State of California v. American Free Enterprise Chamber of Commerce
July 21, 2026·4:25-cv-04966-HSG·Unpublished·By Raj Patel
The Ninth Circuit affirmed the denial of intervention for several industry groups while reversing the denial for others in a dispute over California vehicle emissions regulations. The court clarified that automakers and dealers have a protectable interest in federal preemption under the Clean Air Act.
California and eleven other states sued federal officials to challenge Congressional Review Act resolutions that disapproved EPA waivers for California’s zero-emission vehicle regulations. Industry groups sought to intervene in the litigation, arguing they would be harmed by the outcome.
The court’s reasoning
The court applied a four-part test for intervention as of right. It found that automakers and dealers have a direct interest in the preemption clause of the Clean Air Act, which allows them to defend against state regulations. Conversely, the court found that the economic interests of trucking associations and fuel groups were too remote. The court also held that the district court erred in denying permissive intervention to fuel and corn groups because the federal defendants might not raise all necessary arguments.
What it means going forward
Automakers and dealers may now join the litigation to argue that federal law preempts state emissions rules, while fuel and corn groups must re-argue their permissive intervention motions in district court.
