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 has 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 over the next 10 years. Manufacturers will meet these standards by adding additional technologies to cars and trucks, which increase efficiency, decrease air conditioning leakage, and 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. After a California waiver request is granted, other states are permitted to adopt the same 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 motor vehicle global warming regulations. Governor Schwarzenegger wrote to the EPA in April, 2006 and in October, 2006 requesting action on California’s waiver application. In November, 2007 California sued EPA for failing to act on its waiver request in a reasonable period of time. See California’s Complaint and Petition for Review. Watch Attorney General Brown and Governor Schwarezengger’s press conference 
[VIDEO 225 kb / 10.4 min] announcing the lawsuit. On December 19, 2007, EPA Administrator Stephen Johnson denied California’s waiver request, in a letter to Governor Arnold Schwarzenegger. Read EPA’s denial. On January 2, 2008, California filed a petition with the Ninth Circuit Court of Appeals challenging EPA’s denial. Read the petition. Seventeen states have moved to intervene in support of California. Several environmental groups filed separate actions also in support. In addition, in January, 2008 California sued EPA under the Freedom of Information Act to obtain records relating to the waiver decision that EPA has wrongfully withheld. Read the complaint. 
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Auto Industry’s Suits in California
The automobile industry (see companies [PDF 17 kb / 3 pg]) also sued in federal court in Fresno, CA to challenge California’s motor vehicle global warming regulations. The primary issue in that case was whether those regulations somehow conflict with the federal fuel economy law. In a decision signed on December 11, 2007, Judge Anthony W. Ishii resoundingly rejected that argument and all of the auto industry’s other arguments. Judge Ishii based his decision primarily on the U.S. Supreme Court’s Massachusetts v. EPA [PDF 354 kb / 66 pg] decision issued earlier this year in which the Supreme Court confirmed that U.S. EPA has authority under the Clean Air Act to issue greenhouse gas emission regulations more stringent than the Department of Transportation’s fuel economy standards. Judge Ishii reasoned that, once U.S. EPA approves California’s waiver, California’s authority is as broad as that of U.S. EPA. Under the statutory scheme, any conflict between an EPA or California promulgated regulation and an existing fuel economy standard must be addressed by the Department of Transportation, when revising fuel economy standards. Judge Ishii also rejected the auto industry’s claim that California’s regulations are preempted by U.S. foreign policy. Read the decision. [PDF 305 kb / 57 pg]
Auto Industry’s Suits in Other States
At least 12 other States have adopted California's motor vehicle standards. The automobile industry sued one of these states, Vermont, to try to prove that California's regulations are invalid under federal law. But with the help of California, New York, and environmental groups, the State of Vermont prevailed. After a 16 day trial, U.S. District Judge William K. Sessions III ruled down the line for Vermont. The 240 page decision is a striking repudiation of all of the automobile industry's arguments. Judge Sessions ruled that Congress intended for California emission standards that receive a waiver from U.S. EPA to be considered when the federal government develops federal fuel economy standards, and therefore that these emission standards are not invalid even if they have an effect on fuel economy. He also ruled that the automobile industry had not proved that the regulations were technologically or economically infeasible, or that they would adversely affect consumer choice or safety. See the order.
[PDF 698 kb / 244 pg] In the most recent lawsuit filed on December 27, 2007, the auto industry sued New Mexico which had adopted California’s greenhouse gas regulations the previous month. The same preemption arguments which the auto industry had already lost were the basis of this new federal court complaint. Read the New Mexico complaint. [PDF 728 kb / 20 pg]