Companies seeking clarity in climate reporting regulations have another piece of the puzzle after California Governor Gavin Newsom signed SB 219 last week, enacting amendments to two important climate laws.

As companies work to align their reporting to EU and UK mandatory disclosure requirements, they are waiting for the California Air Resources Board (CARB) to publish guidance on compliance with the state’s Climate Accountability Package.

What laws were amended?

Senate Bill 253 (the Climate Corporate Data Accountability Act) requires companies to disclose Scopes 1,2 and 3 greenhouse gas emissions; SB 261 requires the biannual reporting of climate-related financial risk. While these laws are currently the subject of litigation, they have not been stayed. Companies are preparing to comply without yet receiving guidance from CARB, the body charged with setting out the detailed rules.

How does SB219 change these laws?

(For a discussion of all the changes and more background, Sidley has an overview at this link.)

The three major changes are:
1. CARB gets six more months to publish the rules. Because SB219 doesn’t change the reporting deadlines, this shortens the time frame companies will have between the release of interpretive regulations from CARB and their submissions.

2. Subsidiary entities can use their parent company’s reporting for SB 253 GHG emissions disclosures, eliminating the need to file separately (SB 261 already permits companies to rely on parent-level reporting).

3. CARB has the authority to develop a schedule for reporting Scope 3 (supply chain) emissions. However, Scope 3 will still be required as part of 2026 data, to be reported in 2027.

What to watch out for next:

The legal challenges to SB 253 and 261.

TCB will continue to monitor the implementation process, paying particular attention to a October 15^th court hearing for dispositive motions on the related litigation.