Overview
- Oral argument in the Chamber of Commerce appeal is set for Jan. 9, 2026, leaving no opportunity for an injunction before at least one law takes effect on Jan. 1.
- Exxon Mobil filed an Oct. 24 lawsuit in the Eastern District of California seeking to halt SB 253 and SB 261, claiming compelled speech under the First Amendment and NSMIA preemption for SB 261.
- SB 261 applies to companies with more than $500 million in revenue and requires publication of climate-related financial risk reports aligned with the TCFD framework.
- SB 253 applies to companies with more than $1 billion in revenue and mandates public disclosure of Scope 1–3 greenhouse gas emissions in conformance with the GHG Protocol with third-party assurance and potential penalties.
- The regulations have withstood earlier challenges in federal court, and legal analysts advise affected companies to continue preparing because litigation is unlikely to pause initial enforcement.