Overview
- On February 26, 2026, the California Air Resources Board adopted initial regulations to implement SB 253 and SB 261, establishing program structure and a fee system to recover costs including personnel, contracting, and legal defense.
- SB 253 applies to entities doing business in California with more than $1 billion in global revenue, while SB 261 covers those above $500 million, with definitions aligned to state tax rules and several exemptions including nonprofits, insurance‑regulated entities, and government‑majority‑owned firms.
- For the first year only, companies meeting SB 253 thresholds must disclose Scope 1 and Scope 2 greenhouse gas emissions by August 10, 2026, and advisors are urging affected firms to begin collecting data consistent with the GHG Protocol.
- CARB will host a virtual workshop on March 23, 2026, from 1–4 pm Pacific to detail the August deadline, outline 2027–2030 reporting development, present preliminary options for Scope 3, and take feedback, with materials to post by March 20.
- SB 261 reporting is voluntary during the injunction, and Ninth Circuit arguments in January examined compelled speech issues and raised questions about severability related to Scope 3 disclosures.