California, August 20, 2025
News Summary
A recent ruling by Judge Otis D. Wright II confirmed the legality of California’s corporate emissions reporting laws, rejecting an appeal by the U.S. Chamber of Commerce. Senate Bill 253 and Senate Bill 261 require large businesses to disclose greenhouse gas emissions and climate-related financial risks. Approximately 2,600 companies in California will be affected. The appeal process is ongoing, but the ruling is seen as a significant step in California’s efforts to address climate change and increase transparency in corporate environmental practices.
California has recently seen a significant legal ruling concerning new emissions reporting laws, as the U.S. Chamber of Commerce and other business organizations lost their bid for a preliminary injunction against the state’s corporate emissions reporting requirements. This ruling follows a decision by Judge Otis D. Wright II, which upheld the legality of Senate Bill 253, known as the Climate Corporate Data Accountability Act, and Senate Bill 261. The judge’s ruling indicates that the laws do not violate the First Amendment rights of corporations.
On August 13, 2023, Judge Wright chose not to suspend the emissions reporting statute despite ongoing litigation. The U.S. Chamber of Commerce filed their appeal in the U.S. District Court for the Central District of California, seeking a halt to the reporting requirements that apply to numerous companies throughout the state. According to estimates, around 2,600 companies in California will need to comply with these laws, which demand transparency regarding greenhouse gas emissions and climate-related financial risks.
Senate Bill 253 requires businesses with annual revenues exceeding $1 billion to disclose their greenhouse gas emissions starting with the 2027 reporting year. Similarly, Senate Bill 261 mandates that businesses with revenues surpassing $500 million report climate-related financial information on a biannual basis starting in January 2026.
The Chamber of Commerce argued that these laws compel speech in violation of constitutional rights. However, Judge Wright deemed these claims unsubstantiated, recognizing that while the laws do indeed compel corporate speech, they support significant governmental interests such as fighting climate change and informing investors. The California Attorney General’s Office expressed approval of the ruling, affirming their commitment to defending these new climate disclosure regulations.
The U.S. Chamber of Commerce initially filed suit against the California Air Resources Board in early 2024, aiming to have the emissions laws declared null and void. Various motions to block implementation of the laws have not succeeded in court, with a trial for the ongoing case scheduled to commence in October 2026.
These emissions disclosure laws were enacted on October 7, 2023, after being signed into law by California Governor Gavin Newsom. The implications of this ruling extend beyond California, as a separate New York Senate panel has begun advancing a similar emissions disclosure bill, potentially leading to a nationwide reporting requirement in conjunction with California’s laws. Moreover, similar pieces of legislation have been proposed in other states, including Colorado, Illinois, and New Jersey.
On the federal level, the U.S. Securities and Exchange Commission has recently decided to abandon its legal defense of proposed rules requiring public companies to disclose their greenhouse gas emissions amid growing legal challenges. This development occurs against a backdrop of federal efforts, particularly during the Trump administration, to repeal various climate policies and reduce regulations on fossil fuel production.
In addition to the emissions reporting laws, California has introduced Senate Bill 285, designed to ensure that carbon offsets used in emissions reporting adhere to specified standards. This initiative aims to enhance the tracking of progress toward California’s carbon reduction goals by the year 2045.
FAQ
What does Senate Bill 253 require?
Senate Bill 253 mandates that businesses with annual revenues exceeding $1 billion disclose their greenhouse gas emissions starting from the 2027 reporting year.
What is the status of the U.S. Chamber of Commerce’s appeal?
The U.S. Chamber of Commerce’s preliminary injunction bid was rejected by Judge Otis D. Wright II. They plan to appeal this decision in the U.S. District Court for the Central District of California.
Are similar emissions laws being considered in other states?
Yes, similar emissions disclosure legislation is being advanced in states like New York, Colorado, Illinois, and New Jersey, which could lead to a nationwide reporting requirement.
Key Features of California’s Emissions Reporting Laws
| Feature | Details |
|---|---|
| Senate Bill 253 | Requires businesses with revenues over $1 billion to report greenhouse gas emissions starting in 2027. |
| Senate Bill 261 | Mandates biannual reporting of climate-related financial risks for businesses with revenues above $500 million. |
| Affected Companies | An estimated 2,600 businesses will be required to comply with these reporting laws. |
| Status of U.S. Chamber of Commerce | Appealing the injunction ruling in the U.S. District Court, with a trial scheduled for October 2026. |
| Related Legislation | Senate Bill 285 is introduced to set standards for carbon offsets in emissions reporting. |
Deeper Dive: News & Info About This Topic
- Bloomberg Law: Businesses Eye Appeal to Stop California Emissions Reporting
- Courthouse News: Big Business Strikes Out in Bid to Duck California Emissions Disclosure
- Politico: California Is Still the State to Beat on Corporate Emissions
- Vinson & Elkins: California Provides Flexibility on Greenhouse Gas Emissions Reporting Law
- Wikipedia: Greenhouse Gas Emissions
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
