California, October 17, 2025
News Summary
California has postponed the finalization of climate disclosure regulations under Senate Bills 253 and 261 until the first quarter of 2026. This delay is a result of extensive public feedback and complexities in determining the impacted companies. Despite this, compliance deadlines remain unchanged, requiring companies under SB 261 to submit climate-related risk reports by January 1, 2026, and SB 253 entities to report emissions by June 30, 2026. The California Air Resources Board is working to refine the regulations and has released a draft reporting template for feedback.
California has announced a significant delay in the finalization of climate disclosure regulations established under Senate Bills 253 and 261, now expected to be completed in the first quarter of 2026. The postponement is primarily due to the overwhelming response of public comments and the complexity of determining which companies will be affected by these mandates. Initial projections anticipated that the regulations would be finalized in the fall of 2025.
Despite this delay in the issuance of final regulations, it is crucial to note that the compliance deadlines remain unchanged. Companies operating under SB 261, which mandates the disclosure of climate-related financial risks, must submit their reports by January 1, 2026. Likewise, entities governed by SB 253 are required to report their direct Scope 1 and 2 emissions by June 30, 2026. Compliance for all affected companies will be enforced regardless of their inclusion in a preliminary list recently published by the California Air Resources Board (CARB).
CARB has released a draft reporting template meant to simplify the reporting process, particularly for first-time reporters. The use of this template is voluntary for the 2026 reporting cycle, but organizations are encouraged to provide feedback on it until October 27, 2025. CARB aims to ensure that the regulatory framework encompasses a comprehensive array of affected entities and plans to refine its initial proposal accordingly.
A preliminary list has been disclosed, identifying over 3,100 companies that will likely be subject to these regulations, including well-known names such as Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy. Under SB 253, companies with annual revenues over $1 billion must disclose their Scope 1 and 2 emissions, alongside Scope 3 emissions related to their supply chains and business activities. Similarly, SB 261 targets firms with revenues exceeding $500 million, necessitating the disclosure of climate-related financial risks.
As the regulations evolve, California’s climate disclosure mandates are poised to set a national standard for corporate climate reporting. However, the process has not been without controversy. Legal challenges have been raised against CARB regarding both SB 253 and SB 261, indicating ongoing disputes over the implementation of these regulations. Stakeholders continue to be encouraged to participate in CARB’s voluntary survey to provide input on potentially covered entities and any exemptions that may be applicable.
Looking ahead, CARB has committed to accelerating the publication of draft regulations, with a target date of October 14, 2025. This will be followed by a public comment period that concludes in December 2025, allowing for further community involvement in the development of these significant regulations.
Summary of Key Regulations
- Regulations Finalization Date: First quarter of 2026.
- Compliance Deadlines:
- SB 261: Climate-related risk reports by January 1, 2026.
- SB 253: Scope 1 and 2 emissions reports by June 30, 2026.
- Affected Companies: Over 3,100 firms, including major utilities and manufacturers.
Legal Context
The introduction of SB 253 and SB 261 has led to legal actions against CARB, highlighting a contentious atmosphere surrounding climate regulation implementation in California.
Public Participation
Members of the public can provide feedback on the draft reporting template until October 27, 2025, ensuring that the development process is informed by diverse stakeholders.
Conclusion
The California Air Resources Board is working diligently to refine climate disclosure regulations while maintaining compliance deadlines. This process reflects California’s commitment to addressing climate change by mandating transparency in corporate climate impact disclosures, potentially setting a benchmark for future nationwide regulations.
FAQ
What caused the delay in California’s climate disclosure regulations?
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 the new regulations?
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 companies are affected by SB 253 and SB 261?
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.
Key Features of Climate Disclosure Regulations
| Feature | Details |
|---|---|
| Regulations Finalization Date | First quarter of 2026 |
| Compliance Deadline for SB 261 | January 1, 2026 |
| Compliance Deadline for SB 253 | June 30, 2026 |
| Affected Companies | Over 3,100, including major utilities |
| Public Feedback Period | Until October 27, 2025 |
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Rulemaking Timeline for Climate Regulations
- Mayer Brown: Countdown to Disclosure on California Climate Laws
- Carbon Herald: California Delays Climate Disclosure Rulemaking
- ESG Today: California Delays Rulemaking for Climate Reporting Regulations
- Ropes & Gray: CARB Publishes Draft Template for SB 253 Greenhouse Gas Reporting
- Wikipedia: Climate Change in California
- Google Search: California Climate Regulations
- Google Scholar: California Climate Disclosure Laws
- Encyclopedia Britannica: Climate Change
- Google News: California Climate Disclosure Regulations
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
