The litigation over California’s climate disclosure rules, specifically Senate Bill 253 (Climate Corporate Data Accountability Act) and Senate Bill 261 (Greenhouse gasses: climate-related financial risk), has seen recent developments with the California Air Resources Board (CARB) filing a motion to dismiss the amended complaint against the two laws.
Filed by the U.S. and California Chambers of Commerce, the American Farm Bureau Federation, and others, the complaint challenges these laws, alleging violations of the First Amendment, the Clean Air Act under the Supremacy Clause, and the Constitution’s limitations on extraterritorial regulation, particularly under the dormant Commerce Clause.
Senate Bill 253 mandates disclosure of greenhouse gas emissions data by U.S. businesses with total annual revenues exceeding $1 billion that operate in California, while Senate Bill 261 requires disclosure of climate-related financial risk for companies with total annual revenues exceeding $500 million.
CARB’s motion to dismiss argues that the claims related to the Supremacy Clause and extraterritorial regulation are not justiciable because CARB has not yet proposed regulations for enforcement, and plaintiffs have not shown injury. The motion also contests the claims under the Supremacy Clause and the dormant Commerce Clause, arguing that the laws do not discriminate against out-of-state interests or impose a substantial burden on interstate commerce.
The motion does not seek dismissal of the First Amendment claim but asserts that it is legally flawed. This litigation is significant as it addresses the intersection of state climate regulations, federal law, and constitutional principles, with potential implications for similar laws and regulations in other jurisdictions.
