On September 24, 2025, the California Air Resources Board (CARB) published a list of entities it believes may be subject to the state’s climate disclosure laws, Senate Bill (SB) 253 and SB 261, which require companies “doing business in California” and meeting certain revenue thresholds to disclose their greenhouse gas emissions (SB 253) and climate-related financial risks (SB 261). Both laws require disclosing entities to pay CARB annual implementation fees. The preliminary list is “intended to support development of the fee regulation” according to CARB‘s announcement. However, the list is generating surprise and confusion among the regulated (and non-regulated) community, some of whom expected to find themselves on the list, and others who did not. Adding to the confusion, CARB made clear that the list includes entities that, at least under its initial staff concepts, would be exempt from the laws; the list also appears to include insurance companies that may be statutorily exempt from SB 261.
Citizen Suits and Larger Penalties May Be the Future of California Water Quality Protections
The California legislature continues to advance Senate Bill 601 (SB 601), the “Right to Clean Water Act,”[1] which aims to safeguard protections for California’s streams and wetlands that lost federal protection under the Clean Water Act (CWA) as a result of the Supreme Court’s 2023 Sackett v. U.S. EPA decision. If approved, SB 601 would expand enforcement to include citizen suits and increase penalties for unpermitted discharges to state waters.
New Executive Order Challenges State Climate Laws
Challenging a slew of state climate-related laws and programs, President Trump’s April 8, 2025 executive order (EO) set the stage for more legal fights between the federal government and states. In the new EO, “Protecting American Energy from State Overreach,” Trump took aim at state laws and programs that address greenhouse gas emissions (GHGs), climate change, environmental justice, and environmental, social, and governance (ESG). Some states have already indicated they will oppose the Trump administration’s efforts.
California Sets Stage to Improve Hazardous Waste Management
In what should be welcome news to industry and others who generate hazardous waste in California (including contaminated soil), the California Environmental Protection Agency (CalEPA), through the Department of Toxic Substances Control (DTSC), released a Draft Hazardous Waste Management Plan: A Modern Approach to a Circular Economy (Plan) on March 15. As provided in the Plan, DTSC proposes to potentially simplify the characterization of hazardous waste, provide for alternative management standards for certain hazardous wastes, and adopt certain existing U.S. EPA recycling exemptions and exclusions.
Court Order Hobbles Challenge to California’s Climate Disclosure Laws
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.