In This Article
30-Second Summary
Headline Links: The case, the decision, and the automakers’ argument
Background: The effects, California’s waiver, and the EPA’s responsibility
Reactions: State governors and the Alliance of Automobile Manufacturers
Opinions: Historic victory or an overreach of states’ rights?
Reference Material: Vermont’s lawyer, California’s emissions legislation, and the effects of carbon dioxide
Related Topics: Industries seek regulation, U.S. emissions increase, Illinois considers California law, European SUVs, and warming litigation
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Vermont’s Right to Regulate Car Emissions Upheld
by
findingDulcinea Staff
In a case that will affect energy policy nationwide, U.S. District Judge in Vermont William Sessions III has upheld the state’s right to set its own standards for automobile emissions despite opposition from U.S. automakers.
30-Second Summary
Vermont has the fewest cars of any state in the country. Yet its newly upheld law mandating that automakers cut the carbon-dioxide emissions of cars sold in the state by 30 percent come 2016 could impact the entire automobile industry.
The regulations are modeled after laws drafted in California, where federal law grants the state the unique ability to set its own air quality standards as long as it gets an EPA waiver. Although the EPA has yet to make a decision on California’s waiver application, federal law allows other states to adopt California’s air quality law as long as it remains unchanged. However, without an EPA waiver no state can enforce the regulations.
A total of 12 states have already passed California–type regulations, and six others have begun adopting them. Automakers have tried to combat the states’ standards by suing in California, Vermont and Rhode Island. The plaintiffs argue that only the federal government has the authority to set emissions and fuel economy standards. The decision in Vermont, the first case of the three to go to trial, will likely have implications both at the state and federal levels.
The cases in California and Rhode Island are now more likely to emulate the Vermont decision or be dismissed outright. In addition, the EPA may now be more inclined to grant a waiver to California, which would allow it and the 11 other states that have adopted its law to begin enforcing emissions standards for cars sold within their borders.
At the federal level, the decision could prompt Congress—which is preparing to set federal emissions standards—to toughen its current proposals to meet those set in California. Although environmentalists hail the decision, the question remains whether U.S. automakers, already suffering from foreign competition, can remain profitable if asked to meet more stringent standards.
The regulations are modeled after laws drafted in California, where federal law grants the state the unique ability to set its own air quality standards as long as it gets an EPA waiver. Although the EPA has yet to make a decision on California’s waiver application, federal law allows other states to adopt California’s air quality law as long as it remains unchanged. However, without an EPA waiver no state can enforce the regulations.
A total of 12 states have already passed California–type regulations, and six others have begun adopting them. Automakers have tried to combat the states’ standards by suing in California, Vermont and Rhode Island. The plaintiffs argue that only the federal government has the authority to set emissions and fuel economy standards. The decision in Vermont, the first case of the three to go to trial, will likely have implications both at the state and federal levels.
The cases in California and Rhode Island are now more likely to emulate the Vermont decision or be dismissed outright. In addition, the EPA may now be more inclined to grant a waiver to California, which would allow it and the 11 other states that have adopted its law to begin enforcing emissions standards for cars sold within their borders.
At the federal level, the decision could prompt Congress—which is preparing to set federal emissions standards—to toughen its current proposals to meet those set in California. Although environmentalists hail the decision, the question remains whether U.S. automakers, already suffering from foreign competition, can remain profitable if asked to meet more stringent standards.
Headline Links: The case, the decision, and the automakers’ argument
The cut in greenhouse gas emissions mandated by California’s law means that by 2016 automakers must produce an average fuel economy of about 43 miles per gallon in vehicles that weigh less than 3,750 pounds.
Source: The Detroit Free Press
As explained on pages four and five of the Vermont District Court’s 244-page decision, the plaintiffs challenged Vermont’s emissions regulations on the grounds that such standards are preempted by the Energy Policy and Conservation Act (EPCA). The Vermont District Court Web site offers the full text of the decision in a PDF document.
Source: The Web site of the United States District Court of Vermont
The U.S. Legal Blog explains how the plaintiffs—an alliance of automakers—argued their case. The plaintiffs relied on the principle of Federal Preemption of state laws. This principle states that if a federal law already governs an activity, then any state law regarding the same activity is preempted and nullified. The court rejected the automakers’ preemption claim.
Source: The U.S. Legal Blog
Background: The effects, California’s waiver, and the EPA’s responsibility
The Vermont decision could impact a number of related issues nationwide. For instance, the decision could prompt the EPA to grant California’s waiver, and encourage Congress to revamp the fuel-efficiency standards it is currently developing to reflect the levels found in Vermont’s and California’s regulations.
Source: The Christian Science Monitor
The nonpartisan Congressional Research Service has issued a report saying that California’s EPA waiver request “appears to have a strong case.” Although EPA chief Stephen Johnson has said he will decide the case by the end of the year, California Governor Arnold Schwarzenegger has threatened to sue in federal court if a decision is not made by the end of October. California submitted its waiver request in October 2005.
The Center for Democracy and Technology has posted the full text of the 19-page CRS report.
Source: OpenCRS.com
The full text of California's waiver request is available in a PDF document from the Bay Area News Group
Source: The Bay Area News Group
Environmental law blog Warming Law points out that CRS draws heavily on the impact of the April 2007 Supreme Court ruling that found the EPA responsible for regulating automobile greenhouse gas emissions: “CRS analyst James E. McCarthy notes repeatedly that the Supreme Court's [April 2007] ruling in Massachusetts v. EPA strengthens the state's case. According to CRS, the Court's ruling adds significant leeway for states to take incremental action against global warming's pernicious effects, and any argument by EPA that the state's request therefore does not meet ‘compelling and extraordinary’ conditions is also undermined by the Court's ruling.”
Source: Warming Law
See our Beyond the Headlines story on the April 2007 Supreme Court decision.
Source: Supreme Court Tells EPA to Regualte Greenhouse Gases
Reactions: State governors and the Alliance of Automobile Manufacturers
Following Sessions’ decision, the governors of 13 states called on car manufacturers to withdraw their legal challenges to California’s proposed emissions standards. In a joint letter the governors asked the CEOs of six major car companies to “begin working with us to meet our joint obligations and begin reversing the threat of global warming." Each of the 13 states represented in the letter are in various stages of adopting regulations modeled on those in California.
Source: New Mexico Business Weekly
In a press release on the Alliance of Automobile Manufacturers’ Web site, the trade group’s president and CEO, Dave McCurdy, writes that “automakers support improving fuel economy standards nationally, rather than piecemeal … The Alliance will continue studying the decision and considering the options, including an appeal."
Source: The Web site of the Alliance of Automobile Manufacturers
Republican Governor of Vermont Jim Douglas praised the District Court’s decision, saying that “setting high – but achievable – standards for the reduction of greenhouse gas emissions from automobiles is a tool every state must have the option of employing. Now, thanks to our victory, every state will.”
Source: The Web site of Vermont Governor Jim Douglas
Opinions: Historic victory or an overreach of states’ rights?
The Times Argus of Vermont calls Judge Sessions’ decision a “historic victory”: “In approving the authority of Vermont to adopt California's emissions standards, he opened the door to state standards that would reduce fuel consumption substantially and reduce the emission of gases causing climate change. His ruling may have turned on a fine legal point about preemption, but its effect is global and historic.”
Source: The Times Argus
The Washington Post urges the EPA to approve the waiver California applied for in 2005: “For Vermont's law to go into effect all that's needed is that EPA waiver for California. This shouldn't be a big deal. The agency has granted the state more than 40 waivers over the past 30 years. Gov. Arnold Schwarzenegger (R) requested one for his state's tailpipe standards in December 2005. And he's heard nothing ever since … Two years to make a decision? No wonder California Attorney General Jerry Brown has threatened to go to court if no decision is made by the end of October. And he'd be right to take that action. What California and Vermont are trying to do is bold and necessary. The EPA needs to grant the waiver and step out of the way.”
Source: The Washington Post
The Detroit News argues against the Vermont decision, writing that the auto industry should appeal it for a number of reasons: “Chiefly, it deserves to be challenged because fuel efficiency, which is tied to a vehicle's emissions, is set by the federal government. That's where it should stay. Allowing Vermont, California or any other state or city to set their own emissions guidelines or fuel rules makes it impossible for carmakers to build and sell vehicles with any hope of turning a profit. The lawsuit would force automakers to reduce carbon dioxide emissions 30 percent by 2009, requiring an average fuel economy standard of 43.7 miles per gallon, which is unachievable by any reasonable means. The Big Three automakers say such regulations would conservatively cost them $85 billion.”
Source: The Detroit News
Reference Material: Vermont’s lawyer, California’s emissions legislation, and the effects of carbon dioxide
Lawyer Matt Pawa, who represented several environmental groups including the Natural Resources Defense Council, Sierra Club, and Environmental Defense in the recent Vermont case, is a well-known prosecutor and environmental lawyer in Vermont. A profile of Pawa’s career highlights is available on his Web site.
Source: The Web site of Matt Pawa
California’s automobile pollution standards, known as Low-Emissions Vehicles II, will eliminate an estimated 155 tons of smog-forming gases per day. The Web site of California’s Air Resources Board provides information on the regulations.
Source: The Web site of California's Air Resources Board
The Center for Policy Alternatives policy brief on emissions standards highlights the harmful effects of automobile emissions. The brief states that the carbon dioxide emitted by motor vehicles amounts to 26 percent of greenhouse gas emissions in the United States.
Source: The Web site of the Center for Policy Alternatives
Related Topics: Industries seek regulation, U.S. emissions increase, Illinois considers California law, European SUVs, and warming litigation
Although the U.S. auto industry is currently fighting emissions standards at the state level, it and a number of other major industry groups and manufacturers are calling on the government for increased federal health, safety and environmental regulations. Industry groups in the past have requested such regulation to avoid a patchwork of state regulations, to ensure competitors are forced to meet the same standards, and to create legal protections against consumer lawsuits.
Source: The New York Times
According to a recent report, the last fifteen years has seen an increase in average vehicle emissions built by five of the six largest automobile sellers in the United States. The study attributes the rise to the dramatic increase in SUV sales. Of the six largest auto sellers —Toyota, Nissan, Ford, Daimler-Chrysler, General Motors, and Honda—Toyota was the only one to reduce its emissions, which are down by 3 percent.
Source: The Detroit News
An Illinois gubernatorial task force on greenhouse gas emissions has recommended to Governor Rod Blagojevich that the state join Vermont in adopting California’s auto emissions standards. The panel consisted of representatives from big business, including Caterpillar Inc., Deere & Co., leading energy firms, unions, government offices, and environmental organizations.
Source: Crain’s Chicago Business
Global Insight, a business forecasting firm, has predicted that despite the increasing emphasis on environmentally friendly cars in the United States, the segments of Europe’s auto industry that emit high levels of carbon dioxide, like SUVs, are expected to grow. The firm expects annual SUV sales in Europe to increase from its current 1 million to 1.6 million around 2011.
Source: The Wall Street Journal Blog
Federal judge Martin J. Jenkins has dismissed a lawsuit brought by the State of California against six automakers alleging that the greenhouse gases emitted by their vehicles constituted a public nuisance that has cost the state millions of dollars. In his decision Jenkins states that courts don't have jurisdiction to decide injury lawsuits based on global warming, and the issue should be addressed by Congress and the President.
Source: The New York Times (may require free registration)
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