CARB’s May 29 virtual workshop on SB 253 (GHG emissions disclosure) and SB 261 (climate-related financial risk disclosure) was somewhat informative, occasionally bewildering, and certainly disappointing as respects corporates’ need for clarity on the scope of applicability and substantive scope of these new laws, and the apparent lack of any meaningful gap in time between the expected timing of adoption of final regulations and the initial compliance deadlines.
Once it became clear that CARB would not meet the extended deadline of July 1 to adopt implementing regulations as contemplated by SB 219 as to SB 253, and that no assurance of enforcement discretion for good faith reporting under SB 261 (akin to that applicable to SB 253) was contemplated notwithstanding the significant open issues that hamper compliance preparation, numerous attendees orally expressed the need for clarity on the timing of adoption of the final regulations and compliance deadlines, calling for sufficient time to prepare for compliance pursuant to clear and final regulations. See these memos from Latham & Watkins, Ropes & Gray, Simpson Thacher, and Sullivan & Cromwell summarizing the proceedings and offering key takeaways.
The Society plans to continue to engage with CARB on these issues on behalf of our members to seek to achieve predictable, practical, and cost-effective regulations to implement SB 253 and SB 261.
This post first appeared in the weekly Society Alert!