The U.S. Supreme Court has ruled in favor of fuel producers challenging California’s vehicle emissions standards. On Friday, the justices decided with a 7-2 vote that a lawsuit brought by Valero Energy and other industry groups should not have been dismissed. This ruling overturns a previous lower court decision that claimed the plaintiffs did not have the legal standing to contest a 2022 Environmental Protection Agency (EPA) decision allowing California to set its own stricter regulations.
The case centers on California’s unique ability to create its own vehicle emission standards under the Clean Air Act. While states are generally not allowed to impose their own rules, Congress has permitted the EPA to grant waivers, enabling California to have tougher regulations than those set at the federal level. This particular ruling reinstates California’s ability to enforce its tailpipe emissions limits and its zero-emission vehicle mandate through 2025, reversing a decision made during the Trump administration.
Justice Brett Kavanaugh, who wrote the majority opinion, emphasized that the government cannot target specific industries with stringent regulations and then prevent them from seeking legal recourse by claiming they are unaffected by the rules.
The dissenting opinions came from Justices Ketanji Brown Jackson and Sonia Sotomayor. Jackson criticized the court for deciding the case when the electric vehicle mandate is set to expire soon. She pointed out the stark contrast in how the court treats corporate interests compared to ordinary citizens’ rights.
Valero and its allies argued that California’s rules would harm their business by reducing demand for liquid fuels. However, a lower court had previously dismissed their claims, stating there was no evidence that a ruling in their favor would impact automakers’ decisions about selling electric versus combustion vehicles.
California, the most populous state in the U.S., has received over 100 waivers under the Clean Air Act. The Supreme Court, which has a conservative majority, has been skeptical of federal regulatory authority in recent years, limiting the EPA’s power in several significant rulings.
This latest decision marks another chapter in the ongoing battle over environmental regulations and the balance of power between state and federal authorities.