California Defers Corporate GHG Reporting Deadline and Signals Limited, Forthcoming Changes

The California Air Resources Board (CARB) has announced a three-month deferral of the initial Scope 1 and Scope 2 greenhouse gas (GHG) emissions reporting deadline under Senate Bill 253, extending it from August 10, 2026, to November 10, 2026. CARB also signaled that modest amendments will be forthcoming, with proposed changes subject to a 15-day public comment period. Covered businesses will accordingly have additional time to prepare required disclosures and should continue to monitor regulatory developments in the interim.

KEY TAKEAWAYS

CARB has deferred the initial Scope 1 and Scope 2 GHG emissions reporting deadline by three months, from August 10, 2026 to November 10, 2026.

• CARB will propose limited changes to clarify certain requirements contained in the regulations implementing SB 253 and will open a 15-day public comment period for stakeholder input.
• The reporting program applies to US-based companies with more than $1 billion in annual revenue (nationwide) that do business in California.
• Initial 2026 reports will cover Scope 1 and Scope 2 GHG emissions, with Scope 3 disclosures required by a date to be determined in 2027.

BACKGROUND

The California Corporate Greenhouse Gas Reporting Program, established by SB 253, requires US-based companies with total annual revenues exceeding $1 billion, and that do business in California, to annually disclose Scope 1, Scope 2, and Scope 3 GHG emissions by certain prescribed dates.

CARB is responsible for implementing this program and approved an initial regulation on February 26, 2026, which sets out applicable reporting requirements, including guidance on covered entities, limited exemptions for certain entities, fees for program implementation costs, and, at issue here, the first-year reporting deadline. This first-year deadline to report GHG emissions was initially set by the implementing regulations for August 10, 2026.

REGULATORY UPDATE AND DEFERRED DEADLINE

On June 24, 2026, CARB announced that it is updating its regulatory proposal to defer the deadline for reporting entities to submit their Scope 1 and Scope 2 GHG emissions from August 10, 2026 to November 10, 2026. This three-month deferral is intended to provide reporting entities with additional time to comply with forthcoming, clarifying amendments to the initial regulation proposed, as discussed further below.

CARB has indicated that it will be proposing limited amendments to its proposed rules to clarify certain requirements. CARB has accordingly withdrawn its initial, proposed regulatory package from the Office of Administrative Law (OAL) to allow an opportunity for public comment on those amendments. These clarifications will be made available for public comment as part of the forthcoming 15-day comment period.

After the comment period, CARB will resubmit the updated regulation to the OAL for final approval. The deferral of the August 10, 2026 deadline is intended to accommodate these changes.

For more information on SB 253, including pertinent background and implementation details, see our prior LawFlashes: California Air Resources Board Approves Initial Regulations for Climate Disclosure Laws; Greenhouse Gas and Chemical Regulation Shifts as Federal Rollbacks Meet State Action; California Climate Disclosure: CARB Moves from Guidance to Proposed Rules; CARB Update: Climate Clock Keeps Running Despite Regulatory Delay.

CONCLUSION

CARB’s extension of the reporting deadline under SB 253 gives covered businesses additional time to finalize their Scope 1 and Scope 2 disclosures. Companies should continue to monitor regulatory developments for further changes to the proposed rules and applicable deadlines. Staying engaged and prepared will be essential as California moves forward with implementing these significant new disclosure requirements.

HOW WE CAN HELP

Morgan Lewis continues to advise numerous companies of all sizes on compliance with California’s groundbreaking climate change laws, including SB 253, SB 261, and AB 1305. If you have any questions or concerns, please do not hesitate to reach out to us.

Law clerk Hannah Ritter contributed to this LawFlash.