California’s fight for tougher emissions standards heads to the Supreme Court

It looks like some of the current debates over tougher vehicle emissions standards – led by California – will play out on the federal level. 

The Supreme Court decided Friday to take up an appeal led by oil companies that could make it easier to challenge national emissions regulations, begging the question: could it set in motion widespread rollback of emissions standards?   

First things first: The move stems from an appeal filed by oil companies who oppose California being granted a waiver to impose tougher emissions standards. 

• The waiver allows California – the nation’s largest state – to set more stringent emissions standards than those set nationally. 

• It was established in 2022 by the Environmental Protection Agency under President Joe Biden’s administration. 

• The Supreme Court is expected to hear arguments in the case in the Spring  ̶  following an April ruling by the U.S. Court of Appeals for the District of Columbia Circuit Biden that rejected the fuel producers’ case. 

Between the lines: The battle between the oil companies and California – rooted in a 2019 decision by the then-Trump administration to rescind the state’s authority on vehicle emissions – has several factors at play, which could impact emissions standards.

• Joe Biden’s administration – in place when the EPA restored the state’s authority three years after Donald Trump’s 2019 decision – will be long gone when the Supreme Court takes up the waiver case.

• The EPA could decide as early as this week on a separate request by California for a waiver enabling it to enforce a rule that could ban the sale of new ICE vehicles in the state by 2035.

• President-elect Trump would likely revoke all California waivers, potentially setting up a host of other legal battles. 

Weighing it all: The Supreme Court’s ruling on the California waiver – with President-elect Trump in office – could have a major impact on the industry, especially as it relates to fully electric vehicles. 

• Some automakers – including Ford, Honda, and Volkswagen – are already meeting California’s strict emissions standards. 

• Other automakers have been adding more plug-in hybrid offerings to their lineup to meet emissions standards and delaying previously planned BEVs.  

Bottom line: There’s a general sense in the industry that President-elect Trump – who has been very vocal about his support of the fuel industry – will use whatever power he has at the disposal of his administration to thwart tougher emissions standards.

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