The proposed bill mandates that, starting January 1, 2028, all businesses operating in Colorado with annual revenues exceeding $1 billion must publicly disclose their total greenhouse gas (GHG) emissions for the previous calendar year. This includes direct emissions from owned or controlled sources (Scope 1) and indirect emissions from purchased electricity, steam, heating, and cooling (Scope 2). Beginning January 1, 2029, these businesses are also required to report all other indirect emissions that occur in their value chain (Scope 3). Each disclosure must be independently verified by a third-party auditor. Non-compliance may result in civil penalties of up to $100,000 for each day of violation, enforceable by district attorneys or the state attorney general.
This initiative aligns with Colorado's ongoing efforts to enhance transparency and accountability in GHG emissions reporting, building upon existing regulations that require certain industries to monitor and report their emissions to the state.
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.
