NATIONAL PAINT & COATINGS ASSN., INC. v. South Coast Air Quality Management Dist.

177 Cal. App. 4th 1494, 9 Cal. Daily Op. Serv. 12, 39 Envtl. L. Rep. (Envtl. Law Inst.) 20226, 100 Cal. Rptr. 3d 35, 2009 Cal. App. LEXIS 1611
CourtCalifornia Court of Appeal
DecidedSeptember 29, 2009
DocketG040122
StatusPublished

This text of 177 Cal. App. 4th 1494 (NATIONAL PAINT & COATINGS ASSN., INC. v. South Coast Air Quality Management Dist.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NATIONAL PAINT & COATINGS ASSN., INC. v. South Coast Air Quality Management Dist., 177 Cal. App. 4th 1494, 9 Cal. Daily Op. Serv. 12, 39 Envtl. L. Rep. (Envtl. Law Inst.) 20226, 100 Cal. Rptr. 3d 35, 2009 Cal. App. LEXIS 1611 (Cal. Ct. App. 2009).

Opinion

177 Cal.App.4th 1494 (2009)

NATIONAL PAINT & COATINGS ASSOCIATION, INC., Plaintiff and Appellant,
v.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT, Defendant and Respondent.

No. G040122.

Court of Appeals of California, Fourth District, Division Three.

September 29, 2009.

*1497 Fulbright & Jaworski, Jeffrey B. Margulies and William L. Troutman for Plaintiff and Appellant.

Shute, Mihaly & Weinberger, Matthew D. Zinn; Daniel P. Selmi; Kurt R. Wiese, Barbara B. Baird and William B. Wong for Defendant and Respondent.

*1498 OPINION

SILLS, P. J.—

I. INTRODUCTION

A trade group, the National Paint & Coatings Association, Inc., has brought this action against the South Coast Air Quality Management District, challenging the district's 2002 amendments to its rule limiting the amount of volatile organic compounds allowed in various kinds of paint and coatings in Southern California.[1]

The challenged rule basically says: Here's a list of the maximum levels of volatile organic compounds that paint manufacturers may have in different kinds of paint and coatings, with the effective levels kicking in at various *1499 times.[2] The rule also has an averaging provision, similar to federal car mileage standards, which allows manufacturers to average the "actual cumulative emissions" of their paints and coatings so that the total emission can be under a hypothetical compliance limit, even if some of their paints and coatings are not.

The paint association's challenge is also conceptually simple enough: It asserts that the district has exceeded the authority given it by the statutes governing its authority to promulgate air pollution regulations, because the rule specifies limits that are not actually "available" and "achievable." (See Health & Saf. Code, § 40440, subd. (b)(1); § 40406.)[3]

As we explain below, the paint association's challenge fails as to all of the categories of paints and coatings governed by the rule, except for two. In a word, if it exists, it's both "available" and "achievable," even if there is not much of it by way of variety or market penetration. There is substantial evidence that there are floor coatings; industrial maintenance coatings; high temperature industrial maintenance coatings; nonflat coatings; primers, sealers *1500 and undercoaters; and quick-dry primers, sealers and undercoaters which both exist and comply with even the most recent limits (eff. July 2006) required under the rule. That is, technology complying with the limits is both available and achievable.

However, the administrative record shows there are zero—count `em, zero—products that comply with the most recent limits in two categories: quick-dry enamels and rust preventative coatings. We have no evidence that, in these categories, the technology is both "available" and "achievable" to comply with the district's amended limits; we have only speculation that one day in the future the technology will exist to comply with the limits.

We will therefore affirm the trial court in denying the paint association's requested writ of administrative mandate as to everything but these two categories. We will direct the writ to be granted as to quick-dry enamels and rust preventers, but with this proviso: Recognizing that, as we write in 2009 working with an administrative record largely based on information existing in late 2002 (and there's a reason for the long lag time, as will soon be apparent), instead of directing that the rule be vacated as to these two categories, the writ will conditionally give the district the opportunity to show, based on current technology, that quick-dry enamels and rust preventers can be made which comply with the most recent limits. Only if, after a hearing on remand, the district cannot show availability and achievability based on existing coatings in these two categories should a writ issue requiring the amended rule to be rolled back to earlier limits.[4]

*1501 II. THE HISTORY OF THE LITIGATION

A. National Paint Association I

As mentioned, the rule was first promulgated in 1977. The rule was amended in 1999. The amended rule put very restrictive limits on volatile organic compounds. Those amendments were quickly challenged, as exceeding the district's enabling statutes, by the paint association in the Orange County Superior Court, then later in this court.

The challenge resulted in an unpublished decision, National Paint & Coatings Association, Inc. v. South Coast Air Quality Management District (June 24, 2002, G029462) (nonpub. opn.) (National Paint Association I). In National Paint Association I, this court reversed a judgment denying the requested writ of administrative mandamus on procedural grounds. We noted that, at the very last moment—that is, within about 10 days before the hearing at which the district considered the amended rule—the district announced two significant exceptions. One exempted essential public services from certain interim limits. The other allowed small manufacturers to average their emissions. (See ibid.)

Those last-minute exceptions contravened section 40725, requiring 30 days' public notice of a new rule. As we explained, the timing of the exceptions served to "`sandbag'" the opposition to the amended rule in three ways: They effectively bought off opposition to the rule from public agencies like CalTrans (California's Department of Transportation) and Metropolitan Water District (both of which have a need for coatings relatively high in volatile organic compounds because they last longer); they made it more difficult for opponents of the limits to rally opposition; and, they even precluded opponents of any exemptions from being heard. (National Paint Association I, supra, G029462.) We directed a writ of mandate to command the district to vacate its 1999 amendments, so as to allow the amended rule the required time to circulate before adoption. (Ibid.)

In our unpublished opinion, we stated that we did not reach the "merits" of the paint association's challenge to the 1999 rule. We did observe in that regard, though, that, for certain heavy-duty public uses such as electrical transformers and water pipelines, "there is a serious question as to whether there are now any low volatile organic paints available as substitutes." (National Paint Association I, supra, G029462.)[5]

*1502 B. National Paint Association II

By the end of December 2002, that is, within less than seven months of the filing date of National Paint Association I, the district promulgated an amended rule, this time avoiding the procedural mistake of inserting exemptions at the last minute. Quickly—January 2003—the paint association filed suit in Orange County Superior Court, again asserting that the amended rule (let's call this the 2002 rule) violated the district's enabling statutes.

Not to put too fine a point on it, the district's lawyers quickly outmaneuvered the paint association's lawyers into what was no doubt perceived to be a more favorable forum for their side. They had the case removed to federal court.[6]

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177 Cal. App. 4th 1494, 9 Cal. Daily Op. Serv. 12, 39 Envtl. L. Rep. (Envtl. Law Inst.) 20226, 100 Cal. Rptr. 3d 35, 2009 Cal. App. LEXIS 1611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-paint-coatings-assn-inc-v-south-coast-air-quality-management-calctapp-2009.