California, August 20, 2025
News Summary
California is embroiled in a legal battle as the U.S. Chamber of Commerce seeks to overturn court rulings on emissions reporting laws. The Ninth Circuit confirmed that companies with revenues over $1 billion must disclose greenhouse gas emissions starting in 2027, while those over $500 million must report climate risks biannually. Despite the Chamber’s claims of First Amendment violations, the court ruled in favor of the laws, emphasizing their significant governmental interest. These regulations will impact around 2,600 companies and may set a precedent for similar legislation in other states.
California is at the center of a legal battle as the U.S. Chamber of Commerce and several business organizations seek to overturn a recent court decision regarding the state’s new emissions reporting laws. The Ninth Circuit Court ruled against a request for a preliminary injunction that would have paused the laws, which aim to increase transparency around corporate greenhouse gas emissions and climate-related financial risks.
On August 13, 2023, Judge Otis D. Wright II determined that the emissions reporting requirements outlined in Senate Bill 253 and Senate Bill 261 did not violate the First Amendment rights of corporations. The judge noted that while the laws compel commercial speech, they serve substantial government interests, such as reducing emissions and providing investors with critical information regarding climate contributions.
Beginning in the reporting year of 2027, Senate Bill 253 mandates businesses with annual revenues exceeding $1 billion to disclose their greenhouse gas emissions. Meanwhile, Senate Bill 261 requires companies generating revenues over $500 million to report on climate-related financial risks biannually, with the first disclosures expected in January 2026. These regulations are projected to impact approximately 2,600 companies throughout California.
The Chamber of Commerce contends that these laws violate their First Amendment rights by compelling them to speak. However, the court has found these claims to lack sufficient evidence. The California Attorney General’s Office expressed approval of the ruling, reiterating its dedication to defending the climate disclosure laws amidst ongoing litigation.
This lawsuit is not the first attempt by the Chamber of Commerce to challenge the emissions reporting laws. The organization initiated litigation against the California Air Resources Board early in 2024, aiming to declare the laws “null and void.” Previous requests to block the implementation of these regulations have been denied by the courts. A trial for the case has been scheduled for October 2026.
The emissions disclosure laws were officially signed into law by California Governor Gavin Newsom on October 7, 2023. In a broader context, similar corporate climate disclosure legislation is gaining traction in other states, such as New York, Colorado, Illinois, and New Jersey. A New York Senate panel, for instance, has advanced a comparable emissions disclosure bill that could lead to a nationwide corporate reporting requirement when considered alongside California’s law.
Additionally, the federal landscape concerning emissions reporting has seen shifts, with the U.S. Securities and Exchange Commission recently deciding to abandon its legal defense for proposed regulations requiring public companies to disclose greenhouse gas emissions due to ongoing legal challenges. These developments come on the heels of the previous administration’s efforts to roll back various climate policies.
California continues to build on its environmental initiatives, with Senate Bill 285 introduced to ensure that carbon offsets utilized in emissions reporting adhere to specific standards. This measure aims to enhance how progress toward the state’s carbon reduction goals by 2045 is tracked and measured.
FAQ Section
What are the main emissions reporting laws in California?
The main laws are Senate Bill 253, which requires companies with revenues over $1 billion to disclose greenhouse gas emissions starting in 2027, and Senate Bill 261, which mandates biannual reporting on climate-related financial risks for businesses generating over $500 million starting in January 2026.
Why did the U.S. Chamber of Commerce file a lawsuit?
The Chamber of Commerce filed a lawsuit arguing that the emissions reporting laws violate their First Amendment rights by compelling them to disclose information.
What was the ruling by the court?
Judge Otis D. Wright II ruled against the Chamber’s request for a preliminary injunction to suspend the laws, stating they do not violate First Amendment rights and serve substantial government interests.
How many companies will be affected by these laws?
Approximately 2,600 companies in California are expected to be affected by the emissions reporting laws.
What are the implications of similar laws being proposed in other states?
Similar legislation in other states could lead to a nationwide corporate emissions reporting requirement, increasing overall transparency and accountability regarding corporate environmental impacts.
Deeper Dive: News & Info About This Topic
- Bloomberg Law: Businesses Eye Appeal to Stop California Emissions Reporting
- Google Search: California Emissions Reporting
- Courthouse News: Big Business Strikes Out in Bid to Duck California Emissions Disclosure
- Wikipedia: Climate Change Law
- Politico: California is Still the State to Beat on Corporate Emissions
- Google Scholar: California Corporate Emissions Disclosure
- Vinson & Elkins: California Provides Flexibility on Greenhouse Gas Emissions Reporting Law
- Encyclopedia Britannica: Environmental Law
- Pluribus News: N.Y. Advances Corporate Emissions Disclosure Bill with National Implications
Author: STAFF HERE COSTA MESA WRITER
COSTA MESA STAFF WRITER The COSTA MESA STAFF WRITER represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, Concerts in the Park, and Fish Fry. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Boys & Girls Clubs of Central Orange Coast, plus leading businesses in retail, fashion, and technology that power the local economy such as Vans, Experian, and South Coast Plaza. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
