California, October 17, 2025
News Summary
California has postponed the finalization of climate disclosure regulations for Senate Bills 253 and 261 until the first quarter of 2026. This delay arises from the high volume of public comments and the complexity of the regulations, which are crucial for companies mandated to report their climate-related emissions and risks. Despite the postponement, deadlines for compliance remain unchanged, with companies under SB 261 required to report by January 1, 2026, and SB 253 companies by June 30, 2026. CARB is actively seeking public input until October 27, 2025.
California has announced a delay in finalizing climate disclosure regulations for Senate Bills 253 and 261, pushing the expected finalization date from fall 2025 to the first quarter of 2026. The delay is primarily due to the substantial volume of public comments received and the complexity of the regulations, which necessitate further technical discussions concerning the companies that will be subject to these new mandates.
The compliance deadlines associated with these regulations, however, remain unchanged. Companies that fall under SB 261 are required to submit climate-related risk reports by January 1, 2026. Meanwhile, firms governed by SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026. In an effort to facilitate the reporting process, CARB has released a draft reporting template designed to simplify submissions, particularly for first-time reporters. The use of this template is voluntary for the upcoming 2026 reporting cycle.
CAARB is actively seeking public input on the draft reporting template until October 27, 2025. A preliminary list of over 3,100 companies that will potentially be affected has been published, including electric utilities, energy companies, and manufacturers. All entities listed are responsible for compliance, regardless of their status on the preliminary list. Noteworthy names on this list include Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy.
SB 253 targets companies operating in California with annual revenues exceeding $1 billion, mandating that they disclose both their Scope 1 and 2 emissions along with Scope 3 emissions associated with their supply chains, business travel, and more. Alternatively, SB 261 focuses on companies with revenues over $500 million, requiring the disclosure of climate-related financial risks.
CARB has underscored the importance of developing a framework that comprehensively captures the full scope of covered entities, indicating that further refinements to the initial proposal will occur. Although the regulations remain in development, California’s climate disclosure mandates are expected to establish a national precedent for corporate climate-related reporting practices.
Accompanying these developments are legal challenges filed against CARB concerning SB 253 and SB 261. These challenges highlight the ongoing controversies surrounding the implementation of these regulations. Stakeholders are encouraged to participate in CARB’s voluntary survey, providing feedback on potentially covered entities and possible exemptions to the proposed rules.
The timeline for subsequent guidance from CARB includes a commitment to publish draft regulations by October 14, 2025. A public comment period will then follow, concluding in December 2025. This structured process aims to ensure that diverse perspectives are considered before the finalization of the climate disclosure regulations.
Key Features of California’s Climate Disclosure Regulations
| Feature | Details |
|---|---|
| Key Regulations | SB 253 and SB 261 |
| Finalization Date | Q1 2026 |
| Compliance for SB 261 | Reports due by January 1, 2026 |
| Compliance for SB 253 | Reports due by June 30, 2026 |
| Public Input Deadline for Template | October 27, 2025 |
| Preliminary List of Companies | Over 3,100 companies listed |
| Minimum Revenue for SB 253 | Over $1 billion |
| Minimum Revenue for SB 261 | Over $500 million |
FAQ
What is the status of climate disclosure regulations in California?
California has delayed the finalization of climate disclosure regulations for SB 253 and SB 261 until the first quarter of 2026.
Why was the finalization of these regulations delayed?
The delay is attributed to a large volume of public comments received and the need for further technical discussions regarding which companies will be subject to these mandates.
What are the compliance deadlines for companies?
Companies under SB 261 are required to submit climate-related risk reports by January 1, 2026. Firms governed by SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026.
What kind of input is CARB seeking on the draft reporting template?
CARB is seeking public input on the draft reporting template until October 27, 2025.
How many companies are listed as potentially affected by these regulations?
A preliminary list of over 3,100 companies has been published, which includes electric utilities, energy companies, and manufacturers.
What are the revenue thresholds for SB 253 and SB 261?
SB 253 applies to companies operating in California with annual revenues over $1 billion. SB 261 targets companies with revenues over $500 million.
What is the timeline for further guidance from CARB?
CARB has committed to accelerating publishing draft regulations by October 14, 2025, following a public comment period ending December 2025.
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Climate Regulations
- Mayer Brown: California Climate Disclosure Laws
- Carbon Herald: California Delays Climate Disclosure Rulemaking
- Google Search: California Climate Disclosure Regulations
- Encyclopedia Britannica: California Climate Regulations
Author: STAFF HERE HOLLYWOOD
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