Diamond Alternative Energy, LLC v. EPA

606 U.S. 100
CourtSupreme Court of the United States
DecidedJune 20, 2025
Docket24-7
StatusPublished

This text of 606 U.S. 100 (Diamond Alternative Energy, LLC v. EPA) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diamond Alternative Energy, LLC v. EPA, 606 U.S. 100 (2025).

Opinion

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

NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio@supremecourt.gov, of any typographical or other formal errors. 100 OCTOBER TERM, 2024

Syllabus

DIAMOND ALTERNATIVE ENERGY, LLC, et al. v. ENVIRONMENTAL PROTECTION AGENCY et al. certiorari to the united states court of appeals for the district of columbia circuit No. 24–7. Argued April 23, 2025—Decided June 20, 2025 Under the Clean Air Act, the Environmental Protection Agency (EPA) approved California regulations that require automakers to manufac- ture more electric vehicles and fewer gasoline-powered vehicles with a goal of decreasing emissions from liquid fuels. The regulations require automakers to limit average greenhouse-gas emissions across their vehi- cle feets and manufacture a certain percentage of electric vehicles. Several producers of fuels such as gasoline and ethanol sued EPA in the D. C. Circuit, arguing that EPA lacked authority to approve the Califor- nia regulations because they target global climate change rather than local California air quality problems as required by the Clean Air Act. They submitted standing declarations explaining that California's regu- lations depress demand for liquid fuel by requiring vehicles that use less or no liquid fuel, causing the fuel producers monetary injury. Califor- nia's own estimates indicated the regulations would cause substantial reductions in demand for gasoline exceeding $1 billion beginning in 2020 and increasing to over $10 billion in 2030. EPA did not challenge the fuel producers' standing in the D. C. Cir- cuit. California, as well as other States adopting California's regula- tions, intervened to defend EPA's approval. California argued that the fuel producers lacked standing because automobile manufacturers would not change course if EPA's decision were vacated given the “surging consumer demand” for electric vehicles. The D. C. Circuit held that the fuel producers lacked Article III standing, fnding they failed to estab- lish that automakers would likely respond to invalidation of the regula- 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 demonstrate standing by showing three elements: injury in fact, causation, and redressability. Injury in fact requires a “ `concrete,' ” “particularized” injury that is “actual or imminent.” FDA v. Alliance for Hippocratic Medicine, 602 U. S. 367, 381. Causation requires showing “the injury was likely caused by the Cite as: 606 U. S. 100 (2025) 101

defendant.” TransUnion LLC v. Ramirez, 594 U. S. 413, 423. Re- dressability requires demonstrating that judicial relief would likely re- dress the injury. Ibid. When a plaintiff is not the direct object of government regulation, causation and redressability often depend on how third parties not before the court will predictably respond to the regulation or judicial relief. Pp. 110–113. (b) The fuel producers' injury in fact and causation are straightfor- ward and undisputed. The fuel producers make money by selling fuel, so decreased purchases of gasoline and other liquid fuels resulting from California's regulations constitute monetary injury. EPA's approval au- thorized California and 17 other States to enforce regulations requiring lower emissions and vehicle electrifcation, thereby reducing liquid fuel purchases. The regulations likely cause the fuel producers' monetary injuries because reducing gasoline and diesel fuel consumption is the whole point of the regulations. The fuel producers also satisfy redressability. Even minimal addi- tional revenue would satisfy this requirement, and invalidating the regulations would likely result in more revenue from additional fuel sales based on commonsense economic principles and record evidence. Pp. 113–124. (1) The fuel producers might be considered direct objects of the California regulations because the regulations explicitly seek to restrict gasoline and other liquid fuel use in automobiles. When the govern- ment prohibits or impedes one company from using another company's product or service, both companies might be deemed objects of the regu- lation. See, e. g., Pierce v. Society of Sisters, 268 U. S. 510, 535–536; 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 business “may be likely” to cause injuries to other linked businesses. Alliance for Hippocratic Medicine, 602 U. S., at 384. California's regulations force automakers to manufacture more electric vehicles and fewer gasoline-powered vehicles, likely causing downstream economic injuries to fuel producers. Invalidating these regulations would likely mean more gasoline-powered automobiles and more fuel sales. EPA and California argue this case is unusual because the vehicle market has developed such that automakers would not manufacture more gasoline-powered cars even if regulations were invalidated. This argument is undermined by their own actions—if invalidating the regu- lations would change nothing, why are they enforcing and defending 102 DIAMOND ALTERNATIVE ENERGY, LLC v. EPA

them? The whole point of the regulations is to increase electric vehi- cles beyond what consumers would otherwise demand and manufactur- ers would otherwise produce. Record evidence confrms that invalidating the regulations would likely redress the fuel producers' monetary injury. First, the fuel pro- ducers' declarations quote California's own estimates of substantial re- ductions in gasoline demand and note California's recognition that fuel providers would be “most adversely affected.” App. 137. Second, Cal- ifornia stated in 2021 that the regulations are “critical” for future emis- sions reductions and submitted expert declarations in 2022 stating that without the regulations, fewer electric vehicles would be sold and more gasoline-fueled vehicles would be sold. Id., at 66, 115. Third, EPA affrmed that California “needs” its standards and credited California's estimates that the regulations would continue reducing emissions through at least 2037. 87 Fed. Reg. 14334; 89 Fed. Reg. 82558. Fourth, fve automakers who invested heavily in electric vehicles intervened to defend the regulations and predicted that without California's reg- ulations, other automakers would seek a competitive advantage by sell- ing fewer electric vehicles and more gasoline-powered vehicles. Pp. 116–120. (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 of events” that would likely result from judicial relief. Alliance for Hippocratic Medicine, 602 U.

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Bluebook (online)
606 U.S. 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diamond-alternative-energy-llc-v-epa-scotus-2025.