhouse gas emission offset,” a “voluntary emission reduction,” a “retail offset,” or any like term, ~~which~~ that connotes that the product represents or corresponds to a reduction, not required by any law or regulation, in the amount of greenhouse gases present in the atmosphere or that prevents the emission of greenhouse gases into the atmosphere that would have otherwise been emitted. A “voluntary carbon offset” for purposes of this part does not include any greenhouse gas reduction measures, including voluntary greenhouse gas emission reduction measures or market-based compliance mechanisms, used to comply with greenhouse gas emission limits established by any law or regulation, including, but not limited to, limits established pursuant to the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)), the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or federal law or regulation.