The California Air Resources Board (CARB) will “exercise enforcement discretion” for 2026 under SB 253, known as the Climate Corporate Data Accountability Act. CARB said in its December 5, 2024 Enforcement Notice that it will not take enforcement action for incomplete Scope 1 and Scope 2 emissions reporting in 2026 provided companies demonstrate a “good faith effort” to comply with the law’s requirements and retain all relevant data for their prior fiscal year. This does not extend any compliance deadlines under the law but effectively gives companies an extra year to comply.

Background: SB 253 Reporting Requirements

SB 253 requires U.S. entities with annual revenues of more than $1 billion that do business in California to publicly disclose their greenhouse gas emissions. This includes direct emissions (Scope 1), indirect emissions from purchased electricity (Scope 2), and supply-chain emissions (Scope 3). CARB is developing implementing regulations, including establishing deadlines and procedures for reporting. The law was enacted in 2023, and SB 219 delayed implementation of the by six months, until July 1, 2025.

Enforcement Discretion Explained

The law mandates that the first reports will be due in 2026 for emissions from the prior fiscal year. Nonetheless, regulated entities have voiced concerns about the practical difficulties of gathering verified emissions data before required regulatory frameworks were finalized.

CARB’s Enforcement Notice acknowledges these challenges, permitting entities to submit Scope 1 and Scope 2 emissions that they already possess or are collecting as of the date the notice was issued, rather than requiring full compliance with future regulatory protocols. CARB stressed that this discretion covers only the initial reporting period and said the agency expects entities to advance toward full compliance as quickly as possible.

Some policymakers have criticized CARB’s deferral of enforcement. State senator Scott Wiener called the enforcement notice “completely unacceptable,” according to the Wall Street Journal.