California's Climate Disclosure Regulation Takes Effect on October 12 — First SB 253 Scope 1 and 2 Reports Due November 10, Fee Notices by December 10, SB 261 Unenforced Under Injunction

California's climate disclosure regime became legally final just before the first reports are due. The Office of Administrative Law (OAL) approved the California Air Resources Board's (CARB) initial climate disclosure regulation and filed it with the Secretary of State on October 12, 2026. The regulation took effect on filing.

This fixes the first deadline for Scope 1 and 2 emissions reports under SB 253 (the Climate Corporate Data Accountability Act) at November 10, 2026. To have the regulation in force before November 10, CARB had asked OAL on September 18 for an "early effective date" equal to the filing date.

The deadline moved from August 10 to November 10

When the regulation was approved in February 2026, the first deadline was August 10. The process then went as follows.

What the first report requires

Under section 96076 of the regulation, reporting entities must report Scope 1 and 2 emissions for the applicable prior fiscal year by November 10. Scope 3 is not required in 2026, and consolidated reporting at the parent level is allowed.

Two transitional measures apply to the first report only.

Under the fiscal-year provision, a company with a March year-end will in principle report Scope 1 and 2 for the fiscal year ended March 2025, not March 2026.

Fees and record-keeping after the report

Separately from reporting, the regulation sets annual fees. From 2026, by December 10 each year, CARB will send fee determination notices to reporting entities (revenue over $1 billion) and covered entities (revenue over $500 million). Companies must pay within 60 days of the notice date, and late payment incurs a late fee. The fee amount is set each year by a formula that divides the cost of running the program by the number of covered companies.

Companies must also keep California tax records showing that they meet the revenue and doing-business thresholds for five years, and provide them on request.

Who is covered

Doing business in California is determined by the criteria in section 23101 of the state Revenue and Taxation Code. Excluded are nonprofits, insurers, entities majority-owned by a government, entities whose only business is interstate wholesale electricity sales, and entities whose only California activity is payroll (including remote workers).

SB 261 remains unenforced

SB 261, which requires climate-related financial risk reports from companies with revenue over $500 million, was temporarily enjoined by the U.S. Court of Appeals for the Ninth Circuit on November 18, 2025. CARB will not enforce SB 261 until the injunction is lifted. The fee provisions, however, are written to include SB 261 covered entities.

At the federal level, the SEC published a proposal to rescind its climate disclosure rule on June 3, 2026. In the United States, only state-law emissions disclosure is moving ahead.

What it means for compliance teams

• Decide your option before November 10: choose between reporting from existing data and filing a statement that you had no data. Even if you file a statement, keep internal records showing you did not hold the data as of December 5, 2024
• Confirm the fiscal year covered: companies whose year ends after February 1, such as March year-ends, will in principle report the year that ended in the previous calendar year
• Prepare to receive the fee notice: notices arrive by December 10 and payment is due within 60 days. If paying on a consolidated basis, decide in advance which entity will receive the notice
• Scope 3 is outside this regulation: SB 253 itself requires annual disclosure of Scope 1 to 3, but this regulation does not require Scope 3 in 2026 reports. When suppliers will be asked by customers for Scope 3 data will become clearer with CARB's next rulemaking

Referenced Fact Cards