The California Air Resources Board (CARB) voted on February 26, 2026 to approve regulations implementing California’s landmark corporate climate disclosure laws, establishing compliance timelines and administrative rules for companies subject to the requirements. The regulations confirm that companies must submit their first emissions disclosures by August 10, 2026.
The board’s action marks a major step toward implementing California’s corporate climate reporting regime. Companies subject to the laws must now begin preparing emissions inventories and climate-risk disclosures ahead of the first compliance deadline.
California’s Corporate Climate Disclosure Laws
The regulations implement two statutes enacted in 2023: SB 253, the Climate Corporate Data Accountability Act, and SB 261, the Climate-Related Financial Risk Act. Together, these laws create one of the most expansive climate transparency frameworks for businesses operating in the United States.
SB 253 requires companies with revenues of more than $1 billion doing business in California to report their greenhouse gas (GHG) emissions publicly. The required disclosures include direct emissions from a company’s operations (Scope 1), indirect emissions associated with purchased electricity and energy (Scope 2), and value-chain emissions tied to suppliers and product use (Scope 3).
SB 261 requires companies with more than $500 million in annual revenue doing business in California to report publicly the climate-related financial risks to their company and the strategies they will use to manage those risks.
Reporting Deadline and Procedures
Under the approved regulations, companies subject to SB 253 must submit their first emissions disclosures by August 10, 2026. The initial reporting year will require companies to disclose Scope 1 and Scope 2 emissions only, with Scope 3 reporting to be phased in later as companies and regulators develop more standardized data collection and verification processes.
The CARB approval also establishes the administrative structure for the program, including oversight of reporting requirements and verification procedures.
Fee Structure
As part of the implementation package, CARB also approved a fee structure designed to fund administration of the reporting system, including the development of emissions reporting infrastructure, verification systems, and compliance oversight. The fees will apply to companies required to report under the disclosure laws and will support CARB’s implementation and enforcement activities.