California air regulators released draft regulations for the state’s nation-leading climate disclosure laws Tuesday that would require companies to start reporting their carbon emissions in August and establish a fee structure to fund the programs.
What happened: The California Air Resources Board published narrow rules that would mandate corporations with at least $1 billion in annual revenue to start reporting carbon emissions connected directly to their operations and energy purchases — known as Scope 1 and Scope 2 emissions — by Aug. 10, 2026.
The initial reporting requirement does not include emissions related to global supply chains, a component of SB 253 that the agency has delayed to 2027. And CARB reiterated that companies won’t face penalties for incomplete data in their initial reports.
The draft regulations also propose a flat fee that CARB would divide evenly among businesses subject to SB 253 and SB 261, which requires corporations with at least $500 million in global revenue to publish their climate-related financial risks. The fee would cover what CARB estimates will be $14 million in annual staffing and resources to oversee enforcement of the two laws.
