California and Exxon Clash Over Climate Change Rules

California recently passed two new laws aimed at tackling climate change. These laws require large companies to report the greenhouse gas emissions caused by their products and the risks they face due to climate change. This is a big deal because, until now, companies only had to report their own emissions, not those from their products. Exxon Mobil, a major oil company, is suing California over these new laws. They argue that the laws violate their free speech rights and unfairly target large companies. Exxon claims that the laws force them to report emissions from activities like using gas or diesel in cars and trucks, which they say is confusing and could lead to double counting. The laws, known as the California Climate Accountability Package, are set to take effect in 2026. Exxon is challenging two specific laws: SB 253 and SB 261. SB 253 requires companies to calculate their worldwide emissions, while SB 261 requires them to disclose climate-related risks, such as flooding or changes in government policies. Exxon argues that the methodology used by California, called the Greenhouse Gas Protocol, is unfair. They want a different approach that rewards more efficient companies. They also claim that the laws are an example of overreach by California officials trying to govern corporate speech. Tara Gallegos, a spokeswoman for Governor Gavin Newsom, criticized Exxon's lawsuit. She said it was shocking that one of the biggest polluters on the planet would oppose transparency. She also noted that the laws have already been upheld in court and that they have confidence in them. The lawsuit is similar to one filed by the U. S. Chamber of Commerce and other business groups earlier this year. In that case, a judge dismissed some of the claims but allowed the First Amendment claim to continue. The Chamber of Commerce has since filed an appeal. Meanwhile, other states and the European Union are also moving forward with their own climate disclosure laws. This shows that the debate over climate change regulations is far from over.