California is poised to force major companies to disclose their greenhouse gas emissions, the most sweeping mandate of its kind and one that could have major implications for the broader economy, given the state's size and prominence.

The emissions disclosure legislation cleared the assembly Monday night in a 41-20 vote, after passing the full Senate earlier this year. The bill would require thousands of public and private businesses operating in the Golden State that make more than $1 billion annually to report their indirect and direct emissions.

Significantly, the both public and private companies report so-called "Scope 3" emissions, which are those included in a business's value chain or in the use of its products — a crucial consideration for energy companies.

While the bill has become one of the most high-profile climate bills in the state and has racked up support from major companies such as Google and Apple, a number of business groups have come out in opposition of the bill, arguing that it’s too burdensome.

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The bill would still need final approval of the state Senate before it can reach the governor’s desk. Newsom has declined to share his position when asked last month – but his administration’s Department of Finance opposed the bill back in July, asserting that the plan would cost the state money that isn’t appropriated in its budget.

The policy would require more than 5,300 companies to report their emissions, according to Ceres, a nonprofit policy group supporting the bill.

The measure appears to go significant beyond a proposal from the U.S. Securities and Exchange Commission to require public companies to disclose emissions. The proposed rule mandates disclosures for Scope 1 and 2 emissions, which are emissions generated by a company’s own operations and through the energy it purchases. The proposed rule would also require Scope 3 disclosures – indirect emissions that were created by the company’s value chain – but only if they’re material to the company, or if the company has set an emissions target or goal that includes Scope 3. The Scope 3 requirements could be pared back in a final rule, and liberal congressional Democrats have lobbied the commission to tighten the requirements in the final measure.

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The expected move by California’s lawmakers reinforces that the state is paving the way for aggressive climate policy. Lawmakers are also weighing a bill that would require companies making more than $500 million annually to disclose how climate change poses a financial risk to their corporations.