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On December 1, 2025, the California Air Resources Board (CARB) released an Enforcement Advisory clarifying that it will not enforce SB 261 against covered entities for failing to publish climate-related financial risk reports by the January 1, 2026, statutory deadline.1
This announcement follows the issuance of an order by the U.S. Court of Appeals for the Ninth Circuit on November 18, 2025, enjoining CARB from enforcing SB 261 pending appeal. CARB has stated that it will provide additional SB 261 guidance, including revised reporting dates, once the legal challenges to the disclosure statute are resolved. Read our prior coverage of the Ninth Circuit's order here.
Simultaneously, CARB opened the public docket for entities tovoluntarilysubmit a link to the climate-related financial risk report posted on the entity's own website. The docket will remain open through July 1, 2026.
Key Upcoming Dates
- January 9, 2026 – Ninth Circuit hears oral argument on plaintiffs' appeal of the district court's denial of a preliminary injunction.
- August 10, 2026 – Proposed initial reporting deadline under SB 253 for Scope 1 and 2 emissions, according to CARB's November 18 public workshop. Limited assurance will not be required for 2026, and CARB will exercise enforcement discretion for good-faith compliance efforts.
- September 10, 2026 – Proposed date for fee assessment under both SB 253 and SB 261, according to CARB's November 18 public workshop. CARB is considering a flat fee structure, calculated by dividing the state's estimated annual program cost (approximately $13.9 million) by the number of covered entities reporting under both laws in 2026.
We will continue to monitor updates to California's climate reporting statutes and legal challenges thereto. Please contact a member of our team with questions about reporting and compliance obligations.
Footnote
1. SB 261 is codified at California Health and Safety Code § 38533.
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