A federal judge refused to halt enforcement of California’s climate disclosure bills last week, despite a legal challenge put forward by the U.S. Chamber of Commerce and other business groups that alleges the bills violate First Amendment rights against compelled speech. In his Nov. 5 ruling, U.S. District Judge Otis Wright II denied the plaintiffs’ motion for summary judgment, noting the court required more information and “further development of the facts” to determine whether the climate disclosure rules amount to compelled speech and are, hence, unconstitutional.
Though Wright’s decision allows the state’s carbon emissions disclosure requirements to proceed as planned for now, his ruling granted the plaintiffs leave to file another request for summary judgment. Wright also said the First Amendment did apply to the challenged laws. The climate laws will mandate more climate-related disclosures from large companies operating in the state and push for more corporate transparency in terms of carbon emissions.