California SB 253 overview: who it covers and what it requires

This is an independent, plain-language summary compiled from public sources. It is not legal, accounting or regulatory advice, and SB253 Vendors is not affiliated with the State of California or the California Air Resources Board (CARB). Statutory and regulatory details change; confirm everything below against the official sources linked at the end of this page before relying on it.

What SB 253 is

SB 253 (Stats. 2023, ch. 382), the Climate Corporate Data Accountability Act, added section 38532 to the California Health and Safety Code. It requires certain large companies to publicly report their greenhouse gas (GHG) emissions. SB 219 (Stats. 2024, ch. 766) later amended it. CARB is the state agency responsible for implementing the law through regulation.

Who the statute covers

As written in the statute, a "reporting entity" is a partnership, corporation, limited liability company or other business entity formed under the laws of the United States, a state, or another U.S. jurisdiction, with total annual revenues of more than $1 billion, that does business in California.

CARB's regulation (Title 17 California Code of Regulations, sections 96070 to 96077) sets out how revenue and "doing business" are measured, and lists categories of entities that are exempt. CARB's Board voted to approve the initial regulation on February 26, 2026, and CARB published modified text on July 27, 2026. We could not confirm from a CARB or Office of Administrative Law source that the regulation is final as of September 20, 2026. See the timeline guide for details.

SB 219 allows a parent company to report on a consolidated basis. Whether a particular company is covered depends on its facts; ask qualified counsel. We did not find a final CARB list of covered entities.

What must be reported

Scope 1 emissions: direct emissions from sources the company owns or controls.
Scope 2 emissions: indirect emissions from purchased electricity, steam, heating or cooling.
Scope 3 emissions: other indirect emissions in the company's upstream and downstream value chain.

The statute says reporting must conform to the GHG Protocol standards and guidance, including the Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 3) Standard published by the World Resources Institute and the World Business Council for Sustainable Development.

According to the statute, Scope 1 and Scope 2 reporting starts in 2026, by a date set by CARB, and continues annually. Scope 3 reporting starts in 2027, on a schedule CARB specifies. CARB has said that Scope 3 is not required for the 2026 report.

Assurance

The statute calls for third-party assurance of reported emissions on a phased schedule, and CARB has taken positions on how that applies to the first report. Both are covered in our assurance guide, because CARB's position differs from the statute's headline dates.

Fees and penalties

The statute requires covered entities to pay an annual fee to CARB, set to cover CARB's costs of administering the program. CARB's regulation proposes a flat fee divided equally among covered entities. We could not confirm a per-entity dollar amount, so we do not state one.
The statute limits administrative penalties to $500,000 per reporting year. It says no penalty applies to Scope 3 misstatements made with a reasonable basis and disclosed in good faith, and that between 2027 and 2030 penalties for Scope 3 reporting apply only to failure to file. Confirm the exact wording on the official statute page.
CARB has said it will consider good-faith compliance efforts in the first reporting cycle.

Where reports go

CARB's rulemaking documents name CARB itself as the entity that receives reports. SB 219 made it optional, rather than mandatory, for CARB to contract with an outside emissions reporting organization, and we found no named third-party registry. Law-firm alerts report that CARB posted 2026 reporting guidance and an online intake platform in early September 2026. Check CARB's program page for the current submission method.

Where things stand

Dates and requirements are still moving. Our timeline guide tracks what CARB has announced, what is only proposed, and what we could not confirm, with the date each item was reviewed.

Sources

What SB 253 is

Who the statute covers

What must be reported

Scope 1 emissions: direct emissions from sources the company owns or controls.
Scope 2 emissions: indirect emissions from purchased electricity, steam, heating or cooling.
Scope 3 emissions: other indirect emissions in the company's upstream and downstream value chain.

Assurance

Fees and penalties

The statute requires covered entities to pay an annual fee to CARB, set to cover CARB's costs of administering the program. CARB's regulation proposes a flat fee divided equally among covered entities. We could not confirm a per-entity dollar amount, so we do not state one.
The statute limits administrative penalties to $500,000 per reporting year. It says no penalty applies to Scope 3 misstatements made with a reasonable basis and disclosed in good faith, and that between 2027 and 2030 penalties for Scope 3 reporting apply only to failure to file. Confirm the exact wording on the official statute page.
CARB has said it will consider good-faith compliance efforts in the first reporting cycle.

Where reports go

Where things stand

Dates and requirements are still moving. Our timeline guide tracks what CARB has announced, what is only proposed, and what we could not confirm, with the date each item was reviewed.