Business groups ask Supreme Court to pause California climate reporting laws in emergency appeal

WASHINGTON (AP) — The U.S. Chamber of Commerce asked the Supreme Court on Friday to pause new California laws that are expected to require thousands of companies to repeal the law. Report emissions and climate risk information.

The laws are the most comprehensive of their kind in the country, and a group of business groups argued in an urgent appeal that they infringe on free speech.

The measures were signed by the Democratic Government. Gavin Newsom in 2023 and reporting requirements are expected to begin early next year.

Lower courts have so far refused to block legislation that the state says would increase transparency and encourage companies to evaluate how they can reduce their emissions.

The Chamber of Commerce asked the judges to suspend the laws while the cases are ongoing.

requires one Businesses that earn more than $1 billion annually and operate in California will report their direct and indirect carbon emissions annually starting in 2026 and 2027, respectively.

This includes planet-warming pollution from the direct burning of fossil fuels, as well as emissions from activities such as delivering products from warehouses to stores and employee business travel. The Chamber of Commerce estimates the law would affect about 5,000 companies, but state air regulators say it would apply to about 2,600 companies.

Other law It requires companies making more than $500 million a year to disclose every two years how climate change could hurt them financially. The state Air Resources Board estimates more than 4,100 companies will have to comply.

“Without the Court’s immediate intervention, California’s unconstitutional efforts to manipulate public debate through coerced speech will be effective and cause irreparable harm to thousands of companies across the country,” the companies said.

Companies that fail to publish may be subject to civil penalties. ExxonMobil also challenged the laws. lawsuit filed last month.

The state argued that the laws did not violate the First Amendment because commercial speech is not equally protected under the Constitution.

In 2023, Newsom called the emissions disclosure law an important policy and said the state was “transforming information transparency into climate action through bold responses to the climate crisis.” Environmental group Ceres said the information would help people decide whether to support businesses.

US Securities and Exchange Commission approved a rule last year It requires some public companies to report greenhouse gas emissions and climate risks, but the agency paused editing in the middle of the case.

The conservative-majority Supreme Court has been skeptical of some environmental regulations in recent years: a landmark decision That limited the Environmental Protection Agency’s authority to regulate carbon dioxide emissions from power plants in 2022, and another halted the agency’s fight against air pollution “good neighbor” rule.

This story has been updated to correct that one of the laws requires disclosure by companies making more than $500 million a year, but not more than $500,000 a year.

Austin reported from Sacramento.