The Supreme Court ruled 7–2 Friday that energy producers and royalty owners can sue the Environmental Protection Agency over its 2022 decision to grant California a waiver under the Clean Air Act, allowing the state to phase out gas-powered vehicle sales by 2035. Justice Brett Kavanaugh, writing for the majority, emphasized the ruling only affirms the plaintiffs’ legal standing, with the case’s merits to be decided in a lower court.
“The government generally may not target a business through stringent and allegedly unlawful regulation, and then evade lawsuits,” Kavanaugh wrote. The ruling sets a precedent for future challenges to regulatory waivers granted under federal environmental law.
The waiver, approved under Joe Biden, was overturned earlier this month by Donald Trump via congressional resolution. Justices Sonia Sotomayor and Ketanji Brown Jackson dissented, with Jackson warning the decision favored “moneyed interests” and calling the case “largely moot.”
The ruling paves the way for legal battles over emissions rules and regulatory reach.
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