Ninth Circuit: California SB 253 Scope 1-2 stands; Scope 3 and SB 261 face injunction
Ninth Circuit's written opinion keeps California SB 253 Scope 1 and 2 reporting live with a November 10, 2026 deadline, while SB 253 Scope 3 and SB 261 are expected to be enjoined as likely unconstitutional.
On November 9, 2026, the Ninth Circuit issued its written opinion in Chamber of Commerce v. Sanchez, No. 25-5327 (9th Cir. 2026), the long-awaited decision challenging California's SB 253 (Climate Corporate Data Accountability Act) and SB 261 climate financial risk disclosure statutes. Per the firm's client alert, the panel left SB 253's Scope 1 and 2 reporting requirements in place, with the first filing due November 10, 2026, while reversing the district court's denial of preliminary injunctions as to SB 253's Scope 3 disclosures and SB 261's biennial climate-related financial risk reporting, which the court is reported to have found "likely unconstitutional" under the First Amendment. Severability of the Scope 3 provisions from the rest of SB 253 was left for the district court.
Two caveats: the injunction is expected rather than entered, and the mandate issues seven days after the 14-day window for petitions for rehearing or rehearing en banc, with certiorari still possible. The cluster reflects a single firm's account, so counsel should verify the opinion text. Immediate operational items: confirm Scope 1 and 2 filing readiness for covered entities, and track Scope 3 and SB 261 obligations as suspended pending district court entry of the injunction.