The Ninth Circuit agreed to fast-track a case aimed at delaying implementation of SB 261 and SB 253 but did not pause enforcement of the laws before oral argument, leaving SB 261's January 1, 2026, effective date intact.

Exxon filed a complaint in the Eastern District of California to block SB 253 and SB 261, claiming First Amendment violations and federal preemption of climate disclosure laws.

Companies will have to keep waiting for California to issue implementing regulations for SB 253 and SB 261.

In September, the U.S. Department of Justice updated its Evaluation of Corporate Compliance Programs (ECCP) guidance, which is the...