California, October 17, 2025
News Summary
California has pushed back the finalization of climate disclosure regulations under Senate Bills SB 253 and SB 261 to early 2026, responding to public feedback and the need for further discussions. Despite the delay, compliance deadlines for companies remain unchanged. CARB has released a draft reporting template for firms to simplify submissions. The regulations focus on large companies with annual revenues exceeding specified thresholds, aiming to enhance climate accountability. Stakeholders can provide input on the regulations until October 27, 2025.
California has postponed the finalization of climate disclosure regulations under Senate Bills SB 253 and SB 261 until the first quarter of 2026. This decision comes as a result of significant public feedback and the need for further technical discussions concerning the companies that will need to adhere to these new mandates. Previously, the regulations were expected to be finalized by fall 2025.
Despite the delay in issuing the final regulations, the compliance deadlines will remain the same. Companies subject to 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 Scope 2 emissions by June 30, 2026.
To assist in the reporting process, CARB has released a draft reporting template designed to simplify submissions, particularly for first-time reporters. The use of this template will be voluntary for the reporting cycle in 2026. CARB is inviting public input on this template until October 27, 2025.
A preliminary list of over 3,100 companies has already been published, which includes electric utilities, energy firms, and manufacturers. These entities are responsible for compliance even if they are not specifically listed. Key organizations on the preliminary list include major players such as 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. These companies are mandated to disclose not only their Scope 1 and Scope 2 emissions but also Scope 3 emissions, which encompass emissions from their supply chains, business travel, and more. Meanwhile, SB 261 targets companies with annual revenues above $500 million, requiring them to disclose climate-related financial risks.
CARB has indicated the significance of developing a comprehensive framework that adequately captures the full spectrum of covered entities and will work on refining the initial proposal. Even though the regulations are still under development, California’s climate disclosure mandates are expected to serve as a model for corporate climate-related reporting on a national level.
Legal challenges have already surfaced against CARB concerning SB 253 and SB 261, drawing attention to the existing debates surrounding the implementation of these regulations. Stakeholders, including members of the public and various organizations, are encouraged to contribute their feedback on potentially covered entities and exemptions through a voluntary survey provided by CARB.
Looking ahead, CARB has committed to publishing draft regulations by October 14, 2025, after a public comment period that will conclude in December 2025. As the regulatory landscape continues to evolve, stakeholders are keeping a close watch on how these rules will shape corporate climate accountability in California and beyond.
Frequently Asked Questions
What is the revised timeline for California’s climate disclosure regulations?
The California Air Resources Board (CARB) has delayed the finalization of climate disclosure regulations for SB 253 and SB 261 until the first quarter of 2026.
Why was the timeline for 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 under SB 261 and SB 253?
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 the purpose of the draft reporting template released by CARB?
A draft reporting template was released by CARB, intended to streamline the reporting process, especially for first-time reporters; its use is voluntary for the 2026 reporting cycle.
Who needs to comply with the regulations?
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 revenue thresholds for 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.
Is there an ongoing public input process for the regulations?
CARB is seeking public input on the draft reporting template until October 27, 2025.
What legal challenges have been filed regarding these regulations?
Legal challenges have been filed against CARB regarding SB 253 and SB 261, underscoring ongoing controversies related to the implementation of these regulations.
| Key Features | SB 253 | SB 261 |
|---|---|---|
| Revenue Threshold | Over $1 billion | Over $500 million |
| Emissions to Report | Scope 1, 2, and Scope 3 | Climate-related financial risks |
| Compliance Deadline | June 30, 2026 | January 1, 2026 |
| Public Feedback Deadline for Draft Template | October 27, 2025 | October 27, 2025 |
| Preliminary List of Companies | 3,100+ companies | 3,100+ companies |
Deeper Dive: News & Info About This Topic
- Utility Dive: California Delays Climate Regulations Rulemaking
- Mayer Brown: California Climate Disclosure Laws Countdown
- Carbon Herald: California Delays Climate Disclosure Rulemaking
- Google Search: California Climate Disclosure Laws
- Encyclopedia Britannica: California Climate Regulations
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, 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 the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
