S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  897--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL,  GOUNARDES,  MAY -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Environmental  Conservation  -- reported favorably from said committee
   and committed to the Committee on  Finance  --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   climate corporate accountability
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited  as  the  "climate
 corporate accountability act".
   §  2.  The  environmental  conservation law is amended by adding a new
 section 75-0121 to read as follows:
 § 75-0121. CLIMATE CORPORATE ACCOUNTABILITY ACT.
   1. DEFINITIONS. AS USED IN THIS SECTION,  THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:
   A.  "EMISSIONS  REGISTRY"  MEANS  AN ENTITY WITHIN THE DEPARTMENT OR A
 NONPROFIT EMISSIONS REGISTRY ORGANIZATION CONTRACTED BY  THE  DEPARTMENT
 PURSUANT TO PARAGRAPH B OF THIS SUBDIVISION THAT:
   I.  CURRENTLY  OPERATES  A VOLUNTARY GREENHOUSE GAS EMISSIONS REGISTRY
 FOR ORGANIZATIONS OPERATING IN THE UNITED STATES; OR
   II. HAS EXPERIENCE WITH VOLUNTARY GREENHOUSE GAS EMISSIONS  DISCLOSURE
 BY ENTITIES OPERATING IN NEW YORK.
   B.  "REPORTING  ENTITY" MEANS A BUSINESS ENTITY WITH TOTAL REVENUES IN
 EXCESS OF ONE BILLION DOLLARS IN THE PRECEDING CALENDAR YEAR,  INCLUDING
 REVENUES  RECEIVED  BY  ALL THE BUSINESS ENTITY'S SUBSIDIARIES THAT DOES
 BUSINESS IN THIS STATE.
   C. "SCOPE ONE EMISSIONS" MEANS ALL  DIRECT  GREENHOUSE  GAS  EMISSIONS
 THAT  STEM  FROM  SOURCES  THAT  A  REPORTING  ENTITY  OWNS  OR DIRECTLY

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03661-02-3
 S. 897--A                           2
              

 
 CONTROLS, REGARDLESS OF LOCATION, INCLUDING, BUT NOT  LIMITED  TO,  FUEL
 COMBUSTION ACTIVITIES.
   D.  "SCOPE TWO EMISSIONS" MEANS INDIRECT GREENHOUSE GAS EMISSIONS FROM
 ELECTRICITY PURCHASED AND USED BY  A  REPORTING  ENTITY,  REGARDLESS  OF
 LOCATION.
   E.  "SCOPE  THREE  EMISSIONS" MEANS INDIRECT GREENHOUSE GAS EMISSIONS,
 OTHER THAN SCOPE TWO EMISSIONS, FROM ACTIVITIES OF  A  REPORTING  ENTITY
 THAT STEM FROM SOURCES THAT THE REPORTING ENTITY DOES NOT OWN OR DIRECT-
 LY CONTROL AND MAY INCLUDE, BUT ARE NOT LIMITED TO, EMISSIONS ASSOCIATED
 WITH  THE  REPORTING  ENTITY'S  SUPPLY  CHAIN, BUSINESS TRAVEL, EMPLOYEE
 COMMUTES, PROCUREMENT, WASTE, AND WATER USAGE, REGARDLESS OF LOCATION.
   2. A. THE DEPARTMENT SHALL ADOPT REGULATIONS TO  REQUIRE  A  REPORTING
 ENTITY  TO ANNUALLY DISCLOSE AND VERIFY TO THE EMISSIONS REGISTRY ALL OF
 THE REPORTING ENTITY'S SCOPE ONE EMISSIONS,  SCOPE  TWO  EMISSIONS,  AND
 SCOPE THREE EMISSIONS. THE REGULATIONS ADOPTED PURSUANT TO THIS SUBDIVI-
 SION SHALL REQUIRE, AT A MINIMUM, THAT:
   I.  (1)  EXCEPT  AS PROVIDED IN CLAUSE TWO OF THIS SUBPARAGRAPH, ON OR
 BEFORE JULY FIRST OF  EACH  YEAR,  A  REPORTING  ENTITY  SHALL  PUBLICLY
 DISCLOSE  TO  THE EMISSIONS REGISTRY ALL OF THE REPORTING ENTITY'S SCOPE
 ONE EMISSIONS AND SCOPE TWO EMISSIONS FOR THE PRIOR CALENDAR  YEAR,  AND
 ITS  SCOPE  THREE  EMISSIONS  FOR  THAT SAME CALENDAR YEAR NO LATER THAN
 DECEMBER THIRTY-FIRST,  USING  THE  GREENHOUSE  GAS  PROTOCOL  CORPORATE
 ACCOUNTING AND REPORTING STANDARD AND THE GREENHOUSE GAS PROTOCOL CORPO-
 RATE  VALUE  CHAIN (SCOPE 3) ACCOUNTING AND REPORTING STANDARD DEVELOPED
 BY THE WORLD RESOURCES INSTITUTE AND  THE  WORLD  BUSINESS  COUNCIL  FOR
 SUSTAINABLE  DEVELOPMENT,  INCLUDING  GUIDANCE FOR SCOPE THREE EMISSIONS
 CALCULATIONS THAT DETAIL ACCEPTABLE USE OF BOTH  PRIMARY  AND  SECONDARY
 DATA  SOURCES,  INCLUDING  THE USE OF INDUSTRY AVERAGE DATA, PROXY DATA,
 AND OTHER GENERIC DATA IN ITS SCOPE THREE EMISSIONS CALCULATIONS.
   (2) THE DEPARTMENT SHALL REVIEW, AND UPDATE AS NECESSARY,  THE  PUBLIC
 DISCLOSURE DEADLINES ESTABLISHED PURSUANT TO CLAUSE ONE OF THIS SUBPARA-
 GRAPH TO EVALUATE TRENDS IN SCOPE THREE EMISSIONS REPORTING AND CONSIDER
 CHANGES TO THE DISCLOSURE DEADLINES TO ENSURE THAT SCOPE THREE EMISSIONS
 DATA  IS DISCLOSED TO THE EMISSIONS REGISTRY AS CLOSE IN TIME AS PRACTI-
 CABLE TO THE DEADLINE FOR REPORTING ENTITIES TO DISCLOSE SCOPE ONE EMIS-
 SIONS AND SCOPE TWO EMISSIONS DATA.
   THE REPORTING TIMELINES SHALL TAKE INTO ACCOUNT THE TIMELINES BY WHICH
 REPORTING ENTITIES TYPICALLY RECEIVE SCOPE ONE,  SCOPE  TWO,  AND  SCOPE
 THREE  EMISSIONS DATA, AS WELL AS THE CAPACITY FOR INDEPENDENT VERIFICA-
 TION TO BE PERFORMED BY  A  THIRD-PARTY  AUDITOR,  AS  APPROVED  BY  THE
 DEPARTMENT.
   II.  A  REPORTING ENTITY'S PUBLIC DISCLOSURE SHALL INCLUDE THE NAME OF
 THE REPORTING ENTITY AND ANY  FICTITIOUS  NAMES,  TRADE  NAMES,  ASSUMED
 NAMES, SUBSIDIARIES AND LOGOS USED BY THE REPORTING ENTITY.
   III.  A  REPORTING  ENTITY'S  PUBLIC DISCLOSURE SHALL BE STRUCTURED IN
 WAYS THAT MINIMIZE DUPLICATION OF EFFORT  AND  MAXIMIZE  AND  STREAMLINE
 REPORTING  AND  EASE  OF USE IN MEETING THE REQUIREMENTS OF NATIONAL AND
 INTERNATIONAL DISCLOSURE PROGRAMS  AND  STANDARDS,  INCLUDING,  BUT  NOT
 LIMITED TO, ADOPTED RULES FROM THE UNITED STATES SECURITIES AND EXCHANGE
 COMMISSION  AND INTERNATIONAL STANDARDS SUCH AS THOSE ESTABLISHED BY CDP
 GLOBAL.
   IV. (1) A REPORTING ENTITY'S PUBLIC DISCLOSURE SHALL BE  INDEPENDENTLY
 VERIFIED  BY THE EMISSIONS REGISTRY OR A THIRD-PARTY AUDITOR APPROVED BY
 THE DEPARTMENT WITH EXPERTISE IN GREENHOUSE  GAS  EMISSIONS  ACCOUNTING.
 THE  REPORTING  ENTITY SHALL ENSURE THAT A COPY OF THE COMPLETE, AUDITED
 GREENHOUSE GAS EMISSIONS INVENTORY, INCLUDING THE NAME OF  THE  APPROVED
 S. 897--A                           3
 
 THIRD-PARTY AUDITOR, IS PROVIDED TO THE EMISSIONS REGISTRY AS PART OF OR
 IN CONNECTION WITH THE REPORTING ENTITY'S PUBLIC DISCLOSURE.
   (2)  THE DEPARTMENT SHALL ESTABLISH AUDITOR QUALIFICATIONS AND A PROC-
 ESS FOR APPROVAL OF AUDITORS THAT ENSURES SUFFICIENT  AUDITOR  CAPACITY,
 AS  WELL AS TIMELY REPORTING IMPLEMENTATION AS REQUIRED UNDER CLAUSE ONE
 OF SUBPARAGRAPH I OF THIS PARAGRAPH.
   B. THE DEPARTMENT SHALL CREATE OR CONTRACT WITH, AN EMISSIONS REGISTRY
 TO DEVELOP A REPORTING AND REGISTRY PROGRAM TO RECEIVE AND MAKE PUBLICLY
 AVAILABLE DISCLOSURES REQUIRED BY  THIS  SECTION.  EMISSIONS  REGISTRIES
 SHALL  NOT  BE  AUTHORIZED  TO  PROVIDE  SERVICES  TO  A COMPANY WHERE A
 CONFLICT OF INTEREST EXISTS. A CONFLICT OF INTEREST SHALL INCLUDE:
   I. THE EMISSIONS REGISTRY AND REPORTING ENTITY SHARING ANY  MANAGEMENT
 STAFF  OR BOARD OF DIRECTORS MEMBERSHIP, OR ANY OF THE SENIOR MANAGEMENT
 STAFF OF THE REPORTING ENTITY HAVING  BEEN  EMPLOYED  BY  THE  EMISSIONS
 REGISTRY OR REPORTING ENTITY WITHIN THE PREVIOUS FIVE YEARS.
   II.  ANY  EMPLOYEE  OF  THE  EMISSIONS  REGISTRY, OR ANY EMPLOYEE OF A
 RELATED ENTITY, OR A SUBCONTRACTOR WHO IS  A  MEMBER  OF  THE  EMISSIONS
 REGISTRY  HAVING  PROVIDED THE REPORTING ENTITY WITH SERVICES RELATED TO
 THE AREAS OF EMISSIONS REGISTRY,  OR  ANY  SERVICES  DESIGNATED  BY  THE
 DEPARTMENT, WITHIN THE PREVIOUS FIVE YEARS.
   III.  ANY STAFF MEMBER OF THE EMISSIONS REGISTRY PROVIDING ANY TYPE OF
 NON-MONETARY INCENTIVE TO  A  REPORTING  ENTITY  TO  SECURE  A  SERVICES
 CONTRACT.
   C.  THE  DEPARTMENT  MAY ADOPT OR UPDATE ANY OTHER REGULATIONS THAT IT
 DEEMS NECESSARY AND APPROPRIATE TO IMPLEMENT THIS SUBDIVISION.
   3. A. THE DEPARTMENT SHALL PREPARE A REPORT ON THE PUBLIC  DISCLOSURES
 MADE  BY REPORTING ENTITIES TO THE EMISSIONS REGISTRY PURSUANT TO SUBDI-
 VISION TWO OF THIS SECTION AND THE REGULATIONS ADOPTED BY THE DEPARTMENT
 PURSUANT TO SUCH SUBDIVISION. IN  PREPARING  THE  REPORT,  CONSIDERATION
 SHALL BE GIVEN TO, AT A MINIMUM, GREENHOUSE GAS EMISSIONS FROM REPORTING
 ENTITIES  IN THE CONTEXT OF STATE GREENHOUSE GAS EMISSIONS REDUCTION AND
 CLIMATE GOALS.  THE DEPARTMENT SHALL ISSUE THE REPORT OF ITS FINDINGS TO
 THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF
 THE SENATE AND SHALL PUBLISH SUCH REPORT ON ITS WEBSITE.
   B. THE EMISSIONS REGISTRY SHALL MAKE THE REPORTING  ENTITIES'  DISCLO-
 SURES  AVAILABLE  ON  THE  DEPARTMENT'S  WEBSITE  WITHIN  THIRTY DAYS OF
 RECEIPT OF SUCH DISCLOSURES.
   4. THE ATTORNEY GENERAL MAY BRING A CIVIL ACTION AGAINST  A  REPORTING
 ENTITY  SEEKING  CIVIL PENALTIES OF ONE HUNDRED THOUSAND DOLLARS PER DAY
 FOR WILLFUL FAILURE TO COMPLY WITH THE REQUIREMENTS OF THIS  SECTION  OR
 REGULATIONS SET FORTH BY THE DEPARTMENT.
   § 3. This act shall take effect two years after it shall have become a
 law. Effective immediately, the addition, amendment and/or repeal of any
 rule  or  regulation necessary for the implementation of this act on its
 effective date are authorized to be made and completed on or before such
 effective date.