US Supreme Court to hear dispute over California tailpipe emissions, EV standards

(Reuters) – The U.S. Supreme Court agreed on Friday to hear a bid by fuel producers to challenge California’s standards for vehicle emissions and electric cars under a federal air pollution law in a major case testing the Democratic-governed state’s power to fight greenhouse gases.

The justices took up an appeal by a Valero Energy (NYSE:VLO) subsidiary and fuel industry groups of a lower court’s rejection of their challenge to a decision by Democratic President Joe Biden’s administration allow California to set its own regulations.

The justices are expected to hear the case and issue a ruling by the end of June.