Reduce Corporate Carbon Emissions and Protect Environmental Justice

 

The purpose of this bill is to reduce harmful carbon emissions released by large companies and to protect communities

that are affected by pollution.

 

Many large companies emit a lot of carbon into the air without considering what the long-term consequences are to the

environment or to people who live near their facilities. These emissions fasten the pace of climate change, degrade air

quality, and are weakening to public health. Often, low-income communities bear the biggest brunt of these damages

because they tend to reside much closer to industrial sites. This bill holds corporations accountable and pushes them

toward cleaner, safer practices.

 

Carbon Emissions – The release of carbon dioxide and other greenhouse gases into the atmosphere.

Large Company – Any company that makes over $50 million in yearly revenue or operates major industrial facilities.

Environmental Justice Community – A community that has been historically exposed to higher levels of pollution or

environmental harm.

Clean Technology – Equipment or methods that lower pollution and reduce carbon emissions.

Scope 1 Emissions – Pollution a company creates directly, like from its own buildings, trucks, or factories.

Scope 2 Emissions – Pollution caused by the electricity a company buys and uses.

Scope 3 Emissions – Pollution from everything else connected to the company, like shipping, business travel, and the

factories that make their products.

Baseline Year – The most recent full year of emissions data a company uses to measure its 7% reduction.

 

Funding will come from federal environmental programs and fees collected from companies that exceed emission limits. All

funds will be used for monitoring, community protection programs, and helping companies transition to cleaner

technology.

 

All large companies must reduce their carbon emissions by 7% from their most recent full year of data. This requirement

applies to Scope 1 and Scope 2 emissions, which include all direct emissions a company produces and the emissions from

the electricity they use. Scope 3 emissions, which come from supply chains and outside business partners, will be

encouraged but not required in the first year because they take longer to change.

Companies that go over the allowed carbon emission limit will face the following

A fine of up to $100,000 for the first violation.

Increased fines for repeated violations.

Mandatory inspections and required to reduce emissions.

The Environmental Protection Agency (EPA) will enforce these rules and check company reports every year.

 

This act will go into effect on February 1, 2026.