On June 20, 2025, the U.S. Supreme Court issued a decision in Diamond Alternative Energy, LLC v. Environmental Protection Agency, 606 U.S. ___, 145 S.Ct. 2121 (2025). The Supreme Court determined that fuel producers have Article III standing to challenge the EPA’s 2022 approval of California’s vehicle emissions standards and electric vehicle mandates under the Clean Air Act.

Under the Clean Air Act, the EPA approved California regulations that require automakers to manufacture more electric vehicles and fewer gasoline-powered vehicles with a goal of decreasing emissions from liquid fuels.  The ruling reversed a lower court decision by the D.C. Circuit, which found the plaintiffs lacked standing because their claimed injuries depended on uncertain behavior by automakers.

Justice Kavanaugh, writing for the majority, found that the fuel petitioners meet the test for standing based on alleged economic impacts to fuel companies caused by reduced reliance on gasoline.  Justice Jackson criticizes the majority in her dissent stating that “[t]his case gives fodder to the unfortunate perception that moneyed interests enjoy an easier road to relief in this Court than ordinary citizens.”  This decision expands opportunities for industry challenges to state and federal climate policies under the Clean Air Act.