A Bill for an Act
Page 1, Line 101Concerning requiring certain entities to disclose
Page 1, Line 102information concerning greenhouse gas emissions.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill requires each entity that does business in Colorado and has total revenues exceeding $1 billion in the preceding calendar year (reporting entity) to publicly disclose its total greenhouse gas emissions during the preceding calendar year. For scope 1 and scope 2 emissions, the reporting requirements begin January 1, 2028. For scope 3 emissions, the initial reporting requirements begin January 1, 2029, and are updated on January 1 each year thereafter. A reporting entity must have each of its disclosures independently verified by a third-party auditor.
A district attorney or the attorney general may bring a civil action against a reporting entity for failing to comply with the disclosure requirements. A court may require a noncompliant reporting entity to pay a civil penalty in an amount not to exceed $100,000 for each day of noncompliance.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 25-7-148 as follows:
Page 2, Line 325-7-148. Greenhouse gas emissions data disclosures required
Page 2, Line 4- deadlines - independent audit and verification of data required -
Page 2, Line 5enforcement - penalties - definitions - rules. (1) As used in this section, unless the context otherwise requires:
Page 2, Line 6(a) "Greenhouse gas" has the meaning set forth in section 2-2-322.3 (1)(a).
Page 2, Line 7(b) "Reporting entity" means an entity that does business
Page 2, Line 8in Colorado and has total revenues exceeding one billion
Page 2, Line 9dollars in the preceding calendar year, including revenues
Page 2, Line 10received by all of the business entity's subsidiaries that do business in Colorado.
Page 2, Line 11(c) "Scope 1 emissions" means greenhouse gas emissions
Page 2, Line 12from sources that a reporting entity owns or directly controls,
Page 2, Line 13regardless of location, including greenhouse gas emissions from fuel combustion activities.
Page 2, Line 14(d) "Scope 2 emissions" means greenhouse gas emissions
Page 2, Line 15from electricity that is purchased and used by a reporting entity, regardless of location.
Page 2, Line 16(e) "Scope 3 emissions" means greenhouse gas emissions,
Page 3, Line 1other than scope 2 emissions, that are from sources that a
Page 3, Line 2reporting entity does not own or directly control. "Scope 3
Page 3, Line 3emissions" may include emissions associated with a reporting
Page 3, Line 4entity's supply chain, business travel, employee commutes, procurement, waste, and water usage, regardless of location.
Page 3, Line 5(2) (a) On or before January 1, 2028, and on or before each
Page 3, Line 6January 1 thereafter, each reporting entity shall publicly
Page 3, Line 7disclose its total scope 1 emissions and scope 2 emissions during the preceding calendar year.
Page 3, Line 8(b) Each reporting entity shall publicly disclose its total scope 3 emissions during the preceding calendar year as follows:
Page 3, Line 9(I) On or before January 1, 2029, and on or before each
Page 3, Line 10January 1 thereafter, each reporting entity shall publicly disclose its total scope 3 emissions from the following sources:
Page 3, Line 11(A) Purchased goods and services;
(B) Capital goods; and
Page 3, Line 12(C) The use of sold products;
Page 3, Line 13(II) On or before January 1, 2030, and on or before each
Page 3, Line 14January 1 thereafter, each reporting entity shall publicly
Page 3, Line 15disclose its total scope 3 emissions from the sources described in
Page 3, Line 16subsection (2)(b)(I) of this section and from the following sources:
Page 3, Line 17(A) Emissions from fuel and energy activities, which
Page 3, Line 18emissions are not classified as scope 1 emissions or scope 2 emissions;
Page 3, Line 19(B) Waste generated in operations;
Page 3, Line 20(C) Processing of sold products; and
(D) The end-of-life of sold products; and
Page 4, Line 1(III) On or before January 1, 2031, and on or before each
Page 4, Line 2January 1 thereafter, each reporting entity shall publicly
Page 4, Line 3disclose its total scope 3 emissions from the sources described in
Page 4, Line 4subsections (2)(b)(I) and (2)(b)(II) of this section and from the following sources:
Page 4, Line 5(A) Upstream transportation and distribution;
(B) Business travel;
Page 4, Line 6(C) Employee commuting;
(D) Upstream leased assets;
Page 4, Line 7(E) Downstream transportation and distribution;
(F) Downstream leased assets; and
Page 4, Line 8(G) Franchises.
Page 4, Line 9(c) In calculating its emissions data, a reporting entity
Page 4, Line 10shall use the Greenhouse Gas Protocol Corporate Accounting
Page 4, Line 11and Reporting Standard and the Greenhouse Gas Protocol
Page 4, Line 12Corporate Value Chain (Scope 3) Accounting and Reporting
Page 4, Line 13Standard developed by the World Resources Institute and the World Business Council for Sustainable Development.
Page 4, Line 14(3) With each emissions data disclosure, a reporting
Page 4, Line 15entity shall include the reporting entity's legal name and any
Page 4, Line 16fictitious names, trade names, assumed names, subsidiaries, and logos used by the reporting entity.
Page 4, Line 17(4) A reporting entity shall have each of its emissions
Page 4, Line 18data disclosures independently verified by a third-party
Page 4, Line 19auditor. The reporting entity shall include the name of the
Page 4, Line 20auditor with each emissions data disclosure.
Page 5, Line 1(5) A district attorney or the attorney general may bring
Page 5, Line 2a civil action against a reporting entity for a failure to comply
Page 5, Line 3with a disclosure requirement described in subsection (2) of this
Page 5, Line 4section. If a court finds that a district attorney or the attorney
Page 5, Line 5general has prevailed in such an action, the court may require
Page 5, Line 6the reporting entity to pay a civil penalty in an amount not to
Page 5, Line 7exceed one hundred thousand dollars for each day of
Page 5, Line 8noncompliance. The state treasurer shall credit money received as penalties pursuant to this subsection (5) to the general fund.
Page 5, Line 9(6) (a) Notwithstanding any provision of this section to
Page 5, Line 10the contrary, nothing in this section requires a reporting entity
Page 5, Line 11to disclose any information in violation of its freedom of speech,
Page 5, Line 12including any freedom from compelled speech, that may be
Page 5, Line 13guaranteed by the first amendment to the United States
Page 5, Line 14constitution or by section 10 of article II of the state constitution.
Page 5, Line 15(b) A reporting entity that declines to disclose any
Page 5, Line 16information pursuant to subsection (6)(a) of this section shall,
Page 5, Line 17at least thirty days before the date upon which the disclosure
Page 5, Line 18is required, submit a statement to the attorney general. In its
Page 5, Line 19statement, the reporting entity shall describe the general
Page 5, Line 20nature of any information that the reporting entity is
Page 5, Line 21withholding pursuant to subsection (6)(a) of this section,
Page 5, Line 22including the justification for the withholding. If the attorney
Page 5, Line 23general is not satisfied by the justification provided, and, if
Page 5, Line 24after further consultations, the department of public health
Page 5, Line 25and environment and the reporting entity are not able to reach
Page 6, Line 1agreement, the attorney general may order the reporting entity to disclose the contested information.
Page 6, Line 2(7) Notwithstanding any provision of this section to the
Page 6, Line 3contrary, a reporting entity is deemed to be in compliance with
Page 6, Line 4the requirements of this section if the reporting entity is in
Page 6, Line 5compliance with the requirements of another state or country,
Page 6, Line 6which requirements are as stringent as or more stringent than the requirements of this section.
Page 6, Line 7(8) The commission may adopt rules as necessary to
Page 6, Line 8implement this section, including rules to adjust the reporting
Page 6, Line 9deadlines described in subsections (2)(a) and (2)(b) of this section.
Page 6, Line 10SECTION 2. Act subject to petition - effective date. This act
Page 6, Line 11takes effect at 12:01 a.m. on the day following the expiration of the
Page 6, Line 12ninety-day period after final adjournment of the general assembly; except
Page 6, Line 13that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 6, Line 14of the state constitution against this act or an item, section, or part of this
Page 6, Line 15act within such period, then the act, item, section, or part will not take
Page 6, Line 16effect unless approved by the people at the general election to be held in
Page 6, Line 17November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.