California Delays Rulemaking Deadline For Controversial Climate Bill

Business and property owners waiting for a clearer picture of how to comply with a law passed last year requiring greater transparency around emissions will have to keep waiting.

Gov. Gavin Newsom signed a bill in late September extending the deadline for the California Air Resources Board emissions reporting rules required under SB 253. The agency now has six more months, with a new deadline set for July 1, 2025.

SB 253 was signed last year and has been closely watched and divisive since then. The governor signed it into law despite his concerns about the feasibility of compliance deadlines, possible inconsistencies in reporting and costs to comply.

The bill received funding under a revised 2024-2025 budget release by Newsom over the summer after being passed over in the original version of the budget.

The overall timeline for companies to begin phased compliance with SB 253 remains the same. That still starts in 2026, with reporting on Scope 3 emissions beginning in 2027, according to a post from the legal services firm Sidley Austin.

SB 253 and another bill requiring businesses to report their climate-related financial risks were up for discussion in California's state legislature at the same time the Securities and Exchange Commission considered similar nationwide rules.

However, when the federal rules were ultimately approved, they did not require the reporting on Scope 3 emissions required in California's rules.

"No other state has brought in its own carbon accounting legislation after the Securities and Exchange Commission paused its own similar rule as it faces legal challenges," The Wall Street Journal reported in late September.

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