CARB Update: Climate Clock Keeps Running Despite Regulatory Delay

The California Air Resources Board (CARB) recently posted a notice on its website regarding climate disclosure requirements indicating that, due to the large volume of stakeholder comments received, it does not now anticipate releasing its proposed implementing regulations until Q1 2026. However, no operative compliance deadlines have been extended. Covered companies should therefore continue to plan for and execute their preparatory work to meet the January 1, 2026 reporting deadline prescribed in SB 261 and the June 30, 2026 reporting deadline currently proposed for SB 253.

Companies should proceed with their internal readiness plans, including data gathering and coordination across business units, without assuming any extension of the current deadlines. Any delay in the regulatory proposal process does not relieve entities of the need to comply with statutory or programmatic deadlines, once the rules are finalized and effective.

REGULATORY BACKGROUND

As discussed in our prior LawFlash, CARB is charged with implementing California’s twin climate-disclosure laws: the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261). Under those statutes, CARB must promulgate regulations defining covered entities, setting reporting requirements (including GHG emissions and related assurance), and establishing timelines for compliance.

FAQs issued by CARB in July 2025 provided helpful interpretive clues regarding key definitional issues (for example, indications on how they intend to determine “doing business in California”) and updates on reporting deadlines. On October 10, 2025, CARB also posted a draft Scope 1 and 2 Greenhouse Gas Reporting Template available on the CARB website. Additional updates, including materials from CARB’s most recent workshop on August 21, 2025, may also be found on the CARB website.

Notably:

• Under SB 253 (CCDAA), covered entities will be required to report Scope 1 and 2 emissions (with limited assurance initially) beginning in 2026 (likely by June 30); Scope 3 reporting is currently slated to begin in 2027.
• Under SB 261 (CRFRA), covered entities must publish a climate-related financial risk report by January 1, 2026, relying on the best available data from eligible fiscal years.
• The public docket for climate risk disclosures will open December 1, 2025, and run through July 1, 2026, to support transparency by providing one centralized location for the public to review all climate risk reports.

NEXT STEPS

The delay in the regulatory proposal does not fundamentally alter the obligations that businesses have been planning for since the adoption of these laws—nor does it diminish the need for companies to have systems and cross-functional processes in place to ensure compliance. As CARB moves toward rule issuance, Morgan Lewis will continue to monitor developments, assess draft language, and support client engagement and compliance planning. Reach out if you would like assistance refining your internal timelines or preparing to respond to the anticipated proposed rule.