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SUPREME COURT OF THE UNITED STATES
_________________
No. 24–7
_________________
Diamond Alternative Energy, LLC, et al.,
PETITIONERS
v. Environmental Protection Agency, et al.
on writ of certiorari to the united states
court of appeals for the district of columbia circuit
[June 20, 2025]
Justice Kavanaugh delivered the opinion of the
Court.
Pursuant to the Clean Air Act, the U. S.
Environmental Protection Agency approved California regulations
requiring automakers to alter their fleets of new vehicles. Under
those California regulations, automakers must manufacture more
electric vehicles and fewer gasoline-powered vehicles. The goal is
to decrease emissions from the use of gasoline and other liquid
fuels. Producers of gasoline and other liquid fuels sued EPA,
arguing that EPA’s approval of the California regulations violated
the Clean Air Act.
The sole issue before this Court is whether the
fuel producers have standing to maintain their suit.
The fuel producers assert that the California
regulations reduce the manufacture and sale of cars powered by
gasoline and other liquid fuels, thereby causing a decrease in
sales of those fuels by the fuel producers. So fuel producers take
in less revenue than they would in a free market. Invalidating the
regulations, they say, would remove a regulatory impediment to
their ability to fully compete in the market. And without
California’s regulations in effect, manufacturers would likely make
more cars powered by gasoline and other liquid fuels, thereby
increasing purchases of those fuels and redressing the fuel
producers’ injury.
EPA and California dispute redressability. They
suggest that, even if the regulations are invalidated, car
manufacturers nonetheless would not manufacture more
gasoline-powered cars. They posit that the California regulations
no longer have any impact because, in a free market, consumer
demand for and manufacturers’ supply of electric vehicles would
still supposedly exceed what the California regulations
mandate.
Based on this Court’s precedents and the
evidence in the record, we hold that the fuel producers have
standing. We therefore reverse the contrary judgment of the
U. S. Court of Appeals for the D. C. Circuit and remand
for that court to consider the merits of the fuel producers’ legal
claims.
I
A
As relevant here, the Clean Air Act requires
the Environmental Protection Agency, or EPA, to periodically
“prescribe . . . standards” that limit emissions of
certain air pollutants from new motor vehicles. 42
U. S. C. §7521(a)(1). 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 vehicles that are more stringent
than EPA’s. California may do so when it concludes that more
stringent standards are needed to meet “compelling and
extraordinary conditions.” §7543(b)(1)(B). Other States may also
adopt California’s stricter limits on emissions from new motor
vehicles, but may not adopt or enforce state standards that differ
from California’s. §7507.
The upshot of this system is that EPA sets
nationwide emissions standards for new motor vehicles; California
in limited circumstances may set more stringent emissions standards
for vehicles sold in the State; and other States may either follow
EPA’s standards or adopt California’s but may not set their
own.
Over the years, California has often requested
and received EPA approval for stricter emissions standards to
combat local California air-quality problems like smog. See,
e.
g., 38 Fed. Reg. 10319 (1973).
Beginning in 2005, California also attempted to
use its unique preemption exception as one means to address global
climate change. As relevant here, the State asked EPA for approval
of regulations that limit greenhouse-gas emissions and force
electrification of the new vehicle fleet sold in the State. See 73
Fed. Reg. 12157 (2008).
In 2008, under the George W. Bush
administration, EPA denied California’s first such request. EPA
explained that the Clean Air Act permits California to enact
standards to address local and regional pollution where the causal
factors are tied to California. But EPA reasoned that the authority
granted to California did not extend to efforts to combat global
climate change. See
id., at 12156–12157, 12168.
Since then, as Presidential administrations have
come and gone, EPA has repeatedly altered its legal position on
whether the Clean Air Act authorizes California regulations
targeting greenhouse-gas emissions from new motor vehicles.
This case involves California’s 2012 request for
EPA approval of new California regulations. As relevant here, those
regulations generally require automakers (i) to limit average
greenhouse-gas emissions across their fleets of new motor vehicles
sold in the State and (ii) to manufacture a certain percentage of
electric vehicles as part of their vehicle fleets. Cal. Code Regs.,
tit. 13, §§1961.3, 1962.2 (2022). The greenhouse-gas emissions
limits remain in force indefinitely into the future, and the
specific requirements for electric vehicles in new vehicle fleets
run through model year 2025. See
ibid. (EPA has separately
approved a new California electric-vehicle mandate that applies
through model year 2035 and beyond; that separate set of
regulations is not at issue in this suit.[
1])
Under President Obama, EPA reversed its legal
position and, in 2013, allowed the California regulations to take
effect. 78 Fed. Reg. 2112 (2013). Then in 2019, under President
Trump, EPA flipped back and rescinded approval of the California
regulations. 84 Fed. Reg. 51328 (2019). In 2022, under President
Biden, EPA again reversed course and reinstated approval of
California’s regulations. 87 Fed. Reg. 14333 (2022). That is where
things stand as of now, although President Trump has directed EPA
to again reconsider its approval of California’s standards. Exec.
Order No. 14154, 90 Fed. Reg. 8353–8354 (2025).
To date, acting pursuant to the Clean Air Act,
17 States and the District of Columbia have copied California’s
greenhouse-gas emissions standards for new motor vehicles, the
electric-vehicle mandate, or both. Together with California, those
jurisdictions account for about 40 percent of America’s market for
new cars and light-duty trucks.
B
In 2022, after EPA reinstated approval of
California’s 2012 regulations, several fuel producers sued EPA in
the D. C. Circuit. The fuel producers primarily argued that
EPA lacked authority under the Clean Air Act to approve the
California regulations. They reasoned that the regulations did not
target a
local California air-quality problem—as they say is
required by the Clean Air Act—but instead were designed to address
global climate change.
The fuel producers manufacture and sell
automobile fuels such as gasoline, diesel, and ethanol. For
example, American Fuel & Petrochemical Manufacturers is a
national trade association that represents many American fuel
companies that produce and sell gasoline and other liquid fuels for
automobiles. Diamond Alternative Energy sells renewable diesel, an
alternative to traditional petroleum-derived diesel. Valero
Renewable Fuels Company manufactures and sells ethanol.
To establish Article III standing for their
D. C. Circuit challenge, the fuel producers submitted 14
declarations and devoted two pages of their opening brief to
standing. In one declaration, for example, an analyst for American
Fuel & Petrochemical Manufacturers explained that “the demand
for gasoline and diesel fuel will be depressed” by California’s
regulations (also adopted by 17 other States) because they “require
the sale of vehicles that use less gasoline and diesel fuel” or
“use no liquid fuel at all.” App. 172–174. As support, the
declaration quoted California’s own estimate that “its regulations
would cause ‘substantial reductions in demand for gasoline
exceeding $1 billion beginning in 2020 and increasing to over $10
billion in 2030.’ ”
Id., at 173. Various fuel producers
further stated that those “injuries would be substantially
ameliorated if EPA’s decision” to reinstate the waiver “were set
aside.”
Id., at 137, 181.
Notably, in the D. C. Circuit, EPA did not
argue that the fuel producers lacked Article III standing. EPA’s
silence on standing was telling—the proverbial dog that did not
bark—because EPA routinely challenges a party’s standing when the
agency believes that injury in fact, causation, or redressability
is questionable. So EPA’s failure to do so here tends to suggest
that EPA believed that the fuel producers had standing.
California, along with other States that chose
to adopt California’s regulations, intervened in the D. C.
Circuit to defend EPA’s approval of those regulations. To support
its motion to intervene, California submitted declarations
emphasizing the importance of the regulations—now and in the
future—to meeting California’s emissions-control goals. For
example, a California official responsible for Clean Air Act
compliance stated that, without the regulations, “it is reasonable
to 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 emissions,” as
California’s own “modeling has confirmed.”
Ibid. Another
California official explained that invalidating the fleet-wide
emissions standards and electric-vehicle mandate “would result in
higher greenhouse gas and criteria pollutant emissions” from the
“additional gasoline-fueled cars” that would be produced and sold.
Id., at 115.
After the D. C. Circuit granted
California’s motion to intervene, however, California completely
changed its tune about the continuing impact of the regulations. In
its merits briefing in that court, California suddenly argued that
the fuel producers lacked Article III standing because they had not
“established any probability” that automobile “manufacturers would
change course if EPA’s decision were vacated.” Brief for State and
Local Government Respondent-Intervenors in No. 22–1081 (CADC), p.
15. Specifically, California suggested that because of supposed
“surging consumer demand” for electric vehicles, invalidating the
fleet-wide emissions standards and electric-vehicle mandate would
not cause vehicle manufacturers to make more gasoline-powered
vehicles.
Id., at 14. Therefore, California argued that
judicial invalidation of the California regulations was not likely
to redress the fuel producers’ injuries.
The D. C. Circuit agreed with California and
held that the fuel producers lacked Article III standing.
Ohio v.
EPA, 98 F. 4th 288, 300 (2024). The court
explained that redressability depended on how third-party
automakers would act in the absence of California’s fleet-wide
emissions standards and electric-vehicle mandate. According to the
D. C. Circuit, the fuel producers failed to “cite any record
evidence” or “file additional affidavits or other evidence”
demonstrating that automakers would respond to invalidation of the
regulations by producing fewer electric vehicles and more
gasoline-powered vehicles.
Id., at 303 (quotation marks and
alteration omitted).[
2]
This Court granted certiorari limited to the
question of whether the fuel producers have Article III standing.
604 U. S. ___ (2024).
II
Article III of the Constitution confines the
jurisdiction of federal courts to “Cases” and “Controversies.” §2,
cl. 1. For a lawsuit to constitute a case within the meaning
of Article III, the plaintiff must have standing to sue. To
demonstrate standing, plaintiffs must answer a basic
question—“ ‘What’s it to you?’ ”
FDA v.
Alliance for Hippocratic Medicine, 602 U.S. 367, 379 (2024)
(quoting A. Scalia, The Doctrine of Standing as an Essential
Element of the Separation of Powers, 17 Suffolk U. L. Rev.
881, 882 (1983)). In other words, plaintiffs must show that they
possess “a ‘personal stake’ in the dispute” and are not mere
bystanders. 602 U. S., at 379 (quoting
TransUnion LLC
v.
Ramirez, 594 U.S. 413, 423 (2021)).
“By limiting who can sue, the standing
requirement implements ‘the Framers’ concept of the proper—and
properly limited—role of the courts in a democratic
society.’ ” 602 U. S., at 380 (quoting J. Roberts,
Article III Limits on Statutory Standing, 42 Duke L. J. 1219,
1220 (1993)). Standing doctrine also “ ‘tends to assure that
the legal questions presented to the court will be resolved, not in
the rarified atmosphere of a debating society, but in a concrete
factual context conducive to a realistic appreciation of the
consequences of judicial action.’ ” 602 U. S., at 379
(quoting
Valley Forge Christian College v.
Americans
United for Separation of Church and State, Inc.,
454 U.S.
464, 472 (1982)).
This Court’s “cases have established that the
irreducible constitutional minimum of standing contains three
elements”: injury in fact, causation, and redressability.
Lujan v.
Defenders of Wildlife,
504 U.S.
555, 560 (1992).
The first 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, 599 U.S. 670, 676
(2023).
The second and third requirements, causation and
redressability, are usually “flip sides of the same coin.”
Alliance for Hippocratic Medicine, 602 U. S., at 380
(quotation marks omitted). Causation requires the plaintiff to show
“that the injury was likely caused by the defendant,” and
redressability requires the plaintiff to demonstrate “that the
injury would likely be redressed by judicial relief.”
TransUnion, 594 U. S., at 423. “If a defendant’s action
causes an injury, enjoining the action or awarding damages for the
action will typically redress that injury.”
Alliance for
Hippocratic Medicine, 602 U. S., at 381. To be sure,
redressability “can still pose an independent bar in some cases,”
but “the two key questions in most standing disputes are injury in
fact and causation.”
Id., at 381, and n. 1. The
additional redressability requirement generally serves to ensure
that there is a sufficient “relationship between ‘the judicial
relief requested’ and the ‘injury’ suffered.”
California v.
Texas, 593 U.S. 659, 671 (2021) (quoting
Allen v.
Wright,
468 U.S.
737, 753, n. 19 (1984)); see
Haaland v.
Brackeen, 599 U.S. 255, 292–293 (2023).
Importantly, if a plaintiff is “an object of the
action (or forgone action) at issue,” then “there is ordinarily
little question that the action or inaction has caused him injury,
and that a judgment preventing or requiring the action will redress
it.”
Lujan, 504 U. S., at 561–562.
When the plaintiff is not the object of a
government regulation, however, causation and redressability often
depend on how regulated third parties not before the court will act
in response to the government regulation or judicial relief. See
Alliance for Hippocratic Medicine, 602 U. S., at 383.
Courts must distinguish the “predictable” from the “speculative”
effects of government action or judicial relief on third parties.
Ibid.; see also
Department of Commerce v.
New
York, 588 U.S. 752, 768 (2019). With respect to causation (and
redressability), a court must conclude that “ ‘third parties
will likely react’ ” to the government regulation (or judicial
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 675).
Here, the fuel producers say that they suffered
injury in fact caused by the California regulations. They point out
that the entire purpose of California’s fleet-wide emissions
standards and electric-vehicle mandate is to reduce the use of
gasoline and other liquid fuels in motor vehicles as compared to
what otherwise would occur in a free market. The regulations cause
automakers to, among other things, produce fewer gasoline-powered
vehicles. That in turn causes fewer gasoline sales, leading to a
monetary injury in fact for producers of gasoline and other liquid
fuels.
As to redressability, the fuel producers say
that invalidating the California regulations would likely redress
their injury because it would remove a regulatory impediment to the
sale and use of their products. They further contend that, absent
the regulations, automakers would likely produce fewer electric
vehicles and more gasoline-powered vehicles. Production of those
vehicles would predictably lead to more purchases of gasoline and
other liquid fuels sold by the fuel producers. In short, they argue
that when the government tells automakers to make more cars that
use less gasoline, there should be little question that the
gasoline producers have standing to sue.
In this Court, neither EPA nor California
meaningfully disputes injury in fact or causation. But they argue
that the fuel producers did not establish redressability. According
to EPA and California, even if the California regulations are
invalidated, the fuel producers have not shown that vehicle
manufacturers would reduce the percentage of their fleets that
consist of electric vehicles (or otherwise stated, increase the
percentage that consists of gasoline-powered vehicles). EPA and
California suggest that the automobile market has
changed—apparently permanently in their view—and strong consumer
demand for (and manufacturers’ supply of) electric vehicles means
that automakers are unlikely to manufacture or sell any additional
gasoline-powered cars even if the California 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, the fuel producers make
money by selling fuel. Therefore, the decrease in purchases of
gasoline and other liquid fuels resulting from the California
regulations hurts their bottom line. Those monetary costs “are of
course an injury.”
United States v.
Texas, 599 U.S.
670, 676 (2023).
As for causation, EPA’s approval authorized
California (and ultimately 17 other States) to enforce regulations
that require lower fleet-wide greenhouse-gas emissions and the
electrification of automakers’ vehicle fleets, thereby reducing
purchases of liquid fuels such as gasoline. The regulations likely
cause fuel producers’ monetary injuries because the regulations
likely cause a decrease in purchases of gasoline and other liquid
fuels for automobiles. Indeed, that is the whole point of the
regulations.
As for redressability, invalidating the
California regulations would likely redress at least some of the
fuel producers’ monetary injuries.[
3] Even “one dollar” of additional revenue for the fuel
producers would satisfy the redressability component of Article III
standing.
Uzuegbunam v.
Preczewski, 592 U.S. 279, 292
(2021). And as we will explain, it is “likely” that invalidating
the California regulations would result in more revenue for the
fuel producers from additional sales of gasoline and other liquid
fuels.
FDA v.
Alliance for Hippocratic Medicine, 602
U.S. 367, 380 (2024).
A
When a plaintiff is the “object” of a
government regulation, there should “ordinarily” be “little
question” that the regulation causes injury to the plaintiff and
that invalidating the regulation would redress the plaintiff’s
injuries.
Lujan v.
Defenders of Wildlife,
504 U.S.
555, 561 (1992).
The fuel producers here might be considered an
object of the California regulations because the regulations
explicitly seek to restrict the use of gasoline and other liquid
fuels in automobiles. When the government prohibits or impedes
Company A from using Company B’s product, then both Company A and
Company B might be deemed objects of the government action at
issue. For example, if the government bans hot dog sales in
stadiums, then hot dog manufacturers, not just stadiums, might be
considered objects of the regulation. If the government prohibits
aluminum bats in Little League, then aluminum bat manufacturers,
not only Little League, might be objects of the regulation. If the
government bans bookstores from selling certain publishers’ books,
then those publishers, not just bookstores, might be objects of the
regulation. See
Bennett v.
Spear,
520 U.S.
154, 169 (1997);
Energy Future Coalition v.
EPA,
793 F.3d 141, 144–145 (CADC 2015).
This Court has applied principles of that kind
in various contexts. For example, when a State prohibited parents
from sending their children to private schools, affected schools
had standing to sue, even though parents were the directly
regulated parties. See
Pierce v.
Society of Sisters,
268 U.S.
510, 535–536 (1925). And when the Federal Communications
Commission announced that it would deny a license to any
broadcasting station that conducted certain business with
broadcasting networks, a broadcasting network (CBS) had standing to
sue even though broadcasting stations were the directly regulated
parties. See
Columbia Broadcasting System, Inc. v.
United
States,
316 U.S.
407, 422 (1942).
According to the fuel producers, when a
regulation targets the provider of a product or service by limiting
another entity’s use of that product or service, the targeted
provider ordinarily has standing—without the need for much
additional analysis. See
Bennett, 520 U. S., at 169. So
too here, according to the fuel producers. As they see it, the
government is targeting the use of gasoline and other liquid fuels
by regulating at the assembly line rather than the gas pump. Either
way, they say that the California regulations pose a legal barrier
to the fuel producers’ sale of their products and 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 compete more fully in the marketplace
and thus provide redress for purposes of Article III. See
ibid.;
Energy Future Coalition, 793 F. 3d, at
144–145.
That argument is not without force and, at a
minimum, highlights how the government might seek to indirectly
target a product or service “through a conduit” in addition to
regulating it directly. Brief for Petitioners 43. But we ultimately
need not further consider that argument in this case because,
regardless, the fuel producers have readily demonstrated their
standing.
B
This case presents what the Court has
described as the “familiar” circumstance where government
regulation of a business “may be likely” to cause injuries to other
linked businesses.
Alliance for Hippocratic Medicine, 602
U. S., at 384. As the Court has explained, “when the
government regulates (or under-regulates) a business, the
regulation (or lack thereof) may cause downstream or upstream
economic injuries to others in the chain, such as certain
manufacturers, retailers, suppliers, competitors, or customers.”
Ibid.
In cases of that kind, this Court’s analysis of
causation and redressability has recognized commonsense economic
realities. When third party behavior is predictable, commonsense
inferences may be drawn. Importantly, EPA agrees that “commonsense
economic principles” can be useful when evaluating Article III
standing. Brief for Federal Respondents 39.
In this case, those commonsense economic
principles support the fuel producers’ standing. The California
regulations force automakers to manufacture more electric vehicles
and fewer gasoline-powered vehicles. See
Bennett, 520
U. S., at 169.[
4] The
standards force automakers to produce a fleet of vehicles that, as
a whole, uses significantly less gasoline and other liquid fuels.
California’s regulation of automakers’ vehicle fleets in turn will
likely “cause downstream or upstream economic injuries to others in
the chain,” such as producers of gasoline and other liquid fuels.
Alliance for Hippocratic Medicine, 602 U. S., at
384.
By the same token, the fuel producers
persuasively contend 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 government regulatory action, it would be surprising
and unusual if invalidating the regulations did not redress the
fuel producers’ injuries. See
Alliance for Hippocratic
Medicine, 602 U. S., at 381 (“If a defendant’s action
causes an injury, enjoining the action . . . will
typically redress that injury”). After all, the fact that a
regulation was designed to produce a particular effect on the
market ordinarily means that the likely result of vacating that
regulation would be to reduce that effect on the market. Cf.
Lujan, 504 U. S., at 561–562.
EPA and California push back on that reasoning,
asserting that this case is unusual and does not fit the typical
pattern. They suggest that the new vehicle market has developed in
a way that even if the California regulations are invalidated,
automakers would not likely manufacture or sell more
gasoline-powered cars than they do now.
To begin with, that is an odd argument for EPA
and California to advance. After all, if invalidating the
regulations would change nothing in the market, why are EPA and
California enforcing and defending the regulations? The whole point
of the regulations is to increase the number of electric vehicles
in the new automobile market beyond what consumers would otherwise
demand and what automakers would otherwise manufacture and sell.
And EPA and California are presumably defending the regulations
because they think that the regulations still make a difference in
the market.
In all events, record evidence confirms 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 and other liquid fuels.
First, the fuel producers’ standing
declarations explain that California’s regulations have
historically harmed the fuel producers by causing a decrease in
purchases of fuel. The declarations further quote California’s
estimate that its standards would produce “ ‘substantial
reductions in demand for gasoline exceeding $1 billion beginning in
2020
and increasing to over $10 billion in 2030.’ ”
App. 173 (emphasis added). The fuel producers’ declarations
emphasize, moreover, that California itself asserted that the
State’s standards would reduce emissions partly through
“ ‘reductions in fuel production.’ ”
Id., at 148.
The declarations also note that California recognized that the “oil
and gas industry” and “fuel providers” would likely be “most
adversely affected” by the regulations due to “the resulting
substantial reductions in demand for gasoline.”
Id., at 137
(quotation marks omitted).
Second, the record reveals that
California itself stated in 2021, when asking EPA to reinstate the
regulations, that the regulations are “critical not just for
immediate emissions reductions” but also for “greater emission
reductions
in the future.”
Id., at 66 (emphasis
added). And after the fuel producers sued EPA in 2022, California
moved to intervene and attached expert declarations stating that
California’s standards are likely to decrease fuel use.
Specifically, California’s experts opined that absent California’s
regulations, “fewer” electric vehicles “are likely to be sold than
would otherwise have been . . . and thus additional
gasoline-fueled vehicles would be sold.”
Id., at 115; see
also
id., at 110. California itself therefore acknowledged
that its regulations were still having an impact and that
invalidating the regulations would likely affect the automobile
market and increase demand for gasoline and other liquid fuels.
Third, EPA too has stated that the
California regulations are likely to reduce consumption of fuel.
When approving California’s regulations, EPA repeatedly affirmed
that California “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 years after this suit was filed, EPA credited California’s
estimates that the regulations would continue reducing
greenhouse-gas emissions in California
through at least
2037. 89 Fed. Reg. 82558 (2024).
Fourth, five automakers who have invested
heavily in electric vehicles—and thus have an interest in the
government continuing to support and favor that market—intervened
on the side of EPA and California in the Court of Appeals. Their
motion to intervene predicted that, absent California’s
regulations, other automakers would seek a competitive advantage
over them by selling fewer electric vehicles and more
gasoline-powered vehicles. See Motion To Intervene of Ford Motor
Co. et al. in No. 22–1081 (CADC), pp. 4, 11–12, 14. As with
California’s motion to intervene, the automakers’ assessment that
the regulations make a difference—and that invalidating them would
make a difference—indicates that the regulations are still likely
having a real-world impact on the automobile market.
In short, the commonsense economic inferences
about the operation of the automobile market—combined with the
statements of the fuel producers, California, EPA, and the vehicle
manufacturers—make it sufficiently “predictable” that invalidating
California’s regulations would likely redress the fuel producers’
injury.
Alliance for Hippocratic Medicine, 602 U. S.,
at 383.
Article III’s redressability requirement serves
to align injuries and remedies. The primary goals of that
requirement are to ensure that plaintiffs do not sue the wrong
parties and that courts do not issue advisory opinions. The
redressability requirement should not be misused, however, to
prevent the targets of government regulations from challenging
regulations that threaten their businesses. EPA and California cite
no case where Article III’s redressability requirement has been
applied to prevent challenges to a regulation setting a permanent
ceiling on the sale or use of a business’s products. Here, the fuel
producers have established their 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, affidavits either from expert economists or from directly
regulated automakers explaining how they would respond to a court
order invalidating California’s regulations. See Brief for Federal
Respondents 17–18, 43–44; Brief for State Respondents 13.
We disagree. This Court has not demanded that
plaintiffs introduce evidence from expert economists or from
directly regulated third parties to show how third parties would
likely respond to a government regulation or invalidation thereof.
Rather, to show redressability, the plaintiff must simply “show a
predictable chain of events” that would likely result from judicial
relief and redress the plaintiff’s injury.
Alliance for
Hippocratic Medicine, 602 U. S., at 385. In
Department
of Commerce v.
New York, to take just one example, this
Court considered a challenge by several States and other plaintiffs
to the Government’s decision to reinstate a citizenship question on
the census. 588 U.S. 752, 758–759 (2019). The States argued that
reinstating the question would likely cause noncitizens to respond
to the census at lower rates, thereby causing noncitizen residents
of the States to be undercounted, and in turn leading to reduced
representation and other harms for those States.
Id., at
766–767. The Court did not require the States to produce affidavits
or testimony from noncitizens explaining that they would not
respond to the census in light of the citizenship question.
Requiring the plaintiff to produce affidavits
from regulated parties would be especially problematic in cases of
this kind. It would render the plaintiff’s ability to obtain
judicial review dependent on the happenstance of whether the
plaintiff and the relevant regulated parties are aligned and share
litigation interests—and whether the regulated party is willing to
publicly oppose (and possibly antagonize) the government regulator
by supporting the plaintiff’s suit. Such a rule would create
incentives for gamesmanship and could make it difficult 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 challenges to agency action.
Cf.
id., at 768. Such a rule has little to commend it, and
we decline to adopt it.
D
In ruling against EPA and California, we
recognize that there may conceivably be some atypical instances
where a market has permanently and dramatically changed such that
invalidating a challenged regulation would have no effect on the
market in question, thereby defeating redressability.[
6] But that is likely to be a fairly rare and
unusual scenario, for a couple of reasons.
First, we can assume that governments do
not usually continue to enforce and defend regulations that have no
continuing effect in the relevant market. EPA and California
continue to enforce these regulations, and for three years, EPA and
California have tenaciously defended them in court. So it is
difficult to put much stock in their suggestion that invalidating
the regulations (in California and 17 other States) would have
zero effect on the new vehicle market in America both now
and in the future. Simply put, EPA’s and California’s own
actions—their statements, their enforcement decisions, their
litigation positions—undermine the central premise of their
redressability argument. When as here a government seeks to justify
its regulatory actions by, on the one hand, touting the
consequences for fuel usage and emissions while, on the other,
maintaining that those same regulations are unreviewable because
there are no consequences, courts can appropriately be skeptical.
Judges “are ‘not required to exhibit a naiveté from which ordinary
citizens are free.’ ”
Department of Commerce, 588
U. S., at 785 (quoting
United States v.
Stanchich, 550 F.2d 1294, 1300 (CA2 1977) (Friendly,
J.)).
Second, EPA and California’s view of
redressability fails to account for dynamic markets and the effects
of interrelated economic forces and regulatory programs that change
over time. Supply and demand may depend on, among other things, the
strength of the overall economy, regulatory emissions standards,
international developments, government subsidies to particular
industries, and tax incentives, among many other factors.
Predicting developments in complex markets can be a difficult and
uncertain endeavor, particularly when various governments’
regulatory, spending, and tax policies are at play.[
7]
To deny standing based on a theory that
invalidating an important regulation would actually have zero
impact on a dynamic and heavily regulated market requires a degree
of economic and political clairvoyance that is difficult for a
court to maintain. That is particularly so when the government
regulation itself may be skewing the market at issue. So courts
should exercise caution before denying standing because of a
claimed lack of redressability rooted in questionable economic
speculation.
In advancing their argument, EPA and California
also point out that some automakers are now in compliance with
California’s regulatory mandates. But that is not surprising.
Compliance with government regulation usually suggests regulatory
effect, not the absence of effect. Nor is such compliance
especially probative of how
all automakers are acting or
would respond to a court order invalidating California’s
regulations—including in the 17 other States that have adopted
those regulations. In the D. C. Circuit, California pointed to
evidence that seven automakers had announced future plans to sell
more electric vehicles than California’s regulations required.
Brief for State and Local Government Respondent-Intervenors in No.
22–1081, at 14. But California offered no evidence that the cited
press releases from seven automakers represented commitments
definite enough to withstand potential future market fluctuations
and regulatory changes. Nor did California offer evidence that the
statements of those seven automakers represented the likely
behavior of the
entire automaking industry, including
potential new market entrants. Recall that the automakers’ own
motion to intervene in the Court of Appeals suggested
otherwise—that if the regulations were invalidated, other
automakers would seek a competitive advantage by manufacturing
more gasoline-powered cars.
In sum, this case does not present the unusual
scenario where invalidating a challenged government restriction on
businesses in a competitive market is not likely to have any
effect. Here, it may not be certain, but it is at least
“predictable” that invalidating the California regulations would
likely result in the fuel producers ultimately selling more
gasoline and other liquid fuels. See
Alliance for Hippocratic
Medicine, 602 U. S., at 383.
E
Two of our colleagues have filed dissenting
opinions. They primarily object to the Court’s decision to grant
certiorari in this case. But having granted certiorari, we proceed
to decide the question presented for our review.
Justice Sotomayor suggests that the D. C.
Circuit’s erroneous standing analysis was attributable to its
misunderstanding about the duration of California’s fleet-wide
emissions standards. See
post, at 2 (dissenting opinion). So
in her view, the Court need only correct that factual
misunderstanding and remand the case to the D. C. Circuit. See
post, at 3. But the D. C. Circuit’s standing analysis
did not rest entirely on that misunderstanding. And neither EPA nor
California asked for such a remand—even though they acknowledged
the D. C. Circuit’s misunderstanding. Moreover, because this
litigation has gone on for three years, we 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 “evenhandedly.”
Post, at 1
(dissenting opinion). A review of standing cases over the last few
years disproves that suggestion. See,
e.
g.,
Alliance for Hippocratic Medicine, 602 U. S., at 374;
United States v.
Texas, 599 U. S., at 674;
Haaland v.
Brackeen, 599 U.S. 255, 291–292 (2023);
Reed v.
Goertz, 598 U.S. 230, 234 (2023);
TransUnion LLC v.
Ramirez, 594 U.S. 413, 417–418
(2021);
California v.
Texas, 593 U.S. 659, 666
(2021);
Uzuegbunam, 592 U. S., at 282–283;
Thole
v.
U. S. Bank N. A., 590 U.S. 538, 541–542 (2020);
Department of Commerce, 588 U. S., at 766–768. In this
case, as we have explained, this Court’s recent standing precedents
support the conclusion that the fuel producers have standing.
* * *
This case concerns only standing, not the
merits. EPA and California may or may not prevail on the merits in
defending EPA’s approval of the California regulations. But the
justiciability of the fuel producers’ challenge to EPA’s approval
of the California regulations is evident. Courts should not “make
standing law more complicated than it needs to be.”
Thole v.
U. S. Bank N. A., 590 U.S. 538, 547 (2020). The
government generally may not target a business or industry through
stringent and allegedly unlawful regulation, and then evade the
resulting lawsuits by claiming that the targets of its regulation
should be locked out of court as unaffected bystanders. In light of
this Court’s precedents and the evidence before the Court of
Appeals, the fuel producers established Article III standing to
challenge EPA’s approval of the California regulations. We reverse
the judgment of the Court of Appeals and remand the case for
further proceedings consistent with this opinion.
It is so ordered
.
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