Overview

• On August 13, 2025, the Central District of California denied business groups’ bid to preliminarily block SB 253 and SB 261 after earlier dismissing preemption and dormant commerce clause claims.
• The court treated the mandates as commercial speech, applying rational-basis review to SB 253’s factual emissions data and intermediate scrutiny to SB 261’s risk assessments, and found plaintiffs unlikely to succeed on their facial First Amendment challenge.
• SB 261 climate-risk reports are due January 1, 2026, with SB 253 Scope 1 and Scope 2 emissions due later in 2026 on a date CARB will set, and Scope 3 reporting slated to begin in 2027.
• The judge flagged tailoring concerns for companies with no California investors, signaling possible as-applied challenges or an appeal to the Ninth Circuit even as the statutes remain operative.
• CARB holds a public workshop on August 21 and expects to finalize SB 253 rules by year-end, as covered companies face fines up to $500,000 per year under SB 253 and $50,000 under SB 261 and sectors with complex supply chains, including life sciences, confront Scope 3 data hurdles.