Dive Brief:
- The California Air Resources Board, the agency tasked with enforcing the state’s climate disclosure rules, is delaying initial rulemaking for Senate Bills 253 and 261 to the first quarter of 2026, according to a notice published Tuesday.
- The final regulations were previously slated to be issued Tuesday, according to a schedule provided by CARB during its August public workshop. The agency said the delay was due to the “large volume of public comments” its staff received following the workshop and the “ongoing input related to identifying the range of covered entities.”
- The revised timeline for the climate-risk disclosure came after CARB published a draft reporting template for entities that must report their scope 1 and scope 2 emissions under SB 253 on Oct. 10. This law requires business entities operating in California with annual revenues exceeding $1 billion to report their greenhouse emissions each year.
Dive Insight:
Though CARB’s notice pointed to a delay in when the final regulations will be issued, it did not disclose any changes to when entities are expected to comply with the climate disclosure rules.
Entities that fall under SB 261 — which impacts companies operating in California with annual revenues over $500 million — are expected to submit their reports on climate related-risks by Jan. 1, 2026. Entities that are covered by SB 253 are expected to report their scope 1 and 2 emissions by June 30, 2026.
The agency said in a memo accompanying the draft reporting template last week that the template aims to “streamline reporting,” especially for those companies that are disclosing greenhouse gas emissions for the first time. The template is divided into several sections, including organization information, third-party verification, scope 1 and scope 2 disclosure and methodology and emission reductions. The template also includes optional fields, such as base year emissions, for future reporting years as CARB further develops the program.
CARB said the SB 253 reporting template is voluntary and covered entities are not required to use it for the 2026 reporting cycle. The agency added it would provide guidance on following reporting cycles as part of its regulatory process.
The agency is also seeking public input on the draft template and memo until Oct. 27 to further improve how companies report their climate impact.
Last month, CARB issued a preliminary list of entities that may be subject to upcoming reporting requirements under either or both the bills, which were signed into law by California Gov. Gavin Newsom in October 2023. The initial list included over 3,100 companies expected to be subject to the state’s climate disclosure laws.
However, the agency said the list may be incomplete and reiterated that potentially covered entities are responsible for complying with both climate laws, even if they are not mentioned in the preliminary list. In addition to the list, CARB posted a voluntary survey to gather feedback on additional entities that may be subject to regulations or stakeholders that may qualify for an exemption.
