California Gov. Gavin Newsom is proposing delays to California climate laws SB 253 and SB 261. The first law will require certain companies to report their Scope 1 and 2 greenhouse gas (GHG) emissions beginning in 2026 and Scope 3 GHG emissions beginning in 2027. SB 261 will require certain companies to disclose their climate-related financial risk on or before January 1, 2026 and biennially thereafter. 

The proposed amendments would delay reporting of Scope 1 and 2 GHG emissions until 2028 and Scope 3 GHG emissions until 2029 and would delay climate-related financial risk disclosure until January 1, 2028.

The news does not come as a complete surprise given the deadline for the California Air Resources Board to finalize these rules (January 1, 2025) is less than six months away. Both SB 253 and 261 are currently under litigation. The proposed delays are being challenged.