Washington, D.C. More bad news for New Jersey Governor Phil Murphy and Trenton Democrats who are pushing for an EV mandate and a ban on gasoline-powered vehicles by 2035.
Industry groups can now proceed with a high-profile lawsuit against the Environmental Protection Agency (EPA) and the state of California after the U.S. Supreme Court ruled 7-2 that American fuel manufacturers have legal standing to challenge California’s electric vehicle mandates.
Fuel producers, led by the American Fuel & Petrochemical Manufacturers (AFPM), contend that the EPA’s waiver permitting California’s Advanced Clean Cars I (ACCI) program goes beyond its legal regulatory jurisdiction. This decision is based on the Diamond Alternative Energy, LLC v. EPA lawsuit.
According to Chet Thompson, President and CEO of AFPM, the Supreme Court today resolved any dispute over fuel makers’ ability to contest illegal electric vehicle regulations. We look forward to our day in court at last, and we do.
Legal challenge centers on California s ACCI policy and similar policies in New Jersey
The main point of contention is California’s ACCI regulations, which were enacted in 2012 and mandate that automakers reach yearly sales goals for zero-emission cars in addition to enforcing stringent greenhouse gas criteria for models from 2018 to 2025. Under Section 177 of the Clean Air Act, the regulations are applicable not only in California but also in over a dozen other states that have embraced California’s standards.
AFPM maintains that the EPA went too far in granting the waiver, claiming that Congress never gave California specific authority to impose EV standards or prohibit gas-powered vehicles.
The matter, which was heard by the Supreme Court on April 23, 2025, is now being remanded to a lower court for consideration of the fuel industry’s arguments.
Fuel manufacturers may contest California’s EV regulations, according to the Supreme Court’s ruling, which opens the door to a legal dispute over the country’s future car emissions regulations.
