California’s Motor Vehicle Global Warming Regulations
California’s Law
With landmark legislation adopted in 2002 (AB 1493, known colloquially as the “Pavley” bill), California set motor vehicles standards for emissions of carbon dioxide, methane, nitrous oxide, and hydro fluorocarbons (the primary pollutants that create global warming). These standards require automobile manufacturers to meet a declining fleet-wide average for these pollutants, which results in about a 30% reduction in greenhouse gas emissions through 2016. Manufacturers can meet these standards by adding existing technologies to cars and trucks, that increase efficiency, decrease air conditioning leakage, and/or allow for the use of alternative fuels.
California’s Waiver Request
Under the Clean Air Act, Congress gave California a special role as an innovative leader and "pioneer" in the area of motor vehicle regulations. Congress therefore authorized California to adopt motor vehicle standards stricter than federal requirements. California must obtain permission (a "waiver") from the U.S. Environmental Protection Agency, before enforcing its standards. After a California waiver request is granted, other states are permitted to adopt California's rules. In the 40-year history of the Act, EPA has granted approximately 50 waivers for innovations like catalytic converters, exhaust emission standards, and leaded gasoline regulations. At least fourteen states have adopted California's Pavley regulations.
In December, 2005, California applied to U.S. EPA for a waiver to implement its Pavley regulations. The Bush Administration's EPA delayed action on California's request for over two years. It finally denied California's waiver request on March 8, 2008. Read the denial.
[PDF 286 kb / 14 pg]California challenged the denial in the U.S. Court of Appeals. Read California's brief.
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On January 21, 2009, the California Air Resources Board (CARB) requested that EPA reconsider its previous waiver denial. Read the request.
[PDF 174 kb / 4 pg] On January 26, 2009, President Obama directed that EPA assess whether the denial of the waiver was appropriate. On June 30, 2009, EPA granted the waiver request, which begins with motor vehicles in the 2009 model year. 74 Fed. Reg. 32744 (July 8, 2009). Read the waiver decision.
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The Nationwide Agreement
On May 19, 2009, President Obama announced a new national policy aimed at increasing fuel economy and reducing greenhouse gas emissions for all new cars and trucks sold in the United States. The new national policy, which will harmonize greenhouse gas emissions standards and fuel economy standards, is the result of an agreement among California, the United States, and the automobile industry.
As part of the agreement, EPA and the federal Department of Transportation are jointly developing new federal standards for model years 2012-2016, that will ultimately require an average fuel economy standard of 35.5 mpg in 2016. This is roughly equivalent to Pavley's 2016 greenhouse gas emission standard and surpasses the standard set in the fuel economy law passed by Congress in 2007, which required an average fuel economy of 35 mpg in 2020.
The automobile industry has committed to dismiss all of its litigation opposing California's standards (see below), and not to challenge EPA's waiver grant. To facilitate implementation of the new standards, CARB has agreed to make some technical modifications to its regulations that will allow automakers to coordinate their demonstration of compliance with California's standards and federal greenhouse gas and fuel efficiency standards.
On September 8, 2009, and in violation of the spirit of the nationwide agreement, the U.S. Chamber of Commerce and the National Automobile Dealers Association sued EPA to challenge its granting of the waiver to California for its global warming regulations. California has asked that court to allow it to intervene as a party in those proceedings, so that it can assist EPA in defending the waiver decision. Read the motion to intervene.
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Auto Industry’s Suits in California
The automobile industry's response to Pavley has been litigation. The industry has sued in state and federal courts in California attempting to block the regulation. The state lawsuit was set for trial in September 2009, but has been stayed as a result of the nationwide agreement. In the federal lawsuit, industry primarily argued that the regulations conflicted with the federal fuel economy law. The court rejected industry's claims and ruled in California's favor on December 11, 2007. Read the decision.
[PDF 354 kb / 66 pg] The auto industry has appealed the court's decision to the Ninth Circuit and the case has also been stayed.
Auto Industry’s Suits in Other States
At least 14 other States have adopted California's motor vehicle standards. The automobile industry has filed lawsuits in several of those states, including Rhode Island, New Mexico, and Vermont. To date, the industry's legal claims have all failed. In Vermont, the federal court, after a 16-day trial, rejected the industry's claims. See the
order. [PDF 701 kb / 244 pg] The industry appealed the Vermont ruling to the Second Circuit and the case is now stayed. Read California's amicus brief in that case.
[PDF 697 kb / 55 pg] In Rhode Island, the federal court dismissed industry's claims, finding that industry was not allowed to continue to assert the same losing claims in state after state. Read that order.
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