Ninth Circuit Stays Enforcement of SB 261 Climate Financial Risk Reporting While CARB Updates SB 253 Guidance on Carbon Emissions Reporting

Enforcement of SB 261 Stayed Pending Appeal

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At a Glance

The Ninth Circuit ruling means parties that would be covered by SB 261 are not currently required to publish a climate-related financial risk report on or before January 1, 2026.
The California Air Resources Board hosted a public workshop providing additional guidance for SB 253, including first-year reporting deadlines and key definitions.

On September 15, 2025, the Chamber of Commerce of the United States et al. (Chamber) filed a Motion for Injunction Pending Appeal with the United States Court of Appeals for the Ninth Circuit. The Chamber requested a preliminary injunction staying Senate Bill 253 (SB 253) and Senate Bill 261 (SB 261), including enjoining enforcement of each bill pending appeal. On November 18, 2025, the Ninth Circuit issued a short order:

The motion for injunction pending appeal (Dkt. No. 6) is GRANTED IN PART and DENIED IN PART. The motion is granted as to the enforcement of Senate Bill 261 and denied as to the enforcement of Senate Bill 253.

Based on the Ninth Circuit’s ruling, parties that would be covered by SB 261 are not currently required to publish a climate-related financial risk report on or before January 1, 2026. However, SB 253 remains in effect (at least for now), so calculating and reporting of greenhouse gas emissions (GHG) remains a pending obligation for covered entities.

Note that as the Chamber case evolves, other important developments may arise on the application (or not) of SB 261 and SB 253. These cases are far from over.

CARB’s Updated SB 253 Guidance

Also on November 18, 2025, the California Air Resources Board (CARB) hosted a public workshop in which it provided additional guidance for SB 253, including first-year reporting deadlines, fiscal year data usage, annual fees, and proposed definitions for “revenue” and “doing business.” Important takeaways include the following:

Reporting Deadline: Scope 1 and Scope 2 GHG emissions reporting will now be due August 10, 2026.
Data Usage by Fiscal Year:
- FY ends between January 1 and February 1, 2026: entity is to report data from its fiscal year ending in 2026.
- FY ends between February 2 and December 31, 2026: entity is to report data from its fiscal year ending in 2025.
- Entities will have at least 6 months after the end of their fiscal year to submit their report.
SB 253 Annual Fees: CARB plans to issue invoices to each entity that would be required to report under SB 253, even if under the same corporate parent. However, the total fee may be paid by a parent entity in one combined payment.
Definition of “revenue”: For purposes of determining whether an entity exceeds the $1BB revenue threshold, “revenue” is now tied to “gross receipts” that will be verified based on California Franchise Tax Board tax filings.
Definition of “doing business”: Actively engaging in any transaction for the purpose of financial or pecuniary gain or profit and meeting one of the following criteria:
- Being domiciled or commercially organized in California; or
- Having sales that exceed $735,019.

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