The Climate Corporate Data Accountability Act Senate Bill (SB) 253 (Wiener, Statutes of 2023, Chapter 382) requires entities formed under the laws of California, the laws of any other state or the District of Columbia with total annual revenues over ($1,000,000,000) that do business in California to annually report all of their Scope 1, Scope 2, and Scope 3 greenhouse gas emissions. This legislation aims to promote transparency. The California Air Resources Board (CARB) is required to promulgate regulations implementing SB 253, including establishing a date in 2026 when the first emission reports will be due.
In the meantime, however, CARB has announced it will not penalize entities for incomplete Scope 1 and 2 emissions disclosures under SB 253 during the first reporting period. Specifically, on December 5, 2024, CARB issued an Enforcement Notice, stating it would not impose penalties for incomplete reports when the first disclosures are due in 2026, provided entities make “good faith” efforts. This policy applies to Scope 1 and 2 emissions from the previous fiscal year. CARB’s discretion has raised concerns from environmental groups, who may challenge the decision, and angered lawmakers. The law’s authors, Senators Scott Wiener and Henry Stern, expressed frustration with CARB’s slow progress in implementing SB 253, warning of oversight hearings in 2025 unless progress is made.
This notice only affects SB 253, and not other climate disclosure laws like SB 261 or AB 1305.
CARB also opened a 60-day public comment period on the implementation of SB 253 and SB 261, ending February 14, 2025, allowing stakeholders to provide input.