FINAL APPROVAL AND REPORTING REQUIREMENTS
CARB initially approved the regulations on February 26, 2026, establishing foundational definitions, applicability criteria, administrative fees, and the first-year reporting deadline. As discussed in our LawFlash California Air Resources Board Approves Initial Regulations for Climate Disclosure Laws, the initial regulations implement key provisions of Senate Bill 253 and Senate Bill 261, California’s companion climate-related financial risk disclosure law.
Following subsequent revisions and a three-month extension of the original August 10 reporting deadline (as detailed in CARB Extends SB 253 Deadline and Previews 2027 Reporting Rules), the regulations have now received final approval.
The initial SB 253 reporting requirements generally apply to US-based companies with more than $1 billion in annual revenue that do business in California, subject to applicable definitions and exemptions. The first-year reports are required to cover Scope 1 and Scope 2 emissions, with Scope 3 reporting scheduled to begin in 2027.
While the initial regulations address both SB 253 and SB 261, the US Court of Appeals for the Ninth Circuit has enjoined enforcement of SB 261 pending appeal. CARB has stated that it will not enforce SB 261 while the injunction remains in effect. The injunction does not extend to SB 253, and the October 12 approval does not alter that distinction.[1]
NEXT STEPS FOR REPORTING ENTITIES
To facilitate the first reporting cycle, CARB has established a voluntary online intake platform through which reporting entities may submit contact information and Scope 1 and Scope 2 emissions reports. Companies may alternatively submit this information via email.
CARB has also released a guidance document for 2026 reporting submissions and instructional materials to assist entities preparing their initial submissions. Covered companies should review CARB’s submission guidance, confirm their reporting obligations, and finalize the information necessary to meet the November 10 deadline.
CARB’s previously announced first-year enforcement discretion remains an important consideration for companies addressing incomplete emissions data or other reporting challenges. As discussed in CARB Extends SB 253 Deadline and Previews 2027 Reporting Rules, this flexibility does not eliminate the reporting obligation, and companies relying on it should document their good-faith compliance efforts and follow applicable submission guidance.
With the initial regulations now effective, companies should focus on completing their 2026 reporting while continuing to monitor CARB’s separate rulemaking for 2027 and subsequent reporting years.
HOW WE CAN HELP
Morgan Lewis lawyers are closely tracking CARB’s implementation of California’s climate disclosure laws and related litigation.
Our team can assist companies in evaluating the applicability of the regulations, preparing for SB 253 emissions reporting, monitoring developments related to SB 261 climate-risk disclosures, and assessing governance, disclosure, and compliance strategies as California’s climate disclosure framework continues to evolve.
Please reach out to your Morgan Lewis contact or the authors of this LawFlash to discuss how these developments may affect your organization.
