Who is covered by SB 253 and SB 261?

SB 253 covers US companies with over $1 billion in annual revenue doing business in California (about 5,400 companies). SB 261 covers US companies with over $500 million in revenue doing business in California (about 10,000 companies). Both are administered by the California Air Resources Board.

Emerald Ecovations · Compliance Resource

California SB 253 & SB 261: Who Has to Report, When — and What It Means for Foodservice

Q: Is California SB 253 in effect despite the lawsuit?

Yes. The Ninth Circuit declined to block SB 253 in its November 18, 2025 order, and CARB adopted its initial implementing regulation on February 26, 2026. The first Scope 1 and 2 emissions reports are due August 10, 2026, with Scope 3 reporting starting in 2027 on fiscal-year 2026 data.

Q: What is the current status of California SB 261?

SB 261 is enacted but paused: the Ninth Circuit enjoined enforcement on November 18, 2025, and CARB confirmed it will not enforce the original January 1, 2026 deadline while the injunction stands, treating reporting as voluntary. The appeal was argued January 9, 2026 and a ruling could restore the obligation.

Q: How do SB 253 and SB 261 affect foodservice companies under the revenue thresholds?

Smaller suppliers have no direct filing duty, but covered customers must report Scope 3 supply-chain emissions starting in 2027, so they will request emissions data from distributors, foodservice suppliers, and brands. Food waste sent to landfill and purchased packaging are among the first line items counted, which favors suppliers offering organics diversion and compostable packaging.

Q: Do other states have laws like SB 253 and SB 261?

No other state has enacted equivalent climate-disclosure laws yet, but similar bills have been introduced in New York, Illinois, New Jersey, and Washington. If they pass, the covered population expands beyond companies doing business in California.

California passed the first US laws forcing large companies to publicly report their greenhouse-gas emissions (SB 253) and climate-related financial risk (SB 261). The first SB 253 reports are due August 10, 2026, and supply-chain (Scope 3) reporting begins in 2027 — which is when your food waste and packaging choices become someone's reportable numbers. Answer two questions to see where you stand.

1. What is your company's annual revenue?

2. Does your company do business in California? (sales, operations, or employees there)

3. What best describes you? (optional)

Where should we send it — plus an alert when the Ninth Circuit rules on SB 261?

We will never share your email. These laws are moving (a federal appeals court is involved) — we flag the changes that matter.

The two laws, side by side

	SB 253 — emissions disclosure	SB 261 — climate-risk report
Status	In force — not blocked by the courts	Paused — Ninth Circuit injunction (Nov 18, 2025); CARB treats reporting as voluntary pending appeal
Who is covered	US companies with revenue over $1B doing business in California (about 5,400 companies)	US companies with revenue over $500M doing business in California (about 10,000+ companies)
What they file	Annual greenhouse-gas emissions: Scope 1 & 2 due Aug 10, 2026; Scope 3 from 2027 (FY2026 data), GHG Protocol methodology	Public climate-related financial risk report every two years (TCFD-aligned)
Penalties	Up to $500,000 per year	Up to $50,000 per year (when enforceable)
Regulator	California Air Resources Board (CARB)

Why this reaches companies far below $1B

Scope 3 is the supply chain. When a covered company reports Scope 3 emissions starting in 2027, it has to account for the goods and services it buys and the waste it generates — which means it will ask its distributors, foodservice suppliers, and brands for emissions data, regardless of their size. Two of the first places a foodservice operation gets counted: food waste sent to landfill (a methane line item) and purchased packaging.

That is where the practical opportunity sits: organics diversion and compostable, tree-free packaging convert both line items into measurable reductions a customer can put in a filing. Suppliers who can hand over clean numbers will be easier to buy from than suppliers who cannot.

Frequently asked questions

Is SB 253 actually in effect, given the lawsuit?

Yes. The Ninth Circuit expressly declined to block SB 253 in its November 18, 2025 order, and CARB adopted its initial implementing regulation on February 26, 2026. The first Scope 1 and 2 reports are due August 10, 2026.

What is the status of SB 261?

Enacted but paused. The Ninth Circuit enjoined enforcement on November 18, 2025, and CARB confirmed it will not enforce the original January 1, 2026 deadline while the injunction stands — reporting is voluntary in the meantime. The appeal was argued January 9, 2026; a ruling could restore the obligation with little notice.

When does Scope 3 reporting start?

2027, covering fiscal-year 2026 data, for companies covered by SB 253. CARB is still finalizing the Scope 3 framework details.

My company is under $500M. Can I ignore this?

You have no direct filing duty in California today. But if your customers are covered, their Scope 3 reports will include what they buy from you — expect emissions-data requests, supplier surveys, and procurement pressure favoring lower-footprint options.

Do other states have similar laws?

Not enacted yet, but copycat bills have been introduced in New York, Illinois, New Jersey, and Washington. Our USA Foodservice & Packaging Legislation Map tracks the SB 253 & 261 category and eight other law families across all 50 states.

Educational summary, not legal advice. Verified against CARB program guidance and the Ninth Circuit docket; current as of July 14, 2026. Sources: CARB Corporate GHG Reporting program page; California Legislative Information (SB 253, SB 261, SB 219); CARB Enforcement Advisory (Dec 1, 2025).