California has pushed back the timeline for finalizing its landmark corporate climate-disclosure rules, citing an influx of public feedback and ongoing technical discussions over which companies will fall under the new mandates.
The California Air Resources Board (CARB) announced this week that it now expects to complete rulemaking for Senate Bills 253 and 261 in the first quarter of 2026, several months later than originally planned. The agency had previously indicated that final regulations would be issued this fall.
The delay follows the release of a draft reporting template for companies covered under SB 253 — firms operating in California with annual revenues above $1 billion. That law requires disclosure of direct and indirect greenhouse gas emissions, known as scope 1 and scope 2 emissions. A companion measure, SB 261, applies to companies generating over $500 million annually and mandates reporting on climate-related financial risks.
CARB said the extended schedule will allow staff to review thousands of public comments and refine the framework to “capture the full range of covered entities.” The agency emphasized that the change affects only the rulemaking process, not compliance deadlines. Companies governed by SB 261 must still submit risk reports by Jan. 1, 2026, while those under SB 253 will need to report emissions data by June 30, 2026.
The draft template released Oct. 10 is voluntary for the first reporting cycle and aims to streamline the disclosure process, particularly for first-time reporters. CARB is accepting public input on the proposal through Oct. 27 via an online form.
State officials estimate that more than 3,000 companies could ultimately be subject to the new disclosure requirements, a key component of California’s broader effort to make corporate climate risks more transparent.
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