Central Valley Chrysler-Jeep v. Witherspoon

456 F. Supp. 2d 1160, 2006 U.S. Dist. LEXIS 94709, 2006 WL 2734359
CourtDistrict Court, E.D. California
DecidedSeptember 25, 2006
DocketCV F 04-6663 AWI LJO
StatusPublished
Cited by8 cases

This text of 456 F. Supp. 2d 1160 (Central Valley Chrysler-Jeep v. Witherspoon) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Valley Chrysler-Jeep v. Witherspoon, 456 F. Supp. 2d 1160, 2006 U.S. Dist. LEXIS 94709, 2006 WL 2734359 (E.D. Cal. 2006).

Opinion

MEMORANDUM OPINION AND ORDER (1) GRANTING IN PART AND DENYING IN PART DEFENDANT AND DEFENDANT-INTER-VENORS’ MOTION FOR JUDGMENT ON THE PLEADINGS AND (2) LIMITING DISCOVERY OF GLOBAL WARMING SCIENCE DOCUMENTS

ISHII, District Judge.

This case concerns the legality of environmental regulations imposed by a state administrative agency. Plaintiffs seek declaratory and injunctive relief on the basis that the regulations violate and are preempted by federal law. This court has federal question jurisdiction pursuant to 28 U.S.C. § 1331.

BACKGROUND

A. California Health and Safety Code § 43018.5

In 2002, the California Legislature enacted Assembly Bill Number 1493, codified at California Health and Safety Code § 43018.5. Section 43018.5(a) required the California Air Resources Board (“CARB”) to “develop and adopt regulations that achieve the maximum feasible and cost-effective reduction of greenhouse gas emissions from motor vehicles.” Section 43018.5 only authorizes regulations that apply to vehicles manufactured in the 2009 model year or after. Cal. Health & Safety Code § 43018.5(b)(1). “Maximum feasible and cost-effective reduction of greenhouse gas emissions” refers to reductions that are “[cjapable of being successfully accomplished within the time provided by this section, taking into account environmental, economic, social, and technological factors” and are “[economical to an owner or operator of a vehicle, taking into account the full life-cycle costs of a vehicle.” Cal. Health & Safety Code § 43018.5(i)(2).

At a public hearing in September 2004, CARB approved regulatory amendments (“California regulations” or “regulations”) adding greenhouse gas emission standards to California’s existing motor vehicle standards. See FAC Ex. A. CARB, through its normal process, ultimately adopted the regulatory language in its Resolution 04-28. Id.

CARB made factual findings to support its adoption of the regulations. CARB found that “[o]ver the past century the temperatures in the northern hemisphere have changed at a rate faster than at any other time over the last millennium, and that change is because human activities are altering the chemical composition of the atmosphere through the buildup of greenhouse gases and other pollutants.” FAC Ex. A at 9. CARB further noted that “the global climate is changing at a rate *1164 unmatched in the past one thousand years” and climate change is affecting California. Id. CARB found that the proposed standards would significantly reduce greenhouse gas emissions. FAC Ex. A at 14.

The regulations addressed four greenhouse gases: carbon dioxide, methane, nitrous oxide, and hydrofluorocarbons. Cal. Code Regs. tit. 13, § 1961.1(e)(4). The regulations weight the emission of each gas based on its “global warming potential.” CahCode Regs. tit. 13, § 1961.1(e)(6). Compliance with the regulations is based on “fleet average” greenhouse gas emissions. Cal.Code Regs. tit. 13, § 1961.1(a)(1)(A). The average is defined separately for two categories of vehicles: (1) passenger cars and light duty trucks under 3,750 pounds, and (2) light duty trucks over 3,750 pounds and medium duty passenger vehicles. Id. The standards set emissions limits beginning in model year 2009 that become more stringent each year through 2016. Id. Manufacturers who fail to comply face civil penalties. See Cal. Health & Safety Code § 43211.

Manufacturers that meet the standards for model year 2009 or surpass the standards in any later year will accrue credits. CahCode Regs. tit. 13, § 1961.1(b)(1). These credits may be used to offset that manufacturer’s emissions in a later year, may be transferred between vehicle categories, or may be sold to another manufacturer. Id. A manufacturer who does not meet the standards may avoid the civil penalty for noncompliance by offsetting their failures within a five-year period. Cal.Code Regs. tit. 13, § 1961.1(b)(3). Manufacturers can also comply by earning credits for using alternative fuels that produce lower greenhouse gas emissions. Cal.Code Regs. tit. 13, § 1961.1(a)(1)(B).

B. The Clean Air Act

In 1963, Congress expanded its role in addressing air pollution by enacting the Clean Air Act. Pub.L. No. 88-206, 77 Stat. 392 (1963). Section 209(a) of the Clean Air Act, codified at 42 U.S.C. § 7543(a), 1 generally preempts state regulation of motor vehicle emissions. Section 209(b) provides an exemption to 209(a) for rules adopted by the State of California that receive a waiver from the Environmental Protection Agency (“EPA”). 42 U.S.C. § 7543(b)(1); 2 see Engine Mfrs. Ass’n v. EPA 88 F.3d 1075, 1080 (D.C.Cir.1996) (noting that, under the terms of section 209(b), “California is the only state that qualifies for the waiver, because it was the only state that had adopted emissions control standards prior to March 30, 1966”). In order to receive such a waiver, the state standards must be, “in the aggregate,” at least as protective as federal standards. 42 U.S.C. *1165 § 7543(b)(1). The EPA may deny a waiver if it finds that the state’s determination is “arbitrary and capricious,” that the state standards are not needed to meet “compelling and extraordinary conditions,” or that the state standards are not consistent with 42 U.S.C. § 7521(a). Id. Though only California’s regulations may receive a waiver, other states may elect to adopt such California standards under Clean Air Act section 177, rather than being governed by the federal scheme. 42 U.S.C. § 7507.

On September 8, 2003, the EPA concluded that “in light of the language, history, structure and context of the [Clean Air Act] and Congress’ [s] decision to give DOT authority to regulate fuel economy under EPCA, it is clear that EPA does not have authority to regulate motor vehicle emissions of CO[2] and other [greenhouse gases] under the [Clean Air Act].” Control of Emissions from New Highway Vehicles and Engines, 68 Fed.Reg. 52,922, 52,929 (September 8, 2003). The District of Columbia Circuit upheld the EPA’s decision, and the case is currently before the Supreme Court. See Massachusetts v. EPA, 415 F.3d 50 (D.C.Cir.2005), cert. grant ed, — U.S. -, 126 S.Ct. 2960, 165 L.Ed.2d 949 (2006).

On December 21, 2005, CARB requested that the EPA grant the California regulations a section 209(b) waiver, which the EPA has yet to provide. Defs.’ RJN Ex. C.

C. The Energy Policy and Conservation Act

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456 F. Supp. 2d 1160, 2006 U.S. Dist. LEXIS 94709, 2006 WL 2734359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-valley-chrysler-jeep-v-witherspoon-caed-2006.