On Wednesday, a group of large corporations filed a federal lawsuit against California regarding the State’s emissions reporting legislation – SB 253 and SB 261.
The two Senate Bills together form California’s ‘Climate Accountability Package’ and require public and private U.S. companies that operate in California to disclose extensive climate-related figures, such as greenhouse gas emissions and climate-related financial risks. The first reports would be due by 1 January 2025.
The Climate Accountability Package aims to increase transparency and accountability for large emitters. When the Climate Accountability Package was first approved, major companies, including Apple and Patagonia, had supported the Bills.
The corporations are represented by major U.S. business groups, including the Chamber of Commerce of the United States of America, the California Chamber of Commerce, the American Farm Bureau Federation, and others. Their claim was filed in the District Court for the Central District of California.
The groups argue that the Climate Accountability Package violates corporates' First Amendment Rights, by compelling speech. The lawsuit reads, “Senate Bills 253 and 261 impermissibly compel thousands of businesses to make costly, burdensome, and politically fraught statements about their operations”. In addition, it is claimed that the Climate Accountability Package “forces thousands of companies to engage in controversial speech that they do not wish to make”.
The plaintiffs furthermore maintain that the Package conflicts with several federal laws, including the Clean Air Act and the federalism principles of the Constitution. They hold that the Clean Air Act, a federal law, governs greenhouse gas emissions and therefore pre-empts California’s laws.
Finally, the business groups claim that they “support policies that reduce greenhouse-gas emissions” but that they must be “informed by the best science”.
The plaintiffs seek for the Climate Accountability Package to be overturned.
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