Updates of California Climate Acts (SB 253, SB 261)
Senate Bills 253 and 261 (SB 253 and SB 261) are landmark climate disclosure laws enacted in California to enhance corporate transparency regarding greenhouse gas (GHG) emissions and climate-related financial risks. As of March 2025, several key developments have occurred:
Enactment and Amendments:
October 2023: Governor Gavin Newsom signed SB 253 and SB 261 into law, establishing requirements for large companies operating in California to disclose their GHG emissions and assess climate-related financial risks.
September 2024: SB 219 was signed into law, introducing clarifications and amendments to SB 253 and SB 261. Notably, SB 219 confirmed that the original reporting deadlines of 2026 and 2027 would remain unchanged, despite earlier discussions about potential delays.
Regulatory Actions:
December 2024: The California Air Resources Board (CARB) initiated an information solicitation process to inform the implementation of SB 253 and SB 261. This process allows entities to submit their Scope 1 and Scope 2 GHG emissions data for the first reporting cycle in 2026, provided they demonstrate good faith efforts to meet full reporting requirements.
February 2025: CARB released a comment solicitation to gather information for drafting proposed regulations under SB 253 and SB 261. The deadline for submitting comments was set for February 14, 2025. Key issues under consideration include defining what it means to "do business in California" and the types of entities subject to reporting requirements.
Legal Challenges:
January 2024: Several business associations filed a lawsuit against CARB, challenging the legality of SB 253 and SB 261. The plaintiffs argue that the laws violate their First Amendment rights by compelling speech. A hearing on the motion for a preliminary injunction is scheduled for May 5, 2025.
