California Delays Climate Disclosure Regulations until 2026

California landscape with industrial elements symbolizing climate regulation

California, October 17, 2025

News Summary

California has postponed the finalization of climate disclosure regulations linked to Senate Bills 253 and 261, now set for the first quarter of 2026. Compliance dates remain unchanged, with major companies still required to report their climate-related risks and emissions. A draft reporting template has been released to ease compliance, and stakeholders are encouraged to provide feedback. The delay is attributed to extensive public input and the intricate technical details involved. Legal challenges are anticipated as the state navigates the regulatory landscape.

California has announced a significant delay in the finalization of climate disclosure regulations tied to Senate Bills 253 and 261, pushing the deadline for completion to the first quarter of 2026. This postponement, which was not previously anticipated to occur until fall 2025, is primarily due to a substantial volume of public feedback and the complex technical details that require further discussion on which companies are subject to these mandates.

Despite this delay in issuing final regulations, compliance deadlines remain unchanged. Companies classified under SB 261 will still need to submit climate-related risk reports by January 1, 2026. Similarly, businesses governed by SB 253 are mandated to 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 aimed at easing the compliance burden, especially for first-time reporters. The use of this template is voluntary for the upcoming 2026 reporting cycle, with CARB seeking public input on the draft until October 27, 2025.

A preliminary list has surfaced, identifying over 3,100 companies expected to comply with these regulations, including significant players in the electric utilities, energy, and manufacturing sectors. Well-known companies like Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy are included in this initial list, although compliance is obligatory for all identified entities regardless of their listing status.

Under SB 253, companies operating in California with annual revenues exceeding $1 billion are required to disclose their Scope 1 and 2 emissions, as well as Scope 3 emissions related to their supply chains and business travel. Conversely, SB 261 applies to companies with revenues above $500 million, mandating the disclosure of climate-related financial risks.

CARB has stressed the importance of ensuring that the regulatory framework accurately captures the full range of covered entities and is committed to refining the initial proposal based on stakeholder feedback. The ongoing development of California’s climate disclosure mandates aims to set a national precedent for corporate climate-related reporting.

Legal challenges have already been filed against CARB concerning SB 253 and SB 261, reinforcing the controversies surrounding the implementation of these regulations. As stakeholders engage with CARB, they are encouraged to participate in a voluntary survey to provide feedback on potentially covered entities and exemptions.

Moving forward, CARB has set a timeline for releasing further guidance, marking a commitment to publish draft regulations by October 14, 2025, following a public comment period that concludes in December 2025. The next steps will be crucial in shaping the climate disclosure landscape in California and potentially across the nation.

Key Compliance Dates

  • Climate-related risk reports due for SB 261 companies: January 1, 2026
  • Scope 1 and 2 emissions reports due for SB 253 companies: June 30, 2026
  • Public input on draft template accepted until: October 27, 2025
  • Draft regulations expected by: October 14, 2025

Overview of Senate Bills

Senate Bill Applicable Companies Revenue Threshold Reporting Requirements
SB 253 Firms operating in California Over $1 billion Scope 1, 2, and 3 emissions
SB 261 Firms with revenues above $500 million Over $500 million Climate-related financial risks

FAQ Section

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 companies under SB 253 and SB 261?

Companies under SB 261 must submit climate-related risk reports by January 1, 2026, while firms governed by SB 253 must report their direct Scope 1 and 2 emissions by June 30, 2026.

How can stakeholders provide feedback on the reporting template?

Stakeholders can offer feedback on the draft reporting template until October 27, 2025.

What companies are included in the preliminary list for compliance?

The preliminary list of over 3,100 companies includes major entities like Pacific Gas and Electric, Southern California Edison, and Berkshire Hathaway Energy.

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STAFF HERE SAN DIEGO WRITER
Author: STAFF HERE SAN DIEGO WRITER

The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.

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