In a decision that could have significant implications for environmental and business interests, the U.S. Supreme Court has ruled by a 7-2 vote in favor of allowing producers of liquid fuels, such as gasoline, to challenge California’s pro-electric vehicle rules. The case stems from the Environmental Protection Agency’s decision to grant a waiver that enables California to implement these rules, which the fuel sellers argue creates a regulatory disadvantage for their industry.
While the ruling permits the lawsuit to proceed, it did not assess the validity of the fuel producers’ challenge itself. The Supreme Court’s decision reverses a previous ruling by a federal appeals court in Washington, which had deemed that the challengers failed to show how the waiver inflicted a “redressable” injury upon them.
Jeffrey B. Wall of Sullivan & Cromwell represented the fuel companies in the oral arguments presented to the Court in April. For further details, refer to the original article on Law.com.