On October 12, 2026, the California Air Resources Board (“CARB”) completed the lengthy process of finalizing the Initial Regulation for Reporting under SB 253 (the Climate Corporate Data Accountability Act) when the California Office of Administrative Law (“OAL”) approved the California Corporate Greenhouse Gas Reporting and Climate-Related Financial Risk Disclosure Initial Regulation (the “Initial Regulation”) and filed it with the California Secretary of State. The Initial Regulation became effective on the date of that filing and is codified at Title 17, California Code of Regulations, Article 6, Sections 96070-96077.
Despite the duration of the rulemaking process, the substance of the final version of the Initial Regulation is substantially the same as the immediately preceding drafts. A review of the history and content of the Initial Regulation is set forth below.
Initial Regulation under SB 253
Under the authority of SB 253, CARB made history in February 2026 by issuing the first implementing regulation mandating climate disclosures within the United States. In terms of process, the final technical package for the Initial Regulation was submitted by CARB staff to the CARB board on May 20, 2026, but it was withdrawn to allow for “limited clarifying changes” and extension of the SB253 reporting deadline to November 10, 2026. CARB staff planned to resubmit the technical package, following a public comment period, by September 1, 2026. At that time, CARB planned to release a guidance document and instructional video,and an optional platform for gathering information about reporting companies.
Notice of Availability
As promised in prior communications, CARB did issue a guidance document and online platform on September 1, 2026, as described in their Notice of Availability of 2026Reporting Resources (the “Notice”). Following closure of the public comment period on the draft Initial Regulation on August11, 2026, CARB staff resubmitted the technical package for the Initial Regulation to the OAL for final approval.
Intake Platform
CARB developed and published a voluntary 2026 Report Intake Platform that entities may choose to use, but it is not mandatory. The Platform can be used to provide CARB with contact information ahead of the reporting deadline,and it also provides fields to submit Scope 1 and 2 emissions reports to CARB.
Guidance
On September 1, 2026, CARB published written Guidance for SB 253 2026 Reporting Submittals (the “Guidance”). The Guidance document summarized key points and reiterated that CARB did not intend to extend or impose other requirements than those in the statues and Initial Regulation. The Guidance document was intended to signal predictability and regulatory certainty for potential filers. Most importantly, it reiterated that CARB will exercise enforcement discretion in many areas, consistent with prior communications.
Final Reporting Requirements
The highlights of reporting under the Initial Regulation are set forth below:
· Applicability: Regarding applicability of SB 253 reporting requirements, the revenue threshold remains $1 billion and the “Doing Business in CA” test will require at least $735,000 of revenue derived from CA.
· Related entities: Parent and subsidiary entities can consolidate for both reporting and fee payment.
· Filing deadline: Disclosures under SB 253 will be due on or before November 10, 2026
· Contents: SB 253 reporting for 2026 can be limited to Scope 1 and 2 greenhouse gases only, but is expected to expand to require Scope 3 in 2027.
· Cost: Annual fees are expected to range between $2,000-7,000 in the first year.
· Format: As specified, the basic format for reports is GHG Protocol reporting format. Other acceptable formats include existing annual reports of the filer or reports submitted to voluntary organizations. A Scope 1 & 2 Reporting Template for SB253 has been provided but is not required.
· Emissions Factors: CARB will not require use of a specific emission factor dataset for 2026 reporting.
· Assurance requirements: While limited assurance is technically required in 2026, reports will be accepted without it.
· Entities with Limited Emissions Data: Entities may submit Scope 1 and 2 data they already possess, or was collected on or by December 5, 2024.
· Entities without Emissions Data: Entities that do not possess emissions information,and were not collecting it on or before December 5, 2024, may submit a Statement of Non-Reporting on their letterhead.
· Submissions: Can be made by email or through the Intake Platform.
· CARB will continue to follow its December 2024Enforcement Notice, which states that for the 2026 reporting cycle CARB will not take enforcement action against companies working in good faith to comply with SB 253.
In summary, as suggested by the Guidance, the final version of the Initial Regulation is consistent with prior drafts, completing a clear pathway to compliance for effected entities.
Please contact us if you’d like to discuss your compliance obligations, in the U.S. and beyond.
Chip Horton and Jarret Johnson,Esq.
Tellus Markets Corp.
