Further to last week’s report, yesterday, CARB is holding today its third virtual public workshop on SB 253 (GHG emissions) and SB 261, as amended by SB 219, with reference to these workshop slides.
Among the key takeaways from the slides:
· The initial regulation will establish a first year only reporting deadline for SB 253, which is now proposed to be August 10, 2026, and reporting fee structure.
o CARB proposes that companies whose fiscal year ends between January 1 and February 1, 2026, will report data from their fiscal year ending in 2026, and that companies whose fiscal year ends between February 2 and December 31, 2026, will report data from their fiscal year ending in 2025 (slide 11).
o Entities that were not collecting data or were not planning to collect data at the time the December 2024 Enforcement Notice was issued are not expected to submit Scope 1 and 2 reporting data in 2026, and should submit a statement to that effect on company letterhead (slide 12).
o Assurance (limited or otherwise) is not required for 2026 reporting (slide 12).
· CARB is still pursuing an annual flat fee structure based on the number of regulated entities. Each covered subsidiary would be assessed a fee that could be payable at the parent company level (slide 16).
· On par with its initial proposal subject to some modifications, CARB proposes to define “doing business in California” with reference to Revenue and Tax Code § 23101 for both SB 253 and SB 261, excluding Section 23101(b)(3-4) relating to property holdings and payroll, and with a minimum inflation-adjusted sales threshold ($735,019 as of 2024). See slides 24 – 25.
· With respect to both SB 253 and SB 261, a parent company can report on subsidiary’s behalf (parent can include in-scope subsidiary in a consolidated report regardless of whether parent is itself in scope). See slides 26 – 28 and flow charts on pages 29 – 30.
· Nonprofits and companies whose only business in California is the presence of teleworkers are proposed to be exempt from both SB 253 and SB 261 (slide 31).
· SB 261 proposals are consistent with what has been published previously (slides 33 – 36).
· CARB is reviewing public feedback on the draft Scope 1 and Scope 2 Emissions Draft Reporting Template and accompanying memo, which are not required to be used in 2026 (slide 12). The Society plans to submit a member-informed comment letter on the template and memo later this week.
· As noted on Slide 7, CARB posted updated FAQs and an updated SB 261 draft checklist on its website yesterday.
Stay tuned for additional information following the workshop.
If you are interested in participating in the Society’s 100-member CARB working group and have not already expressed a desire to do so, please contact Randi Morrison.