The Office of the Comptroller of the Currency (OCC), the federal regulator of national banks and federal savings associations, has challenged the application of California’s climate disclosure laws to those institutions, citing interference with federal banking powers and supervision. In an October 29, 2026 letter, it asked the California Air Resources Board (CARB) to exempt national banks and federal savings associations (together, federally chartered banks) from California’s climate disclosure laws, SB 253 and SB 261 (together, the Climate Disclosure Laws), or otherwise clarify that they need not comply. The letter does not itself provide relief: federally chartered banks subject to SB 253 must still meet the November 10 Scope 1 and 2 reporting deadline unless further regulatory or court action changes that requirement. The requested relief does not extend to state-chartered banks, holding companies or nonbank affiliates. We encourage you to review this update in conjunction with our earlier updates, including our August 2026 Legal Update, “California Climate Disclosure Laws – CARB Finalizes Its Initial Rulemaking, Resets the 2026 Deadline, and Previews the 2027 Framework,” which discusses CARB’s initial rulemaking, the November 10 deadline and the 2027 framework.

The OCC’s arguments. The OCC argues that the Climate Disclosure Laws are inconsistent with the OCC’s risk-focused supervision and could undermine safety and soundness by distracting bank management. It also argues that they would unduly burden smaller banks, would harm California customers by reducing competition and access to financial services, and would strain customer relationships by effectively requiring banks to collect data on their customers’ emissions and financial standing. Finally, it argues that the Climate Disclosure Laws raise constitutional concerns, including under the Supremacy Clause, citing federal preemption of state laws that prevent or significantly interfere with federally chartered banks’ exercise of their powers. It also invokes the OCC’s exclusive “visitorial” authority—its authority to examine and supervise these banks—arguing that this generally prevents states from requiring them to produce information. It concludes that applying the Climate Disclosure Laws to these banks “may well run afoul” of that legal framework. The letter does not itself preempt the Climate Disclosure Laws or exempt federally chartered banks from their scope—further action by CARB, the OCC or the courts would be required to do so, and any formal OCC preemption action would itself be subject to judicial review.

File now, comment later. The letter is a request, not a preemption determination, and it does not suspend any reporting obligation. The OCC says only that it will evaluate CARB’s implementation of the Climate Disclosure Laws to determine whether further action is necessary. CARB’s regulation took effect October 12, so—absent any further action by the OCC, CARB or otherwise—federally chartered banks within SB 253’s scope should file their initial SB 253 submissions concerning Scope 1 and Scope 2 GHG emissions disclosures by the November 10 deadline. The OCC’s letter may also influence CARB’s rulemaking for 2027 and subsequent years. The letter describes CARB as “in the process of issuing implementing regulations,” and its customer-data concern is most relevant to future Scope 3 reporting. Notably, however, the five Scope 3 categories CARB previewed for 2027 do not include financed emissions. Banks should consider commenting once that rulemaking opens.

Limited relief and what to watch. Even if CARB agrees, relief would, as requested, cover only federally chartered banks, not state-chartered banks, holding companies or nonbank affiliates. Groups that report at the consolidated parent level may see little change. Banks should watch for CARB’s response, any formal OCC preemption action, the 2027 comment period and CARB’s December 10 fee determination notices. Meanwhile, the Ninth Circuit’s injunction pending appeal of SB 261 remains in place, and the OCC’s letter notes that CARB has stated it will defer further action on SB 261 pending resolution of that litigation, which remains ongoing.

Federally chartered banks potentially subject to these laws should continue preparing their November 10 filings, monitor CARB’s response and any OCC follow-up, and track the 2027 rulemaking as it develops.