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Trump administration to reassess EPA waiver decision

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Valero's Diamond Alternative Energy challenged waiver

By Andrew Chung

Jan 24 (Reuters) - President Donald Trump's

administration asked the U.S. Supreme Court on Friday to put on

hold planned arguments in a bid by fuel producers to challenge

California's standards for vehicle emissions and electric cars

under a federal air pollution law.

The new Republican administration also made similar requests in

three other cases involving the actions of federal agencies,

giving an early indication that it will take a fresh look at a

number of legal issues before the court and potentially change

positions from Trump's Democratic predecessor Joe Biden.

The expected changes in the government's position may be a

closer ideological fit for the Supreme Court's 6-3 conservative

majority, which includes three justices appointed by Trump.

The dispute over California vehicle standards centers on an

exception granted to that state in 2022 by the U.S.

Environmental Protection Agency during Biden's presidency to

national vehicle emission standards set by the agency under the

landmark Clean Air Act anti-pollution law.

Though states and municipalities are generally preempted

from enacting their own limits, Congress let the EPA waive the

preemption rule to allow California to set certain regulations

that are stricter than federal standards.

In asking the Supreme Court to pause the case, Acting

Solicitor General Sarah Harris said in a filing, "After the

change in administration, EPA's acting administrator has

determined that the agency should reassess the basis for and

soundness of the 2022 reinstatement decision."

The EPA's action reinstated a waiver for California to set

its own tailpipe emissions limits and zero-emission vehicle

mandate through 2025, reversing a 2019 decision during Trump's

first term in office rescinding the waiver.

Valero's Diamond Alternative Energy and related

groups challenged the reinstatement of California's waiver,

arguing that the decision exceeded the EPA's power under the

Clean Air Act and inflicted harm on their bottom line by

lowering demand for liquid fuels.

The U.S. Court of Appeals for the District of Columbia

Circuit threw out the lawsuits, finding that Valero and the

states lacked the necessary legal standing to bring their

claims.

Harrison told the Supreme Court that the EPA's reassessment

of the matter "could obviate the need for this court to

determine" whether the challengers have legal standing.

The Supreme Court has taken a skeptical view toward

expansive authority for federal regulatory agencies, and has

restricted the powers of the EPA in some important rulings in

recent years.

In June, the court blocked the EPA's "Good Neighbor" rule aimed

at reducing ozone emissions that may worsen air pollution in

neighboring states. In 2023, the court hobbled the EPA's power

to protect wetlands and fight water pollution. In 2022, it

imposed limits on the agency's authority under the Clean Air Act

to reduce coal- and gas-fired power plant carbon emissions.

On Monday, his first day back in office, Trump said in an

executive order that he was seeking the repeal of a new waiver

granted to California in December by the EPA allowing the state

to end the sale of gasoline-only vehicles by 2035. That rule has

been adopted by 11 other states.

Trump said the EPA should terminate "where appropriate,

state emissions waivers that function to limit sales of

gasoline-powered automobiles."