WASHINGTON, D.C.: This week, U.S. Supreme Court justices seemed open to letting fuel companies challenge California's strict vehicle emissions and electric car rules. These rules are more challenging than the federal ones and are meant to fight climate change.

The case involves fuel company Valero and other industry groups. They are appealing a lower court's decision that they didn't have the legal right to sue. The Supreme Court justices—both conservative and liberal—asked questions that suggested they might allow the lawsuit to go forward.

The issue centers on a special rule that lets California set its own more demanding vehicle standards. Typically, states have to follow national regulations, but under the Clean Air Act, California can get permission from the Environmental Protection Agency (EPA) to do more. This permission called a "waiver," was given back to California by the Biden administration in 2022 after being taken away by the Trump administration in 2019.

The fuel companies say the EPA went too far and hurt their business by lowering demand for gasoline. Their lawyer argued that the government is unfairly favoring electric vehicles, making it harder for fuel producers to compete.

Justice Elena Kagan said it seems easy to show that the rules hurt the fuel industry. She also pointed out that both the EPA and California have said their rules are meant to reduce gasoline use, which supports the fuel companies' argument.

Much of the court's discussion focused on whether it's "common sense" to say that California's rules will push carmakers to build more electric vehicles and fewer gas-powered ones. Conservative Justice Amy Coney Barrett said proving that doesn't seem too difficult.

California has had over 75 such waivers since 1967, and its rules have helped push the market toward cleaner cars. The 2022 waiver lets the state set stricter pollution rules and require more zero-emission vehicles through 2025.

The Supreme Court is expected to decide the case by June.

In recent years, the court has often limited the EPA's power. It has ruled against the agency in other cases involving clean air and water rules, including a 2024 decision that blocked a rule aimed at reducing air pollution between states.