Overview
- The U.S. Chamber of Commerce and allied business groups filed an emergency application asking the Supreme Court to pause SB 253 and SB 261 before reporting begins in early 2026.
- Their brief, submitted by attorney Eugene Scalia, argues the measures unconstitutionally compel speech by forcing companies to weigh in on climate issues.
- U.S. District Judge Otis Wright II denied an injunction in August, and a related Ninth Circuit appeal is scheduled for argument in January 2026.
- Iowa and 24 other Republican-leaning states joined the bid to block the laws, and the justices are expected to request California’s response next week.
- SB 253 covers companies with more than $1 billion in revenue and phases in Scope 1–3 emissions reporting in 2026–2027, while SB 261 requires biennial climate-risk reports for firms above $500 million, with state estimates of roughly 2,600 affected under SB 253 versus about 5,000 claimed by business groups and more than 4,100 under SB 261, and noncompliance can bring civil penalties; ExxonMobil has also filed a separate challenge.