In December 2024, the California Air Resources Board (CARB) took steps toward the implementation of California’s Climate-Disclosure Legislation – SB 253 and SB 261, which were amended by SB 219.
Enforcement Notice for SB 253
With respect to the Climate Corporate Data Accountability Act, or SB 253, CARB released an “Enforcement Notice” on December 5, stating that it “recognizes that companies may need some lead time to implement new data collection processes to allow for fully complete scope 1 and scope 2 emissions reporting, to the extent they do not currently possess or collect the relevant information.”
Under the regulation, the first reports are due in 2026, and CARB’s notice states that “reporting entities may submit scope 1 and scope 2 emissions from ‘the reporting entity’s prior fiscal year’ that can be determined from the information the reporting entity already possesses or is already collecting at the time this Notice was issued.” As long as a reporting entity demonstrates a good faith effort to comply with the law’s requirements, CARB will not take enforcement action against it for incomplete reporting. However, CARB notes that reporting companies should be moving toward full compliance with the law.
Information Solicitation
On December 16, CARB issued an “Information Solicitation,” requesting input from entities affected by SB 253 as well as the Climate Related Financial Risk Act, or SB 261. CARB’s solicitation aims to collect information that will help it implement the legislation. The deadline for comments is February 14, 2025, and comments can be submitted using this link.
The information provided in this update is for general information purposes only, may not be updated in real time and does not constitute legal advice. Please consult with your legal and other advisors to discuss your particular needs and circumstances.
