The California Voluntary Carbon Market Disclosures Act

The Voluntary Carbon Market Disclosures Act, Assembly Bill No. 1305 (AB-1305) requires covered business entities to disclose specified information regarding the sale and use of certain voluntary carbon offsets (VCOs), as well as claims of net zero, carbon neutrality, or significant greenhouse gas (GHG) emissions reductions (Cal. Health and Safety Code §§ 44475, et seq.). This disclosure satisfies those obligations.

SMUD does not market, sell, purchase, or use VCOs, nor does SMUD rely on VCOs to support its GHG emissions reduction claims. 

SMUD does have an enterprise goal of achieving zero carbon emissions from SMUD’s power supply by 2030 and has made statements regarding its historical GHG emissions reductions. SMUD’s 2030 Zero Carbon Plan Progress Report, which is updated periodically, describes how interim progress toward SMUD’s 2030 goal is being measured. Metrics include data regarding emissions from SMUD’s fleet of power plants, renewable project development, customer programs and initiatives advancing clean energy progress, and other milestones. 

SMUD’s claims regarding its historical GHG emissions reductions are further supported by data SMUD regularly provides to the California Air Resources Board (CARB). As required by law, each year SMUD reports direct emissions from its power supply via CARB’s Mandatory Greenhouse Gas Reporting and Cap and Trade Regulations. The data SMUD reports to CARB is rigorously verified by a third party and can be found in the emissions inventory published by CARB. Additional information regarding emissions from SMUD’s power supply are also available via SMUD’s Power Content Label, which is published annually in a form prescribed by the California Energy Commission (CEC). 

On an annual basis, SMUD also reports progress toward its emissions reduction goals to its Board of Directors via Strategic Direction policies, specifically Strategic Direction 7 (SD-7) and Strategic Direction 9 (SD-9). SD-7 provides updates on SMUD’s environmental leadership efforts. SD-9 measures progress on SMUD’s GHG emission reductions in its energy supply, and normalizes for variables such as load, hydro and wind, in addition to other resource planning directives. Both SD-7 and SD-9 reports are provided to the Board of Directors as part of publicly-held meetings.