The Supreme Court of the United States (SCOTUS) has issued a decision that could alter the extent of California's authority to establish its own vehicle emissions regulations. In a 7-2 decision, the Court ruled that fuel companies and other businesses can proceed with a lawsuit against the U.S. Environmental Protection Agency (EPA) for allowing California to establish stricter clean car standards than other states.

This decision means a lawsuit related to the matter, Diamond Alternative Energy LLC v. EPA, can now be heard in court (more details below). PRI and SEMA supported this outcome last year by filing a legal document called an amicus brief, arguing that California's rules hurt small businesses in the automotive industry.

SCOTUS' decision also establishes that businesses (like fuel producers or aftermarket parts makers) and trade organizations have the right to sue if they can prove California's emissions rules hurt their business.

Because of the Supreme Court's new ruling, a lower court, known as the D.C. Circuit, will examine the actual issue in the lawsuit — whether the EPA was correct in allowing California to create its own rules regarding carbon dioxide emissions.

The recent SCOTUS ruling also effectively overturned a lower court decision that had previously blocked the Diamond Alternative Energy LLC v. EPA case. The lower court ruled that the businesses weren't harmed enough to sue, but the Supreme Court disagreed. Now, a different court will decide whether or not the EPA was right to give California permission to set its own vehicle emissions rules.

Background 

SEMA's amicus brief, filed in August, argued that California's non-technology-neutral regulation that limits sales of internal combustion engine (ICE) vehicles will have a devastating impact on the automotive aftermarket industry, effectively killing, rather than fostering innovation that can help produce cleaner, safer automobiles. 

SEMA is not, and never will be, anti-EV; rather, it champions a technology-neutral approach that fosters innovation and ingenuity. The association will continue efforts to preserve Americans' rights to vehicle choice and the automotive aftermarket industry's ability to design, manufacture, and bring to market products that help solve the emissions challenge. 

For additional information, contact Eric Snyder, SEMA's senior director of federal government affairs, at erics@sema.org.  

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