Fuel producers can legally challenge California’s emissions limits, Supreme Court rules

California’s ongoing plight to ban gas-powered vehicles by 2035—despite President Trump’s recent move barring the state’s EV plan—took a serious blow from the Supreme Court Friday.

The details: In a 7-2 decision, the court overturned an appellate decision, ruling that fuel companies can challenge the EPA approval of California’s “clear car” policies tied to vehicle emissions and EVs —while leaving a critical component of the state’s position on the matter in limbo.

The ruling takes direct aim at California’s rules regarding tailpipe emissions, and automakers' EV manufacturing shares through model year 2025—which fuel producers say hurts their business.
It does not address the merits of the EPA Clean Air Act waiver, first granted by the EPA under President Obama in 2012 and reinstated by the Biden Administration in 2022.
The Supreme Court ruling—which included a majority opinion written by Justice Brett Kavanaugh—does note that the California Clean Air Act waiver was rescinded by Trump in 2019.

What they’re saying: “The government generally may not target a business or industry through stringent and allegedly unlawful regulation, and then evade the resulting lawsuits by claiming that the targets of its regulation should be locked out of court as unaffected bystanders,” Justice Brett Kavanaugh wrote in the Supreme Court’s Opinion.

Why it matters: The Supreme Court decision sets a strong precedent that makes it more difficult for the 11 other states that have adopted California’s Advanced Clean Cars II to transition from gas-powered cars to EVs—with President Trump more than certain to rescind the waiver again.

Between the lines: California is charging up for the fight—with a lawsuit contending that the Congressional Review Act (CRA) used to ban the state’s plan is unconstitutional and Gov. Newsom issuing an executive order reaffirming California’s position on gas-powered cars.

“The State of California reaffirms its commitment to accelerate the deployment of zero-emission technologies, including passenger, medium- and heavy-duty vehicles, consistent with the deployment targets…”
“The California Air Resources Board shall develop and propose an Advanced Clean Cars III regulation consistent with State and federal law, that reduces greenhouse gas, criteria air pollutant, and toxic emissions from passenger cars and light-duty trucks, medium- and heavy-duty vehicles…”
“The California Air Resources Board shall identify, maintain, and update publicly available lists of light-duty vehicle manufacturers that are continuing to certify to and follow the requirements of the Advanced Clean Cars II regulation…”

What they’re saying: “Congress intended for California to be able to regulate emissions from new vehicles sold in our state, and we remain firmly committed to advancing and implementing strong standards that safeguard public health and reduce climate pollution,“ stated California Attorney General Rob Bonta (via CNN).

Bottom line: California certainly faces an uphill battle to fight the legal challenges and executive action to preserve its clean car agenda amid a growing number of companies in the industry, spanning fuel providers to automakers, vocalizing the challenges associated with meeting the standards.

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