On Sept. 27, 2024, Gov. Gavin Newsom signed into law Senate Bill (SB) 219, delaying implementation of California’s emissions and climate-related financial risk corporate disclosure laws. As we reported in a previous GT Alert, SB 219 amends some of the California Air Resources Board (CARB)’s requirements for implementing SB 253 and SB 261.
As amended by SB 219, CARB must adopt Scope 1, 2, and 3 emissions reporting regulations for companies by July 1, 2025, a delay of six months from the Jan. 1, 2025, requirement under SB 253. Annual reporting for Scope 1 and Scope 2 emissions would still commence in 2026 or such other date as determined by CARB. However, the timing of Scope 3 emissions annual reporting will now begin in 2027 on a schedule to be established by CARB, rather than within 180 days after disclosure of Scope 1 and 2 emissions.
The law will now permit climate reporting to be consolidated at the parent-company level. Previously, the law required subsidiary companies who met the compliance thresholds to provide separate reports. In addition, no filing fees will be required.
Now that the governor has signed SB 219, CARB may issue guidance in the coming months regarding its next steps and the status of its rulemaking. Meanwhile, companies subject to the California reporting requirements should still begin to prepare for the upcoming disclosure regime. The delay afforded to CARB in establishing its regulations will only shorten the time companies otherwise have to prepare for the first reports in 2026.