Chamber of Commerce v. Environmental Protection Agency

642 F.3d 192, 395 U.S. App. D.C. 193, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20166, 73 ERC (BNA) 1379, 2011 U.S. App. LEXIS 8685
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 29, 2011
Docket09-1237
StatusPublished
Cited by151 cases

This text of 642 F.3d 192 (Chamber of Commerce v. Environmental Protection Agency) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chamber of Commerce v. Environmental Protection Agency, 642 F.3d 192, 395 U.S. App. D.C. 193, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20166, 73 ERC (BNA) 1379, 2011 U.S. App. LEXIS 8685 (D.C. Cir. 2011).

Opinion

Opinion for the Court filed by Circuit Judge GARLAND.

GARLAND, Circuit Judge:

The Chamber of Commerce and the National Automobile Dealers Association petition for review of a decision by the Environmental Protection Agency (EPA) granting California a waiver from federal preemption under the Clean Air Act. The waiver allows California to implement its own regulations requiring automobile manufacturers to reduce fleet-average greenhouse gas emissions from new motor vehicles sold in the state. Because we lack jurisdiction to decide this case at this time in a suit brought by these petitioners, we dismiss the petition for review without reaching its merits.

I

The Clean Air Act (CAA) generally bars states from adopting their own emissions standards for new motor vehicles, leaving such regulations to federal control. See 42 U.S.C. § 7543(a) (“No State ... shall adopt or attempt to enforce any standard relating to the control of emissions from new motor vehicles or new motor vehicle engines”). Section 7543(b)(1) provides the following exception to federal preemption:

(b)(1) The Administrator [of EPA] shall, after notice and opportunity for public hearing, waive application of this section to any State which has adopted standards ... for the control of emissions from new motor vehicles or new motor vehicle engines prior to March 30, 1966, if the State determines that the State standards will be, in the aggregate, at least as protective of public health and welfare as applicable Federal standards. No such waiver shall be granted if the Administrator finds that—
(A) the determination of the State is arbitrary and capricious,
(B) such State does not need such State standards to meet compelling and extraordinary conditions, or
(C) such State standards and accompanying enforcement procedures are not consistent with section 7521(a) of this title.

42 U.S.C. § 7543(b)(1). As California is the only state that had adopted emissions standards prior to March 30, 1966, it is the only state eligible for a waiver of federal preemption under this provision. See Ford Motor Co. v. EPA, 606 F.2d 1293, 1296 (D.C.Cir.1979). In 1977, however, Congress amended the CAA to permit other states to adopt and enforce standards “identical to the California standards for which a waiver has been granted,” without obtaining a separate waiver, provided that both California and the other state have given manufacturers a two-year lead time. 42 U.S.C. § 7507. States that adopt California’s motor vehicle emissions program are referred to as “Section 177 states,” after the section of the CAA that authorizes them to do so. See Ford Motor Co., 606 F.2d at 1298, 1301 n. 54.

In September 2004, the California Air Resources Board (CARB) adopted regula *197 tions setting fleet-average greenhouse gas 1 emissions standards for new motor vehicles beginning in Model Year (MY) 2009. See Cal.Code Reg. tit. 13, § 1961.1. Under those regulations, manufacturers receive credits for meeting the standards before MY 2009, for exceeding the standards in subsequent model years, and for selling alternative fuel vehicles. These credits may be banked for later use or sold to another manufacturer. Id. § 1961.1(b). If a manufacturer fails to comply in a particular model year, it begins to accrue debits. A manufacturer may incur a debit in any model year without penalty so long as it makes up the debit within five years, either by generating credits or purchasing credits from another manufacturer. Id. The standards become stricter as the model years progress. Id. § 1961.1(a).

On December 21, 2005, CARB asked EPA to waive federal preemption of California’s greenhouse gas emissions standards pursuant to § 7543(b)(1). EPA denied the request. Its decision, published in March 2008, stated that “California does not need its motor vehicle [greenhouse gas] standards to meet compelling and extraordinary conditions,” as § 7543(b)(1)(B) requires. Decision Denying a Waiver of Clean Air Act Preemption, 73 Fed.Reg. 12,156, 12,159 (Mar. 6, 2008). The agency recognized that it had previously interpreted § 7543(b)(1)(B) to ask only whether California continued to need its own motor vehicle program as a whole to address compelling and extraordinary conditions. Id. at 12,159-61. But it concluded that § 7543(b)(1)(B) was subject to multiple interpretations, and when applied to emissions standards designed to address global as opposed to local or regional air pollution problems, it was best understood to require that EPA assess California’s need for the newly proposed standards by themselves. Id. California could not satisfy this requirement, EPA reasoned, because California-specific conditions are not “the fundamental causal factors for the air pollution problem of elevated concentrations of greenhouse gases,” and, alternatively, because the effects of global climate change in California “are not sufficiently different from conditions in the nation as a whole to justify separate state standards.” Id. at 12,162, 12,168. Thereafter, California, several other states, and several environmental groups petitioned this court for review. 2

On January 21, 2009, CARB asked EPA to reconsider its previous denial. EPA agreed to reconsider and, on July 8, 2009, after a public hearing and comment period, issued a decision granting the waiver. Decision Granting a Waiver of Clean Air Act Preemption, 74 Fed.Reg. 32,744, 32,783 (July 8, 2009). EPA rejected its 2008 interpretation of § 7543(b)(1)(B), returning to its earlier view and finding that California’s request satisfied the provision because California still needed its own emissions program “as a whole.” Id. at 32,762-63. In the alternative, EPA concluded that a waiver was warranted even if it were to examine California’s greenhouse gas standards separately under the tests applied in its 2008 decision. The agency found that those standards were intended at least in part to address a local or regional problem because of the “logical link between the local air pollution problem of ozone and ... [greenhouse gases].” Id. at *198 32,763. It also determined that waiver opponents had not met their burden of demonstrating that “the impacts of global climate change in California are either not significant enough or are not different enough from the rest of the country to be considered compelling and extraordinary conditions.” Id. at 32,765. Since EPA’s waiver decision, at least fourteen states— including the State of Maryland — have adopted California’s greenhouse gas emissions standards pursuant to Section 177. 3

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642 F.3d 192, 395 U.S. App. D.C. 193, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20166, 73 ERC (BNA) 1379, 2011 U.S. App. LEXIS 8685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamber-of-commerce-v-environmental-protection-agency-cadc-2011.