California Governor Arnold Schwarzenegger
California Governor Arnold Schwarzenegger - 
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Scott Jagow: The Environmental Protection Agency could face a new lawsuit from the state of California. Governor Schwarzenegger has threatened to sue the EPA by midnight if it doesn't make a decision on California's greenhouse gas rules. Sarah Gardner reports from our Sustainability Desk.

Sarah Gardner: California wants a waiver from the EPA so it can adopt its own tailpipe emissions law. It aims to cut greenhouse gases 30 percent by 2016.

The waiver request has been pending for almost two years, and Governor Schwarzenegger and other state officials are tired of waiting. They say the Supreme Court ruled months ago that the EPA has the authority to regulate greenhouse gases.

Congresswoman Zoe Lofgren of San Jose says it's time to act.

Zoe Lofgren: They ought to apply the law and grant this waiver and get out of California's way. What, are they going to wait until all the ice caps have melted?

The EPA said recently it will issue a decision by the end of the year. The ruling will affect California and 14 other states adopting similar regulations.

The auto industry says emissions standards should be adopted nationally, not state by state.

I'm Sarah Gardner for Marketplace.

Follow Sarah Gardner at @RadioGardner