COURT UPHOLDS MINNESOTA 'CLEAN CAR RULE' TIED TO CALIFORNIA

The Minnesota Court of Appeals this week upheld the state’s “Clean Car Rule,” which ties the state’s vehicle emission standards to California regulations, as judges accepted assurances that California’s planned phaseout of gasoline-powered cars won’t automatically apply in Minnesota.

A three-judge panel rejected the arguments of Minnesota’s auto dealers, who argued that state pollution regulators exceeded their authority and unconstitutionally delegated their rulemaking authority to California.

The appeals court concluded that the Minnesota Pollution Control Agency acted within its statutory authority and that the state’s rule is therefore valid. The decision was a victory for the administration of Democratic Gov. Tim Walz, which adopted the rule in 2021 amid a fight with Republican lawmakers who were upset that the Legislature was cut out of the decision. It takes effect in the 2025 model year and is meant to increase the supply and selection of electric vehicles.

The Minnesota Automobile Dealers Association expressed disappointment with the ruling and said it would consider whether to appeal. While manufacturers are ramping up production, the group contends that the rule could still saddle dealers with more electric vehicles than consumers want to buy.

“The one good thing to come from today’s decision is that if Minnesota wants to go forward with the new rule recently adopted by California, the MPCA will need to affirmatively conduct new rulemaking,” Scott Lambert, president of the dealers’ association, said in an email.