California Emission Disclosure Rule Challenge Narrowed by Court

Feb. 4, 2025, 2:37 PM UTC

A US Chamber of Commerce challenge to California’s emissions reporting law was narrowed after a district judge said it failed to state a sufficient claim against a disclosure provision.

The state’s climate-related financial risk disclosure requirement isn’t a regulatory scheme subject to preemption, the US District Court for the Central District of California said when it dismissed that claim with prejudice.

That requirement, also known as SB 261, doesn’t discriminate against or sufficiently burden interstate commerce to support an extraterritoriality claim either, Judge Otis D. Wright II said, but he added the chamber could refile that claim.

Claims against SB ...

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