2025 California Environmental Legislation Update

By: Demetria Mantalis

Navigating New California Environmental Legislation

As we look ahead, new California environmental legislation continues to push the nation with forward-thinking policies. Specifically, these new laws reflect the State’s strong commitment to innovation and climate resilience. Furthermore, they will significantly impact corporate businesses and everyday consumers across various industries. Therefore, regulators, businesses, and the public must pay careful attention to these changes.

The PFAS Bill: Assembly Bill No. 1817

Assembly Bill No. 1817 (AB 1817) introduces strict new rules. In particular, it prohibits manufacturing, distributing, or selling new textile articles containing regulated PFAS in California. Admittedly, the law includes a few limited exceptions. For instance, lawmakers extended the deadline for severe wet-condition outdoor apparel. However, these products must feature a “Made with PFAS chemicals” disclosure starting January 1, 2025.

Despite these exceptions, this California environmental legislation will significantly impact many industries. For example, the ban applies to common consumer items like apparel and backpacks. Additionally, it affects businesses making or selling accessories, handbags, draperies, and upholstery. To comply, manufacturers must use the least toxic alternatives available instead of PFAS. Moreover, they must also consider alternative designs to ensure consumer safety.

Furthermore, AB 1817 does more than eliminate certain goods. Manufacturers must provide compliance certificates to retailers and distributors. Essentially, these certificates affirm their textile articles meet regulations and lack regulated PFAS. Fortunately, the law protects retailers and distributors from liability if they rely on these certificates in good faith. As a result, impacted businesses should assess their current inventory immediately. Ultimately, they need to identify and rapidly phase out products containing PFAS.

Related: Hazardous Waste in Our Environment: What You Need to Know

The Pesticide Bill: Assembly Bill No. 363

Meanwhile, Assembly Bill No. 363 (AB 363) prohibits selling, possessing, or using neonicotinoid pesticides for nonagricultural purposes. The ban includes nonproduction ornamental plants, trees, or turf, with limited exceptions. Undeniably, these pesticides control harmful insects but also damage human health and the environment. Starting January 1, 2025, this ban protects pollinators from harmful neonicotinoids. Consequently, this affects commercial landscaping businesses and everyday residential gardeners alike.

To enforce this, AB 363 requires the Department of Pesticide Regulation to evaluate neonicotinoid impacts in nonagricultural settings. The Department must then adopt necessary control measures. Subsequently, these measures must include a robust enforcement plan. This plan will likely involve state-mandated local programs to ensure strict compliance. Therefore, businesses and consumers should review their current pesticide stocks today. In short, they must identify and properly dispose of nonagricultural neonicotinoid products.

Oil and Gas Production Bill: Assembly Bill No. 218

Additionally, Assembly Bill No. 218 (AB 218) establishes new requirements for oil and gas facilities within health protection zones. A health protection zone spans 3,200 feet around a sensitive receptor. Generally, sensitive receptors include vulnerable places like homes, hospitals, and schools. Thus, these zones actively safeguard people from oil and gas production risks.

Prior law required health and safety compliance and a leak detection plan by January 1, 2025. However, AB 218 extends this timeline. Under AB 218, operators must submit an inventory and site map to CalGEM. Specifically, the absolute deadline for this submission is July 1, 2025. Fortunately, operators do not need to submit the leak detection plan until July 1, 2028. Nevertheless, they must comply with health and safety requirements starting July 1, 2026. Consequently, businesses must prepare and submit sensitive receptor inventories well before the 2025 deadline.

CEQA Changes: Assembly Bill No. 356 and Senate Bill No. 69

Moving on, AB 356 and SB 69 introduce minor changes to the California Environmental Quality Act (CEQA). These changes mainly affect lead agencies. However, they remain important for businesses and developers navigating CEQA.

AB 356 extends the deadline to evaluate project aesthetic effects. Specifically, this applies to the refurbishment, conversion, or replacement of existing buildings. Furthermore, this rule targets buildings explicitly exempt under CEQA and addresses visual impacts. Lawmakers extended this provision, originally expiring in 2024, until January 1, 2029. Accordingly, lead agencies must file a notice with the Governor’s Office and the county clerk. They do this when approving a project without evaluating aesthetic effects.

Similarly, SB 69 requires lead agencies to file notices of determination within 24 hours of a decision. They must post these updates on the county clerk’s and State Clearinghouse’s websites. As a result, businesses must monitor aesthetic evaluation deadlines and lead agency filings closely.

Related: Is Federal Relief Coming For Exide Contamination?

Climate Transparency Bills: Senate Bills 253 and 261

Next, SB 253 and SB 261 introduce sweeping new climate transparency requirements. Specifically, they promote accountability in financial reporting for large businesses. SB 253 requires companies with over $1 billion in annual revenue operating in California to report emissions. Indeed, they must publicly disclose scope 1, scope 2, and scope 3 emissions. To clarify, Scope 1 covers direct company emissions. Meanwhile, Scope 2 includes indirect emissions. Finally, Scope 3 encompasses the supply chain’s scope 1 and 2 emissions.

Companies must submit these annual disclosures starting January 1, 2026. Initially, the report uses 2025 scope 1 data. Next, firms must include scope 2 emissions in 2026. Eventually, they must add scope 3 emissions in 2027. Overall, this California environmental legislation gives the public a clear view of business impacts. Therefore, businesses must submit these reports to the California Air Resources Board (CARB).

SB 261 targets companies doing business in California with over $500 million in revenue. Specifically, they must provide climate-related financial risk reports detailing physical and transition threats. In addition, companies must explain the measures they take to mitigate these risks. Ultimately, companies must submit the first round of disclosures by January 1, 2026.

Climate Bond: Proposition 4

Lastly, California voters overwhelmingly approved Proposition 4 on the November 2024 ballot. Basically, this creates a $10 billion state investment in climate mitigation and resiliency projects. The State will spread this money across general obligation bonds. In turn, these bonds fund water projects, wildlife protection, and community safety. Ultimately, the bill addresses California’s most urgent climate needs before it becomes too late.

Be Ready For What’s Next

In conclusion, a new year brings focus to our personal goals. However, businesses and consumers must also stay on top of California environmental legislation. Fortunately, companies can avoid penalties by implementing compliance strategies early. Furthermore, this positions them for long-term success in an increasingly regulated landscape. Ultimately, staying informed and proactive ensures compliance and success in the years ahead.

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The Law Office of Jennifer F. Novak Environmental Law represents property owners and businesses in environmental litigation and regulatory matters. Our practice focuses on soil and groundwater remediation, Clean Water Act citizen suits, compliance with Water Board orders (including under Sections 13304 and 13267), and other environmental legal challenges. We provide strategic counsel to clients navigating complex environmental regulations while ensuring fairness in enforcement and compliance.

For dedicated legal representation in environmental litigation and compliance, contact The Law Office of Jennifer F. Novak Environmental Law.