The U.S. Supreme Court has reversed a decision by the D.C. Circuit Court in the case of Diamond Alternative Energy, LLC, et al. v. Environmental Protection Agency (EPA). The previous ruling had established a more stringent standing requirement for indirectly regulated parties contesting government agency actions.
The National Federation of Independent Business (NFIB) expressed approval of this decision. NFIB had participated in the case by submitting an amicus brief alongside the Western States Petroleum Association and other business groups.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, stated, “Small businesses have the right to challenge overreach by government agencies and seek relief from harmful regulatory actions.” She added that the D.C. Circuit’s opinion imposed an unreasonable standard for plaintiffs to demonstrate that a court could address their grievances, which would have made it difficult for indirectly regulated parties to contest regulatory agencies.
The case focused on EPA's Clean Air Act waivers and heightened standards for proving that a court can provide relief for a plaintiff's injury. NFIB argued that the D.C. Circuit's decision created confusion in standing doctrine and adversely affected indirectly regulated parties. The Supreme Court found merit in these arguments and overturned the lower court's ruling.
NFIB’s Small Business Legal Center continues its efforts to protect small business owners' rights across various legal venues nationwide.
