California Signs Climate Laws, Bringing Back Urgent Timeline

California’s Climate Accountability laws originally consisted of three bills: 

• Senate Bill 253 (the Climate Corporate Data Accountability Act), requires companies with revenues greater than $1 billion that do business in California to annually report their scope 1, 2, and 3 emissions 

• Senate Bill 261 (the Climate‐Related Financial Risk Act), requires companies with revenues greater than $500 million that do business in California to prepare a report disclosing their climate-related financial risk, as well as measures to reduce and adapt to that risk 

• Assembly Bill 1305 (the Voluntary Carbon Market Disclosures Act), requires entities that sell, market, purchase, or use voluntary carbon offsets within California, as well as entities that make net zero or carbon neutral claims in the state, to disclose this information 

See below for a specific breakdown of SB 253 and SB 261 changes. 

Modifications to SB 253: 

Modifications to SB 261: 

To conclude, California’s new bill, SB291, makes minor amendments to existing bills SB253 and SB261, specifically regarding timeline and fees. For example, it extends the deadline for CARB to develop and adopt SB253 by 6 months, removes the filing fees for SB251 and SB261, and adds some flexibility to the timeline to report scope 3 emissions.

However, while there is added flexibility, the law is progressing toward full implementation. The 2026 reporting start date remains, and companies must act now to prepare or risk facing significant non-compliance penalties. These regulations will impact most large businesses in the U.S., and the time for compliance preparation is quickly approaching. 

Sources:

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240SB219