Business and agricultural groups sue California over new climate disclosure laws

Source: AP

Updated 5:00 PM EST, January 30, 2024


SACRAMENTO, Calif. (AP) — Business and agricultural groups sued California on Tuesday over the most sweeping climate disclosure mandates in the nation, arguing the policies signed by Gov. Gavin Newsom last year overstep on the federal government’s authority to regulate emissions nationwide.

The U.S. Chamber of Commerce, California Chamber of Commerce, American Farm Bureau Federation and other groups filed the lawsuit in the U.S. District Court for the Central District of California. They argue the new rules go too far in part because they apply to companies headquartered outside of California as long as they do business in the state. The groups also allege the laws infringe upon the First Amendment by requiring companies to comment on what the lawsuit calls a “politically fraught” topic — climate change.

“These new climate reporting laws are far from cost-effective and they will not have any notable impact on climate change,” Jennifer Barrera, CEO of the California Chamber of Commerce, said in a statement. “Compelling businesses to report inconsistent and inaccurate information unnecessarily places them at risk for enormous penalties.”

The suit marks the first major legal challenge to a set of laws that garnered attention from major companies and environmental leaders well beyond California. It comes as the state prepares to assess how to implement the new laws. Newsom, who often touts California’s status as a global climate leader, signed the high-profile laws last year ahead of the federal government finalizing climate disclosure rules for public companies.

Read more: https://apnews.com/article/california-climate-disclosure-emissions-reporting-business-cab2011439c4849005988bd871104cce