California, October 17, 2025
News Summary
California has postponed the finalization of climate disclosure regulations under Senate Bills 253 and 261 until early 2026 due to extensive public feedback. Compliance deadlines for affected companies remain unchanged, with climate-related risk reports due by January 1, 2026, and Scope 1 and 2 emissions reports due by June 30, 2026. The California Air Resources Board aims to refine its reporting template and is inviting public input on the proposed regulations.
California has postponed the finalization of its climate disclosure regulations for Senate Bills 253 and 261 until the first quarter of 2026. The delay results from a substantial number of public comments received and the necessity for further technical discussions concerning which companies will be obligated to follow these mandates. Previously, regulators anticipated finalizing these regulations by fall 2025.
Despite the postponement, compliance deadlines for affected companies remain unchanged. Organizations falling under SB 261 must submit climate-related risk reports by January 1, 2026, while those governed by SB 253 are required to report their direct Scope 1 and 2 emissions by June 30, 2026.
The California Air Resources Board (CARB) has released a draft reporting template aimed at facilitating the reporting process, particularly for companies reporting for the first time; using this template is voluntary for the 2026 reporting cycle. CARB is soliciting public input on this draft template until October 27, 2025.
A preliminary list identifying over 3,100 companies, which includes electric utilities, energy firms, and manufacturers, has been made public. These entities are obligated to comply with the regulations regardless of whether they are included on the list. Some prominent companies among those identified include Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy.
SB 253 applies to companies operating in California with annual revenues exceeding $1 billion, requiring them to disclose both Scope 1 and 2 emissions, as well as Scope 3 emissions linked to their supply chains and business travel. On the other hand, SB 261 targets firms with revenues over $500 million, mandating the disclosure of climate-related financial risks.
CARB has underscored the necessity of ensuring that the framework adequately addresses the full range of covered entities and plans to refine the initial proposal. Although the rules are still being developed, California’s climate disclosure mandates are anticipated to set a precedent for corporate climate-related reporting across the nation.
Legal challenges have been initiated against CARB concerning SB 253 and SB 261, highlighting the ongoing disputes related to the implementation of these regulations. Stakeholders are encouraged to participate in CARB’s voluntary survey, which gathers feedback on potentially covered entities and exemptions.
Moving forward, CARB has committed to accelerating the publication of draft regulations by October 14, 2025, following a public comment period that is set to conclude in December 2025.
Key Compliance Dates
- SB 261: Climate-related risk reports due by January 1, 2026.
- SB 253: Scope 1 and 2 emissions reports due by June 30, 2026.
Impact of the Regulations
The regulations aim to enhance transparency and accountability among large corporations regarding their contributions to climate change and ensure that investors and the public have access to critical information about corporate environmental impacts.
Preliminary List of Companies
Includes major players like:
- Pacific Gas and Electric
- Southern California Edison
- Berkshire Hathaway Energy
Overview of SB 253 and SB 261
| Bill | Revenue Threshold | Requirements |
|---|---|---|
| SB 253 | Over $1 billion | Disclose Scope 1, 2, and 3 emissions |
| SB 261 | Over $500 million | Disclose climate-related financial risks |
Conclusion
The extended timeline for regulations presents both challenges and opportunities for companies poised to meet California’s rigorous climate disclosure requirements. Stakeholders are urged to stay engaged and provide feedback during the ongoing development stages.
FAQ
What is the new timeline for California’s climate disclosure regulations?
The finalization of climate disclosure regulations for SB 253 and SB 261 has been delayed until the first quarter of 2026.
What are the compliance deadlines for the regulations?
Companies under SB 261 are required to submit climate-related risk reports by January 1, 2026, and firms governed by SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026.
Are the reporting templates mandatory?
A draft reporting template was released by CARB, intended to streamline the reporting process; its use is voluntary for the 2026 reporting cycle.
What are SB 253 and SB 261?
SB 253 applies to companies with annual revenues over $1 billion, requiring disclosure of Scope 1, 2, and 3 emissions, while SB 261 targets companies with revenues over $500 million for climate-related financial risk disclosure.
What major companies are included in the preliminary list?
Some key entities in the preliminary list are Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy.
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Rulemaking Timeline for Climate Regulations
- Mayer Brown: California Climate Disclosure Laws – Countdown to Disclosure
- Carbon Herald: California Delays Climate Disclosure Rulemaking to 2026
- Linklaters: California Climate Disclosure Laws – CARB Publishes Draft
- ESG Today: California Delays Rulemaking for New Climate Reporting Regulations
- Wikipedia: Climate Disclosure
- Google Search: California Climate Disclosure Regulations
- Google Scholar: California Climate Regulations
- Encyclopedia Britannica: Climate Change
- Google News: California Climate Disclosure
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