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BREAKING NEWS from The
Energy Marketers of America
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April 23, 2025
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Supreme Court Hears EMA’s Legal Challenge Targeting the California Car Mandate
Wednesday,
April 23, 2025
–
The U.S. Supreme Court
heard oral arguments
today on EMA, American
Fuel & Petrochemical
Manufacturers and other
fuel industry
stakeholders’ challenge
to the Biden EPA’s
issuance of a Clean Air
Act waiver, authorizing
California to implement
its Advanced Clean Cars
I (ACC I) rule. Court
observers feel it is
likely that the high
court will remand the
case to the D.C. Circuit
to consider the groups’
challenge to the federal
waiver on the merits. A
ruling from the Court is
expected by the end of
June.
The U.S.
Court of Appeals for
D.C. Circuit had tossed
out the energy
petitioners challenge to
the granting of the ACC
I waiver, holding that
the fuel producers and
energy marketers did not
have standing to bring
their case because the
automakers make their
compliance plans and
decisions years in
advance and overturning
the waiver would not
redress or provide them
with meaningful relief.
Under ACC I, California
was accelerating the
move to electric
vehicles in the State
through model year 2025.
The Supreme Court agreed
to hear only the
standing issue and not
the merits of EPA’s
waiver.
During
today’s oral argument,
several Justices
signaled interest in the
energy groups’ claims,
particularly in light of
both sides acknowledging
that the D.C. Circuit
misinterpreted the
federal waiver as
applying only through
model year 2025, when in
fact its effects may
extend indefinitely.
However, the Court
expressed caution about
establishing a broad new
legal standard for
industry standing. If
the Supreme Court
determines that the
harms asserted by the
energy groups can be
redressed, it will send
the case back to the
D.C. Circuit for further
proceedings. The Trump
administration also can
rescind the ACC I waiver
through a rulemaking.
“EMA is
optimistic that the
Court will recognize
that the aggressive
constraints on the
liquid fuels market
imposed by EPA and
California are
redressable and that
energy marketers have
standing to challenge
tailpipe emissions
standards being used to
mandate EVs,” said EMA
President Rob Underwood.
“After all, EV
enthusiasm is clearly
dwindling, and
California is relying on
this unlawful regulatory
action to force
electrification.” “We
have simply asked the
Court to step in to
preserve consumer choice
and ensure that all
forms of energy are
treated equally, which
will guarantee that
small business energy
marketers can continue
to sell American-made
fuels in the future,”
Underwood added.
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