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California Unveils Draft Climate Disclosure Rules and Sets February Hearing

A federal injunction keeps SB 261 on hold, leaving SB 253 to proceed toward an August 2026 first reporting deadline.

Overview

  • CARB posted proposed regulatory text for SB 253 and SB 261 and plans to open a 45-day public comment window on Dec. 26, closing Feb. 9, 2026.
  • The CARB board will consider the rules at a public hearing on Feb. 26, with a possible continuation on Feb. 27 and a remote attendance option available.
  • Under the SB 253 proposal, companies with over $1 billion in revenue would file scope 1 and scope 2 emissions by Aug. 10, 2026, using a revenue definition based on California gross receipts and the lesser of the prior two fiscal years.
  • Nonprofits, government entities, insurers, firms limited to wholesale electricity purchases in California, and entities only paying teleworking employees in the state are excluded under the draft rules.
  • Following a Ninth Circuit injunction, CARB will not enforce SB 261’s Jan. 1, 2026 deadline and has opened a voluntary filing docket, as business groups including the U.S. Chamber and ExxonMobil continue First Amendment challenges.