U.S. Supreme Court Affirms Small Business Right to Challenge Harmful Actions by Regulators
U.S. Supreme Court Affirms Small Business Right to Challenge Harmful Actions by Regulators
June 20, 2025
Diamond Alternative Energy v. EPA concerns the standard for proving redressability
WASHINGTON, D.C. (June 20, 2025) – NFIB applauds today’s U.S. Supreme Court ruling in the case Diamond Alternative Energy, LLC, et al. v. Environmental Protection Agency. The Court reversed the decision of the D.C. Circuit Court, which had created a heightened standing requirement for indirectly regulated parties challenging actions by government agencies. NFIB filed an amicus brief in the case with the Western States Petroleum Association (WSPA) and several other business groups.
“Small businesses have the right to challenge overreach by government agencies and seek relief from harmful regulatory actions,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “The D.C. Circuit’s opinion set an unreasonable standard for plaintiffs to prove that the court can remedy their injury. This would have made it nearly impossible for indirectly regulated parties to challenge regulating agencies. NFIB applauds the Court for reversing the lower court’s opinion and ensuring that small businesses have a clear course of action and a fair chance at proving that the court can provide suitable relief.”
The case concerns the Environmental Protection Agency’s (EPA) Clean Air Act waivers and increased standards for indirectly regulated parties seeking to prove that a court can remedy a plaintiff’s injury. NFIB’s brief argued that the D.C. Circuit’s opinion set an unworkable and incorrect standard for proving that the court can remedy a plaintiff’s injury, creates confusion in standing doctrine, and would adversely affect indirectly regulated parties. The Supreme Court agreed and reversed the D.C. Circuit’s unworkable standard.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
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NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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