California, August 20, 2025
News Summary
California is at the forefront of legal tensions surrounding new emissions reporting laws, as the U.S. Chamber of Commerce’s bid for a preliminary injunction was denied. Judge Otis D. Wright II ruled that these laws, which compel large corporations to disclose greenhouse gas emissions and climate-related financial risks, do not violate First Amendment rights. With significant deadlines forthcoming, including new reporting requirements for businesses starting in 2026 and 2027, the ruling marks a pivotal moment for transparency in corporate environmental practices in California.
California has become the center of attention in the ongoing legal battle involving new emissions reporting laws that have faced scrutiny from various business organizations. Recently, the U.S. Chamber of Commerce, supported by several groups, was denied a preliminary injunction that aimed to pause the implementation of these laws. This ruling was issued by Judge Otis D. Wright II on August 13, 2023, and it has significant implications for thousands of businesses operating in the state.
Judge Wright ruled that California’s corporate emissions reporting laws, specifically Senate Bill 253 (Climate Corporate Data Accountability Act) and Senate Bill 261, do not infringe upon the First Amendment rights of corporations. The Chamber of Commerce contended that these laws violate free speech by compelling companies to disclose information about their greenhouse gas emissions. However, the judge found that the governmental interests served by these laws—reducing emissions and providing essential information to investors—are substantial enough to warrant the required disclosures.
According to the ruling, Senate Bill 253 will require businesses with annual revenues exceeding $1 billion to disclose their greenhouse gas emissions starting with the reporting year of 2027. In comparison, Senate Bill 261 mandates that companies with revenues above $500 million report climate-related financial risks on a biannual basis, starting in January 2026. This legislation is expected to affect approximately 2,600 companies throughout California.
In response to the judgement, the California Attorney General’s Office expressed satisfaction and reaffirmed its commitment to defending these climate disclosure laws. The U.S. Chamber of Commerce has faced legal challenges since it first filed a lawsuit against the California Air Resources Board in early 2024, aiming to have the emissions reporting standards declared “null and void.” Previous attempts by the Chamber to temporarily block the implementation of these laws have been consistently rejected in court.
A trial for this case is set to take place in October 2026. In a related note, legislation similar to California’s emissions disclosure requirements is progressing in other states, including New York, where a Senate panel has moved forward with a comparable bill that could align with California’s laws for nationwide coverage. Other states like Colorado, Illinois, and New Jersey are also exploring similar corporate climate disclosure bills.
Aside from state-level developments, the federal landscape regarding emissions regulations is rapidly evolving. The U.S. Securities and Exchange Commission has recently decided to withdraw its legal defense for proposed rules that would have mandated public companies to disclose their greenhouse gas emissions, amid ongoing legal controversies. This change in federal policy aligns with a trend observed during the Trump administration, which focused on repealing climate protective measures and easing regulations on fossil fuel production.
Additionally, California has introduced Senate Bill 285, designed to ensure that carbon offsets utilized in emissions reporting meet stringent standards to assist the state in achieving its carbon reduction targets by the year 2045.
The developments in California’s emissions regulations underscore a growing trend toward increased transparency in corporate environmental impacts, which resonates across the nation amid ongoing climate challenges.
FAQs
What are California’s new emissions reporting laws?
California’s new emissions reporting laws, namely Senate Bill 253 and Senate Bill 261, require large corporations to disclose their greenhouse gas emissions and climate-related financial risks. SB 253 affects companies with revenues over $1 billion beginning in 2027, while SB 261 targets companies with revenues above $500 million starting in 2026.
Why did the U.S. Chamber of Commerce file a lawsuit?
The U.S. Chamber of Commerce filed a lawsuit claiming that California’s emissions reporting laws violate the First Amendment by compelling corporations to disclose information about their emissions, which they argue is a form of compelled speech.
What is the current status of the appeal?
As of now, Judge Otis D. Wright II has ruled against the preliminary injunction sought by the U.S. Chamber of Commerce, which means the emissions reporting laws will remain in effect while the broader legal battle continues with a trial set for October 2026.
Key Features of California’s Emissions Reporting Laws
| Feature | Description |
|---|---|
| Senate Bill 253 | Businesses with revenues over $1 billion must report greenhouse gas emissions starting in 2027. |
| Senate Bill 261 | Companies with revenues above $500 million must disclose climate-related financial risks biannually from January 2026. |
| Affected Companies | Approximately 2,600 companies in California. |
| Legal Status | Preliminary injunction denied, case trial scheduled for October 2026. |
Deeper Dive: News & Info About This Topic
- Bloomberg Law: Businesses Eye Appeal to Stop California Emissions Reporting
- Wikipedia: California Emissions Regulations
- Courthouse News: Big Business Strikes Out in Bid to Duck California Emissions Disclosure
- Google Search: California emissions disclosure
- Politico: California Is Still the State to Beat on Corporate Emissions
- Encyclopedia Britannica: Corporate Environmental Sustainability
- Vinson & Elkins: California Provides Flexibility on Greenhouse Gas Emissions Reporting Law
- Google News: California emissions reporting
- Pluribus News: N.Y. Advances Corporate Emissions Disclosure Bill with National Implications
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles 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 LA Auto Show, Hollywood Film Awards, and the Los Angeles Marathon. Our coverage extends to key organizations like the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology that power the local economy such as Warner Bros. and SpaceX. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HEREHuntingtonBeach.com, and HERESantaAna.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
