WASHINGTON - The U.S. Chamber of Commerce and the National Automobile Dealers Association have asked an appeals court to review the federal government's decision to let California set its own auto emissions standard.

The petition, filed this week with the U.S. Court of Appeals for the District of Columbia, questions the Obama administration's decision in June of granting California a waiver from federal law to act on its own.

It is unclear whether the legal challenge to the Environmental Protection Agency (EPA) policy will impede the administration's effort to sharply boost auto fuel efficiency standards nationally.

U.S. and international auto manufacturers agreed to drop lawsuits over the waiver issue once the administration agreed to a single, federal approach on mileage targets that is expected to satisfy California's demand for sharply lower emissions.

An EPA announcement on new fuel economy standards is expected soon.

(Reporting by John Crawley; Editing Bernard Orr)

California