American Automobile Manufacturers Association v. Commissioner, Massachusetts Department of Environmental Protection

31 F.3d 18, 25 Envtl. L. Rep. (Envtl. Law Inst.) 20080, 29 Fed. R. Serv. 3d 1186, 39 ERC (BNA) 1037, 1994 U.S. App. LEXIS 19887, 1994 WL 393115
CourtCourt of Appeals for the First Circuit
DecidedAugust 3, 1994
Docket93-2276
StatusPublished
Cited by69 cases

This text of 31 F.3d 18 (American Automobile Manufacturers Association v. Commissioner, Massachusetts Department of Environmental Protection) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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American Automobile Manufacturers Association v. Commissioner, Massachusetts Department of Environmental Protection, 31 F.3d 18, 25 Envtl. L. Rep. (Envtl. Law Inst.) 20080, 29 Fed. R. Serv. 3d 1186, 39 ERC (BNA) 1037, 1994 U.S. App. LEXIS 19887, 1994 WL 393115 (1st Cir. 1994).

Opinion

BOWNES, Senior Circuit Judge.

Plaintiffs-appellants, the Massachusetts State Automobile Dealers Association, Inc. and two trade groups of automobile manufacturers, appeal from an order denying their request for a preliminary injunction. Plaintiffs seek to stall the implementation of motor vehicle tailpipe emissions regulations adopted by defendant-appellee, the Commissioner of the Massachusetts Department of Environmental Protection (DEP). See Mass. Regs.Code tit. 310, §§ 7.40-7.60. Defendant-appellee the American Petroleum Institute, intervened in support of the regulations.

Prior to oral argument, plaintiffs moved to dismiss their appeal as to all issues but one: whether DEP’s 1995 model year requirements should be enjoined. DEP opposes the motion for partial dismissal and requests costs and attorney’s fees. We grant the motion for partial dismissal. We award DEP costs, but not attorney’s fees. With respect to the 1995 model year requirements, the order of the district court is affirmed.

*21 i.

BACKGROUND

A. Cars and the Clean Air Act

The exhaust from a gasoline-powered engine is a source of air pollution. Motor Vehicle Mfrs. Ass’n v. New York Dep’t of Envtl. Conservation, 17 F.3d 521, 524 (2d Cir.1994) (hereinafter MVMA). Emissions from car tailpipes include hydrocarbons and nitrogen oxides (NOx), constituents of ground-level ozone, a major component of smog. Id. at 526.

The Clean Air Act is the federal legislation governing tailpipe emissions. The Act directs the United States Environmental Protection Agency (EPA) to establish national ambient air quality standards (NAAQS) for pollutants such as ground-level ozone. Under the Act, states are responsible for developing and enforcing a plan, subject to EPA approval, for attaining and maintaining the NAAQS by regulating sources of air pollution. 42 U.S.C. § 7410(a). States failing to meet the NAAQS risk sanctions, including the loss of federal highway funds. Id. § 7509. EPA has designated the entire state of Massachusetts as a “serious” nonattainment area for the ozone NAAQS. See 56 Fed.Reg. 56,694, 56,776 (Nov. 6, 1991).

Mobile sources of air pollution such as cars and trucks are subject to EPA regulation under §§ 202 and 207 of the Act, 42 U.S.C. §§ 7521, 7541. EPA emissions standards for hydrocarbons and nitrogen oxides apply to a given vehicle based on its weight, use classification, and model year. See id. §§ 7521, 7541; MVMA, 17 F.3d at 525-26.

State regulation of motor vehicle emissions is generally preempted by the Clean Air Act, 42 U.S.C. § 7543(a), with one exception: California can enforce its own standards, subject to EPA approval by way of a waiver under § 209(b) of the Act, id. § 7543(b) (the waiver requirement). Consequently, there can be only two types of cars “created” under emissions regulations in this country: “California” cars and “federal” (that is, EPA-regulated) cars. See id. § 7507. Other states cannot take any action that would force manufacturers to create a “third vehicle.” 1 Id. (the third vehicle requirement).

Section 177 of the Act allows other states to adopt- standards “identical” to California’s (the identically requirement), but only if there is a two-year time lapse between the time the standards are adopted and the first model year affected by those standards (the leadtime requirement). Id. Similarly, § 211 of the Act authorizes EPA to regulate motor fuels and preempts any unapproved state regulations, except for California, which may enact fuel standards without EPA approval. Id. § 7545(c)(4)(B).

B. DEP’s Adoption of California LEV Regulations

In September 1991, California enacted a novel set of vehicle emissions and clean fuels requirements called the “Low Emissions Ve-hieles/Clean Fuels” (LEV/CF) program. The LEV component of the program requires the creation of four categories of California cars to meet increasingly stringent emissions standards, to be phased in over time: Transitional Low-Emission Vehicles; Low-Emission Vehicles; Ultra-Law-Emission Vehicles; and Zero-Emission Vehicles, such as electric cars. California has also established annually descending “fleet average requirements,” based on sales targets for each category of vehicles. A fleet average requirement is a cap on the average emissions attributable to all classes of vehicles produced by a particular manufacturer in a given year (in other words, the manufacturer’s “fleet”). California’s requirements provide manufacturers with “flexibility to develop varying emissions within their entire fleet to meet [an] overall goal.” MVMA, 17 F.3d *22 at 535. On January 7, 1993, EPA granted California a § 209(b) waiver for the program.

Meanwhile, on January 31, 1992, DEP adopted the LEV component of California’s standards, intending to apply the standards beginning with 1995 models. DEP regulations allow new California cars to be leased, bought, sold, and registered in Massachusetts, but ban the acquisition, sale, and registration of new federal cars in the state. DEP’s proposed regulations sent out for notice and comment contained fleet average requirements, but no such requirements appear in the final rule because DEP preferred to let the market determine the mix of new California cars in the state.

C. Prior Proceedings

Plaintiffs filed an action in the District Court for the District of Massachusetts, arguing that DEP’s regulations are preempted by the Act because DEP allegedly failed to comply with § 177 of the Act, 42 U.S.C. § 7507. Plaintiffs moved for summary judgment and for a preliminary injunction, founding their motions on four claims: [1] the regulations are not “identical” to California’s, in that DEP did not adopt California’s clean fuels rules; [2] the regulations force manufacturers to create a “third vehicle” because of the higher sulfur content of gasoline in Massachusetts; [3] the regulations were adopted by DEP before EPA granted California a § 209(b) waiver; and [4] the two-year leadtime requirement precluded DEP from applying the regulations to any 1995 models because two automakers planned to begin producing 1995 cars before two years passed after the regulations were adopted.

With the parties’ consent, the court stayed the summary judgment proceedings and ruled first on the motion for a preliminary injunction.

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31 F.3d 18, 25 Envtl. L. Rep. (Envtl. Law Inst.) 20080, 29 Fed. R. Serv. 3d 1186, 39 ERC (BNA) 1037, 1994 U.S. App. LEXIS 19887, 1994 WL 393115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-automobile-manufacturers-association-v-commissioner-ca1-1994.