A federal judge Tuesday granted California’s request for discovery in a lawsuit filed by business groups challenging the state’s landmark corporate climate disclosure laws, a move that both keeps the case alive and bars attempts to strike down the measures.
What happened: District Judge Otis D. Wright II said California will be allowed to go through a discovery process because “there are genuine disputes of material fact that preclude” him from ruling on summary judgment motions.
Context: Business groups including the U.S. and California chambers of commerce sued the state earlier this year over SB 253 and SB 261, laws signed by Gov. Gavin Newsom (D) last year. They require large corporations operating in the state to disclose their greenhouse gas emissions, including pollution generated via their supply chains, and climate-related financial risks.
The business coalition sued to stop the measures, which will require corporate disclosures starting in 2026, contending that they violate the First Amendment and usurp federal authority. They also argue that California doesn’t have the power to implement them.
