Are there new California environmental or climate regulations effective January 1, 2026?
Executive summary
Yes. Beginning January 1, 2026 California’s new corporate climate disclosure law (SB 261) requires covered entities to publish biennial climate-related financial risk reports, and SB 253’s first greenhouse‑gas disclosures (Scope 1 and 2) are due in 2026 (with Scope 3 phased in later) — though CARB rulemaking, enforcement guidance and litigation have created timing and enforcement caveats [1] [2] [3].
1. What the new January 1, 2026 obligations actually require
California’s Climate‑Related Financial Risk Act (SB 261) compels “covered entities” — companies doing business in California above the statute’s revenue threshold — to publish a climate‑related financial risk report on their websites by January 1, 2026 and biennially thereafter; SB 253 (the Climate Corporate Data Accountability Act) requires public disclosure of Scope 1 and 2 greenhouse‑gas emissions beginning in 2026, with Scope 3 reporting phased in starting in 2027 [1] [2] [4].
2. Who is in scope and what thresholds matter
The statutes draw revenue‑based lines: commentaries and guidance identify thresholds (SB 261 commonly tied to $500 million revenue; SB 253 has been described in sources as applying to $1 billion-plus filers in some analyses), so large U.S. companies that “do business” in California are the primary targets. CARB and legal analyses are actively hashing definitions like “doing business” and “gross receipts,” which matter materially for who must comply [5] [2] [6].
3. Implementation friction: regulation drafting, enforcement notices, and litigation
CARB has been slow to finalize implementing regulations; it held workshops and issued FAQs and guidance, but delayed or staggered rulemaking timelines have left uncertainties about precise deadlines and formats for SB 253 filings. CARB issued enforcement guidance that offers limited relief for good‑faith efforts, and there is active litigation and at least a Ninth Circuit stay situation affecting SB 261 enforcement — CARB at times said it will not enforce SB 261 while litigation proceeds [3] [7] [8].
4. Practical deadlines and relief: what firms should expect in 2026
Multiple legal‑practice summaries and CARB communications state the first SB 261 reports are due by January 1, 2026 and that SB 253 disclosures of Scope 1 and 2 emissions are due in 2026 (with CARB staff proposals sometimes suggesting later specific dates such as mid‑2026 for SB 253 reporting); CARB has signaled it will accept “good faith” submissions for initial filings and keep a public docket open to collect links to reports [9] [3] [10].
5. Enforcement risk and penalties
Sources warn of penalties for non‑compliance and describe steep possible penalties, but CARB’s December 2024 enforcement notice and subsequent advisories provide some first‑year leniency where entities show good‑faith efforts. Litigation outcomes (including stays) could further alter near‑term enforcement, as flagged by several analyses [11] [7] [8].
6. Other January 1, 2026 product and waste rules to watch
Beyond corporate climate disclosures, other statutory changes with January 1, 2026 effective components exist in California’s product and waste laws: for example, tightened single‑use plastic carryout bag restrictions under SB 1503 were reported to begin January 1, 2026 for grocery and many retailers, and multiple producer responsibility and PFAS‑related product rules phase toward 2026 effective dates though some implementation details and sell‑through periods extend later [12] [13] [14].
7. Competing perspectives and hidden agendas
Business and law‑firm analyses emphasize implementation challenges, compliance costs and the practical need for data systems; environmental advocates frame the laws as first‑of‑their‑kind transparency tools to drive corporate emissions reductions. Meanwhile industry commenters push for more regulatory clarity or delays; state actors argue statutory deadlines must hold — motivations include protecting California consumers and investors on one side and limiting regulatory burdens on businesses on the other [15] [16] [17].
8. What reporting teams should do now
Prepare for 2026 by inventorying 2025 Scope 1 and 2 emissions data, documenting sources to demonstrate good‑faith efforts, monitoring CARB rule releases and the public docket, and consulting counsel about whether your enterprise meets the revenue/“doing business” thresholds — enforcement relief may be available only for demonstrable good‑faith compliance steps [3] [15] [11].
Limitations: available sources do not give a single definitive, uniform calendar date for SB 253 filings (CARB and commentators report “sometime in 2026” or mid‑2026 proposals), and litigation or future CARB rulemaking could change enforcement dynamics; all factual points above cite the listed legal and industry sources [2] [3] [1].