Petition for Writ of Certiorari — Minnesota Automobile Dealers Association, Petitioner v. Minnesota Pollution Control Agency
Supreme Court briefAug 14, 2023
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APPENDIX TABLE OF CONTENTS
Appendix A: Minnesota Court of Appeals,
Judgment, May 25, 2023 . . . . . . . . . . . . . . . . . . . . 1a
Appendix B: Minnesota Court of Appeals, Opinion,
January 30, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . 3a
Appendix C: Minnesota Supreme Court, Order,
May 16, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29a
Appendix D: Minnesota Court of Appeals, Petition
for Declaratory Judgment, June 8, 2022 . . . . . . 31a
Appendix E: Minnesota Motor Vehicle Rules . 50a
APPENDIX A
STATE OF MINNESOTA
COURT OF APPEALS
Minnesota Automobile Dealers Association,
Petitioner,
vs.
Minnesota Pollution Control Agency,
Respondent.
Appellate Court # A22-0796
Trial Court # OAH 71-9003-36416
JUDGMENT
Pursuant to a decision of the Minnesota Court of
Appeals duly made and entered, it is determined and
adjudged that the decision of the Minnesota Pollution
Control Agency herein appealed from be and the same
hereby is rule declared valid and judgment is entered
accordingly.
Dated and signed: May 25, 2023
FOR THE COURT
Attest: Christa Rutherford-Block
Clerk of the Appellate Courts
By:
/s/
Assistant Clerk
1a
STATE OF MINNESOTA
COURT OF APPEALS
TRANSCRIPT OF JUDGMENT
I, Christa Rutherford-Block, Clerk of the
Appellate Courts, do hereby certify that the foregoing is
a full and true copy of the Entry of Judgment in the
cause therein entitled, as appears from the original
record in my office; that I have carefully compared the
within copy with said original and that the same is a
correct transcript therefrom.
Witness my signature at the Minnesota Judicial Center,
In the City of St. Paul
Attest:
By:
May 25, 2023
Dated
Christa Rutherford-Block
Clerk of the Appellate Courts
/s/
Assistant Clerk
2a
APPENDIX B
STATE OF MINNESOTA
IN COURT OF APPEALS
A22-0796
Minnesota Automobile Dealers Association,
Petitioner,
vs.
Minnesota Pollution Control Agency,
Respondent.
Filed January 30, 2023
Rule declared valid
Segal, Chief Judge
Minnesota Pollution Control Agency
File No. OAH 71-9003-36416
Douglas P. Seaton, James V. F. Dickey, Upper
Midwest Law Center, Golden Valley, Minnesota (for
petitioner)
Keith Ellison, Attorney General, Peter N. Surdo,
Special Assistant Attorney General, Joseph T.
Heegaard, Assistant Attorney General, St. Paul,
Minnesota (for respondent)
Melissa L. Lorentz, Joy R. Anderson, Jay E. Eidsness,
Minnesota Center for Environmental Advocacy, St.
3a
Paul, Minnesota (for amici curiae Fresh Energy,
Minnesota Center for Environmental Advocacy,
MN350, Clean Up the River Environment, Health
Professionals for a Healthy Climate, and Sierra Club
North Star Chapter)
Considered and decided by Segal, Chief Judge; Reyes,
Judge; and Cleary, Judge.*
SYLLABUS
The Minnesota Pollution Control Agency
(MPCA) did not improperly delegate its rulemaking
authority to another state when it incorporated by
reference California’s motor-vehicle emission
standards into Minn. R. 7023.0150-.0300 (2021).
OPINION
SEGAL, Chief Judge
This declaratory judgment action presents a
challenge by petitioner Minnesota Automobile Dealers
Association (MADA) to the validity of rules adopted by
respondent MPCA that require automobile
manufacturers to deliver for sale in Minnesota (1) only
vehicles that meet specified air-pollutant emission
standards and (2) a certain percentage of vehicles with
ultra-low or zero tailpipe emissions. See Minn. R.
7023.0150-.0300 (the Clean Car Rule). The Clean Car
*
Retired judge of the Minnesota Court of Appeals, serving by
appointment pursuant to Minn. Const. art. VI, § 10.
4a
Rule was adopted under the authority of Minn. Stat.
§116.07 (2022) and pursuant to the federal Clean Air
Act (the CAA), codified at 42 U.S.C. §§ 7401-7671q
(2018).
MADA argues that the Clean Car Rule is invalid
because it violates article I of the Minnesota
Constitution by improperly delegating the MPCA’s
rulemaking authority to California or, in the
alternative, that Minn. Stat. § 116.07 violates article
III of the Minnesota Constitution by improperly
delegating legislative authority to the MPCA without
adequate guidance. MADA also argues that the Clean
Car Rule is invalid because the MPCA lacks statutory
authority to establish a uniform statewide standard
and that Minnesota does not qualify for the provision
in the CAA that allows states to adopt California
motor-vehicle emission standards set out in 42 U.S.C.
§ 7507 (the opt-in provision).
We conclude that the incorporation by reference
of California’s motor-vehicle emission standards into
the Clean Car Rule did not violate the nondelegation
doctrine. The fact that the Clean Car Rule incorporates
specific California regulations “as amended” does not
alter this conclusion. The MPCA has represented, and
we interpret, the “as amended” clause in the Clean Car
Rule as incorporating only “minor housekeeping
updates” and that, before a “major update” could be
incorporated, the MPCA would need to initiate
rulemaking. We also conclude that the MPCA acted
within its statutory authority in adopting a uniform
statewide motor-vehicle emission standard and that
5a
Minnesota is an eligible state to adopt the California
standards. We thus determine that the Clean Car Rule
is valid.
FACTS
The CAA vests exclusive authority in the federal
government, specifically the Administrator of the
Environmental Protection Agency (EPA), to establish
“standard[s] relating to the control of emissions from
new motor vehicles.” 42 U.S.C. § 7543(a); see 42 U.S.C.
§ 7521 (setting forth administrator’s authority); Am.
Auto. Mfrs. Ass’n v. Cahill, 152 F.3d 196, 198 (2d Cir.
1998) (noting that states are generally preempted from
establishing emission standards for new motor
vehicles). The CAA, however, contains a waiver that
allows California to impose its own, generally more
stringent, emission standards on new motor vehicles
sold in that state.1 See 42 U.S.C. § 7543(b). The CAA
provides that new motor vehicles that comply with
California's standard under the waiver shall be treated
as compliant with the federal emission standards. Id.
1
California began regulating emissions from motor vehicles in
the 1950s because of areas of severe air pollution in that state;
this was well before the enactment of amendments to the CAA
requiring national emission standards for new motor vehicles. See
Motor & Equip. Mfrs. Ass’n, Inc. v. E.P.A., 627 F.2d 1095, 1109
n.26 (D.C. Cir. 1979) (referring to early California emission
provisions); Motor Vehicle Air Pollution Control Act of 1965, Pub.
L. No. 89-272, § 202(a), 79 Stat. 992-93 (directing establishment
of emission standards); Act effective Sept. 11, 1957, ch. 239, 1957
Cal. Stat. 895-96 (granting air pollution control board power to
regulate motor-vehicle equipment to reduce “air contaminants”).
6a
(b)(3). And, as relevant here, the CAA allows states
with approved nonattainment "plan provisions" to
choose to be governed by either the national emission
standards set by the Administrator of the EPA or the
California standards. 42 U.S.C. § 7507. If a state elects
to adopt the California standards,2 that state’s
standards must be “identical to the California
standards for which a waiver has been granted [by the
EPA] for such model year.” Id.
The MPCA is tasked by statute with, among
other things, adopting standards “relevant to the
prevention, abatement, or control of air pollution,”
including air-qualitystandards relating to the
“emission of air contaminants from motor vehicles.”
2
A nonattainment area is defined under the CAA as “any area
that does not meet (or that contributes to ambient air quality in
a nearby area that does not meet) the national primary or
secondary ambient air quality standard for [a] pollutant.” 42
U.S.C. § 7407(d); see also42 U.S.C. § 7501(2). The state in which
the nonattainment area is located is responsible for submitting
“[nonattainment] plan provisions [that] provide for the
implementation of all reasonably available control measures as
expeditiously as practicable. . . and shall provide for attainment
of the national primary ambient air quality standards” within the
Administrator’s designated attainment date. 42 U.S.C. § 7502(a),
(c). Part D of the CAA, 42 U.S.C. §§ 7501-7515, provides that
when a designated area has attained the “national primary
ambient air quality standard for [an] air pollutant” the state must
submit a maintenance plan “for such air pollutant in the area
concerned for at least 10 years after the redesignation” from non
attainment to attainment. 42 U.S.C. § 7505a(a). Both
implementation and maintenance plans are subject to approval by
the EPA administrator. 42 U.S.C. § 7410(k).
7a
Minn. Stat.§ 116.07, subds. 2(a), 4. In 2019, the MPCA
initiated rulemaking proceedings to adopt the more
stringent California standards for vehicle
emissionspursuant to the CAA waiverprovision,42
U.S.C.§ 7543(b). TheMPCA explainedin its statement
of need and reasonableness for the Clean Car Rule(the
SONAR)that the change was needed because emission
standards for new motor vehicles. The EPA adopted
the weakened standards in 2020. 85 Fed. Reg. 24174
(Apr. 30, 2020). the federal government had provided
notice that it would be weakening its air-pollutant
emission standards for new motor vehicles.3 The EPA
adopted the weakened standardsin2020. 85 Fed. Reg.
24174 (Apr. 30, 2020).
The MPCA explained in the SONAR that,
historically, the EPA “required increasingly stringent
emission reductions” for vehicles but that the EPA’s
new rule “roll[ed] back the emission standards.”The
MPCA stated that “[o]ne of the purposes of the
[MPCA’s] proposed [Clean Car Rule was] to maintain
the [former, more stringent EPA] emissions standard
in Minnesota.”The MPCA also pointed out that
Minnesota had failed to meet its statutory goal for the
reduction of greenhouse gases for 2015 and was“not on
3
A statement of need and reasonableness is a document that
agencies are required to provide to the public as part of the
rulemaking process. Minn. Stat. §§ 14.131, .23 (2022); see Minn.
R. 1400.2070 (2021)(setting out additional guidance for
statements of need and reasonableness).
8a
track to achieve the 2025 or 2050 goals.”4 The MPCA
indicated that“[t]ransportation is the largest source of
[greenhouse gas] emissions in Minnesota,” and
passenger cars, light-duty trucks, and medium-duty
vehicles “are the largest source of [such] emissions
within that sector.” Finally, the MPCA stated that “the
proposed rule is a necessary step toward achieving
substantive emission reductions in Minnesota’s
transportation sector.”
Following the conclusion of the formal
rulemaking process, the MPCA adopted the Clean Car
Rule in July 2021. See 46 Minn. Reg. 66 (July 26,
2021). It applies to new motor vehicles beginning with
the 2025 model year.5 46 Minn. Reg. 755 (Dec. 27,
2021). To ensure that Minnesota’s standards are
identical to the California standards as required by the
CAA, the Clean Car Rule incorporates by reference the
applicable sections of the California Code of
Regulations, including both the air-pollutant emission
standards (the low-emission vehicle (LEV) standards)
and requirements for zero-emission vehicles (ZEVs).
See Minn. R. 7023.0150.
4
The statutory goals are set forth in Minn. Stat. § 216H.02, subd.
1 (2022).
5
The CAA requires adoption of the standards “at least two years
before the commencement of such model year.” 42 U.S.C. § 7507.
9a
The LEV standards, set out in Minn. R.
7023.0250, provide that new motor vehicles sold in
Minnesota, with certain exceptions, must be “certified
to the [California LEV air-pollutant emission
standards].” Minn. R. 7023.0250, subp. 1. The ZEV
standards, set out in Minn. R. 7023.0300, require that
a “manufacturer’s sales fleet of passenger cars and
light-duty trucks . . . delivered for sale or lease in the
state must contain at least the same applicable
percentage of ZEVs required under California Code of
Regulations, title 13, section 1962.2.” Minn. R.
7023.0300, subp. 1.
The Clean Car Rule, however, did not just
incorporate specific sections of the existing California
regulations. The Clean Car Rule incorporates by
reference those sections of the California regulations
as they may be amended.6 See Minn. R. 7023.0150,
subp. 2. It also notes that the California “regulations
are not subject to frequent change.” Id. In the SONAR,
6
That subpart of the Clean Car Rule provides:
California Code of Regulations, title 13, sections
1900, 1956.8(h) (medium-duty vehicle greenhouse
gas emission standards only), 1961.2, 1961.3,
1962.2, 1962.3, 1965, 1968.2, 1976, 1978, 2035,
2037 to 2041, 2046, 2062, 2109, 2111 to 2121,
2122 to 2135, 2139, and 2141 to 2149, as
amended, are incorporated by reference. The
regulations are not subject to frequent change and
are available online . . . .
Minn. R. 7023.0150, subp. 2 (emphasis added).
10a
the MPCA explained that incorporating identified
California regulations “‘as amended’ improves
administrative efficiency by reducing the need for
rulemaking to maintain consistency with the
California rules.” The MPCA further observed in the
SONAR that, “[h]istorically, California has made
minor housekeeping updates to its rules every few
years,” but that when “California has conducted a
major update . . . , such as making them more
stringent for future model years, California has done
so in new rule parts.” The SONAR stated that,
consequently, only “minor housekeeping updates”
would be automatically adopted through the “as
amended” clause in Minn. R. 7023.0150, subp. 2, not
“major updates.”
In June 2022, MADA petitioned this court for a
declaratory judgment under Minn. Stat. § 14.44 (2022),
arguing that the challenged rules are invalid based on
MADA’s claims that: (1) the Clean Car Rule
constitutes an unconstitutional delegation of
rulemaking or, in the alternative, results from an
unconstitutional delegation of legislative authority; (2)
Minn. Stat. § 116.07 does not allow the MPCA to adopt
emission standards on a statewide basis; and (3)
Minnesota does not meet the eligibility requirements
under the CAA to adopt California’s motor-vehicle
emission standards.
In August 2022, the MPCA moved to dismiss
MADA’s action, arguing that MADA lacked standing
and failed to state a claim. We denied the motion and
11a
now reach the merits.7 Minn. Auto. Dealers Ass’n v.
Minn. Pollution Control Agency, No. A22-0796 (Minn.
App. Sept. 20, 2022) (order).
ISSUES
I.
Does the Clean Car Rule involve an
unconstitutional delegation of rulemaking or
lawmaking authority because it incorporates by
reference California’s motor-vehicle emission
standards “as amended”?
II.
Does Minn. Stat. § 116.07 allow the MPCA to
adopt rules establishing a uniform set of motorvehicle emission standards with statewide
application?
III.
Does Minnesota qualify under the CAA to adopt
California’s motor-vehicle emission standards?
ANALYSIS
7
The MPCA continues to assert that MADA lacks standing
because the alleged harm is too speculative. The issue of standing
was decided when a special term panel of this court denied the
MPCA’s motion to dismiss on that ground. The MPCA’s continued
assertion of this issue is akin to a motion for reconsideration.
Motions for reconsideration are not allowed under the civil
appellate rules. See State ex rel. Leino v. Roy, 910 N.W.2d 477, 481
(Minn. App. 2018) (recognizing that Minn. R. Civ. App. P. 140.01
has been applied by this court “to foreclose reconsideration of an
issue that a special term panel of this court decided prior to
considering the merits of an appeal”). We thus decline to revisit
this issue.
12a
MADA’s challenge is in the form of a preenforcement challenge to the validity of the Clean Car
Rule. The scope of review on such a challenge is
circumscribed by Minnesota’s Administrative
Procedure Act, Minn. Stat. §§ 14.001-.69 (2022). See
Coal. of Greater Minn. Cities v. Minn. Pollution
Control Agency, 765 N.W.2d 159, 164 (Minn. App.
2009) (noting that “[t]he standard of review is more
restricted than in an appeal from a contested
enforcement proceeding in which the validity of the
rule as applied to a particular party is adjudicated”),
rev. denied (Minn. Aug. 11, 2009). As set out in the
administrative procedure act, appellate courts are
limited in pre-enforcement challenges to determining
whether the rule “violates constitutional provisions or
exceeds the statutory authority of the agency or was
adopted without compliance with statutory rulemaking
procedures.” Minn. Stat. § 14.45; see also Save Mille
Lacs Sportsfishing, Inc. v. Minn. Dep’t of Nat. Res., 859
N.W.2d 845, 850 (Minn. App. 2015). MADA does not
challenge the statutory rulemaking process; our review
is thus limited to determining the constitutionality of
the rule and whether the MPCA exceeded its statutory
authority.
I.
The MPCA acted within its authority when
it incorporated California’s motor-vehicle
emission standards into the Clean Car
Rule, and the “as amended” clause in the
rule does not violate the nondelegation
doctrine.
MADA argues that the Clean Car Rule violates
13a
article I of the Minnesota Constitution by improperly
delegating to a California agency the rulemaking
authority of the MPCA. Article I provides that the
“[g]overnment is instituted for the security, benefit
and protection of the people” of Minnesota. Minn.
Const. art. I, § 1. MADA further argues that, if we
conclude that the MPCA did not improperly delegate
its rulemaking authority, then the legislature violated
the separation of powers requirements of article III of
the Minnesota Constitution by improperly delegating
its lawmaking authority to an executive agency
without adequate guidance. See Minn. Const. art. III,
§ 1 (dividing the powers of government into three
branches: legislative, executive, and judicial).
In our analysis of these issues, we first provide
a brief overview of the nondelegation doctrine and
address the scope of the MPCA’s authority to
incorporate California regulations by reference. We
then address MADA’s challenge to the “as amended”
clause of the Clean Car Rule. This requires us to
interpret the scope of the “as amended” clause. In the
final step of the analysis, we assess whether the Clean
Car Rule as interpreted violates the nondelegation
doctrine.
Under Minnesota precedent, the legislature is
accorded significant latitude to delegate regulatory
authority to state administrative agencies. The
Minnesota Supreme Court has instructed that the
legislature’s power to delegate is not violated so long
as “the law furnishes a reasonably clear policy or
standard of action which controls and guides the
14a
administrative officers in ascertaining the operative
facts to which the law applies.” Lee v. Delmont, 36
N.W.2d 530, 538 (Minn. 1949); see Vicker v. Starkey,
122 N.W.2d 169, 173 (Minn. 1963) (stating that “[i]t is
well settled that the legislature has the power to
delegate to an administrative agency the right to
promulgate such reasonable rules and regulations as
may be necessary to accomplish the purposes for which
the agency is created”). The court has also repeatedly
confirmed that, while the legislature must provide a
“reasonably clear policy” to guide the administrative
agencies, that policy “may be laid down in very broad
and general terms.” Lee, 36 N.W.2d at 538-39; see
Minn. Energy & Econ. Dev. Auth. v. Printy, 351
N.W.2d 319, 350 (Minn. 1984) (noting that “Minnesota
decisions since Lee have consistently followed the
principle that adequate statutory standards may be
laid down in broad and general terms”).
Applying these principles to this case, the
MPCA’s regulatory authority over motor-vehicle
emissions is contained in chapter 116 of the Minnesota
Statutes. Minn. Stat. §§ 116.01-.994 (2022). That
chapter creates the MPCA and grants the agency
broad authority to prevent pollution and manage
Minnesota’s air quality, in addition to protecting water
and land resources. See Minn. Stat. § 116.01 (stating
policy goal of achieving a reasonable degree of air
purity). The MPCA’s authority to adopt motor-vehicle
emission standards is set out in section 116.07. It
authorizes the MPCA to adopt air-quality standards,
“including maximum allowable standards of emission
of air contaminants from motor vehicles.” Minn. Stat.
15a
§ 116.07, subd. 2(a). The section also authorizes the
MPCA to adopt rules and standards to prevent, abate,
or control air pollution. Id., subds. 2(a), 4.
In addition, Congress effectively mandated in
the CAA that states either adopt the EPA’s national
motor-vehicle emission standards or the California
standards. See 42 U.S.C. § 7507. The MPCA elected to
adopt the California standards in the Clean Car Rule.
Instead of repeating the California standards word for
word in the Clean Car Rule, however, the MPCA
incorporated specific regulations by reference. The
MPCA’s authority to incorporate provisions by
reference is expressly sanctioned in section 14.07 of
the Minnesota Administrative Procedure Act, which
allows agencies to incorporate provisions by reference
into agency rules as long as the incorporated
provisions are “conveniently available to the public.”
Minn. Stat. § 14.07, subd. 4(a). The MPCA was thus
well within its authority when it incorporated by
reference the existing California regulations into the
Clean Car Rule.
We turn next to the question of whether the
MPCA acted within its proper authority when it
incorporated by reference not just the existing
California regulations, but those regulations “as
amended.”8 Minn. R. 7023.0150, subp. 2. MADA argues
8
The MPCA argues, as a threshold issue, that MADA’s challenge
to the “as amended” clause in the Clean Car Rule is not yet ripe
because no amendments have yet been made by California to its
motor-vehicle emission standards. At oral argument, however, the
16a
that the “as amended” clause opens up the rule to
automatic adoption of all future California
amendments no matter how substantial or draconian
those amendments might be. MADA maintains that
the clause thus results in an unconstitutional
delegation of either rulemaking or lawmaking
authority.
The MPCA suggests that the “as amended”
clause has a narrower scope. In the SONAR, the
MPCA acknowledged that the “as amended” clause
“means that any future amendments to the
incorporated California regulations automatically
become part of Minnesota rules.” The MPCA
explained, however, that, “[h]istorically, California has
made minor housekeeping updates to its rules every
few years,” but when “California has conducted a
major update to the rules, such as making them more
stringent for future model years, California has done
so in new rule parts.” The MPCA stated that,
consequently, such “major updates would not be
adopted automatically into Minnesota’s rules.” The
MPCA acknowledged that California has already indicated an
intent to amend its standards. Thus, even assuming that the issue
may not yet be ripe, we choose to address the merits of the issue
for reasons of judicial economy. See Midway Nat’l Bank v. Est. of
Bollmeier, 504 N.W.2d 59, 64 (Minn. App. 1993) (addressing issue
to serve interest of judicial economy). In this regard, we also note
that the administrative procedure act allows pre-enforcement
challenges to the validity of a rule “when it appears that the rule,
or its threatened application, interferes with or impairs, or
threatens to interfere with or impair the legal rights or privileges
of the petitioner.” Minn. Stat. § 14.44.
17a
MPCA further represented that the “decision to
incorporate [a major] update[] or revert back to the
backstop federal standards would still need to be
considered on a case-by-case basis through Minnesota
state rulemaking.”
MADA and the MPCA thus offer two different
interpretations of the “as amended” clause. MADA
accords the phrase a broad interpretation that future
amendments, no matter how dramatic or far-reaching
in scope, would automatically be incorporated into the
Clean Car Rule. The MPCA maintains that the “as
amended” clause has a more limited and practical
scope, allowing the Clean Car Rule to remain identical
to the California standards, as the CAA requires,
without instituting laborious rulemaking procedures
for “minor housekeeping updates” to existing
regulations.9 Because we agree that the “as amended”
clause could result in an improper delegation if read
too broadly, we must determine which interpretation
is correct.
“When interpreting statutes and regulations, we
apply our familiar rules.” In re Reissuance of an
NPDES/SDS Permit to U.S. Steel Corp., 954 N.W.2d
572, 576 (Minn. 2021). Our first task under those rules
is to determine if there is an ambiguity. State v.
9
In this regard, the MPCA notes in its brief that there are
numerous references in state regulations to external standards
that are subject to change, such as the fire code that incorporates
portions of the international fire code, “as amended,” Minn. R.
7511.1031.2.1, .1103.4.1, .6101.1 (2021).
18a
Thonesavanh, 904 N.W.2d 432, 435 (Minn. 2017). A
provision is ambiguous if it is subject to more than one
reasonable interpretation. Id. Because we are
presented here with two reasonable interpretations of
the scope of the “as amended” clause, we conclude that
the phrase is ambiguous.
When faced with an ambiguity in the
interpretation of a regulation, we “may resort to the
canons of statutory construction” and “will defer to the
agency’s interpretation and will generally uphold that
interpretation if it is reasonable.” Reissuance of an
NPDES/SDS Permit, 954 N.W.2d at 576 (quotation
omitted). Here, the MPCA represented in the SONAR
that, historically, California has only made “minor
housekeeping updates” when amending existing “rule
parts” and that any “major updates” are made in “new
rule parts”—i.e., in differently numbered regulations
than the regulations incorporated by reference in the
Clean Car Rule—and thus would not be subject to
automatic adoption by reason of the “as amended”
clause. The MPCA represented in the SONAR that any
such “major updates” would “need to be considered on
a case-by-case basis through Minnesota state
rulemaking.”
Given the framework of this case, we defer to
the MPCA’s description of the scope of the “as
amended” clause as set out in the SONAR. We thus
interpret the “as amended” clause more narrowly than
MADA suggests. Under our interpretation, regardless
of whether California were to break with its history
and adopt a “major update” in the existing sections of
19a
their regulations instead of a new rule part, a “major
update” would not be automatically incorporated into
the Clean Car Rule. In the event of a “major update,”
the MPCA would be required to initiate a rulemaking
process to decide whether to adopt the new California
standards or “revert back to the backstop federal
standards” under the CAA.10
Having interpreted the “as amended” clause, we
now turn to the question of whether the “as amended”
clause results in an improper delegation of the MPCA’s
rulemaking authority. In this step of our analysis, we
are guided by the Minnesota Supreme Court’s decision
in Printy, in which the court upheld an “as amended”
clause under an analogous circumstance. Printy, 351
N.W.2d at 352. Printy involved a Minnesota statute
that created a small business loan program. Id. at 351.
In defining which businesses would qualify as “small
businesses” eligible to apply for the loans, the statute
“incorporate[d] by reference the definition of small
business contained in regulations of the United States
small business administration, ‘as amended from time
to time.’” Id. The supreme court determined that this
was not an improper delegation of legislative power to
the federal government because “[t]he ultimate
10
We refrain in this pre-enforcement challenge from delineating
the specific parameters of what would constitute a “major update”
that would require the MPCA to engage in rulemaking prior to
adoption. See Save Mille Lacs Sportsfishing, Inc., 859 N.W.2d at
849 (stating that “the broad and far-reaching scrutiny of a rule or
regulation, based upon hypothetical facts, is a premature exercise
of the judiciary” (quotation omitted)).
20a
determination as to whether to grant a . . . loan rests
with [the state agency] and not with the federal [small
business administration].” Id. at 352. The court
reasoned that “[t]he definition of eligible small
business merely specifies what ‘size standards’ a
business must meet in order to be eligible for a loan”
and that, “[i]n referencing federal regulations, the
Legislature has adopted a generally accepted size
standard to broadly define the category of eligible loan
applicants.” Id.
The court upheld the “as amended” clause in
Printy based in part on its conclusion that the clause
was justified by the nature of the government
program, noting that “there [were] good reasons to
coordinate federal and state eligibility requirements.”
Id. Applying that logic here, there are even stronger
reasons to use an “as amended” clause in this case
than in Printy because the opt-in provision of the CAA
requires Minnesota not just to coordinate, but to
maintain identical motor-vehicle emission standards.
42 U.S.C. § 7507.
MADA cites Wallace v. Commissioner of
Taxation, 184 N.W.2d 588 (Minn. 1971), in support of
its argument. In Wallace, the supreme court held that
the state legislature could not delegate its legislative
powers “to any outside agency, including the Congress
of the United States.” 184 N.W.2d at 589. MADA
contends that, if the state legislature lacks authority
to delegate its lawmaking powers to the United States
Congress, then the MPCA surely lacks authority to
incorporate by reference future California
21a
amendments.
But the supreme court distinguished the
Wallace decision in Printy and at least one other case,
noting that Wallace was based in part on the express
constitutional provision that the power to tax “shall
never be surrendered, suspended or contracted away.”
Printy, 351 N.W.2d at 351 (quoting Minn. Const. art.
X, § 1); see Minn. Recipients All. v. Noot, 313 N.W.2d
584, 586 (Minn. 1981). The court also distinguished
Wallace on the grounds that “the Wallace case itself
notes an exception to its rule for statutes which are
auxiliary in nature and seek to achieve uniformity in
implementation of national programs and policies.”
Printy, 351 N.W.2d at 352 (quotation omitted); see
Minn. Recipients All., 313 N.W.2d at 586-87. The
Wallace holding is thus more limited than MADA
suggests and is not inconsistent with our holding in
this case. We therefore conclude that the MPCA did
not improperly delegate its rulemaking authority in
adopting the Clean Car Rule.
Finally, we turn to MADA’s alternative
argument that the legislature violated the
nondelegation doctrine by failing to provide adequate
guidance to the MPCA. In making this argument,
MADA identifies no specific gaps in the applicable
sections of chapter 116. Instead, MADA appears to
simply argue that chapter 116 must be deficient if the
“as amended” clause of the Clean Car Rule is
determined to be valid. But as the MPCA has
represented and we have concluded, the “as amended”
clause does not allow the automatic incorporation of
22a
“major updates” into the Clean Car Rule. And, as we
note above, legislative guidance to administrative
agencies “may be laid down in very broad and general
terms,” a standard that is satisfied by the applicable
sections of chapter 116. Lee, 36 N.W.2d at 538-39. We
thus reject MADA’s alternative argument and discern
no improper delegation by the legislature to the
MPCA.
II.
Section 116.07 does not prohibit the MPCA
from adopting uniform statewide motorvehicle emission standards.
MADA next argues that Minn. Stat. § 116.07
does not allow the MPCA to adopt motor-vehicle
emission standards having statewide application. That
section provides that the MPCA “shall . . . adopt
standards of air quality, including maximum allowable
standards of emission of air contaminants from motor
vehicles, recognizing that due to variable factors, no
single standard of purity of air is applicable to all
areas of the state.” Minn. Stat. § 116.07, subd. 2
(emphasis added). MADA argues that the Clean Car
Rule violated this provision by establishing a uniform
statewide standard.
Our goal in interpreting a statute is to give
effect to the legislature’s intent. Christianson v. Henke,
831 N.W.2d 532, 536 (Minn. 2013). As we note above,
the first task in statutory interpretation is to
determine whether a statute’s language is ambiguous.
Id. MADA makes no argument here that the italicized
phrase in the above quoted language in Minn. Stat. §
23a
116.07, subd. 2, is ambiguous and we agree. We thus
apply the plain language of the statute. Id.
Here, the plain language of section 116.07 as a
whole leads us to the conclusion that the MPCA acted
consistently with the statute in developing a statewide
standard. In fact, subdivision 4 of section 116.07
specifically allows the MPCA to adopt air-quality
standards having statewide effect. That subdivision
provides that rules or standards adopted by the MPCA
“may be of general application throughout the state”
and that such
rules or standards may relate to sources
or emissions of air contamination or air
pollution, to the quality or composition of
such emissions, or to the quality of or
composition of the ambient air or outdoor
atmosphere or to any other matter
relevant to the prevention, abatement, or
control of air pollution.
Minn. Stat. § 116.07, subd. 4(a) (emphasis added). In
furtherance of this section of the statute, the MPCA
has adopted numerous statewide air-quality standards
specifying maximum allowable quantities for air
contaminants. See, e.g., Minn. R. 7009.0080 (2021).
In addition, subdivision 2 only requires the
MPCA to “recogniz[e]” that “no single standard of
purity of air” applies to “all areas of the state.” Minn.
Stat. § 116.07, subd. 2 (emphasis added). It does not
prohibit a statewide motor-vehicle emission standard.
24a
The remaining language in section 116.07, subdivision
2, uses similar wording, requiring the MPCA to
give due recognition to the fact that the
quantity or characteristics of air
contaminants . . . , which may cause air
pollution in one area of the state, may
cause less or not cause any air pollution
in another area of the state, and [the
MPCA] shall take into consideration in
this connection such factors, . . . that a
standard of air quality which may be
proper as to an essentially residential
area of the state, may not be proper as to
a highly developed industrial area of the
state.
(Emphasis added.) Thus, the plain meaning of the
provision is that the MPCA is required to “recognize”
and “consider” regional variations in air quality, but
that the MPCA is nonetheless permitted to establish
statewide standards.
Finally, this interpretation also serves logic
because the Clean Car Rule regulates air emissions for
new vehicles to be sold in the state and motor vehicles
are, at the risk of overstating the obvious, mobile.
III.
Minnesota has an approved plan provision
under Part D of the CAA and is thus
eligible under the opt-in provision of the
CAA to adopt California’s motor-vehicle
emission standards.
25a
MADA’s final argument is that Minnesota must
follow the federal emission standards because it does
not qualify under the opt-in provision of the CAA, 42
U.S.C. § 7507, to adopt California’s standards.
The opt-in provision allows states to adopt
California’s standards if certain requirements are met.
See 42 U.S.C. §§ 7507, 7543(a)-(b). Among the
requirements, a state must have “plan provisions”
approved by the EPA “under this part.” 42 U.S.C. §
7507. The parties do not dispute that the phrase “this
part” in the opt-in provision refers to Part D of the
CAA. 42 U.S.C. §§ 7501-7515.
Part D of the CAA concerns plan requirements
for “nonattainment areas,” which means, in reference
to air pollution, “an area which is designated
‘nonattainment’ with respect to that pollutant within
the meaning of section 7407(d) of this title.” 42 U.S.C.
§ 7501(2). Section 7407(d), in turn, concerns the
designation of areas as “attainment,” “nonattainment,”
or “unclassifiable” depending on their compliance with
the relevant national air-quality standards. 42 U.S.C.
§ 7407(d). Areas designated as nonattainment are
those that exceed the standard or that “contribute[] to
ambient air quality in a nearby area” that exceeds the
standard. Id. (d)(1)(A)(i).
MADA concedes that there is a designated
nonattainment area in Eagan for lead emissions and
that Minnesota has a nonattainment plan provision
approved by the EPA to address those emissions.
MADA contends, however, that the plan does not
26a
satisfy the section 7507 requirement because lead
emissions were brought into attainment in Eagan in
2015.11 MADA maintains that the only reason that a
plan provision is still in place is because the MPCA
“has failed to apply for redesignation.” MADA argues
that “[t]he MPCA cannot fail to act and then claim
refuge in the situation it has manufactured by
omission.” This argument by MADA, however, is
beyond the limited scope of review under section 14.45
of the Minnesota Administrative Procedure Act. See
Save Mille Lacs Sportsfishing, Inc., 859 N.W.2d at 850.
Because Minnesota has a nonattainment plan
provision under Part D of the CAA, MADA’s argument
is unavailing.12
11
MADA also argues, without citation, that lead does not have
a national air-quality standard “associated with it,” which,
according to MADA, means the lead nonattainment plan has
“even less relevance to regulating air quality.” It appears that
MADA is mistaken in this regard. See 81 Fed. Reg. 71906 (Oct. 18,
2016) (retaining existing national ambient air-quality standards
for lead). And, regardless, it would not alter the fact that
Minnesota has “plan provisions” approved under “Part D” and
thus satisfies that requirement to be eligible to adopt the
California standards under section 7507 of the CAA.
12
The MPCA notes that, in addition to the approved plan
provision for the Eagan nonattainment area, Minnesota has
several approved maintenance plan provisions aside from the
Eagan nonattainment area. See 40 C.F.R. § 52.1237 (2020)
(setting out approval of Minnesota’s maintenance plans). The
MPCA maintains that these approved maintenance plans also
satisfy the “plan provision” requirement for eligibility to adopt the
California standards under 42 U.S.C. § 7507. The MPCA argues
that this is because maintenance plans are also included in Part
D of the CAA, 42. U.S.C. 7505a. We need not address this
27a
DECISION
The inclusion of the “as amended” clause in
Minn. R. 7023.0150, subp. 2, does not violate the
nondelegation doctrine. We also hold that the MPCA
has the statutory authority to adopt a statewide
motor-vehicle emission rule and Minnesota is an
eligible state under the CAA to adopt California’s
motor-vehicle emission standards. We therefore
conclude that the Clean Car Rule is valid.
Rule declared valid.
argument, however, because we conclude that the Eagan
nonattainment area plan provision satisfies the CAA’s eligibility
requirement.
28a
APPENDIX C
STATE OF MINNESOTA
IN SUPREME COURT
A22-0796
[DATE STAMP]
FILED
May 16, 2023
Office of
Appellate Courts
Minnesota Automobile Dealers Association,
Petitioner,
vs.
Minnesota Pollution Control Agency,
Respondent.
ORDER
Based upon
proceedings herein,
all
the
files,
records,
and
IT IS HEREBY ORDERED that the petition of
Minnesota Automobile Dealers Association for further
review is denied.
IT IS FURTHER ORDERED that the request of
respondent Minnesota Pollution Control Agency for
29a
conditional cross-review is denied.
IT IS FURTHER ORDERED that the motion of
the National Federation of Independent Business
Small Business Legal Center, Inc. to file and serve a
brief as amicus curiae in the above-entitled matter is
denied.
Dated: May 16, 2023
BY THE COURT:
/s/
Lorie S. Gildea
Chief Justice
30a
APPENDIX D
STATE OF MINNESOTA
IN COURT OF APPEALS
Minnesota Automobile Dealers Association,
Petitioner,
vs.
Minnesota Pollution Control Agency,
Respondent.
PETITION FOR DECLARATORY
JUDGMENT
APPELLATE COURT CASE NUMBER:
AGENCY OR BODY NUMBER:
OAH 71-9003-36416
TO: The Court of Appeals of the State of Minnesota:
The above-named petitioner hereby petitions the
Court of Appeals pursuant to Minn. Stat. § 14.44 for a
declaratory judgment determining the validity of
Minn. R. 7023.0150, .0200, .0250, and .0300, adopted
by Respondent Minnesota Pollution Control Agency on
July 26, 2021 (46 S.R. 66), upon the grounds that the
rule exceeds the statutory authority of the agency
under Minn. Stat. § 116.07, is not authorized under
the federal Clean Air Act, and additionally based on
31a
the following allegations:
The Parties
1. Petitioner Minnesota Automobile Dealers
Association (“MADA”) is a nonprofit trade association
representing 348 franchised new car and truck dealers
located across Minnesota (98% of the market). Its
members support taking action to keep Minnesota’s air
clean and help mitigate the impacts of climate change.
However, MADA 2 and its members opposed the
adoption of the Rules, which are California’s
regulations for LEV and ZEV.
2. Respondent Minnesota Pollution Control
Agency (“MPCA”) is a statutory agency created via
Minn. Stat. § 116.02 and is responsible for the
adoption of the Rules at issue.
Adoption of the Rules
3. On December 21, 2020, the MPCA published
in the State Register notice of its intent to adopt rules
related to “vehicle greenhouse gas emissions
standards” (the “Rules”) which follow California’s
standards adopted based on its waiver from the federal
Clean Air Act’s uniformity requirement for vehicle
tailpipe emissions. 45 S.R. 663-670.
4. After notice, comments, a hearing, and a
report of the Administrative Law Judge, the Rules
were approved and adopted by publication in the State
Register on July 26, 2021. 46 S.R. 66.
32a
Requirements of the Rules
5. These Rules incorporate by reference
“California Code of Regulations, title 13, sections 1900,
1956.8(h) (medium-duty vehicle greenhouse gas
emission standards only), 1961.2, 1961.3, 1962.2,
1962.3, 1965, 1968.2, 1976, 1978, 2035, 2037 to 2041,
2046, 2062, 2109, 2111 to 2121, 2122 to 2135, 2139,
and 2141 to 2149, as amended.” Minn. R. 7023.0150,
Subp. 2. The California standards referenced include
standards for Low Emission Vehicles (LEV) and Zero
Emission Vehicles (ZEV).
6. Minn. R. 7023.0250, Subp. 1 expressly
requires all new motor vehicles “produced by a motor
vehicle manufacturer and delivered for sale or lease in
the state” to 3 be certified to the California standards
incorporated in Minn. R. 7023.0150, Subp. 2. This
includes all “passenger cars, light-duty trucks,
medium-duty passenger vehicles, and medium-duty
vehicles; new light- or medium-duty motor vehicle
engines; and motor vehicles with a new motor vehicle
engine.” Minn. R. 7023.0250, Subp. 1.
7. Passenger cars are vehicles designed mostly
to transport 12 people or fewer. Light-duty trucks are
vehicles with a gross vehicle weight of under 8,500
pounds. Medium-duty vehicles are vehicles with a
gross vehicle weight of between 8,501 and 14,000
pounds. Medium-duty passenger vehicles are mediumduty vehicles with a gross vehicle weight of less than
10,000 pounds and designed mostly to transport
people.
33a
8. Minn. R. 7023.0250, Subp. 3 expressly forbids
a manufacturer from delivering for sale or lease to
Minnesota dealers a fleet of vehicles with average
nonmethane organic gas plus oxides of nitrogen
emission values or greenhouse gas exhaust emission
values exceeding the limitations of California Code of
Regulations, title 13, sections 1961.2 (nonmethane
organic gas) and 1961.3 and 1956.8(h)(6) (greenhouse
gases), respectively.
9. Minn. R. 7023.0300, Subp. 1 expressly
requires a manufacturer to sell a certain percentage of
ZEV to Minnesota dealers as part of its fleet for that
model year, following California Code of Regulations,
title 13, section 1962.2.
10. Beginning with Model Year 2022 and ending
with Model Year 2025, the Rules create an early-action
credit system which allows manufacturers to deliver
more ZEV to Minnesota immediately to earn credits
against future fleet averages. Minn. R. 7023.0300,
Subp. 4; MPCA, Statement of Need and
Reasonableness, p. 13, available at https://www.
pca.state.mn.us/sites/default/files/aq-rule4-10m.pdf.
11. According to the MPCA’s SONAR, the rules
are designed to mirror and follow the rules
promulgated—and amended—by the State of
California’s Air Resources Board (“CARB”). The
SONAR specifically states:
a.
The proposed rule requires automobile
manufacturers deliver for sale in
34a
Minnesota only passenger cars, lightduty trucks, medium-duty vehicles, and
medium-duty passenger vehicles that are
certified by California as meeting the
LEV standard. SONAR p. 12.
b.
Manufacturers also need to meet average
emission requirements for the entire fleet
of vehicles they deliver for sale in
Minnesota. There are separate fleetwide
emission standards for passenger cars,
light-duty trucks, medium-duty vehicles,
and medium-duty passenger vehicles.
SONAR p. 12.
c.
The MPCA is proposing to adopt the LEV
and ZEV standards “as amended.”
Incorporation “as amended” means that
any future amendments to the
incorporated California regulations
automatically become part of Minnesota
rules. Using “as amended” improves
administrative efficiency by reducing the
need for rulemakings to maintain
consistency with the California rules.
Historically, California has made minor
housekeeping updates to its rules every
few years. However, when California has
conducted a major update to the rules,
such as making them more stringent for
future model years, California has done
so in new rule parts. Because California
uses new rule parts, these major updates
35a
would not be adopted automatically into
Minnesota’s rules. SONAR p. 41.
12. The adopted Rules do not state that “major
updates” to the California standards will not be
immediately adopted when effective. Minn. R.
7023.0150, Subp. 2.
13. In testimony before the Minnesota Senate
State Government Finance and Policy and Elections
Committee on March 1, 2022, MPCA Commissioner
Katrina Kessler, Assistant Commissioner for Climate
and Air Policy Craig McDonnell, and Climate Director
Frank Kohlasch testified related to the meaning and
effect of the Rules.1
14. Senator Mary Kiffmeyer asked the MPCA
how a newly proposed California rule would affect the
implementation of the Rule at issue here. Testimony at
19:20. Those proposed rules include proposed changes
to California’s LEV and ZEV rules, which the Rules
claim to adopt “as amended.”2
15. Commissioner Kessler initially testified that
the MPCA is aware of the new California proposal, and
that these new California emission standards would
1
Committee testimony (“Testimony”) available at https://www.
youtube.com/watch?v=E BR4kQhDmdA.
2
See https://ww2.arb.ca.gov/events/public-workshop-advancedclean-cars-ii-1 for background on these newly proposed California
LEV and ZEV rules.
36a
not automatically impact Minnesota, and that any
changes in Minnesota would have to undergo a “new
rulemaking and new process.” Testimony at 20:20.
16. Senator Jeff Howe then asked when the
MPCA would simply adopt “minor” changes to the
California rules “as amended,” versus going through a
rulemaking process for “major” changes or new
California rules. Testimony at 26:35. Commissioner
Kessler then stated that “adoption of new standards”
would require “new rulemaking” and that these would
not be “minor changes.” Id. Senator Howe followed up,
asking who determines what is major and what is
minor. Id. Climate Director Kohlasch responded that
new rules require new rulemaking, but “minor changes
to definitions” in the California rules would
automatically be incorporated into the Rules. Id.
17. Senator Howe followed up again to ask
whether a “definition change” which banned gaspowered lawn equipment would be automatically
incorporated into the Rules. Testimony at 29:00.
Climate Director Kohlasch did not answer the
question, stating that California “has never done that.”
Id. He then testified that the MPCA would “have to
look to see” whether that change would be
incorporated by reference. Id. Commissioner Kessler
confirmed that the MPCA would have the authority to
make the decision whether to adopt the California
“minor” change. Testimony at 32:00.
18. Commissioner Kessler also testified that if
California changed its rules and Minnesota failed to
37a
either adopt the changes “as amended” or go through
new rulemaking, Minnesota would “default” to federal
rules for LEV. Testimony at 32:35. Senator Kiffmeyer
noted that the federal government does not even have
a ZEV standard. Id. Assistant Commissioner
McDonnell then affirmed that in the event Minnesota
does not adopt any new ZEV standards adopted by
California, it will “lose the ZEV standard that we
currently enjoy.” Id. at 34:00.
19. The MPCA also testified as to its claim of
authority under Minn. Stat. § 116.07 related to heavyduty trucks (Testimony at 37:00) and gas-powered
lawn equipment (Testimony at 38:00). When asked,
Commissioner Kessler testified that the MPCA has the
authority to ban gas-powered heavy-duty trucks and
gas-powered law equipment because of its claimed
authority to “regulate air pollution,” without subjectmatter restriction. Id.; Testimony at 1:10:00.
Effects of the Rules
20. Under the Rules, beginning in January 2024,
with Model Year 2025, no dealer in Minnesota may
purchase a new vehicle from a manufacturer unless it
is certified according to the standards set by
California, which may change whenever California
makes a rule change.
21. In addition, dealers may only purchase
vehicles based on the fleets which manufacturers are
allowed to offer, which will contain far more ZEV and
LEV than customers in Minnesota demand.
38a
22. Because of the early-action credit
mechanism and its coercive effect, dealers are
immediately faced with vehicle fleet and engine
options limited based on the requirements of the
Rules.
23. MADA, and its members through it, are
specifically harmed by the adoption of the Rules in a
manner distinct from that of the general public,
including as follows:
a.
The MPCA admits in its SONAR that
“[a]utomobile dealers may have some
costs associated with this proposed
rule….Dealers are not directly regulated
by this proposed rule, but they are the
interface between the manufacturers and
consumers and therefore may experience
costs and changes to business. They may
experience changes in requirements from
manufacturers to ensure only LEVcertified vehicles are offered for sale to
Minnesotans. They may also experience
limitations on trading vehicles with
dealers in other states if those dealers do
not carry LEV-certified vehicles. In
addition, they may need to invest in
infrastructure, tools, and training to
support increased EV sale.” SONAR p.
63.
b.
The MPCA admits that the Rules will
make the price of all new vehicles sold in
39a
Minnesota more expensive by $900 to
1,200 for ZEV and $1,139 per LEV.
SONAR pp. 63, 71. This amount is
enough to deter a customer from the
purchase of a new vehicle in a hypercompetitive market where consumers
will drive hundreds of miles to get the
best deal.
c.
Dealership members of MADA which
border Wisconsin, North Dakota, South
Dakota, and Iowa obtain customers from
surrounding states. The increase in price
of new cars imposed by the adopted Rules
will cause those dealerships to lose
customers.3 According to MADA member
dealers in Fergus Falls, customers from
North and South Dakota comprise
approximately 40% of their sales, the loss
of which would be enough to put those
dealer-members out of business.
d.
Dealers purchase their vehicles from
manufacturers; they are not bought on
consignment. The ZEV Rule requires
3
E.g., MPCA, “Notice Comments 2,” pp. 66-68 (Affidavit of
Douglas Erickson, Jan. 6, 2021, ¶¶ 25-40), 75-77 (Affidavit of
Timothy Ciccarelli, Jan. 5, 2021, ¶¶ 21-31), 83-84 (Affidavit of
Steve Whitaker, Jan. 8, 2021, ¶¶ 17-36), 89-91 (Affidavit of
Chester Lockwood, Jan. 5, 2021, ¶¶ 16-34), 95-96 (Affidavit of
Gregory House, Jan. 8, 2021, ¶¶ 13-22), available at
https://www.pca.state.mn.us/sites/default/files/aq-rule4-10z2.pdf.
40a
MADA dealer-members to purchase
electric vehicles for which there is no
current demand. Dealers purchase their
inventory from manufacturers when they
deliver those vehicles for sale, and there
are significant interest costs when doing
so—tens of thousands of dollars per
month for a midsize dealer.4 When that
inventory is not sold due to lack of
demand, the dealer’s carrying costs
mount and limit the number of other new
vehicles they can take in, hurting their
marketability to consumers.
e.
4
After six months of holding vehicles
which customers do not want, dealers
could face “curtailment” and be subject to
paying significant interest and principal
costs that could force them out of
business.5 A recent survey of some
Minnesota Chevrolet dealers found EV
inventory that had been sitting on their
lots in excess of 275 days. With so much
credit tied up in EVs, it will be harder for
MADA dealer-members to stock vehicles
that are in higher demand. This will
make the dealerships less profitable and
add to the weight these rules are bearing
E.g., id., p. 63 (Erickson Aff. ¶ 24).
5
E.g., id., pp. 74-75 (Ciccarelli Aff. ¶¶ 17-20); p. 82 (Whitaker Aff.
¶¶ 12-16); pp. 88-89 (Lockwood Aff. ¶¶ 13-15).
41a
down on them.
f.
For some MADA members, as much as
one-third of their new car sales are
dependent on out-of-state dealer trades
to obtain vehicles for sale which meet
customers’ custom requests, which vary
substantially. Trading with other LEV
and ZEV states alone is practically
impossible because of the transportation
costs associated with moving those
vehicles. The nearest Californiacompliant state is Colorado.6
The Rules Have Been Promulgated
and Are Effective
24. The Rules state that they become effective
“on the date given in a commissioner’s notice published
in the State Register after the standards incorporated
by reference in subpart 2 are granted a waiver by the
U.S. Environmental Protection Agency under United
States Code, title 42, section 7543.” Minn. R.
7023.0150, Subp. 4.
25. On December 21, 2021, the United States
Department of Transportation’s National Highway
Traffic Safety Administration finalized a rule
repealing the Trump Administration’s SAFE I rule,
6
E.g., id., pp. 67-68 (Erickson Aff. ¶¶ 31-40), pp. 76-77 (Ciccarelli
Aff. ¶¶ 25-31), pp. 83- 84 (Whitaker Aff. ¶¶ 24-36), pp. 90-91
(Lockwood Aff. ¶¶ 25-34), pp. 95-96 (House Aff. ¶¶ 13-21).
42a
which had revoked California’s waiver from the Clean
Air Act’s tailpipe emission regulations uniformity
requirement. NHTSA, Corporate Average Fuel
Economy (CAFÉ) Preemption, Final Rule, at p. 40,
avai l ab l e a t h t t p s : / / w w w . n h t s a . g o v / s i t es /
nhtsa.gov/files/2021-12/CAFE-Preemption-Final-RuleWeb- Version-tag.pdf.
26. Thereafter, the MPCA Commissioner
published notice in the State Register required by
Minn. R. 7023.0150, Subp. 4 and the Note to the rule.
46 S.R. 755 (Dec. 27, 2021). While the notice states
that “MPCA will not enforce any part of the Standards
unless and until EPA grants a waiver,” the notice
identifies the “effective date for the Standards is
December 31, 2021.” 46 S.R. 755.
27. Thereafter, on March 14, 2022, the USEPA
rescinded 2019’s SAFE I rule as well, and fully
restored “California’s authority under the Clean Air
Act (CAA) to implement its own greenhouse gas
emission (GHG) emission standards and zero emission
vehicle (ZEV) sales mandate.” USEPA, California
State Motor Vehicle Pollution Control Standards;
Advanced Clean Car Program Reconsideration of a
Previous Withdrawal of a Waiver of Preemption;
Notice of Decision, 87 Fed. Reg. 14332 (Mar. 14, 2022),
available at https://www.govinfo.gov/content/pkg/FR2022-03-14/pdf/2022-05227.pdf.
Delegating Rulemaking Authority to
Another State Violates Minnesota’s
Sovereignty, and Federal Law Does
43a
Not Authorize Minnesota to Adopt
California’s Standards
The Rules Cannot Be Adopted “As Amended”
28. By incorporating the California standards
“as amended,” the Rules impermissibly delegate the
MPCA’s authority to a California agency, the CARB.
Minn. R. 1400.2100(F); Minn. Const. Art. I sec. 1.
29. The Minnesota Constitution, Article I,
section 1, identifies the object of Minnesota’s
government as “instituted for the security, benefit and
protection of the people, in whom all political power is
inherent, together with the right to alter, modify or
reform government whenever required by the public
good.”
30. Rule 1400.2100 prohibits approval of a rule
where power is delegated to another body. It states,
“[a] rule must be disapproved by the judge or chief
judge if the rule:…. is unconstitutional or illegal; [or]
… improperly delegates the agency's powers to another
agency, person, or group.”
31. Further, Minnesota Supreme Court
precedent holds that the state may not delegate
authority to make future changes to its laws to the
Federal government because the people of Minnesota
retain that power. Wallace v. Comm'r of Tax'n, 184
N.W.2d 588, 591-92 (Minn. 1971). This premise is even
stronger when the delegation is to another state. At
least with delegations to the Federal government,
44a
Minnesota laws are inherently subordinate to federal
laws passed within the scope of federal jurisdiction.
32. Here, the MPCA admits that the “as
amended” language requires immediate incorporation
of the CARB’s rule changes when they are made.
SONAR p. 41. This is a clear delegation of rulemaking
authority and violates the legal principles just
described. It is also a real problem; California has just
announced its intent to change California’s LEV and
ZEV standards incorporated by the Rules by creating
new sections 1961.4 and 1962.4 related to LEV and
ZEV, based on Governor Newsom’s Executive Order N79-20, which “established a goal that 100 percent of
California sales of new passenger car and trucks be
zero-emission by 2035, and directed CARB to develop
and propose regulations toward this goal.” Public
Workshop on Advanced Clean Cars II, available at
https://ww2.arb.ca.gov/events/public-workshopadvanced-clean-cars-ii-1.
33. Despite the MPCA’s testimony that it would
go through rulemaking if changes to its Rules were
“major,” as opposed to “minor,” the Rules do not say
that, and the agency’s testimony as to its own
arbitrary distinctions between major and minor do not
clarify where the line between adoption of California
rules and “default” to federal regulations might
actually occur. The Rules provide MPCA unbridled
discretion, which violates Minnesota law, as described
below.
34. Given that the Rules expressly rely on the
45a
current definitions and regulations provided by the
California standards, the “as amended” language in
the Rules is not severable. “[A] statute cannot be
severed if we determine that the valid provisions ‘are
so essentially and inseparably connected with, and so
dependent upon, the void provisions’ that the
Legislature would not have enacted the valid
provisions without the voided language. " State v.
Melchert-Dinkel, 844 N.W.2d 13, 24 (Minn. 2014).
35. Even if the “as amended” language is
severable, it must be struck. If California seeks to
amend its standards, Minnesota must consider
whether to adopt California’s amendments via new
rulemaking.
The MPCA Did Not Have the Authority to Make
Future Rules Via an “As Amended” Provision
36. And even if the “as amended” language of
the Rules is permissible under non-delegation
principles, it rests unbridled discretion in the MPCA
and is vague as to whether future California rule
changes will actually be adopted. More specifically,
while the MPCA’s SONAR claims that “as amended”
“means that any future amendments to the
incorporated California regulations automatically
become part of Minnesota rules,” the SONAR also
claims that “major” Rules changes will not be
automatically incorporated. SONAR p. 41. Yet the
Rules say that they will. Minn. R. 7023.0150, Subp. 2.
37. Granting unbridled discretion to agency
46a
officials to adopt or reject new rules without following
rulemaking procedures violates the Administrative
Procedure Act and Article III, section 1 of the
Minnesota Constitution. Minn. Stat. § 14.05, subd. 1
(“Each agency shall adopt, amend, suspend, or repeal
its rules in accordance with the procedures 13 specified
in sections 14.001 to 14.69.”); Minn. Stat. § 14.03
(nowhere is an “as amended” adoption excepted from
the rulemaking process); Minn. Const. Art. III, sec. 1
(legislative power exclusive to Legislature, not
executive agencies). Future amendments based on
CARB amendments must go through the rulemaking
procedure, but the MPCA claims that it will selectively
decide which amendments to submit to the rulemaking
process. SONAR pp. 40-41. In this way, the MPCA is
trying to act exactly like the Legislature. This kind of
unbridled discretion is impermissible.
Minnesota Does Not Qualify for Use of
California’s Waiver Under the Clean Air Act
38. Finally, Minnesota does not meet the Clean
Air Act’s predicate requirement for adopting
California’s air quality rules. In order to adopt
California’s rules under a CAA waiver, the adopting
state must have “nonattainment” plan provisions
approved by the EPA. 42 U.S.C. § 7507. This is
common sense: if a state is meeting all air quality
standards, there is no need to adopt stricter rules to
clean up the air. The MPCA argued to the
Administrative Law Judge that Minnesota had these
plans approved by the EPA, so it was able to adopt
California’s rules related to motor vehicle emissions.
47a
SONAR p. 35. This is deceptive—Minnesota has one
“nonattainment” plan which was approved for the City
of Eagan alone related to 2008 Lead levels, but Eagan
reached “attainment” status in 2015. 80 Fed. Reg.
51127. There are no areas in Minnesota which are not
at “attainment” levels for all National Ambient Air
Quality Standards (NAAQS). Current Nonattainment
Counties for All Criteria Pollutants (December 31,
2021), available at https://www3.epa.gov/
airquality/greenbook/ancl.html; Status of Minnesota
Designated 14 Areas, available at
https://www3.epa.gov/airquality/urbanair/sipstatus/
reports/mn_areaby poll.html. Because there are no
active nonattainment plans approved for Minnesota,
and certainly none related to greenhouse gas
emissions, Minnesota does not have the authority to
adopt California’s rules under 42 U.S.C. § 7507.
Prayer for Relief
Based on the foregoing allegations, the
administrative record, and the forthcoming briefs and
arguments of counsel, Petitioner respectfully requests
that the Court declare and adjudge the Rules to be
invalid.
Respectfully submitted,
DATED: June 8, 2022
Minnesota Automobile Dealers Association, by their
attorneys:
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UPPER MIDWEST LAW CENTER
Douglas P. Seaton (#127759)
James V. F. Dickey (#393613)
8421 Wayzata Blvd., Suite 300
Golden Valley, MN 55304
612-428-7000
doug.seaton@umlc.org
james.dickey@umlc.org.
/s/ James V. F. Dickey
James V. F. Dickey, #393613
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APPENDIX E
7023.0150 SCOPE AND INCORPORATION BY
REFERENCE.
Subpart 1. Scope. To reduce air pollution from
vehicles in the state, parts 7023.0150 to 7023.0300
establish standards for low-emission vehicles and
zero-emission vehicles.
Subp. 2. Incorporation by reference. California
Code of Regulations, title 13, sections 1900, 1956.8(h)
(medium-duty vehicle greenhouse gas emission
standards only), 1961.2, 1961.3, 1962.2, 1962.3, 1965,
1968.2, 1976, 1978, 2035, 2037 to 2041, 2046, 2062,
2109, 2111 to 2121, 2122 to 2135, 2139, and 2141 to
2149, as amended, are incorporated by reference. The
regulations are not subject to frequent change and are
available online at https://oal.ca.gov/publications/ccr/.
Subp. 3. Term substitutions. In applying the
incorporated sections of the California Code of
Regulations, unless the context requires otherwise:
A. "California" means "Minnesota";
B. "CARB," "ARB," or "Air Resources Board"
means the agency; and
C. "Executive Officer" means the commissioner.
Subp. 4. Effective date. Parts 7023.0150 to
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7023.0300, except part 7023.0300, subpart 4, are
effective on the date given in a commissioner's notice
published in the State Register after the standards
incorporated by reference in subpart 2 are granted a
waiver by the U.S. Environmental Protection Agency
under United States Code, title 42, section 7543. The
commissioner's notice must also designate the first
effective model year in accordance with United States
Code, title 42, section 7507.
Statutory Authority: MS s 116.07
History: 46 SR 66
NOTE: This part is effective on the date given in
a commissioner's notice published in the State
Register after the standards incorporated by reference
in part 7023.0150, subpart 2, are granted a waiver by
the U.S. Environmental Protection Agency under
United States Code, title 42, section 7543.
Published Electronically: August 11, 2021
* * *
7023.0200 DEFINITIONS.
Subpart 1. Applicability. For parts 7023.0150 to
7023.0300, the terms in this part have the meanings
given. The definitions in parts 7000.0100 and
7005.0100 and California Code of Regulations, title 13,
section 1900, apply to parts 7023.0150 to 7023.0300
unless the terms are otherwise defined in this part.
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Subp. 2. Authorized emergency vehicle.
"Authorized emergency vehicle" has the meaning given
in Minnesota Statutes, section 169.011.
Subp. 3. CARB. "CARB" means the California
State Air Resources Board as defined in California
Health and Safety Code, division 26, part 1, chapter 1,
section 39003.
Subp. 4. First effective model year. "First effective
model year" means the first model year for which the
standards adopted in parts 7023.0150 to 7023.0300 are
effective according to the commissioner's notice under
part 7023.0150, subpart 4.
Subp. 5. Light-duty truck. "Light-duty truck" has
the meaning given under California Code of
Regulations, title 13, section 1900(b)(11).
Subp. 6. Medium-duty passenger vehicle.
"Medium-duty passenger vehicle" has the meaning
given under California Code of Regulations, title 13,
section 1900(b)(12).
Subp. 7. Medium-duty vehicle. "Medium-duty
vehicle" has the meaning given under California Code
of Regulations, title 13, section 1900(b)(13).
Subp. 8. Military tactical vehicle. "Military
tactical vehicle" means a land combat or
transportation vehicle, excluding a rail-based vehicle,
that is designed for and used by a branch of the United
States armed forces or used as an authorized
52a
emergency vehicle by or for a governmental agency.
Subp. 9. Model year. "Model year" means the
manufacturer's annual production period that includes
January 1 of a calendar year or, if the manufacturer
has no annual production period, the calendar year.
The model year for a motor vehicle manufactured in
two or more stages is the model year in which the
chassis is completed.
Subp. 10. Motor vehicle manufacturer. "Motor
vehicle manufacturer" means a small, independent
low, intermediate, or large volume manufacturer as
defined under California Code of Regulations, title 13,
section 1900(b)(8), (9), (10), and (22).
Subp. 11. New motor vehicle. "New motor
vehicle" means a first effective model year or later
model year motor vehicle with less than 7,500 miles of
use accumulated as of the date of sale or lease.
Subp. 12. Passenger car. "Passenger car" has the
meaning given under California Code of Regulations,
title 13, section 1900(b)(17).
Subp. 13. Transitional zero-emission vehicle
or TZEV. "Transitional zero-emission vehicle" or
"TZEV" has the meaning given under California Code
of Regulations, title 13, section 1962.2(c).
Subp. 14. Used motor vehicle. "Used motor
vehicle" means a first effective model year or later
model year motor vehicle with 7,500 miles or more of
53a
use accumulated as of the date of sale or lease.
Subp. 15. Zero-emission vehicle or ZEV.
"Zero-emission vehicle" or "ZEV" has the meaning
given under California Code of Regulations, title 13,
section 1962.2(a).
Statutory Authority: MS s 116.07
History: 46 SR 66
NOTE: This part is effective on the date given in
a commissioner's notice published in the State
Register after the standards incorporated by reference
in part 7023.0150, subpart 2, are granted a waiver by
the U.S. Environmental Protection Agency under
United States Code, title 42, section 7543.
Published Electronically: August 11, 2021
* * *
7023.0250 LOW-EMISSION
STANDARDS.
VEHICLE
Subpart 1. Requirement. Beginning with the first
effective model year, all of the following that are
produced by a motor vehicle manufacturer and
delivered for sale or lease in the state must be certified
to the standards incorporated by reference under part
7023.0150, subpart 2, except as provided under
subpart 2:
54a
A. new motor vehicles that are passenger cars,
light-duty trucks, medium-duty passenger vehicles,
and medium-duty vehicles;
B. new light- or medium-duty motor vehicle
engines; and
C. motor vehicles with a new motor vehicle
engine.
Subp. 2. Exceptions. This part does not apply to:
A. a used motor vehicle;
B. a new motor vehicle sold to another dealer;
C. a new motor vehicle sold to be wrecked or
dismantled;
D. a new motor vehicle sold exclusively for
off-highway use;
E. a new motor vehicle sold for registration
out-of-state;
F. a new motor vehicle that has been certified
to standards adopted under authority granted in
United States Code, title 42, section 7521, and that is
in the possession of a rental agency in the state and
that is next rented with a final destination outside of
the state;
G. an authorized emergency vehicle;
55a
H. a military tactical vehicle;
I. a new motor vehicle transferred by
inheritance;
decree;
J. a new motor vehicle transferred by court
K. a new motor vehicle acquired by a state
resident to replace a motor vehicle that was registered
to the resident and that, while out of state, was
damaged, became inoperative beyond reasonable
repair, or was stolen if the replacement motor vehicle
is acquired out of state at the time the previously
owned vehicle was damaged, became inoperative, or
was stolen; or
L. a new motor vehicle purchased and
registered in another state by a person who is a
resident of that state and who subsequently
establishes residency in Minnesota. Upon registering
the new motor vehicle in Minnesota, the person must
provide evidence to the commissioner of the previous
residence and registration.
Subp. 3. Fleet average emissions.
A. For first effective model year motor vehicles
and all subsequent model year motor vehicles to which
this part applies, a motor vehicle manufacturer must
not exceed the fleet average nonmethane organic gas
plus oxides of nitrogen emission values under
California Code of Regulations, title 13, section 1961.2.
56a
Credits and debits may be accrued and used based on
a manufacturer's sales in the state of motor vehicles
subject to this part according to California Code of
Regulations, title 13, section 1961.2(c).
B. For first effective model year motor vehicles
and all subsequent model year motor vehicles to which
this part applies, a motor vehicle manufacturer must
not exceed the fleet average greenhouse gas exhaust
emission values under California Code of Regulations,
title 13, section 1961.3. For first effective model year
motor vehicles and all subsequent model year motor
vehicles, manufacturers of medium-duty vehicles
produced by a motor vehicle manufacturer and
delivered for sale or lease in the state must not exceed
the greenhouse gas emission standards under
California Code of Regulations, title 13, section
1956.8(h)(6). Credits and debits may be accrued and
used based on a manufacturer's sales in the state of
motor vehicles subject to this part according to
California Code of Regulations, title 13, section 1961.3.
Subp. 4. Environmental performance labels.
Beginning with the first effective model year and all
subsequent model years, all new motor vehicles subject
to this part produced by a motor vehicle manufacturer
and delivered for sale or lease in the state must be
affixed with emission control labels and environmental
performance labels according to California Code of
Regulations, title 13, section 1965.
Subp. 5. Warranty requirements. For all motor
vehicles subject to this part, the motor vehicle
57a
manufacturer must provide defect warranty coverage
that complies with California Code of Regulations, title
13, sections 2035, 2037 to 2041, and 2046.
Subp. 6. Recall requirements. For all motor
vehicles subject to this part and subject to recall in
California, the motor vehicle manufacturer must
undertake a recall campaign in this state according to
California Code of Regulations, title 13, sections 2111
to 2121 and 2122 to 2135, unless the manufacturer
demonstrates to the commissioner that the recall is not
applicable to motor vehicles registered in Minnesota.
Subp. 7. Reporting requirements.
A. By May 1 of the calendar year after the end
of the model year, a motor vehicle manufacturer must
annually submit to the commissioner a report
demonstrating that the motor vehicle manufacturer
has met the requirements of subpart 3, item A, for its
fleet delivered for sale in the state.
B. By May 1 of the calendar year after the end
of the model year, a motor vehicle manufacturer must
annually submit to the commissioner a report
demonstrating that the motor vehicle manufacturer
has met the requirements of subpart 3, item B, for its
fleet delivered for sale in the state.
C. If requested by the commissioner, a motor
vehicle manufacturer must provide reports in the same
format as provided to CARB on all assembly-line
emission testing and functional test results collected
58a
as a result of compliance with this part, warranty
claim reports, recall reports, and any other reports
required by CARB under the regulations incorporated
by reference under part 7023.0150. The reports must
be supplemented with data on motor vehicles delivered
for sale or registered in Minnesota.
D. If the commissioner deems it necessary to
administer and enforce this part, the commissioner
must require a motor vehicle manufacturer subject to
this part to submit additional documentation,
including all certification materials submitted to
CARB.
Subp. 8. Record availability and retention;
reporting noncompliance.
A. Upon oral or written request of the
commissioner, a person subject to this part must
furnish to the commissioner or allow the commissioner
to access and copy all records that relate to the motor
vehicles that are subject to this part and that are
relevant for determining compliance with this part.
Unless otherwise specified, a person subject to this
part must retain all relevant records for at least five
years after creating the records.
B. If a report issued by a motor vehicle
manufacturer under subpart 7 demonstrates
noncompliance with the fleet average under subpart 3
for a model year, the manufacturer must, within 60
days, file a report with the commissioner to document
the noncompliance. The report must identify all motor
59a
vehicle models delivered for sale or lease in the state,
the models' corresponding certification standards, and
the percentage of each model delivered for sale in this
state and California in relation to total fleet sales in
the respective state.
Statutory Authority: MS s 116.07
History: 46 SR 66
NOTE: This part is effective on the date given in
a commissioner's notice published in the State
Register after the standards incorporated by reference
in part 7023.0150, subpart 2, are granted a waiver by
the U.S. Environmental Protection Agency under
United States Code, title 42, section 7543.
Published Electronically: August 11, 2021
* * *
7023.0300 ZERO-EMISSION
STANDARDS.
VEHICLE
Subpart 1. Requirement. Beginning with the first
effective model year, a motor vehicle manufacturer's
sales fleet of passenger cars and light-duty trucks
produced by motor vehicle manufacturers and
delivered for sale or lease in the state must contain at
least the same applicable percentage of ZEVs required
under California Code of Regulations, title 13, section
1962.2.
60a
Subp. 2. Credit bank; reporting requirements;
record availability and retention.
A. Beginning in the first effective model year,
a motor vehicle manufacturer subject to this part must
open an account in the California ZEV credit system
for banking credits earned in Minnesota. The account
must be opened no later than March 1 of the calendar
year after the end of the first effective model year. A
motor vehicle manufacturer must notify the
commissioner within 30 days of opening an account in
the California ZEV credit system for the
manufacturer's Minnesota ZEV credits.
B. At least annually by May 1 of the calendar
year after the close of a model year, a motor vehicle
manufacturer must submit a report to the
commissioner that identifies the necessary delivery
and placement data of all motor vehicles generating
ZEV credits and all transfers and acquisitions of ZEV
credits, according to California Code of Regulations,
title 13, section 1962.2. The report may be amended
based on late sales.
C. Upon oral or written request of the
commissioner, a person subject to this part must
furnish to the commissioner or allow the commissioner
to access and copy all records that relate to the motor
vehicles that are subject to this part and that are
relevant for determining compliance with this part.
Unless otherwise specified, a person subject to this
part must retain all relevant records for at least five
years after creating the records.
61a
Subp. 3. Requirement to make up ZEV deficit.
A motor vehicle manufacturer that delivers for sale in
the state fewer ZEVs or TZEVs than required to meet
its ZEV credit obligation in a given model year must
make up the deficit by submitting a commensurate
amount of ZEV credits to the commissioner according
to California Code of Regulations, title 13, section
1962.2(g)(7). The number of motor vehicles not
meeting the ZEV credit obligation must be equal to the
manufacturer's credit deficit, rounded to the nearest
1/100th and calculated according to the equation in
California Code of Regulations, title 13, section
1962.2(g)(8).
Subp. 4. Early-action credits.
A. Beginning with model year 2022 and ending
at the beginning of the first effective model year, a
motor vehicle manufacturer may earn early-action
ZEV credits for delivering ZEVs for sale in the state. A
motor vehicle manufacturer choosing to earn
early-action ZEV credits under this subpart must
notify the commissioner to open an account to track
early-action ZEV credits in Minnesota no later than
March 1 of the calendar year after the close of the first
model year for which the manufacturer intends to
accrue early-action credits.
B. New motor vehicles delivered for sale in the
state under this subpart earn early-action ZEV credits
with the same values established in California Code of
Regulations, title 13, section 1962.2.
62a
C. A motor vehicle manufacturer that notifies
the commissioner under item A must submit a report
to the commissioner at least annually by May 1 of the
calendar year after the close of the model year that
identifies the necessary delivery and placement data
of all motor vehicles generating early-action ZEV
credits under this subpart, according to California
Code of Regulations, title 13, section 1962.2. The
report may be amended based on late sales.
D. After the reporting deadline under item C
during the first effective model year and after
receiving notice from a motor vehicle manufacturer
under subpart 2, item A, the commissioner must load
the ZEV credits earned by the motor vehicle
manufacturer under this subpart into the
manufacturer's California ZEV credit system account.
E. This subpart is effective beginning with a
motor vehicle manufacturer's model year 2022.
Subp. 5. Onetime credit allotment.
A. For the first effective model year, the
commissioner must deposit into each motor vehicle
manufacturer's account a credit allotment equivalent
to the first effective model year's ZEV credit
requirement for that motor vehicle manufacturer.
B. The credit amount under item A must be
calculated for the first effective model year according
to California Code of Regulations, title 13, section
1962.2(b)(1)(A) and (B).
63a
C. The commissioner must deposit the onetime
credit allotment at the same time that the
commissioner loads the ZEV credits earned by the
motor vehicle manufacturer under subpart 4, item D,
into the manufacturer's California ZEV credit system
account.
Statutory Authority: MS s 116.07
History: 46 SR 66
NOTE: Subparts 1, 2, 3, and 5 are effective on the
date given in a commissioner's notice published in the
State Register after the standards incorporated by
reference in part 7023.0150, subpart 2, are granted a
waiver by the U.S. Environmental Protection Agency
under United States Code, title 42, section 7543.
Published Electronically: August 11, 2021
64a
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.