The U.S. Supreme Court’s important ruling on Monday that the EPA had no justification for refusing to regulate greenhouse gases such as carbon dioxide is starting to create some waves.

The judge handling one of the automakers' lawsuits—Judge William K. Sessions III of the U.S. District Court of Vermont—summoned the lawyers in the case yesterday to his chambers for a discussion in light of the EPA ruling. Automakers are suing California for its 2002 law to develop and implement greenhouse-gas restrictions on new vehicles (seven other states have since adopted vehicle GHG legislation and have been sued).

The case was on hold pending the Supreme Court decision because states cannot regulate fuel economy standards, but they can put rules on air pollution under the Clean Air Act. Mass. vs. EPA draws a distinction between air pollution and fuel economy standards.

“Never mind CAFE standards, writes environmental journal, Grist. “This is what's finally going to force automakers to start making fuel-efficient vehicles.”

This seems to be an on-target evaluation. The New York Times reports today that President Bush’s reaction to Mass v. EPA is he thinks the federal government is doing enough right now.

“As a result, Congress and state legislatures are almost certain to be the arenas for far-reaching and bruising lobbying battles.”

Also, check out the cool graphic with the NYTimes article showing what states are doing now to curb greenhouse gases. See which 19 states have adopted renewable energy portfolios, or which 12 states have adopted plans that outline steps to reduce greenhouse gas emissions.