Back in December, I wrote about draft regulations for SB 253 and SB 261 put forward by the California Air Resources Board (CARB). Now CARB has adopted the draft regulations, making them binding. These regulations define terms for scoping under the California disclosure laws. They also set a reporting deadline of August 10, 2026, for entities required to report carbon emissions under SB 253. A recent Sullivan & Cromwell memo gives the specifics:
“The Regulations establish CARB’s fee structure for SB 253 and SB 261 and define key concepts relevant to determining the entities in-scope of the laws. In addition, the Regulations set an August 10, 2026 deadline for the first greenhouse gas (“GHG”) reports under SB 253, as well as the period to be covered in the initial reports. CARB announced that it will begin a separate rulemaking on GHG emission reporting requirements for 2027 and onwards, and on the assurance requirements associated with such reporting.”
Of course, SB 253 and SB 261 are still being litigated in the 9th Circuit Court of Appeals. The courts are allowing SB 253 to be enforced while litigation is pending. On the other hand, the courts enjoined SB 261 pending the outcome of litigation. This litigation will have impacts outside of California, as other states, including New York, passed similar legislation. Win or lose, the Court’s opinion in the California case will establish a precedent that will be used in future legal battles. For now, companies should prepare for SB 253 compliance, which requires companies to disclose Scope 1 and Scope 2 emissions this year.
Our members can learn more about climate disclosure laws here.
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