Diamond Alternative Energy v. Environmental Protection Agency

ELR Citation: 55 ELR 20079
No(s). 24-7 (U.S. Jun 20, 2025)

The U.S. Supreme Court, 7-2, held that several fuel producers had standing in a lawsuit challenging EPA's approval of California regulations requiring automakers to manufacture more electric vehicles and fewer gasoline-powered vehicles in an effort to decrease emissions from liquid fuels. The producers sued EPA in the D.C. Circuit, arguing its approval violated the CAA because the regulations targeted global climate change rather than California air quality problems. The state intervened and argued the producers lacked standing because automobile manufacturers would not change course if EPA's approval were vacated given "surging consumer demand" for electric vehicles. The D.C. Circuit held the fuel producers lacked standing because they failed to establish that automakers would likely respond to invalidation of the regulations by producing fewer electric vehicles and more gasoline-powered ones. The Supreme Court found the regulations likely caused the producers monetary injuries and that invalidating the regulations would likely redress at least some of their injuries as it would likely result in more revenue from additional fuel sales, based on "commonsense economic principles" and record evidence. It reversed and remanded for further proceedings. Kavanaugh, J., delivered the opinion of the Court, in which Roberts, C.J., and Thomas, Alito, Kagan, Gorsuch, and Barrett, JJ., joined. Sotomayor, J., and Jackson, J., filed dissenting opinions.

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