CARB Releases Preliminary List of Covered Companies Under SB 253 and SB 261
CARB Releases List of Companies Covered Under Climate Disclosure Laws
California Air Resources Board (CARB) released a preliminary list of over 4,000 qualifying reporting entities for the state’s corporate climate disclosure laws, SB 253 and SB 261, that are subject to report on their greenhouse gas emissions, climate-related financial risk, or both.
Process: The agency identified entities by analyzing the California Secretary of State registered business data for companies that meet the statutory requirements. CARB used the definitions they proposed in a late August workshop.
Next steps for CARB: CARB released the preliminary list to inform their rulemaking on fee regulation for the disclosure laws. The notice of proposed rulemaking is expected to be released on October 14 and will be followed by a 45-day comment period.
Next steps for companies: The released list is not a final version of who must report starting in 2026. The preliminary list only includes companies with active filings to the Secretary of State through March 2022, and it does not include any of the potential exemptions as discussed in the August workshop. CARB encourages any entity that believes it qualifies as a reporting entity or as an exempt entity to fill out this survey.
What We’re Watching This Week
Government shutdown pending: US Congress is headed towards a firm deadline of September 30 (midnight on Tuesday) to finalize a budget for funding federal agencies. In an unprecedented move, Russ Vought, the director of the White House Office of Management and Budget (OMB) has stated he will enact mass layoffs for federal staff if a shutdown occurs. Our eyes are on Congress in its final day of negotiations, which is largely tied up with decisions to extend or cut Affordable Care Act tax credits that expire at the end of 2025.
Department of Energy bans more words: The Office of Energy Efficiency and Renewable Energy released a memo on Friday stating staff should avoid using terms such as “climate change,” “green,” “emissions,” “energy transition,” “clean/dirty energy,” “tax breaks, tax credits, or subsidies” “carbon/CO2 footprint,” and “decarbonization” to describe any of their projects as these words are “misaligned with the Administration’s perspectives and priorities.”