Public Citizen v. Steed

733 F.2d 93, 236 U.S. App. D.C. 1
Court of Appeals for the D.C. Circuit·Decided April 24, 1984·No. No. 83-1327·Published·Cited by 26 cases

Opinion

Opinion for the Court filed by Circuit Judge MIKVA.

MIKVA, Circuit Judge:

Section 203 of the National Traffic and Motor Vehicle Safety Act (the Act), 15 U.S.C. § 1423 (1982), was passed in 1966. It required the development of uniform tire quality grading standards for motor vehicle tires by September, 1968. The primary purpose of section 203 was to provide consumers useful information in selecting tires. Notwithstanding this clear statutory directive, for nine years the National Highway Traffic Safety Administration and its agency predecessors (hereinafter referred to as NHTSA or the agency) were most reluctant regulators, until a consumer lawsuit forced NHTSA to promulgate the regulations mandated by section 203. Implementation of those regulations was further delayed pending resolution of two lawsuits filed by several tire manufacturers. The regulations finally became operative in 1979 and remained in effect until 1983 when, following a rulemaking proceeding, NHTSA suspended indefinitely what it conceded was “the most meaningful characteristic [of the tire grading program] from a consumer standpoint” — the treadwear grading requirements. Petitioners Public Citizen and the Center for Auto Safety (hereinafter referred to collectively as Public Citizen) claim that the suspension violated section 203 of the Act and the Administrative Procedure Act, 5 U.S.C. § 551 et seq. (1982). We grant Public Citizen’s petition for review and hold that NHTSA’s decision to suspend the treadwear grading program was arbitrary and capricious.

Background

In- 1966, Congress enacted section 203 which provides in part:

In order to assist the consumer to make an informed choice in the purchase of motor vehicle tires, within two years after September 9, 1966, the [agency] shall, through standards established under subchapter I of this chapter, prescribe by order, and publish in the Federal Register, a uniform quality grading system for motor vehicle tires.

15 U.S.C. § 1423 (emphasis added). The language of the statute and its legislative history indicate that section 203 was viewed primarily, if not solely, as a consumer provision. See B.F. Goodrich Co. v. Department of Transportation, 541 F.2d 1178, 1184 (6th Cir.1976), cert. denied, 430 U.S. 930, 97 S.Ct. 1549, 51 L.Ed.2d 773 (1977) (Goodrich I).

An advance notice of proposed rulemaking under section 203 was issued in 1968, but NHTSA did not promulgate final tire grading regulations until it was forced to do so as a result of a lawsuit brought by a consumer group. Nash v. Brinegar, Civil Action No. 177-73 (D.D.C. May 2, 1974). We review that early history only briefly here, summarizing what another court of appeals has described as a “strange record of delay and nonfeasance on the part of administrators charged with enforcing a regularly adopted statute of the United States.” Goodrich I, 541 F.2d at 1180.

In its initial notice in 1968, the agency sought comments on numerous tire characteristics that could be included in a tire [3] grading program, including “treadwear and carcass durability.” 33 Fed.Reg. 7,261 (1968). In 1971, the agency proposed a rule which would have graded tires in four areas of performance, postponing for later consideration the areas of traction and treadwear. 36 Fed.Reg. 18,751 (1971). This proposal was withdrawn in 1972 after “considerable negative industry response.” Goodrich I, 541 F.2d at 1184. See 37 Fed. Reg. 7,903 (1972). A year later, the agency issued a revised proposal which more closely resembled the regulations finally promulgated by NHTSA. The 1973 proposal focused on three characteristics of tires— treadwear, traction and high speed performance — which agency commenters had indicated were of the greatest interest to consumers. 38 Fed.Reg. 6,194 (1973). In 1974, NHTSA issued and subsequently revoked final tire grading regulations. See 39 Fed.Reg. 1,037 (1974); 39 Fed.Reg. 16, 469 (1974). Only after the consent decree in Nash v. Brinegar, did NHTSA issue a notice of a new proposal which was amended, revised, and finally promulgated in May of 1975. See 40 Fed.Reg. 23,073 (1975).

Under the 1975 regulations, treadwear grades were to be based on the projected mileage of a tire as tested on a course located in San Angelo, Texas. The manufacturers were responsible for testing their own tires, but NHTSA also used the course for compliance testing. Under the regulations, each tire completed a total of 6,400 miles on the course and was tested for treadwear every 800 miles, after an initial “break-in” period. To minimize variations in treadwear caused by factors other than the quality of the tires themselves, the test cars traveled in convoys with one car equipped with “course monitoring tires” (CMTs) which were used to measure changes in the road and in weather conditions. In addition, cars had to meet certain weight requirements, be aligned according to the manufacturers’ specifications, and travel in convoys at a constant speed with regular changes in drivers and in the positions of the cars and tires.

The regulations did not require tire manufacturers to use the actual grade derived from the federal road test in advertising their tires to the public. Rather, the federal test grade reflected a minimum level of performance that the manufacturers would guarantee to their customers. The manufacturers were free to assign lower grades than those determined by the federal test, but they were “expected to ensure that substantially all the tires marked with a particular grade are capable of achieving it.” 40 Fed.Reg. 23,075 (1975).

The 1975 tire grading regulations were stayed pending judicial review after several tire manufacturers filed lawsuits challenging the regulations. In Goodrich I, the court upheld the essential elements of the tire grading system, but remanded to the agency for consideration of several minor issues. In answer to the tire manufacturers’ claim that the information provided consumers under the program would be “affirmatively misleading,” 541 F.2d at 1184, the court concluded that “no test procedures designed to grade millions of tires are going to approach perfection,” id. at 1188, and that section 203 requires “reasonably fair and reasonably reliable grading procedures, not theoretical perfection.” Id. at 1189.

Pursuant to the court’s order, NHTSA revised its regulations and re-issued them in 1978, excluding radial tires from the treadwear requirements of the rule because new data suggested a problem in the method that had been chosen to measure the wear rate of radials. 43 Fed.Reg. 30,-542 (1978). Following another challenge by the tire manufacturers, the- court again upheld the rule, this time in all respects. B.F. Goodrich Company v. Department of Transportation, 592 F.2d 322 (6th Cir. 1979) (Goodrich II).

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Public Citizen v. Steed, 733 F.2d 93, 236 U.S. App. D.C. 1 (D.C. Cir. 1984).

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