On December 9, 2025, the California Air Resources Board (“CARB”) issued proposed regulations and a staff report for California’s comprehensive climate disclosure laws, the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261). These proposed regulations come less than a month after the Ninth Circuit issued an injunction temporarily halting enforcement of SB 261, at least until a January 9, 2026, hearing on the plaintiffs’ requested longer-term injunction through the remainder of the First Amendment challenge to the laws. The draft regulations would adopt some, but not all, of the provisions proposed by CARB in its public workshops on the laws to date, and notably would scale back applicability to those companies above a threshold level of sales in the state. The proposed regulations also define key terms, establish the program fee structures, explain fee enforcement and set initial reporting timelines. The written comment period begins on December 26, 2025, and ends on February 9, 2026. CARB will hold a public hearing on the proposed regulations on February 26, 2026 at 9 a.m. PST.
