To reduce compliance costs and clarify the implementation timeline, the California Senate has passed legislation updating the state’s landmark corporate climate disclosure regulations.
Under the new legislation, SB 219, the state legislature approved several changes to the previous regulations:
- The deadline for the California Air Resources Board (CARB) to develop implementation rules for SB 253 (direct and indirect GHG disclosure requirements) will be delayed six months to July 1, 2025.
- The new bill will allow companies to consolidate their reporting requirements at the parent company level.
- Filing fees associated with the climate disclosure regulations will be eliminated.
Gov. Gavin Newsom has until September 30, 2024, to sign the bill, veto it, or do nothing and allow it to pass.
The original 2026 effective date for reporting Scopes 1 and 2 GHG emissions and climate risks will remain in place, as does the 2027 date for reporting Scope 3 emissions.
Even though CARB has until July 1, 2025, to issue its regulations (essentially a “how to guide” for companies), the effective reporting date remaining in 2026 means companies should start measuring and collecting data at the beginning of 2025 and adjust as needed when the guidance becomes available. Waiting to start will mean having to scramble later.
To learn more about these California climate disclosure bills and carbon accounting, contact our sustainability team.
