Now that the Top Court Has Spoken, What Impact Might Greenhouse Gas Regs Have on Transportation Fuels?

Octane Week, April, 2007 by Cole, Carol

Oil and auto companies are assessing the impact of last Monday's U.S. Supreme Court decision requiring further action from the EPA on greenhouse gases. In a 5-4 decision, the top Court ruled that the federal environmental agency has the authority under the Clean Air Act to regulate greenhouse gas emissions from motor vehicles and ordered the EPA to reconsider its decision not to regulate the emissions.

The Court rejected the government's arguments that the agency lacked authority under the Clean Air Act to regulate vehicle greenhouse gas (GHG) emissions. The Court also said that EPA's position - that even if it had such authority, it would decline to regulate GHGs - "rests on reasoning divorced from the statutory text."

With the Supreme Court's decision rendered, auto...