The judge didn't see it this way. While the EPA is stalling on implementing CO2 regulations, the states should have the ability to regulate emissions. The problem is that having multiple state requirements makes things very complicated for manufacturers. What the car-makers need to do is agree to drop this case and work with federal and state regulators to come up with a common national standard. At the same time, since the Congress seems to have no real interest in increasing fuel taxes, the states should be looking at this path since they have every right to levy taxes. This would also be more effective and drive demand for more efficient vehicles.
[Source: Alliance of Automobile Manufacturers]