Motor & Equipment Manufacturers Ass'n v. Nichols

142 F.3d 449, 330 U.S. App. D.C. 1, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21111, 46 ERC (BNA) 1417, 1998 U.S. App. LEXIS 7848
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 24, 1998
DocketNos. 96-1392 and 96-1397
StatusPublished
Cited by97 cases

This text of 142 F.3d 449 (Motor & Equipment Manufacturers Ass'n v. Nichols) 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
Motor & Equipment Manufacturers Ass'n v. Nichols, 142 F.3d 449, 330 U.S. App. D.C. 1, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21111, 46 ERC (BNA) 1417, 1998 U.S. App. LEXIS 7848 (D.C. Cir. 1998).

Opinion

ROGERS, Circuit Judge:

These two appeals present Clean Air Act (“CAA” or “the Act”) challenges to California’s latest round of automobile on-board emissions diagnostic device (“OBD”) regulations. Petitioners are a number of associations that represent businesses that manufacture, rebuild, and sell car parts in what is known as the automobile “aftermarket,” in that the parts they make and sell are meant to replace the parts installed by the original automobile manufacturers. In the first appeal, they challenge the Environmental Protection Agency’s (“EPA”) decision to permit California to enforce its own regulations of the OBDs pursuant to section 209(b) of the CAA (the “waiver decision”). In the second appeal, petitioners challenge EPA’s rule deeming compliance with the California diagnostic device regulations to constitute compliance with the federal diagnostic device regulations (the “deemed-to-comply” rule).

Petitioners contend that both the waiver decision and the deemed-to-comply rule run afoul of CAA subsections 202(m)(4) and (5). Those subsections require the data collected by the diagnostic devices to be easily accessible and understandable to all mechanics who service automobiles, whether they are independent or affiliated with an automobile manufacturer. EPA concluded that California’s regulations complied with subsections (m)(4) and (5), and we defer to the agency’s reasonable interpretation of the CAA. Preliminarily, however, we hold that certain parts of the petitions are moot in view of the most recent revisions to the California regulations, and that our review of one challenge to the deemed-to-comply rule based on CAA section 202(b)(1)(C) is barred for failure to exhaust administrative remedies. Petitioners have standing to challenge EPA’s deemed-to-eom-ply rule, however, and timely presented their challenge to that rule. Furthermore, we hold that EPA’s waiver decision was not inconsistent with the CAA. In sum, the agency acted within its authority in promulgating both rules. Accordingly, we deny the petitions in part and dismiss in part.

I.

A The Clean Air Act

The Clean Air Act, 42 U.S.C. §§ 7401-7671q (1988 & Supp. V 1993), regulates air pollution by establishing air quality standards for certain pollutants and controlling the emissions of approximately 189 hazardous pollutants. See CAA §§ 109, 112, 42 U.S.C. §§ 7409, 7412.1 The Act establishes a two-pronged federal-state approach limiting motor vehicle pollution. See generally Engine Mfrs. Ass’n v. EPA 88 F.3d 1075, 1078 (D.C.Cir.1996). The states regulate automobiles after they have been purchased by consumers through inspection and maintenance programs. See CAA §§ 174, 176, 182(b)(4), (a)(2)(B), 42 U.S.C. §§ 7504, 7506, 7511a(b)(4), (a)(2)(B). Inspection and maintenance programs are designed to identify and ensure the repair of in-use automobiles that are emitting excessive pollutants. Sub-chapter I of the Act is primarily concerned with the ground rules for the implementation of these post-purchase programs by the states. Subchapter II of the Act vests in the federal government the almost exclusive responsibility for establishing automobile emission standards for new cars. See CAA §§ 202, 209(a), 42 U.S.C. §§ 7521, 7543(a). [453]*453One state, California, is permitted to establish its own automobile emissions standards for new cars. See CAA § 209(b), 42 U.S.C. § 7543(b); Engine Mfrs. Ass’n, 88 F.3d at 1078 & n. 9. Other states are permitted to adopt California’s standards instead of those promulgated by the federal government. See CAA § 177, 42 U.S.C. § 7507. The effect of the Clean Air Act is that new “motor vehicles must be either ‘federal cars’ designed to meet EPA’s standards or ‘California ears’ designed to meet California’s standards.” Engine Mfrs. Ass’n, 88 F.3d at 1080.

The California exception is intended “to afford California the broadest possible discretion in selecting the best means to protect the health of its citizens and the public welfare.” H.R.Rep. No. 95-294, at 301-02 (1977), quoted in Motor and Equip. Mfrs. Ass’n, Inc. v. EPA 627 F.2d 1095, 1110 (D.C.Cir.1979) (“MEMA 7”). However, California is required to determine that its standards will be “in the aggregate, at least as protective of public health and welfare as applicable Federal standards” before promulgating them. CAA § 209(b)(1), 42 U.S.C. § 7543(b)(1). Furthermore, California may only adopt and enforce its own emission standards after receiving a waiver of preemption from the EPA. See Motor Vehicle Mfrs. v. New York State Dep’t of Envtl. Conservation, 17 F.3d 521, 526 (2d Cir.1994). The EPA Administrator, in turn, may only deny California’s waiver application if she finds that (1) the state’s protectiveness determination is arbitrary or capricious, (2) California does not need separate state standards to meet “compelling and extraordinary conditions,” or (3) California’s “standards and accompanying enforcement procedures are not consistent with” section 202(a) of the Act [42 U.S.C. § 7521(a)], CAA § 209(b)(1), 42 U.S.C. § 7543(b)(1).

OBDs were first installed by automobile manufacturers in 1981.2 OBDs monitor, control, and record the emissions released by automobile engines.3 They also store information about emissions system faults for later retrieval.4 The devices warn drivers of problems through the “check engine” lights placed on the dashboards of new cars.

These lights illuminate when the vehicle’s monitoring system detects an engine malfunction. At the same time the light illuminates, trouble codes indicating the source of the problem are stored in the vehicle’s computer, where they may be accessed by repair personnel, sometimes using a plug-in tool to aid in diagnosis.

Control of Air Pollution from New Motor Vehicles, 56 Fed.Reg. 48,272, 48,274 (1991) (proposed Sept. 24,1991).

In 1990 Congress amended the CAA to require EPA to mandate and regulate the installation of OBDs in all new cars. See CAA Amendments, P.L. No. 101-549, § 202(m), 104 Stat. 2399 (codified at 42 U.S.C. § 7521(m) (Supp. V 1993)). Through the use of these devices, Congress sought accurate identification of “emission-related systems deterioration or malfunction,” in order to “alert[ ] the vehicle’s owner or operator to the likely need for emission-related ... maintenance or repair.” CAA § 202(m)(l), 42 U.S.C.

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142 F.3d 449, 330 U.S. App. D.C. 1, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21111, 46 ERC (BNA) 1417, 1998 U.S. App. LEXIS 7848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/motor-equipment-manufacturers-assn-v-nichols-cadc-1998.