Insights

After hosting a series of workshops and issuing multiple rounds of materials, including enforcement notices, checklists, templates, and other guidance, the California Air Resources Board (CARB) has proposed regulations to implement the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) (both as amended by SB 219), which require large U.S.-based businesses operating in California to disclose greenhouse gas (GHG) emissions and climate-related risks. CARB also published a Notice of Public Hearing and an Initial Statement of Reasons along with the proposed regulations. While CARB’s final rules were statutorily required to be promulgated by July 1, 2025, these are still just proposals. CARB’s proposed rules largely track earlier guidance regarding how CARB intends to define compliance obligations, exemptions, and key deadlines, and establish fee programs to fund regulatory operations.

As we have reported previously, California has enacted a pair of climate-related reporting laws that apply to large entities doing business in California (SB 253 and SB 261, as modified by SB 219). This alert provides an update on only the most recent events; please see previous alerts for a broader overview of the laws’ requirements.

E&E News reported that EPA will continue to operate during the shutdown relying on “carryover funds.” Carryover funds generally are unspent and unobligated funds from a previous budget period that are carried forward to cover allowable costs in a future budget period. There is no indication how long EPA’s carryover funds will allow all EPA employees to continue working versus those that are “exempted” or “excepted” personnel, meaning they can continue to work either because they are separately funded (“exempted) or must continue to work because of their position (“excepted), such as emergency responders or criminal agents.