The Nickel Report

During its monthly meeting on February 26, 2026, the California Air Resources Board (CARB) approved staff’s proposed initial implementing regulations for California’s climate emissions disclosure and financial risk reporting laws enacted in 2023, SB 253 and SB 261. The rulemaking package approved by the Board establishes CARB’s administration and implementation fee program and finalizes key regulatory definitions for fee assessment and program applicability.

Despite substantial public comment on the proposed regulations published in December 2025, the Board approved the initial fee regulation as proposed (without changes). The regulations set forth key definitions for determining SB 253/261 applicability, an August 10, 2026 deadline for submitting initial SB 253 reports, a formula for CARB to calculate program administration fees, and a process for CARB to issue written fee determinations for each reporting entity.

During the February 26 meeting, substantial comments were received questioning CARB’s authority to exempt by regulation companies subject to California Department of Insurance regulation, given that SB 261 explicitly provides an exemption for such companies but SB 253 does not. After discussion between CARB Board members and staff, the Board approved a modified resolution requiring staff to further evaluate applicability of SB 253 to insurance companies.

Under the California Administrative Procedure Act (CalAPA), for the approved regulations to become law, CARB staff will need to prepare responses to public comments received in a Final Statement of Reasons (FSOR). The final rulemaking package must then be submitted to the California Office of Administrative Law (OAL) for 30-day review to ensure that the regulations comport with CalAPA standards for agency rulemaking. OAL must approve the rulemaking action and file the regulations with the Secretary of State, after which they become effective. Alternatively, if CARB staff determines that substantial additional changes are needed, the changes must be noticed and CARB will take additional public comment for at least 15 days before seeking additional Board approval and then submittal to OAL.