SB 253/SB 261 Update: Ninth Circuit Lets Scope 1 and Scope 2 Disclosures Proceed, Finds Scope 3 and SB 261 Likely Unconstitutional

On November 9, 2026, the U.S. Court of Appeals for the Ninth Circuit issued a published opinion in United States of America Chamber of Commerce v. Sanchez, No. 25-5327 (9th Cir. Nov. 9, 2026), resolving an appeal from the denial of a preliminary injunction against California’s corporate climate-disclosure laws, the Climate Corporate Data Accountability Act (SB 253) and the Climate-Related Financial Risk Act (SB 261). The Court declined to block SB 253’s Scope 1 and Scope 2 disclosure requirements, but concluded that SB 253’s Scope 3 disclosure requirement and SB 261 in its entirety likely violate the First Amendment. For companies preparing initial SB 253 reports, the ruling does not alter the November 10, 2026 deadline for Scope 1 and Scope 2 reporting.

The most consequential open question now sits with the U.S. District Court for the Central District of California (the trial court), which must decide on remand whether the Scope 3 disclosure requirement can be severed from the rest of SB 253.

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First Deep-Sea Mining Adventure Already Testing the Waters

On October 20, the Marine Minerals Administration (MMA), the Department of the Interior (Interior) agency that now administers offshore mineral leasing, published its first-ever offshore mineral lease sale off American Samoa. The sale, scheduled for November 19, 2026, would offer two leases covering more than 31 million acres of the Outer Continental Shelf (OCS). A Samoan council of chiefs, a Samoan American community group, and the Conservation Council for Hawai’i immediately sued in the District of Hawai’i to stop the sale.

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A Rare Proposal: NHTSA Announces Negotiated Rulemakings to Update Longstanding Safety Standards

The National Highway Traffic Safety Administration (NHTSA) recently announced two negotiated rulemakings to update federal safety standards for vehicle headlights and tires.  Negotiated rulemaking is a rarely used regulatory process that gives nongovernmental stakeholders a direct role in shaping regulations.  NHTSA appears to be turning to this approach to accelerate long-awaited updates to its safety standards.

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Federal Motor Carrier Safety Administration (FMCSA) Grants a Crucial Regulatory Exemption for Autonomous Trucks

On October 9, the Federal Motor Carrier Safety Administration (FMCSA) took a significant step toward enabling the large-scale deployment of driverless heavy trucks on public roads in the United States. The agency granted autonomous motor carriers a five-year exemption from the regulatory requirement that a truck that stops on the side of the road must put warning triangles on the ground. This seemingly mundane requirement has posed a potential roadblock (so to speak) to the operation of autonomous trucking. The recent exemption, which follows years of petitions and litigation, offers a solution.

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Data Centers Face Growing Environmental and Litigation Risks

The environmental regulatory and litigation landscape for data centers has shifted. In the past several weeks, states with significant existing or planned data center development have announced new requirements affecting environmental permitting, water use, backup generation, electricity demand, and local approvals. At the same time, environmental groups are increasing their litigation toolkits — primarily, through Clean Air Act citizen suits — to challenge data centers and the power generation supporting them.

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Department of Transportation Finalizes Rollback of Corporate Average Fuel Economy (CAFE) Standards for Passenger Cars and Light Trucks

On September 28, 2026, the National Highway Traffic Safety Administration (NHTSA) finalized its Corporate Average Fuel Economy (CAFE) standards for passenger cars and light trucks sold in the United States for model years (MYs) 2022–2031.  The final rule represents one of the most significant deregulatory actions of the second Trump administration.

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Second Federal Court Strikes Down New York’s Climate Change Superfund Act

On September 23, 2026, a second federal district court struck down New York’s Climate Change Superfund Act (the Act), this time in a lawsuit brought by the United States and the U.S. Environmental Protection Agency (EPA). In United States v. State of New York, Judge P. Kevin Castel of the U.S. District Court for the Southern District of New York held that the Act is preempted both by the Clean Air Act (CAA) and, independently, by the federal government’s exclusive authority over foreign affairs. The Court declared the Act unconstitutional and permanently enjoined New York officials from enforcing it.

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The Limits of OSHA’s Reach: 5th Circuit Applies Loper Bright to Invalidate an OSHA Regulation

Two years after the Supreme Court overturned Chevron deference in Loper Bright Enterprises v. Raimondo, the Fifth Circuit has given employers an early example of how the new framework may reshape OSHA enforcement. In Exxon Mobil Corp. v. Occupational Safety and Health Review Commission, decided July 21, 2026, the Fifth Circuit held that Section 8 of the Occupational Safety and Health Act (OSH Act), 29 U.S.C. § 657(c)(2), does not authorize OSHA to require employers to record work-related mental illnesses. As a remedy, the Fifth Circuit set aside the citation and penalty and vacated OSHA’s recordkeeping regulation covering mental illnesses, 29 C.F.R. § 1904.5(b)(2)(ix). More broadly, the Fifth Circuit explained that Congress delegated only limited authority to OSHA via the OSH Act, allowing the agency to create rules governing physical work-related injuries and illnesses under Section 8 of the OSH Act—and not other topics such as mental illness.

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