Ca_Law

case_law | United States Federal

Diamond Alternative Energy, LLC v. EPA

Summary

The fuel producers have Article III standing to challenge EPA’s approval under the Clean Air Act of California regulations requiring automakers to manufacture more electric vehicles and fewer gasoline-powered vehicles.

Text

Retrieval chunks

  • #1

    PRELIMINARY PRINT Volume 606 U. S. Part 1 Pages 100–145 OFFICIAL REPORTS OF THE SUPREME COURT June 20, 2025 REBECCA A. WOMELDORF reporter of decisions Page Proof Pending Publication NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to noti…

  • #2

    tions by producing fewer electric vehicles and more gasoline-powered vehicles. Held: The fuel producers have Article III standing to challenge EPA's approval of the California regulations. Pp. 110–126. (a) Article III limits federal court jurisdiction to “Cases” and “Con- troversies,” requiring plaintiffs to demo…

  • #3

    Columbia Broadcasting System, Inc. v. United States, 316 U. S. 407, 422. The Court need not resolve this question because the record evi- dence in this case establishes the fuel producers' standing in any event. Pp. 114–116. (2) This case presents the “familiar” circumstance where govern- ment regulation of one b…

  • #4

    (3) EPA and California argue the fuel producers needed more evi- dence, such as affdavits from expert economists or directly regulated automakers. This Court has not demanded such evidence to show how third parties would likely respond to government regulations. Plain- tiffs must simply “show a predictable chain o…

  • #5

    Joshua A. Klein, Deputy Solicitor General of California, argued the cause for state respondents. With him on the brief were Rob Bonta, Attorney General, Michael J. Mon- gan, Solicitor General, Tracy Winsor , Senior Assistant At- torney General, Teresa A. Reed Dippo, Deputy Solicitor General, Theodore McCombs, Cai…

  • #6

    William M. Jay, Benjamin Hayes, Jennifer B. Dickey, and Andrew R. Varcoe; for the Foothill Church et al. by Rory T. Gray and John J. Bursch; for the Sulphur Institute by Patrick F. Philbin and Chase Harrington; for the Texas Oil & Gas Association et al. by James K. Vines and Samuel P . Funk; for the Texas Royalty …

  • #7

    To promote uniformity in vehicle emissions regulations, the Act also preempts state standards “relating to the control of emissions from new motor vehicles.” § 7543(a). But the Act's preemption provision exempts California. Under certain circumstances, California may adopt emissions standards for new motor vehicl…

  • #8

    average greenhouse-gas emissions across their feets of new motor vehicles sold in the State and (ii) to manufacture a Page Proof Pending Publication Cite as: 606 U. S. 100 (2025) 107 Opinion of the Court certain percentage of electric vehicles as part of their vehicle feets. Cal. Code Regs., tit. 13, §§ 1961.3, …

  • #9

    The fuel producers manufacture and sell automobile fuels such as gasoline, diesel, and ethanol. For example, Ameri- can Fuel & Petrochemical Manufacturers is a national trade association that represents many American fuel companies that produce and sell gasoline and other liquid fuels for auto- mobiles. Diamond A…

  • #10

    expect that there would be fewer” electric vehicles “produced and sold . . . , and thus additional gasoline-fueled vehicles produced and sold during these model years.” Id., at 110. All of that “would increase criteria pollutant emis- sions,” as California's own “modeling has confrmed.” Ibid. Another California o…

  • #11

    Article III of the Constitution confnes the jurisdiction of federal courts to “Cases” and “Controversies.” § 2, cl. 1. For a lawsuit to constitute a case within the meaning of Arti- cle III, the plaintiff must have standing to sue. To demon- strate standing, plaintiffs must answer a basic question— “ `What's it t…

  • #12

    The frst requirement, injury in fact, requires the plaintiff to demonstrate an injury that is “concrete,” “particularized,” and “actual or imminent, not speculative.” Alliance for Hippocratic Medicine , 602 U. S., at 381 (quotation marks omitted). “Monetary costs are of course an injury.” United States v. Texas, …

  • #13

    (and redressability), a court must conclude that “ `third par- ties will likely react' ” to the government regulation (or judi- cial relief) “ `in predictable ways' ” that will likely cause (or redress) the plaintiff's injury. Alliance for Hippocratic Medicine, 602 U. S., at 383 (quoting California, 593 U. S., at…

  • #14

    or sell any additional gasoline-powered cars even if the Cali- fornia regulations are invalidated. III We hold that the fuel producers have standing to sue. To begin, the injury in fact and causation elements of the fuel producers' standing, which no party disputes, are straightforward. As for injury in fact, t…

  • #15

    that California may not enforce its greenhouse-gas emissions limits and electric-vehicle mandate for new vehicle feets. Page Proof Pending Publication Cite as: 606 U. S. 100 (2025) 115 Opinion of the Court seek to restrict the use of gasoline and other liquid fuels in automobiles. When the government prohibits o…

  • #16

    deny them the opportunity to compete in the marketplace without government interference. And the fuel producers assert that removing a coercive government standard that restricts the use of their products would allow them to com- pete more fully in the marketplace and thus provide redress for purposes of Article …

  • #17

    tend that invalidating California's regulations would likely mean more gasoline-powered automobiles, which would in turn likely mean more sales of gasoline and other liquid fuels by the fuel producers. See Bennett, 520 U. S., at 170–171. Because the fuel producers have suffered classic monetary injury caused by a…

  • #18

    that the regulations still make a difference in the market. In all events, record evidence confrms what common sense tells us: Invalidating the regulations likely (not certainly, but likely) would make a difference for fuel producers because automakers would likely manufacture more vehicles that run on gasoline a…

  • #19

    California's regulations, EPA repeatedly affrmed that Cali- fornia “needs” its standards “to address compelling and extraordinary air quality conditions in the state.” 87 Fed. Reg. 14334; see id., at 14353. And in proposing to amend California's state implementation plan under the Clean Air Act more than two year…

  • #20

    standing to challenge EPA's approval of the California regulations. 5 C EPA and California further argue, however, that the fuel producers had to introduce still more evidence—for example, affdavits either from expert economists or from directly reg- ulated automakers explaining how they would respond to a cou…

  • #21

    Such a rule would create incentives for gamesmanship and could make it diffcult or impossible to establish standing in cases where the standing analysis should be straightforward. A heightened “proof of redressability” requirement of that kind would ultimately close the courthouse doors to many traditional challe…

  • #22

    sions standards, international developments, government subsidies to particular industries, and tax incentives, among many other factors. Predicting developments in complex 6 Or a regulation may have expired, making the legal challenge moot. But that scenario is covered by mootness doctrine, not redressability. C…

  • #23

    out in New Sign of Weakening Demand, Wall Street Journal, July 24, 2024; J. Ewing, Carmakers Downshift on E.V . Spending as Sales Growth Slows, N. Y . Times, Nov. 10, 2023, section B, p. 1. Page Proof Pending Publication 124 DIAMOND ALTERNATIVE ENERGY, LLC v. EPA Opinion of the Court California's regulations req…

  • #24

    see no good reason to waste the parties' time and resources by remanding for further analysis of the standing issue in the Court of Appeals when the parties have comprehensively briefed it and we can readily resolve it now. Justice Jackson separately argues that the Court does not apply standing doctrine “evenhan…

  • #25

    by requiring vehicle manufacturers to produce more fuel- effcient cars. Before the D. C. Circuit, petitioners argued, relying in part on statements from California regulators and the EPA, that this shift toward fuel effciency would reduce demand for the fossil fuels they produce, thereby causing a fnancial injury…

  • #26

    undercut the core factual premise on which the D. C. Circuit's standing analysis depended. See 98 F. 4th, at 302–303. It called instead for a new assessment of redressability: Would manufacturers change their plans for any future, post-2025 model years if the court vacated the fuel-effciency rule? California now …

  • #27

    actions of the political branches but preclude suits by others *The majority suggests it can disregard the actual basis for the D. C. Circuit's decision because (in the majority's view) that court “did not rest” its analysis “entirely” on its factual error. Ante, at 124. Having granted certiorari in this case to c…

  • #28

    added, 77 Stat. 393, 42 U. S. C. § 7401(b)(1). One of the ways the Act sought to achieve that goal was by requiring all “new motor vehicles or new motor vehicle engines” sold in the United States to comply with certain emissions standards established by the Environmental Protection Agency (EPA). §§ 7521(a)(1), 75…

  • #29

    wide emissions limits would gradually increase in stringency through model year 2025, at which point the limits would remain at 2025 levels permanently. Ibid. Nobody chal- lenged the waiver in court, and California's program went into effect without incident. 1 See EPA, Vehicle Emissions California Waivers and Au…

  • #30

    ers responded to vacatur of the waiver by producing and selling fewer non-conventional vehicles or by altering the Page Proof Pending Publication Page Proof Pending Publication 132 DIAMOND ALTERNATIVE ENERGY, LLC v. EPA Jackson, J., dissenting prices of their vehicles such that fewer non-conventional ve- hicles…

  • #31

    Article III of the Constitution restricts the jurisdiction of federal courts to actual “Cases” or “Controversies.” That case-or-controversy requirement limits our power as judges: It means that we can only resolve concrete legal disputes— those with real stakes for real people—and we must turn away litigants who …

  • #32

    months, when model year 2025 ends. Automakers are al- ready accepting preorders on model-year-2026 vehicles, and, by Thanksgiving, their entire feets for model year 2026 will be available. This means that even if the electric-vehicle mandate is currently harming the fuel industry—a dubious proposition in itself, …

  • #33

    obviating the need for a seven-month detour to this Court. But the Court granted plenary review instead. Our insistence on resolving the standing question in this case strains our usual case-selection standards, which are highly selective. We typically grant review in just a few dozen cases each year—a tiny fract…

  • #34

    dustry to attack the Clean Air Act. But Article III requires a live case or controversy, not merely the potential that a favorable judgment will help the plaintiff in some future lawsuit. Also, I worry that the fuel industry's gain comes at a repu- tational cost for this Court, which is already viewed by many as…

  • #35

    43–50 (2017) (concluding, based on an analysis of all decisions involving business litigants between 1946 and 2015, that the “Court's tendency to favor business in unanimous decisions has increased, not decreased, over time”). 7 See, e. g., J. Adler, Is the Business of the Court (Still) Business? 713 Annals Am. A…

  • #36

    short of a herculean effort to justify the conclusion that re- dressability exists on this record. See ante, at 118–120. Its demonstrated concern for ensuring that the fuel indus- try's ability to sue is recognized on these facts highlights a potential gap in the manner in which the Court treats the claims of pla…

  • #37

    fornia's program was to reduce fuel consumption, as the ma- jority notes. Ante, at 114. But petitioners did not chal- lenge the program at its inception. Instead, they challenged it nearly a decade after California obtained its pre-emption waiver. By that point, consumer demand for electric and low-emissions vehi…

  • #38

    as to . . . permit redressability.” Lujan v. Defenders of Wildlife , 504 U. S. 555, 562 (1992) (emphasis added). Page Proof Pending Publication Cite as: 606 U. S. 100 (2025) 141 Jackson, J., dissenting Petitioners have made little effort to meet that burden. None of the declarations they submitted below say anyt…

  • #39

    sis, the effort it expends on this endeavor is striking—espe- cially when compared to the Court's approach to Article III standing in cases involving civil rights. B The Court's remarkably lenient approach to standing in this case contrasts starkly with the stern stance it has taken in cases concerning the right…

  • #40

    Our decision in Allen v. Wright, 468 U. S. 737 (1984), was more of the same. There, we held that a group of Black parents lacked standing to challenge the Internal Revenue Service's (IRS) policies concerning tax exemptions for pri- vate schools. Id., at 739–740. The parents had alleged that the IRS's failure to d…

  • #41

    surveillance-authorization requests it received. Id., at 430 (Breyer, J., dissenting) (citing records showing that the court approved 1,674 out of 1,676 applications in 2011). But in- stead we “decline[d] to abandon our usual reluctance to en- dorse standing theories that rest on speculation about the decisions o…

  • #42

    If it does not, and if the Court is not fastidious in maintaining consistency across its certiorari decisions and substantive rulings, its decisions will come to represent, like so many marble façades, another mere facsimile of justice. 11 See U. S. Commission on Fine Arts, Cass Gilbert, https://www.cfa. gov/ abo…