California, August 20, 2025
News Summary
A recent ruling by U.S. District Judge Otis D. Wright II denied the U.S. Chamber of Commerce’s request to block California’s new corporate emissions reporting laws. The laws, part of Senate Bills 253 and 261, require significant disclosures from large companies regarding greenhouse gas emissions and climate-related financial risks. This ruling confirms that the laws do not infringe on First Amendment rights, emphasizing the importance of environmental accountability. With a trial scheduled for 2026, California continues to be at the forefront of climate disclosure legislation.
California has seen a significant legal setback for business organizations, as the U.S. Chamber of Commerce’s request for a preliminary injunction against the state’s new corporate emissions reporting laws has been denied. On August 13, 2023, U.S. District Judge Otis D. Wright II ruled that the laws do not violate the First Amendment rights of corporations. This ruling comes amid ongoing litigation concerning California Senate Bill 253 and Senate Bill 261, both of which mandate disclosures related to greenhouse gas emissions and climate-related financial risks.
The corporate emissions laws outlined in Senate Bill 253 require businesses with annual revenues exceeding $1 billion to report their greenhouse gas emissions, starting from the reporting year of 2027. Meanwhile, Senate Bill 261 requires companies with revenues above $500 million to disclose their climate-related financial risks biannually, with implementation beginning in January 2026. These regulations will impact an estimated 2,600 companies operating within California.
The U.S. Chamber of Commerce, along with several other business groups, contends that these laws infringe upon corporate speech rights and essentially compel companies to communicate information they might not choose to disclose. However, Judge Wright dismissed these claims, acknowledging that while the laws do compel commercial speech, they serve substantial government interests. These interests include reducing emissions and providing investors with critical information about the environmental impact and commitments of companies.
In the aftermath of the ruling, the California Attorney General’s Office expressed satisfaction, affirming their dedication to defending the new climate disclosure laws. The U.S. Chamber of Commerce originally filed a lawsuit against the California Air Resources Board in early 2024, seeking to have these laws declared “null and void.” Despite previous motions to block the implementation of the regulations being rejected by the courts, the Chamber plans to appeal the decision made by Judge Wright in the U.S. District Court for the Central District of California.
A trial regarding the ongoing case is set to take place in October 2026. The emission disclosure laws were officially signed into law by California Governor Gavin Newsom on October 7, 2023. Furthermore, as a separate but related development, a New York Senate panel has recently advanced a similar emissions disclosure bill, which could pave the way for nationwide reporting requirements, particularly in light of California’s new regulations. States such as Colorado, Illinois, and New Jersey are also considering or have introduced similar corporate climate disclosure legislation.
On a broader scale, the U.S. Securities and Exchange Commission faced challenges of its own as they abandoned legal defenses for proposed rules that would require public companies to disclose their greenhouse gas emissions. Notably, the federal government under the Trump administration had previously aimed to repeal various climate policies and ease regulations for fossil fuel production. Additionally, Senate Bill 285 has been introduced in California to ensure that carbon offsets utilized in emissions reporting meet certain standards, helping to track progress towards the state’s carbon reduction goals by 2045.
FAQ
What are the new emissions reporting laws in California?
The laws, Senate Bill 253 and Senate Bill 261, require companies with revenue above certain thresholds to disclose their greenhouse gas emissions and climate-related financial risks to promote transparency and accountability regarding climate impact.
Who is affected by these new laws?
An estimated 2,600 companies operating in California will be required to comply with these new regulations, primarily those with annual revenues exceeding $1 billion and others with revenues above $500 million.
What was the outcome of the recent court ruling?
The court ruling denied the U.S. Chamber of Commerce’s request to pause the implementation of the emissions reporting law, stating that the laws do not violate First Amendment rights.
When will these laws take effect?
Senate Bill 253 requires greenhouse gas emissions reporting starting in the 2027 reporting year, whereas Senate Bill 261 requires the biannual reporting of climate-related financial risks beginning in January 2026.
Key Features of California’s Emissions Reporting Laws
| Feature | Details |
|---|---|
| Senate Bill 253 | Requires companies with annual revenue over $1 billion to disclose greenhouse gas emissions starting in 2027. |
| Senate Bill 261 | Mandates companies with revenue above $500 million to report climate-related financial risks biannually from January 2026. |
| Affected Companies | Approximately 2,600 companies in California will be impacted. |
| Court Ruling | The court ruled that the new laws do not violate the First Amendment rights of corporations. |
| Implementation Timeline | SB 253 in effect from 2027; SB 261 in effect from January 2026. |
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
- Pluribus News: N.Y. Advances Corporate Emissions Disclosure Bill with National Implications
- Google Search: California emissions disclosure
- Encyclopedia Britannica: emissions reporting
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, 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 Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
