--- title: California SB 253 & 261 - Regulations Approved description: Key takeaways from CARB's hearing to approve CA SB253 and 261. image: https://pages.thirdeconomy.com/hubfs/activism%20defence%20link%20graphic%20with%20logo.jpg --- [![Third-Economy-logo-horizontal-1](https://pages.thirdeconomy.com/hs-fs/hubfs/Third-Economy-logo-horizontal-1.png?width=1500&height=381&name=Third-Economy-logo-horizontal-1.png "Third-Economy-logo-horizontal-1")](https://www.thirdeconomy.com/) [SUSTAINABILITY SERVICES](https://www.thirdeconomy.com/corporate-services/) [INVESTOR SERVICES](https://www.thirdeconomy.com/investor-services/) [VIA3](https://www.thirdeconomy.com/ratings/) [ABOUT](https://www.thirdeconomy.com/about/) [NEWS & EVENTS](https://www.thirdeconomy.com/news-events/) [CONTACT](https://www.thirdeconomy.com/contact/) ![Thought Leadership Webpage Graphic-1](https://pages.thirdeconomy.com/hubfs/Thought%20Leadership%20Webpage%20Graphic-1.png "Thought Leadership Webpage Graphic-1") # CA SB 253 and 261 in the News: Regulations Approved ***By Chad Spitler, Founder and CEO, February 2026*** On February 26, the California Air Resources Board (CARB) held a [public hearing](https://ww2.arb.ca.gov/sites/default/files/barcu/board/books/2026/022626/prores26-1.pdf?utm_campaign=36330753-EB_Climate_Policy_Roundup&utm_medium=email&_hsenc=p2ANqtz--55PUnR2-KrpJjGVtkwbN_UqBVQqhJLsw8g1pxJalo3xEo5JX0xg0I-qQDSQ1sI3T-OMHIIrG20pQZrL1sCl497oN_QqOEFjZav509lHLnNdJgeWg&_hsmi=406077258&utm_content=406077258&utm_source=hs_email) and **voted to approve** key elements of the draft regulations implementing SB 253 (GHG Emissions Reporting) and SB 261 (Climate Risk Disclosure). This marks a significant milestone in California’s climate disclosure framework, and many companies are now asking what this means for their reporting and risk management practices. What Was Approved - The regulations were approved largely as proposed. - **August 10, 2026** is the deadline for the first SB 253 reports covering Scope 1 and Scope 2 emissions. - A program fee structure has been established, estimated at $2,000–$7,000 per in-scope entity depending on the applicable program. - Key definitions have been clarified, including "doing business in California," "revenues," "parent," and "subsidiary," along with updated financial thresholds for determining which entities are in scope. ### What Remains Open - Scope 3 emissions reporting and post-2026 deadlines have not yet been finalized. Additional rulemaking is expected later this year. - **Enforcement of SB 261 is still paused** by the Ninth Circuit, and CARB's recent action do not change that status. ### What This Means for Companies Even organizations that are not yet certain they are in scope should be using this period to understand their potential exposure and readiness. Practical steps include:  1. Confirm whether your organization meets the in-scope thresholds under the newly clarified definitions 2. Begin assembling your FY25 Scope 1 and Scope 2 emissions inventory, or assessing the robustness of existing inventories. 3. Start planning for Scope 3 reporting, including data needs and governance, ahead of future rulemaking 4. Budget for applicable program fees and potential assurance costs as part of broader compliance and reporting planning. Staying informed early can reduce compliance risk and avoid last-minute data scrambles. For additional background on SB 253 and SB 261 and how they interact with other climate-related rules, you can explore our [past insights](https://pages.thirdeconomy.com/ca-climate-summary?hsLang=en) or schedule a meeting with our team through the button below.      *Disclaimer: The information provided does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only.* [Schedule Time with our Experts](mailto:abbe.billings@thirdeconomy.com) - Turning visitors into leads. ### Want to receive our latest news and events? [Sign up here](https://www.thirdeconomy.com/contact/) --- ![Logo-1](https://pages.thirdeconomy.com/hs-fs/hubfs/Logo-1.png?width=200&height=47&name=Logo-1.png "Logo-1") #### CONTACT ## ​​Third Economy is a sustainable investment research and consulting firm. We work with corporations and institutional investors to understand how sustainability factors impact financial value. 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