California, October 17, 2025
News Summary
California has postponed the finalization of climate disclosure regulations for SB 253 and SB 261 until early 2026. This delay follows public feedback and the need for further discussions on compliance requirements. However, compliance deadlines remain unchanged, with companies required to report their climate-related risks by January and June of 2026. A preliminary list of over 3,100 companies affected has been published, indicating extensive implications for various industries. Stakeholders are encouraged to engage in the ongoing regulatory process.
California has delayed the finalization of climate disclosure regulations for SB 253 and SB 261 until the first quarter of 2026. This decision comes in response to the extensive feedback received from the public and the need for further technical discussions regarding which companies will be subject to these regulations. Previously, the expectation was to finalize the regulations by fall 2025.
Despite this delay, compliance deadlines remain unchanged. 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.
To simplify the reporting process, CARB has released a draft reporting template aimed primarily at first-time reporters, though its use remains voluntary for the upcoming 2026 reporting cycle. CARB is also actively seeking public input on the draft template until October 27, 2025.
A preliminary list of over 3,100 companies subject to these regulations has been published. The list includes a variety of sectors such as electric utilities, energy companies, and manufacturers, indicating that these entities will be responsible for compliance regardless of whether they appear on the preliminary list. Key companies included are Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy, among others.
SB 253 targets companies operating in California with annual revenues over $1 billion, requiring them to disclose both Scope 1 and 2 emissions and Scope 3 emissions related to their supply chains and business travel. SB 261 applies to companies with revenues exceeding $500 million and mandates the disclosure of climate-related financial risks.
CARB has emphasized the necessity of ensuring the framework adequately captures the broad range of covered entities and will continue refining the initial proposal. Although the regulations are under development, California’s climate disclosure mandates are anticipated to set a significant precedent for corporate climate-related reporting across the nation.
Legal challenges have already been filed against CARB regarding SB 253 and SB 261, highlighting the ongoing controversies surrounding the implementation of these critical regulations. Stakeholders are encouraged to participate in CARB’s voluntary survey to provide feedback on potentially covered entities and exemptions.
Looking ahead, CARB has committed to accelerating the publication of draft regulations by October 14, 2025, following a public comment period that concludes in December 2025. This timeline indicates an ongoing commitment to stakeholder engagement and thorough preparatory work necessary for effective regulation.
In summary, while California’s climate disclosure regulations face a delay in finalization, the compliance deadlines remain intact, and the process actively includes public feedback to refine the reporting framework.
FAQ
What is the new timeline for California’s climate disclosure regulations?
California has delayed the finalization of climate disclosure regulations for SB 253 and SB 261 until the first quarter of 2026.
What are the compliance deadlines for companies under SB 253 and SB 261?
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 is included in the preliminary list of companies?
A preliminary list of over 3,100 companies has been published, which includes electric utilities, energy companies, and manufacturers; entities are responsible for compliance regardless of being listed.
What are the targets of SB 253 and SB 261?
SB 253 applies to companies operating in California with annual revenues over $1 billion, requiring them to disclose both Scope 1 and 2 emissions as well as Scope 3 emissions related to their supply chains, business travel, and more. SB 261 targets companies with revenues over $500 million, mandating disclosure of climate-related financial risks.
Key Features of California’s Climate Disclosure Regulations
| Feature | Details |
|---|---|
| Delay of Finalization | Until the first quarter of 2026 |
| Compliance Deadlines | SB 261: January 1, 2026; SB 253: June 30, 2026 |
| Preliminary Company List | Over 3,100 companies, including major utilities |
| Revenue Requirement for SB 253 | Over $1 billion annually |
| Revenue Requirement for SB 261 | Over $500 million annually |
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Rulemaking Timeline
- Mayer Brown: California Climate Disclosure Laws
- Carbon Herald: California Delays Climate Disclosure Rulemaking
- ESG Today: California Delays Rulemaking for New Climate Reporting Regulations
- Wikipedia: Climate Change in California
Author: STAFF HERE COSTA MESA WRITER
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