The Nickel Report

CARB deadline to adopt SB 253 implementing regulations

Under SB 253, the California Air Resources Board (CARB) is currently required to develop and adopt regulations to implement the new emissions disclosure requirements by January 1, 2025.

CARB’s deadline to develop and adopt SB 253 implementing regulations would be delayed to July 1, 2025.

Deadlines for SB 253 reporting – Scope 1 and 2 emissions

Entities subject to SB 253 are required to publicly report their Scope 1 and Scope 2 emissions starting in 2026 (for the prior fiscal year) on or by a date determined by CARB and annually thereafter.

No change

Deadlines for SB 253 reporting – Scope 3 emissions

Entities subject to SB 253 are required to publicly report their Scope 3 emissions (for the prior fiscal year) starting in 2027 no later than 180 days after their Scope 1 and 2 emissions are publicly disclosed.

Scope 3 emissions would still have to be disclosed annually starting in 2027, but on a schedule specified by CARB. As explained in our previous post, arguably this change would give CARB the latitude to enact regulations requiring phased reporting of different Scope 3 emission categories.

Deadlines for SB 261 publication of climate-related risk report

Entities subject to SB 261 are required to report climate-related financial risks on their public website by January 1, 2026 and biennially thereafter.

No change

Requirement for CARB to contract with an emissions reporting organization

SB 253 currently requires CARB to contract with a nonprofit “emissions reporting organization” (ERO) to receive emissions disclosures and to make them public on a digital platform, among other things.

SB 261 requires CARB to contract with the ERO to biennially prepare a public report that consolidates reported climate-related financial risk data.

CARB would be authorized, rather than required, to contract with a climate reporting organization to carry out the above-described actions that the state board deems appropriate.

Consolidated SB 253 reporting at parent company level

SB 253 does not currently state whether emission disclosures may be consolidated at the parent company level.

Health and Safety Code section 38532 (as enacted by SB 253) would be amended to specifically state that emissions disclosure reports may be consolidated at the parent company level and to specify that, if a subsidiary of a parent company qualifies as a reporting entity under SB 253, it is not required to prepare a separate report.