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 hydrofluorocarbons (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 of emissions through 2016. Manufacturers will meet these standards by adding additional 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 and EPA’s Denial
Under the Clean Air Act, California is authorized to adopt motor vehicle standards stricter than federal requirements if it receives a waiver from the U.S. Environmental Protection Agency. Congress gave California a speical role as an innovative leader and "pioneer" in the area of motor vehicle regulations. Therefore, EPA has a very limited scope of review and discretion in evaluating California's waiver application. 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.
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 reqeust 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.
[PDF 2.8 mb / 71 pg]
On January 21, 2009, the California Air Resources Board 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. EPA is now reconsidering California's waiver request, and California's court challenge to the waiver denial is on hold. Read EPA's decision to reconsider
[PDF 118 kb / 3 pg] the waiver request and the Attorney General's comments to EPA.
[PDF 114 kb / 3 pg]
Congress has required EPA to complete its review and issue its decision by June 30, 2009.
Auto Industry’s Suits in California
The automobile industry's response to Pavley has been litigation (For a list of the companies who have sued click here [PDF 17 kb / 3 pg] ). The industry has sued in state and federal courts in California attempting to block the regulation. The state lawsuit is set for trial in September 2009. 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 is being briefed.
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. The 240 page decision is a striking repudiation of all of the automobile industry's arguments. See the
order. [PDF 701 kb / 244 pg] The industry has appealed the Vermont ruling to the Second Circuit and a decision is pending. 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.
[PDF 11 mb / 28 pg]