Companies following the ongoing legal challenge to California’s climate disclosure laws in hopes that the court would strike down or limit the scope of these laws will be disappointed by the order issued by the U.S. District Court for the Central District of California on February 3, 2025. The order dismissed constitutional challenges levied against SB 253, which requires large companies “doing business” in California to annually report their greenhouse gas (GHG) emissions, and SB 261, which requires disclosure of climate-related financial risks. The ruling clears the path for the California Air Resources Board (CARB) to develop implementing regulations for SB 253, which are statutorily required to be issued by July 1, 2025.
Recent Executive Action May Impact PFAS Regulation
The regulation of per- and polyfluoroalkyl substances (PFAS), or “forever chemicals,” was a focal point for the Biden administration. In April 2024, the administration, through the U.S. Environmental Protection Agency (EPA), issued two key PFAS rules. The first set nationwide drinking water standards, or maximum contaminant levels (MCLs), for six types of PFAS, and the second designated PFOA and PFOS, and their salts and structural isomers, as “hazardous substances” under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). Both rules are currently being challenged in court, although no judicial stays were requested or are in place.
CARB Solicits Public Input on Greenhouse Gas and Climate Risk Disclosure Laws
On December 16, 2024, the California Air Resources Board (CARB) requested public feedback to “help inform its work to implement” the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261) (see our summary of these 2023 laws here). The “information solicitation” was issued shortly after California State Senator Scott Wiener and Senator Henry Stern, who authored the bills, penned a letter to CARB expressing their frustration with CARB’s apparent lack of momentum in advance of a July 2025 statutory deadline to adopt regulations governing the greenhouse gas (GHG) and climate risk disclosures that large entities “doing business in California” must make beginning in 2026. CARB is accepting comments in response to the solicitation for 60 days, through February 14, 2025.
California Offers Enforcement Relief on GHG Disclosures
On December 5, 2024, the California Air Resources Board (CARB) issued an Enforcement Notice regarding the Climate Corporate Data Accountability Act (SB 253), which will require companies “doing business” in California to report their Scope 1, 2, and 3 greenhouse gas emissions (GHG), with reporting for 2025 Scope 1 and 2 emissions beginning in 2026 (see our previous discussion of the law’s requirements here).
California Proposes Significant Changes to Product Packaging Regulations
What Happened
On Monday, October 14, 2024, the California Department of Resources Recycling and Recovery (CalRecyle) opened a public comment period on changes to the previously proposed regulations implementing the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act). The 15-day written comment period runs through Tuesday, October 29, 2024.
California Law Highlights the Need to Prepare for Climate Disclosures
The march toward mandated corporate disclosures for climate-related risks continues. Despite significant pushback and substantial legal challenges, state legislatures and regulators are continuing to advance laws and rules that will require disclosures of both greenhouse gas (GHG) emissions and climate risks.
California Senate Bill (SB) 219, signed into law
SEC Issues Final Climate Disclosure Rules, Paring Down Its 2022 Proposal, With Implications for Greenwashing Claims
The U.S. Securities and Exchange Commission (SEC) has issued its long-awaited climate reporting requirements, making it mandatory for the largest publicly traded companies in the U.S. to annually disclose both greenhouse gas (GHG) emissions and their material climate risks, with some requirements kicking in as early as 2025. On March 6, the SEC voted 3-2 along party lines to pass a pared down version of its March 2022 proposal, giving regulated companies the final word on the much-anticipated rule.
EPA Lowers Annual PM2.5 NAAQS, With Immediate Impacts for Air Permitting
Exercising one of its most important and far-reaching powers under the Clean Air Act, the Environmental Protection Agency (EPA) has lowered the primary annual National Ambient Air Quality Standard (NAAQS) for fine particulate matter (PM2.5) from 12 micrograms per cubic meter (ug/m3) down to 9 ug/m3, changing the game on air quality permitting for much of the U.S. EPA’s February 7, 2024 final rule, which will become effective 60 days following its publication in the Federal Register, represents a reversal of the Trump administration’s decision to retain the PM2.5 standard of 12 ug/m3 set under the Obama administration in 2012. The lower standard will set off a chain reaction of additional requirements for state air agencies, and ultimately industrial sources, in places designated as nonattainment with the new standard, but one impact of the new standard will be felt almost immediately: increased difficulty in obtaining air permits.
And so It Begins…EPA Issues First Disapproval of Regional Haze Round Two
For anyone involved in the first round of the Clean Air Act regional haze program, the U.S. Environmental Protection Agency’s (EPA) action on the first business day of 2024 came as no surprise: EPA proposed to disapprove the regional haze plan for Kansas. If the past is any indication of the future, this proposal foreshadows what will likely be many more regional haze state plan disapprovals over the next 12 months, given that EPA has already been hauled into court once again to force it back on schedule.
California Adopts Landmark GHG Emissions and Climate Risk Reporting Laws
On October 7, 2023, California Governor Newsom signed two landmark bills into law, Senate Bill (SB) 253 and SB-261, imposing new requirements on large companies doing business in California to publicly report their annual greenhouse gas (GHG) emissions and climate-related risks. These laws apply to both publicly traded and privately held companies, exceeding the scope of the climate disclosure rule proposed by the U.S. Securities and Exchange Commission (SEC) in March 2022. Our professionals have prepared a more detailed summary here; some key highlights are included below.