The California Air Resources Board (CARB) is updating its regulatory proposal related to SB 253, which will defer the reporting deadline for entities to report Scope 1 and Scope 2 greenhouse gas (GHG) emissions from August 10, 2026, to November 10, 2026. During this time, CARB will propose limited changes to the regulation to clarify certain requirements. CARB’s proposed changes to SB 253 will be available for public comment.

The California Corporate Greenhouse Gas Reporting Program authorized by SB 253 (codified in California Health and Safety Code (HSC) § 38532) requires private and public U.S.-based companies with total annual revenues in excess of $1 billion that do business in California to annually disclose their Scope 1, Scope 2, and Scope 3 emissions for the prior fiscal year. SB 253 requires that the initial (first-year) annual emissions disclosures in 2026 address Scope 1 and Scope 2 emissions, and in subsequent years (beginning in 2027), include Scope 3 emissions.

In-scope companies should continue to work toward compliance based on the existing requirements of SB 253 and related guidance released by CARB, which can be found on CARB’s website. Companies should also continue to monitor CARB’s website for the proposed changes to SB 253. CARB has not indicated that it will change its first-year compliance accommodations, which allow companies to (i) use flexible reporting formats, or (ii) submit a letter stating they will not undertake first-year reporting under SB 253 because they had not collected Scope 1 and Scope 2 data as of December 2024.

As a reminder, SB 261 remains stayed by the U.S. Court of Appeals for the Ninth Circuit (Ninth Circuit) pending the court’s ruling on an appeal of a lower court’s denial of a motion for a preliminary injunction in litigation challenging SB 261 and SB 253. The Climate-Related Financial Risk Disclosure Program authorized by SB 261 (codified in HSC § 38533) requires private and public U.S.-based companies with total annual revenues in excess of $500 million that do business in California to publish biennial climate-related financial risk reports.

The Ninth Circuit’s pending decision may be rendered at any time, including ahead of the new proposed deadline for compliance with SB 253. The Ninth Circuit's decision may affect compliance obligations under both laws. The court could lift the existing stay on SB 261, requiring in-scope companies to prepare for disclosure under both statutes. Alternatively, the court could enjoin SB 253, placing both laws on indefinite hold.

For more information on this topic or any related matter, please contact any member of the Wilson Sonsini’s Corporate practice.