- within International Law, Food, Drugs, Healthcare, Life Sciences and Immigration topic(s)
- with Senior Company Executives and HR
- with readers working within the Consumer Industries and Retail & Leisure industries
On Tuesday, November 18, the Ninth Circuit Court of Appeals issued an injunction suspending enforcement of SB 261, one of the two laws that comprise California's Climate Accountability Package, against certain plaintiffs. SB 261 requires covered entities to disclose their climate-related financial risks. The first statutory reporting deadline under SB 261 is January 1, 2026. Importantly, the implications of this injunction for non-plaintiffs are unclear pending forthcoming California Air Resources Board (CARB) guidance or further clarification from the Ninth Circuit. We will update you on any developments.
CARB, the agency responsible for implementing the Climate Accountability Package, had previously indicated that it could not move the January 1, 2026 statutory deadline, despite the fact that CARB itself missed the July 1, 2025 statutory deadline for adopting the implementing regulations.
The case at issue, Chamber of Commerce of the United States of America, et al. v. Randolf, et al., No. 25-5327 (9th Cir.), is a challenge to both SB 261 and its companion law, SB 253, which requires disclosure of greenhouse gas (GHG) emissions. The Court declined to enjoin SB 253, presumably because SB 253's reporting deadline is not imminent. On the same day, CARB held a public workshop in which CARB staff indicated that it will propose an August 10, 2026 deadline for the first SB 253 reports and expects to schedule rulemaking hearings in the first quarter of 2026.
The breadth of the applicability of the injunction is somewhat unclear. The Ninth Circuit simply issued an order granting the motion requesting the injunction (without explanation), and the injunction had only been requested on behalf of members of the plaintiff organizations: the U.S. Chamber of Commerce, California Chamber of Commerce, American Farm Bureau Federation, Los Angeles County Business Federation, Central Valley Business Federation, and Western Growers Association.
Interestingly, CARB staff learned of the Ninth Circuit's decision during the same-day public workshop. During the public question portion of the workshop, CARB staff were asked about the decision. In response, CARB staff indicated that they had become aware of the ruling, that it did not apply to SB 253, and that CARB staff need to review the ruling before communicating about it. In response to a subsequent question, CARB also declined to state whether forthcoming updated guidance would address whether companies could wait until the injunction is lifted to issue their first report.
In the meantime, reporting entities need to continue to prepare for SB 253 compliance, and possibly SB 261 compliance depending on whether CARB or the Ninth Circuit decides to stay enforcement of the law across the board or limit the applicability of the stay only to members of plaintiff organizations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
