OAL Approves CARB’s Initial Regulation, Locking In November 10, 2026 SB 253 Reporting Deadline

On October 12, 2026, the California Office of Administrative Law (“OAL”) approved the California Air Resources Board’s (“CARB”) California Corporate Greenhouse Gas Reporting and Climate-Related Financial Risk Disclosure Initial Regulation (the “Initial Regulation”). The regulation took effect the same day. With that approval, administrative review is complete and November 10, 2026, is formally set as the first-year deadline for reporting Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions under SB 253. As we have previously written, the November 10, 2026 deadline was anticipated, but barring an injunction from the Ninth Circuit relating to pending litigation on SB 253 and its sister law, SB 261 (more on this below), this leaves covered companies less than a month to file their first reports. The Initial Regulation also establishes CARB’s fee program and defines key terms such as “revenue” and “doing business in California.”

Background

The California Climate Corporate Data Accountability Act (“SB 253”) requires U.S.-based companies that have more than $1 billion in annual revenue and are “doing business” in California to disclose their Scope 1, Scope 2, and Scope 3 GHG emissions each year. On February 26, 2026, CARB approved the Initial Regulation implementing SB 253 and its companion law, the California Climate-Related Financial Risk Act (“SB 261”). CARB sent the regulatory package to OAL on May 20. As we reported in June, CARB then withdrew it from OAL review on June 23 so it could move the first-year deadline back three months, from August 10 to November 10, 2026, to give reporting entities more time to absorb the final rules. Following a 15-day public comment period from July 27 to August 11, CARB resubmitted the final package to OAL on September 21 with only a handful of additional non-substantive changes. Notably, approval of the Initial Regulation does not change the litigation landscape; SB 261 remains subject to a preliminary injunction issued by the Ninth Circuit, and that injunction does not, for now, extend to SB 253. The parties have since notified the Ninth Circuit of the OAL approval by letter under Federal Rule of Appellate Procedure 28(j).

Key Developments

The Initial Regulation is now codified at Title 17, California Code of Regulations, sections 96070–96077, formalizing the November 10 deadline. Upon OAL’s approval, CARB announced that it sent a “reminder letter” (posted on its website on October 9) to entities it has identified as potentially subject to SB 253. However, do not treat receipt of such a letter, or the lack of one, as an official determination of whether a company is within the scope of the reporting requirements. This is merely a notification that CARB has identified such entities as presumptively in scope based on the agency’s records or other public information indicating a likely sufficient nexus to the laws. Entities may still be subject to the reporting requirements, even if they did not receive a reminder letter, and certain entities receiving the letter may determine that they are not subject to the reporting requirements (in which case no action is required).

As we previously discussed, CARB has published guidance to assist reporting entities in the preparation and submission of their first reports. That guidance provides a level of flexibility for companies preparing their initial reports, including with respect to the specific emission factor dataset companies elect to use. Pursuant to that guidance, companies can satisfy the 2026 requirement by submitting an existing annual report that includes Scope 1 and Scope 2 emissions, data already reported to other programs, or CARB’s optional template, and third-party assurance is not required this year. Reporting entities can submit their reports through CARB’s voluntary 2026 Report Intake Platform or by email. As a reminder, companies that were not collecting, and were not planning to collect, Scope 1 or Scope 2 GHG emissions information on or before December 5, 2024, may instead submit a statement of non-reporting on company letterhead for the 2026 cycle.

Takeaways

The reporting deadline is no longer a moving target. Companies that may be subject to SB 253 should confirm their reporting status and, if SB 253 is applicable, finalize their fiscal year 2025 Scope 1 and Scope 2 data to submit by November 10.¹ Companies relying on CARB’s first-year enforcement flexibility should keep in mind that it does not eliminate the reporting obligation. Those entities should document their good-faith compliance efforts and follow CARB’s submission guidance.

The 2026 cycle is only the first step. CARB has said that a separate rulemaking will address reporting for 2027 and later years, including Scope 3 disclosures and independent third-party assurance. At a July 21 workshop, CARB previewed proposals that would largely follow the Greenhouse Gas Protocol, phase in five Scope 3 categories beginning in 2027, and require limited third-party assurance of Scope 1 and Scope 2 data, so companies should anticipate the need to develop supporting data and controls. While reporting under SB 253 now appears more certain than ever, constitutional challenges to this law and SB 261 remain pending, and an injunction could halt the reporting requirements. This, however, is far from guaranteed. Companies should thus assume that the reporting requirements will proceed as planned and November 10, 2026, is a firm deadline. V&E is monitoring these developments closely and will provide updates going forward as CARB’s 2027 rulemaking moves ahead.

We will continue to track developments related to California’s climate reporting laws. Please reach out to your Vinson & Elkins team to discuss these matters and their implications for your business.

¹Companies should instead report fiscal year 2026 data if their fiscal year ends between January 1, 2026, and February 1, 2026, with both dates included.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.