This client alert summarizes recent developments related to implementation of California’s climate disclosure laws, the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261). These key developments underscore the necessity of preparing for compliance by the operative deadlines: January 1, 2026 for SB 261 and later in 2026 for SB 253.

  • On August 13, 2025 a federal District Court judge issued an order in the litigation challenging the laws. The judge denied plaintiffs’ request for a preliminary injunction, allowing both laws to continue in effect.
  • On July 9, 2025 the California Air Resources Board (“CARB”) released a Frequently Asked Questions document with updates on CARB’s implementation of the climate disclosure laws. The laws’ compliance dates remain unchanged.

Click here to read the full alert on cov.com.

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Photo of Jayni Hein Jayni Hein

Jayni F. Hein co-chairs the firm’s Carbon Management and Climate Mitigation industry group.

Jayni joined Covington after serving as a senior political appointee in the White House Council on Environmental Quality (CEQ) during the Biden Administration, where she led clean energy, infrastructure, and…

Jayni F. Hein co-chairs the firm’s Carbon Management and Climate Mitigation industry group.

Jayni joined Covington after serving as a senior political appointee in the White House Council on Environmental Quality (CEQ) during the Biden Administration, where she led clean energy, infrastructure, and federal permitting.

Jayni has extensive experience advising clients on climate and environmental laws and regulations, including the Clean Air Act, National Environmental Policy Act (NEPA), Clean Water Act, Endangered Species Act, and federal energy statutes. She draws on her significant government experience to help clients successfully advance clean energy and other infrastructure projects, including solar, semiconductor, domestic manufacturing, carbon removal, and carbon, capture, and sequestration (CCS) projects.

In addition, she advises companies and investors on compliance with California’s climate disclosure laws (SB 253, SB 261, and AB 1305), as well as ESG compliance and strategy in light of increased scrutiny of corporate climate and net-zero commitments. She frequently advises on sustainability reporting, environmental marketing, and carbon accounting.

She also counsels clients through government investigations, enforcement actions, and shareholder-driven assessments, and conducts corporate and investment due diligence.

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Photo of Kevin Poloncarz Kevin Poloncarz

Kevin Poloncarz co-chairs the firm’s Environmental and Energy Practice Group, Energy Industry Group and ESG Practice.

Kevin is ranked by Chambers USA among the nation’s leading climate change attorneys and California’s leading environmental lawyers and by Chambers Global among the top climate change…

Kevin Poloncarz co-chairs the firm’s Environmental and Energy Practice Group, Energy Industry Group and ESG Practice.

Kevin is ranked by Chambers USA among the nation’s leading climate change attorneys and California’s leading environmental lawyers and by Chambers Global among the top climate change lawyers, with sources describing him as “exceptional,” “a superb attorney,” and “one of the most gifted advocates in this space in the country.”

He represents electric utilities, financial institutions, investors and companies in policy, litigation and transactional matters concerning emission-reduction strategies, power and carbon markets, carbon dioxide removal (CDR) technologies, carbon capture, utilization and storage (CCUS), and low carbon fuels.
Kevin convenes the Clean Energy Group, which consists of some of the nation’s largest public- and investor-owned utilities and independent generators and focuses on federal and state environmental policy efforts affecting the power sector.

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Eva Dorrough

Eva Dorrough is an associate in the firm’s San Francisco office. She is a member of the Environmental and Energy Practice Group, advising clients on state and federal environmental regulations, enforcement actions, and climate disclosure laws. She also works on complex litigation matters…

Eva Dorrough is an associate in the firm’s San Francisco office. She is a member of the Environmental and Energy Practice Group, advising clients on state and federal environmental regulations, enforcement actions, and climate disclosure laws. She also works on complex litigation matters in the Commercial Litigation Practice Group and maintains an active pro bono practice.

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Photo of Tim Duncheon Tim Duncheon

Tim Duncheon is an associate in the firm’s San Francisco office and a member of the Environmental and Energy Practice Group. He represents clients in litigation, regulatory, and policy matters involving a wide array of issues, including greenhouse gas regulation, California’s climate laws…

Tim Duncheon is an associate in the firm’s San Francisco office and a member of the Environmental and Energy Practice Group. He represents clients in litigation, regulatory, and policy matters involving a wide array of issues, including greenhouse gas regulation, California’s climate laws, Clean Air Act enforcement, corporate claims about climate action, and environmental review. Tim also helps manage the firm’s Inside Energy & Environment blog.

Tim also has an active pro bono practice. He focuses on addressing legal barriers that prevent building the homes and clean energy infrastructure needed to solve the housing and climate crises.

Prior to joining Covington, Tim clerked for the Honorable William A. Fletcher of the United States Court of Appeals for the Ninth Circuit and the Honorable Charles R. Breyer of the United States District Court for the Northern District of California.

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Photo of Jared Gilmour Jared Gilmour

Jared Gilmour is an associate in the firm’s San Francisco office. He works in the Environmental and Energy Practice Group, advising clients on climate disclosure requirements, low-carbon fuel standards, cap-and-trade regulations, and corporate carbon-reduction and net-zero claims. His pro bono practice focuses on…

Jared Gilmour is an associate in the firm’s San Francisco office. He works in the Environmental and Energy Practice Group, advising clients on climate disclosure requirements, low-carbon fuel standards, cap-and-trade regulations, and corporate carbon-reduction and net-zero claims. His pro bono practice focuses on media freedom and criminal justice issues.

Before joining the firm, Jared worked as a U.S. Senate press secretary and journalist.

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