CARB Releases New Resources and Reporting Guidance for California SB 253 Compliance

The California Air Resources Board (“CARB”) recently released several resources to assist companies preparing for the first reporting cycle under California’s Climate Corporate Data Accountability Act (“SB 253”). The new materials include a voluntary reporting intake platform, plus a video tutorial, that gives reporting entities an opportunity to voluntarily provide CARB with entity information, including regarding in-scope subsidiaries and contact information for fee invoicing for 2026. The materials also include a new guidance document for SB 253 2026 reporting submittals. These updates provide additional insight into CARB’s expectations for the inaugural reporting year, but uncertainty remains as CARB’s resubmitted Initial Regulation awaits approval by the Office of Administrative Law (“OAL”) and litigation continues. 

Anticipated Timeline

Although the Initial Regulation remains subject to final approval by the OAL, CARB continues to move forward with implementation efforts and has begun providing operational guidance to affected companies. Under CARB’s proposed Initial Regulation, as reiterated by CARB through its recent guidance materials, companies expect the following timeline:

• Reporting entities will be required to submit Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions data by November 10, 2026. 
• CARB will send fee invoices on or before December 10, 2026.
• Payment will be due within 60 calendar days from the date of CARB’s invoice.

The Voluntary Reporting Intake Platform

CARB’s 2026 Voluntary Reporting Intake Platform allows reporting entities to provide contact and billing information to CARB in advance of reporting deadlines and, if desired, submit Scope 1 and Scope 2 emissions reports directly through the platform. Use of the platform is entirely voluntary, and CARB indicates that entities may also submit data by emailing climatedisclosure@arb.ca.gov. CARB’s video tutorial provides a full walk-through of the platform.

CARB indicates that the platform is intended to streamline first-year reporting and fee administration. Besides contact information for fee invoicing purposes, the platform also enables companies to submit information on their different entities (e.g., subsidiaries) that have been determined to be in the scope of SB 253 and to indicate whether they will report on a consolidated basis and whether they wish to receive one invoice for all applicable fees. For example, one in-scope parent company may opt to pay one invoice covering three sets of fees for itself and its two in-scope subsidiaries.

Companies considering use of the platform should note an important practical consideration, however: the platform states that uploaded emissions reports and statements of non-reporting (for entities not reporting based on the December 2024 Enforcement Notice) will be made public. Therefore, reporting entities should carefully evaluate any information they intend to submit through the system and consider whether a different approach may be more appropriate in certain circumstances. 

CARB’s New Reporting Guidance Document

CARB’s new guidance document reiterates the guidance in its prior Frequently Asked Questions (“FAQ”) and the enforcement discretion first announced in its December 2024 Enforcement Notice. For the initial 2026 reporting cycle, CARB will accept Scope 1 and Scope 2 emissions data based on information that entities were already collecting, or were planning to collect, at the time of the notice. CARB also confirms that limited assurance will not be required for first-year submissions, notwithstanding SB 253’s statutory assurance requirements.

The guidance document also addresses applicability criteria and key definitions, acceptable formats for 2026 reporting, Scope 2 emission factor options, reporting requirements for 2027 and beyond. 

Looking Ahead

CARB’s latest guidance provides some clarity for companies preparing for the first year of SB 253 reporting, but significant questions remain. Companies that may be subject to SB 253 should continue evaluating applicability based on the proposed Initial Regulation and, if in-scope, make a plan for how to approach the expected November 10, 2026 reporting deadline, including whether to begin voluntarily submitting entity information to CARB to streamline consolidated reporting and fee invoicing if applicable. At the same time, it is important to continue monitoring related developments, including the pending litigation, and maintain an adaptable and strategic approach to compliance planning. 

Clark Hill’s ESG & Sustainability team consists of attorneys and professionals throughout the U.S., Mexico, and Ireland representing a range of primary practice areas intersecting with ESG and sustainability issues. If you have questions or would like to discuss this alert, please contact the authors directly or your usual Clark Hill contact.