Two climate reporting measures are moving forward in the state regulatory process, SB 253 and SB 261. Both bills passed the Legislature and were signed into law in 2023. Initially, there was a temporary delay in the implementation of SB 253 and SB 261. However, the California Air Resources Board (CARB) is now working on the regulatory implementation for both measures.
The California Corporate Greenhouse Gas Reporting Program, SB 253, requires entities doing business in California with more than $1 billion in annual revenue to disclose the following greenhouse gas (GHG) emissions: scope 1 (direct emissions), scope 2 (indirect emissions, including: electricity, heating, cooling, etc.), and scope 3 (indirect upstream and downstream emissions, such as: employee commutes, business travel, product transportation, etc.).
As our members may recall, Ag Council and other organizations had advocated that scope 3 be removed from the bill during the legislative process to narrow the bill. However, that was rejected by the bill author, Senator Scott Wiener.
Covered businesses under SB 253 must begin disclosing scope 1 and 2 for the prior fiscal year in 2026 (exact date TBD) and scope 3 in 2027. Entities that demonstrate a good faith effort to report those emissions will not face penalties for 2026 disclosures, and CARB stated in a recent workshop that existing data can be used in initial disclosure reports.
Another law in the regulatory process at CARB is the Climate Related Financial Risk Disclosure Program, SB 261. The bill’s author is Senator Henry Stern. The law requires entities doing business in California with more than $500 million in annual revenue to publish climate-related financial risk reports. Existing voluntary reporting frameworks, such as the International Sustainability Standards Board, can be utilized for the SB 261 reporting. The first report is due January 1, 2026, and biennially thereafter.
Ag Council staff recently attended a CARB workshop regarding the implementation of SB 253 and SB 261, and the association’s team will remain engaged in the climate reporting issues on behalf of our members. Further public engagement with CARB will take place this summer with CARB anticipating the development of a regulation by the end of 2025.
Climate Reporting Resources
For a detailed discussion regarding SB 253 and SB 261, click HERE to watch the CARB workshop on YouTube (click “Skip” in lower right corner to jump to the video). Click HERE to read CARB’s SB 253 enforcement notice released late last year.
CARB developed a Frequently Asked Questions document regarding the two regulations, which is available by clicking HERE.