A U.S. federal judge has rejected an automakers' lawsuit against California, saying the state has the authority to regulate greenhouse gas emissions from vehicles.

The ruling by U.S. District Court Judge Anthony Ishii clears one of the hurdles in California's effort to regulate tailpipe emissions from cars, trucks and sports utility vehicles.

Automakers sued the state over the tailpipe standards it approved in 2004.

The new standards would force automakers to build cars and light trucks that produce about 30 per cent less greenhouse gases by 2016.

However, the state still needs a waiver from the U.S. Environmental Protection Agency to begin implementing the program.

The EPA has not yet issued a decision.