Overview
- After denying an expedited request, the Ninth Circuit set arguments on California’s climate disclosure laws for January 2026, leaving the Jan. 1 SB 261 website disclosure deadline in place.
- Challengers say they will seek an emergency injunction from the Supreme Court on November 10, and observers note the Court could rule later in November or December.
- CARB has not issued implementing regulations and has said it will not finalize key definitions until early 2026, yet the Jan. 1 posting and July 1 submission deadlines remain unchanged.
- Guidance to date suggests entities with more than 50% ownership of California‑active subsidiaries may be deemed to be doing business in the state, and CARB may use a broad gross‑receipts revenue test under RTC §25120 for the $500 million threshold.
- CARB’s September preliminary roster of potentially covered companies is non‑binding and based on limited data, and legal analysts warn lenders and counterparties may begin seeking compliance assurances despite regulatory uncertainty.