The California Air Resources Board (CARB) has issued an enforcement advisory confirming a pause in the implementation of Senate Bill 261 (SB 261), following a preliminary injunction granted by the U.S. Court of Appeals for the Ninth Circuit last month.
SB 261 requires companies with more than USD 500 million in annual revenue and operating in California to publicly disclose their climate-related financial risks and strategies. The law, part of the state’s Climate Accountability Package alongside SB 253, was signed by Governor Gavin Newsom in October 2023.
CARB said it would not take enforcement action against companies that fail to submit their climate-risk reports by the statutory deadline of 1 January 2026, as a result of the appeals court decision. However, it has opened a public docket for companies wishing to submit reports voluntarily, and asked that submissions follow a standard naming format and include consolidated information covering subsidiaries. Companies are also encouraged to publish their reports on their websites.
The Ninth Circuit’s decision on 18 November came after the U.S. Chamber of Commerce and several business groups filed an emergency application with the U.S. Supreme Court seeking to halt enforcement of both SB 261 and SB 253 pending appeal. Although the groups sought a pause on both laws, the court granted an injunction only for SB 261 and allowed SB 253 — which requires companies with revenues above USD 1 billion to report their greenhouse gas emissions — to proceed.
Oral arguments in the appeal are scheduled for 9 January 2026.
CARB said it will issue further guidance, including an alternative reporting date, once the appeal process is concluded.
