SB 253 Update: CARB Still Wrestling With Draft Regulations in March 2026

Companies preparing to comply with California’s SB 253 and submit their first required disclosures in August 2026 received additional guidance this week from the California Air Resources Board (CARB). At a public workshop on March 23, CARB outlined proposed approaches under its developing rulemaking, including options for phasing in compliance over time, and solicited public feedback on those concepts. The following article summarizes the key developments from that workshop.

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NHTSA Proposes Amending Federal Crash Avoidance Standards for Autonomous Vehicles

On March 16, the National Highway Traffic Safety Administration published two proposed rulemakings designed to ease the path for manufacturing autonomous vehicles and deploying them on public roads. Both proposals would amend existing Federal Motor Vehicle Safety Standards (FMVSS) by removing requirements for certain safety equipment that may be unnecessary in vehicles without a human driver. These rulemakings represent an incremental step, not a game changer, in paving the way for a driverless future.

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California’s Textile EPR Law: Key 2026 Milestones and Upcoming Producer Deadlines

California continues to expand its extended producer responsibility (EPR) framework to new product categories, capturing an ever-greater number of “producers” responsible to comply across supply chains. In September 2024, Governor Gavin Newsom signed Senate Bill (SB) 707 — the Responsible Textile Recovery Act of 2024 — establishing the first statewide EPR program for apparel and other textile products in the United States. The program is now in the implementation phase, and 2026 marks the first major compliance milestones including the selection of a Producer Responsibility Organization (PRO) and initial producer registration. The law represents another step in California’s broader push toward producer-funded product stewardship programs.

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Parent Company Liability Under the Clean Air Act: Federal District Court Applies Bestfoods and Imposes $100 Million Penalty and $20 Million in Mitigation

In a February 17, 2026 decision with significant implications for corporate parents, the U.S. District Court for the Eastern District of Michigan held in United States v. EES Coke Battery, LLC that parent company DTE Energy Company and two affiliates were liable as “operators” under the Clean Air Act (CAA) for New Source Review (NSR) violations at a subsidiary’s coke battery facility. In a case of first impression, the court applied the standard for direct parent company liability established in United States v. Bestfoods to a source under the CAA. Moreover, the ruling includes a $100 million civil penalty, one of the largest CAA penalties issued by a court to a stationary source. The court ordered an additional $20 million in community mitigation, and also ordered EES Coke to obtain an NSR permit that may require the source to install costly new pollution controls.

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A New Global Milestone for Autonomous Vehicles: What the UN Global Technical Regulation on Automated Driving Systems Means for Autonomy in the U.S. and Around the World

In late January, a United Nations regulatory body, the UN Economic Commission for Europe (UNECE) Working Party on Automated/Autonomous and Connected Vehicles (GRVA), approved a Global Technical Regulation on Automated Driving Systems (ADS).  The draft Global Technical Regulation (GTR), which took roughly 10 years to finalize, offers a framework for signatories on how to regulate and validate autonomous vehicles, emphasizing the “safety case” approach—a structured, evidence-based argument justifying the vehicle is sufficiently safe for market introduction.  Rather than prescribing a single, bright-line performance metric, the framework leaves room for jurisdictions to be somewhat flexible in how they apply the guidance to their own, country-specific legal regimes.

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Walk Like a CSHO: Cal/OSHA Proposes Its Own “Walkaround Rule”

On February 13, 2026, Cal/OSHA published a notice of proposed rulemaking (NPRM) to clarify who can join its onsite inspections. To be codified as Title 8 § 331.8 if implemented, Cal/OSHA’s stated goal is to match federal OSHA’s 2024 updates to 29 C.F.R. § 1903.8 and expand upon California Labor Code section 6314, which already states that “a representative authorized by . . . employees” can accompany Cal/OSHA inspectors during their “tour” of the worksite. In its new proposal, Cal/OSHA explicitly expands the definition of “representative(s) authorized by employees” to include an “employee of the employer, a third party, or the collective bargaining representative.”

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Oregon Federal Court Enjoins EPR Law Enforcement

On February 6, 2026, Sidley prevailed on behalf of the National Association of Wholesaler-Distributors (NAW) in securing a preliminary injunction against Oregon’s first-of-its-kind plastic packaging extended producer responsibility (EPR) law.  Judge Michael H. Simon of the U.S. District Court for the District of Oregon granted a preliminary injunction prohibiting the Oregon Department of Environmental Quality (DEQ) from enforcing the Plastic Pollution and Recycling Modernization Act (often referred to as Oregon’s “Recycling Modernization Act” or “RMA”) against NAW and its members, while the case proceeds to trial.  The injunction represents a significant milestone, with the federal court acknowledging that producers would likely be injured by the Act’s violations of due process and impacts caused on interstate commerce.

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New York is Latest State to Finalize Greenhouse Gas Reporting Rules for 2026

The New York State Department of Environmental Conservation (NYDEC) finalized its long-awaited Mandatory Greenhouse Gas (GHG) Reporting Program (Part 253), which implements GHG reporting requirements for businesses in New York consistent with directives under the 2019 Climate Leadership and Community Protection Act (CLCPA) and aids the State in meeting obligations under the northeast Regional Greenhouse Gas Initiative (RGGI).  The final rule is, in part, the result of an October 2025 court order that required NYDEC to promulgate regulations addressing climate change after NYDEC initially failed to issue the regulations by the CLCPA deadline.  Part 253, as finalized, largely conforms with the draft regulations NYDEC proposed in 2025 but includes revisions to address some of the concerns raised by industry stakeholders.  New York becomes the fourth state to implement a GHG reporting program after California, Washington, and Oregon.

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Meet The Team

<a target=‘_blank’ href="https://www.sidley.com/en/people/b/boxerman-samuel-b">Samuel B. Boxerman</a>

Samuel B. Boxerman

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/b/brown-keturah-a">Keturah A. Brown</a>

Keturah A. Brown

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/d/dickson-gerbas-grace">Grace Dickson Gerbas</a>

Grace Dickson Gerbas

Dallas
<a target=‘_blank’ href="https://www.sidley.com/en/people/h/healey-terence-t">Terence T. Healey</a>

Terence T. Healey

Boston
<a target=‘_blank’ href="https://www.sidley.com/en/people/i/irvin-kenneth-w">Kenneth W. Irvin</a>

Kenneth W. Irvin

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/k/khan-casey">Casey Khan</a>

Casey Khan

Houston
<a target=‘_blank’ href="https://www.sidley.com/en/people/l/lisak-michael-l">Michael L. Lisak</a>

Michael L. Lisak

Chicago
<a target=‘_blank’ href="https://www.sidley.com/en/people/b/bolen-brittany-a">Brittany A. Bolen</a>

Brittany A. Bolen

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/h/hildebrandt-brooklyn">Brooklyn Hildebrandt</a>

Brooklyn Hildebrandt

Los Angeles
<a target=‘_blank’ href="https://www.sidley.com/en/people/n/noelliste-nicole-e">Nicole E. Noëlliste</a>

Nicole E. Noëlliste

Washington, D.C.
<a target=‘_blank’ href="https://www.sidley.com/en/people/p/posen-hannah">Hannah Posen</a>

Hannah Posen

Chicago
<a target=‘_blank’ href="https://www.sidley.com/en/people/r/raffetto-jack-c">Jack Raffetto</a>

Jack Raffetto

Washington, D.C.

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