Petition for Writ of Certiorari — Diamond Alternative Energy, LLC, et al., Petitioners v. Environmental Protection Agency, et al.
Supreme Court briefJul 2, 2024
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No.
In the Supreme Court of the United States
DIAMOND ALTERNATIVE ENERGY, LLC, ET AL .,
PETITIONERS ,
v.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.
ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT
PETITION FOR A WRIT OF CERTIORARI
ERIC D. MCARTHUR
SIDLEY AUSTIN LLP
1501 K Street NW
Washington, DC 20005
MICHAEL BUSCHBACHER
JARED M. K ELSON
BOYDEN GRAY PLLC
801 17th Street NW
Suite 350
Washington, DC 20006
JEFFREY B. WALL
Counsel of Record
MORGAN L. RATNER
ZOE A. JACOBY
SULLIVAN & CROMWELL LLP
1700 New York Avenue NW
Suite 700
Washington, DC 20006
(202) 956-7660
wallj@sullcrom.com
LESLIE B. ARFFA
SULLIVAN & CROMWELL LLP
125 Broad Street
New York, NY 10004
(Additional counsel on signature page)
QUESTIONS PRESENTED
Section 209(a) of the Clean Air Act generally
preempts States from adopting emission standards for
new motor vehicles. 42 U.S.C. § 7543(a). But under
Section 209(b) of that Act, EPA may grant California—
and only California—a waiver from federal preemption
to set its own vehicle-emission standards. Before
granting a preemption waiver, EPA must find that California “need[s]” its own emission standards “to meet
compelling and extraordinary conditions.”
Id.
§ 7543(b)(1)(B).
In 2022, EPA granted California a waiver to set its
own standards for greenhouse-gas emissions and to
adopt a zero-emission-vehicle mandate, both expressly
intended to address global climate change by reducing
California vehicles’ consumption of liquid fuel. Fuel
producers challenged EPA’s waiver as contrary to the
text of Section 209(b). The D.C. Circuit rejected the
challenge without reaching the merits, concluding that
fuel producers’ injuries were not redressable because
they had not established that vacating EPA’s waiver
would have any effect on automakers.
The questions presented are:
1. Whether a party may establish the redressability
component of Article III standing by relying on the
coercive and predictable effects of regulation on third
parties.
2. Whether EPA’s preemption waiver for California’s greenhouse-gas emission standards and zeroemission-vehicle mandate is unlawful.
(I)
PARTIES TO THE PROCEEDING
Petitioners are Diamond Alternative Energy, LLC,
American Fuel & Petrochemical Manufacturers, Clean
Fuels Development Coalition, Diamond Alternative
Energy, LLC, Domestic Energy Producers Alliance,
Energy Marketers of America, ICM, Inc., Illinois Corn
Growers Association, Iowa Soybean Association, Kansas Corn Growers Association, Michigan Corn Growers
Association, Minnesota Soybean Growers Association,
Missouri Corn Growers Association, National Association of Convenience Stores, South Dakota Soybean Association, and Valero Renewable Fuels Company,
LLC.
Respondents are the Environmental Protection
Agency and Michael S. Regan, in his official capacity as
Administrator of the Environmental Protection
Agency.
Other petitioners in the court of appeals were the
States of Ohio, Alabama, Arkansas, Georgia, Indiana,
Kansas, Kentucky, Louisiana, Mississippi, Missouri,
Montana, Nebraska, Oklahoma, South Carolina, Texas,
Utah, and West Virginia.
Intervenors on behalf of respondents in the court of
appeals were Ford Motor Company, Volkswagen
Group of America, Inc., American Honda Motor Co.,
Inc., BMW of North America, LLC, Volvo Car USA
LLC, New York Power Authority, National Grid USA,
Calpine Corporation, Advanced Energy Economy,
Power Companies Climate Coalition, National Coalition for Advanced Transportation, State of Washington, District of Columbia, State of New Jersey, State
of Maine, State of Hawaii, State of Illinois, State of
(II)
III
Maryland, State of Colorado, State of Nevada, State of
New York, State of Connecticut, State of Vermont,
State of Rhode Island, State of North Carolina, State
of California, State of New Mexico, State of Minnesota,
State of Delaware, State of Oregon, City of New York,
Commonwealth of Pennsylvania, Commonwealth of
Massachusetts, City of Los Angeles, Clean Air Council,
Natural Resources Defense Council, Public Citizen,
Center for Biological Diversity, Environmental Defense Fund, Sierra Club, National Parks Conservation
Association, Union of Concerned Scientists, Conservation Law Foundation, and Environmental Law and Policy Center.
RULE 29.6 DISCLOSURE STATEMENT
Petitioner Diamond Alternative Energy, LLC, is a
Delaware limited liability company that manufactures
biomass-derived liquid fuels. It is a wholly owned direct subsidiary of Valero Energy Corporation, a Delaware corporation whose common stock is publicly
traded on the New York Stock Exchange under the
ticker symbol VLO.
Petitioner American Fuel & Petrochemical Manufacturers is a national trade association that represents
American refining and petrochemical companies. The
Association has no parent corporation, and no publicly
held corporation has a 10% or greater ownership in it.
Petitioner Clean Fuels Development Coalition is a
business league organization established in a manner
consistent with Section 501(c)(6) of the Internal Revenue Code. Established in 1988, the Coalition works
with auto, agriculture, and biofuel interests in support
of a broad range of energy and environmental programs. It has no parent companies, and no publicly
held company has a 10% or greater ownership interest
in the Coalition.
Petitioner Domestic Energy Producers Alliance is a
non-profit, nonstock corporation organized under the
laws of the State of Oklahoma. The Alliance has no parent corporation, and no publicly held company owns
10% or more of its stock.
Petitioner Energy Marketers of America is a federation of 47 state and regional trade associations representing energy marketers throughout the United
States. It is incorporated under the laws of the Commonwealth of Virginia, has no parent corporation, and
(IV)
V
no publicly held corporation has a 10% or greater ownership in it.
Petitioner ICM, Inc. is a Kansas corporation that is
a global leader in developing biorefining capabilities,
especially for the production of ethanol. It is a wholly
owned subsidiary of ICM Holdings, Inc., and no publicly held company has a 10% or greater ownership interest in ICM Holdings, Inc.
Petitioner Illinois Corn Growers Association is an
agricultural organization. It has no parent companies,
and no publicly held company has a 10% or greater
ownership interest in it.
Petitioner Iowa Soybean Association is a non-profit
trade association within the meaning of D.C. Circuit
Rule 26.1(b). Its members are soybean farmers and
supporters of the agriculture and soybean industries.
It operates for the purpose of promoting the general
commercial, legislative, and other common interests of
its members. The Iowa Soybean Association does not
have a parent company, it has no privately or publicly
held ownership interests, and no publicly held company
has ownership interest in it.
Petitioner Kansas Corn Growers Association is an
agricultural organization. It has no parent companies,
and no publicly held company has a 10% or greater
ownership interest in it.
Petitioner Michigan Corn Growers Association is an
agricultural organization. It has no parent companies,
and no publicly held company has a 10% or greater
ownership interest in it.
Petitioner the Minnesota Soybean Growers Association is a non-profit trade association. Its members are
soybean farmers, their supporters, and members of
VI
soybean industries. It operates for the purpose of promoting the general commercial, legislative, and other
common interests of its members. The Minnesota Soybean Growers Association is a not-for-profit corporation that is not a subsidiary of any corporation and that
does not have any stock which can be owned by a publicly held corporation.
Petitioner Missouri Corn Growers Association is an
agricultural organization. It has no parent companies,
and no publicly held company has a 10% or greater
ownership interest in it.
Petitioner National Association of Convenience
Stores is an international trade association that represents both the convenience and fuel retailing industries
with more than 1,300 retail and 1,600 supplier company
members. The United States convenience industry has
more than 152,000 stores across the country, employs
2.74 million people, and had more than $859 billion in
sales in 2023, of which more than $532 billion were fuel
sales. The Association has no parent corporation, and
no publicly held corporation has a 10% or greater ownership interest in it.
Petitioner the South Dakota Soybean Association is
a non-profit trade association. Its members are soybean farmers, their supporters and members of soybean industries. It operates for the purpose of promoting the general commercial, legislative, and other common interests of its members. The South Dakota Soybean Association is a not-for-profit corporation, is not
a subsidiary of any corporation, and does not have any
stock which can be owned by a publicly held corporation.
VII
Petitioner Valero Renewable Fuels Company, LLC,
a Texas limited liability company that manufactures
ethanol, is a wholly owned direct subsidiary of Valero
Energy Corporation.
RELATED PROCEEDINGS
United States Court of Appeals (D.C. Cir.):
Ohio v. EPA, No. 22-1081 (Apr. 9, 2024)
Iowa Soybean Association v. EPA, No. 22-1083
(Apr. 9, 2024)
American Fuel & Petrochemical Manufacturers v.
EPA, No. 22-1084 (Apr. 9, 2024)
Clean Fuels Development Coalition v. EPA,
No. 22-1085 (Apr. 9, 2024)
(VIII)
TABLE OF CONTENTS
Page
Introduction ............................................................................1
Opinions below ........................................................................5
Jurisdiction ..............................................................................5
Statutory provisions involved ...............................................5
Statement of the case.............................................................5
A. Legal background........................................................5
B. Regulatory background ..............................................7
C. Proceedings below .....................................................10
Reasons for granting the petition ......................................13
I. The D.C. Circuit’s standing decision warrants this
Court’s review .................................................................15
A. The decision below is wrong ....................................15
B. The decision below creates a conflict among the
courts of appeals ........................................................21
C. The question presented is important and warrants
review in this case......................................................24
II. This Court should also reach the merits and vacate
the waiver .........................................................................26
A. EPA’s decision is wrong ...........................................27
1. Global climate change is not an “extraordinary”
California condition within the meaning of
Section 209 ............................................................28
(IX)
X
2. California does not “need” its own emission
standards to “meet” climate-change
conditions ..............................................................30
3. EPA’s whole-program approach is wrong........32
4. Clear-statement rules favor petitioners’
reading ...................................................................33
B. The question presented is important, is implicated
in the States’ petition, and repeatedly evades
review ..........................................................................35
Conclusion .............................................................................37
Appendix A - Opinion of the court of appeals
(Apr. 9, 2024)....................................................................1a
Appendix B - Decision of the Environmental Protection
Agency (Mar. 14, 2022)................................................ 50a
Appendix C - Relevant statutory provisions ............... 286a
TABLE OF AUTHORITIES
Page(s)
Cases:
Bennett v. Spear,
520 U.S. 154 (1997) ......................................... 4, 16, 18
Bolln v. Nebraska,
176 U.S. 83 (1900) ..................................................... 33
California v. Texas,
593 U.S. 659 (2021) ................................................... 17
Chamber of Commerce v. EPA,
642 F.3d 192 (D.C. Cir. 2011) .................................... 8
Corner Post, Inc. v. Board of Governors of the
Fed. Rsrv. Sys.,
603 U.S. __ (2024) .................................................... 16
Davis v. FEC,
554 U.S. 724 (2008) ................................................... 21
Department of Commerce v. New York,
588 U.S. 752 (2019) ......................................... 4, 16, 17
Energy Future Coalition v. EPA,
793 F.3d 141 (D.C. Cir. 2015) ............4, 12, 16, 23, 24
FDA v. Alliance for Hippocratic Medicine,
602 U.S. __ (2024) ............................................... 16, 17
Ford Motor Co. v. EPA,
606 F.2d 1293 (D.C. Cir. 1979) ................................ 29
General Land Office v. Biden,
71 F.4th 264 (5th Cir. 2023) ..................................... 22
Gregory v. Ashcroft,
501 U.S. 452 (1991) ................................................... 34
Lujan v. Defenders of Wildlife,
504 U.S. 555 (1992) ............................................. 15, 16
(XI)
XII
Cases—Continued:
Massachusetts v. EPA,
549 U.S. 497 (2007) ....................................... 15, 17, 18
Motor & Equip. Mfrs. Ass’n v. EPA,
627 F.2d 1095 (D.C. Cir. 1979) .................................. 6
Motor Vehicle Mfrs. Ass’n of the U.S., Inc. v. New
York State Dep’t of Env’t Conservation,
17 F.3d 521 (2d Cir. 1994) ........................................ 27
Murthy v. Missouri,
603 U.S. __ (2024) ............................................... 18, 19
NRDC v. NHTSA,
894 F.3d 95 (2d Cir. 2018) ........................................ 22
Skyline Wesleyan Church v. California Dep’t of
Managed Health Care,
968 F.3d 738 (9th Cir. 2020) .................................... 23
Solid Waste Agency of N. Cook Cty. v. U.S. Army
Corps of Eng’rs,
531 U.S. 159 (2001) ................................................... 34
South Carolina v. Katzenbach,
383 U.S. 301 (1964) ................................................... 34
United States v. Sanchez-Gomez,
584 U.S. 381 (2018) ................................................... 26
United States v. Washington,
596 U.S. 832 (2022) ................................................... 26
Utility Air Regul. Grp. v. EPA,
573 U.S. 302 (2014) ................................................... 34
Uzuegbunam v. Preczewski,
592 U.S. 279 (2021) ................................................... 15
West Virginia v. EPA,
597 U.S. 697 (2022) ......................................... 3, 26, 34
XIII
Cases—Continued:
Wieland v. Department of Health & Human
Services,
793 F.3d 949 (8th Cir. 2015) .................................... 23
Statutes:
28 U.S.C. § 1254(1) ........................................................... 5
42 U.S.C.
§ 7408 ............................................................................ 7
§ 7409 ............................................................................ 7
§ 7410 ........................................................................ 1, 6
§ 7507 ............................................................ 7, 28, 286a
§ 7543(a) ......................................... I, 1, 6, 27, 29, 287a
§ 7543(b) ......................... I, 1, 6, 7, 27, 28, 32, 33, 287a
45 U.S.C. § 7521(a)(2) .................................................... 32
Regulations:
38 Fed. Reg. 10,235 (Apr. 26, 1973) ............................... 7
49 Fed. Reg. 18,887 (May 3, 1984) ................................. 6
59 Fed. Reg. 48,557 (Sept. 22, 1994) .............................. 7
73 Fed. Reg. 12,156 (Mar. 6, 2008) ................................ 7
74 Fed. Reg. 32,755 (July 8, 2009) ................................. 8
78 Fed. Reg. 2,112 (Jan. 9, 2013) ............................... 8, 9
84 Fed. Reg. 51,310 (Sept. 27, 2019) ................. 9, 29, 30,
31, 32, 33
86 Fed. Reg. 7,037 (Jan. 25, 2021) ............................... 10
86 Fed. Reg. 74,434 (Dec. 30, 2021) ............................. 35
87 Fed. Reg. 14,332 (Mar. 14, 2022) .................. 5, 10, 32
87 Fed. Reg. 25,710 (May 2, 2022) ............................... 35
XIV
Other authorities:
113 Cong. Rec. 30,948 (Nov. 2, 1967) ............................. 6
Advanced Clean Cars Waiver Request (May
2012), https://www.regulations.gov/document/EPA-HQ-OAR-2021-0257-0006 ................... 9
American Heritage Dictionary (1st ed. 1969) .......... 31
California Air Resources Board, States that Have
Adopted California’s Vehicle Regulations
(June 2024)................................................................. 10
California Air Resources Board, Public Hearing to
Consider the Proposed Advanced Clean Cars II
Regulations (Apr. 12, 2022) .................................... 36
Coral Davenport et al., California to Ban the Sale
of New Gasoline Cars, N.Y. Times (Aug. 24,
2022) ........................................................................... 35
H.R. Rep. No. 90-728 (1967) ..................................... 6, 29
Webster’s New International Dictionary (3d ed.
1961) ..................................................................... 28, 31
In the Supreme Court of the United States
No.
DIAMOND ALTERNATIVE ENERGY, LLC, ET AL .,
PETITIONERS ,
v.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.
ON PETITION FOR WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE DISTRICT OF COLUMBIA CIRCUIT
PETITION FOR A WRIT OF CERTIORARI
INTRODUCTION
Section 209 of the Clean Air Act is a remarkable provision. It starts off modestly enough: because both
motor vehicles and air pollution often cross state borders, Section 209(a) entrusts EPA to enact nationwide
vehicle-emission standards and preempts States from
adopting their own. 42 U.S.C. § 7543(a); see id. § 7410.
But then Section 209(b) does something unusual: it
allows EPA to grant a waiver from preemption to a
single State—California—to enforce its own vehicleemission standards. To escape preemption, California
must demonstrate to EPA that it “need[s]” its own
emission standards “to meet compelling and extraordinary conditions.” Id. § 7543(b)(1)(B). Other States
(1)
2
may not establish their own standards, but they may
elect to follow EPA’s or California’s.
As a concurrent challenge of 17 States explains,
there are serious constitutional concerns with a statute
that allows only California to act as a junior-varsity
EPA. Still, for its first several decades, Section 209
worked more or less as intended. EPA granted
preemption waivers for California to tackle local problems like smog in the Los Angeles basin, where the pollution was both generated by and felt by Californians.
But all sensibility stopped in 2009, when California began claiming that Section 209 authorized it to set standards to curb greenhouse gases in an effort to tackle
global climate change. For the next decade, EPA flipflopped under each new Presidential Administration
about whether it could grant California such a waiver.
In this latest order, EPA has again taken the position
that Section 209 permits California to operate as a
quasi-federal regulator on global climate change.
That vaunted role cannot be squared with the text,
structure, or purpose of Section 209. First, climate
change is not an “extraordinary” condition within California, and thus within the meaning of Section
209(b)(1)(B), because it is a global issue that is not localized to California. Second, California does not
“need” its own emission standards to “meet” global
climate-change conditions, as its standards would have
no discernable effect on climate-change-related conditions in the State (or anywhere else). Global climate
change is, in short, not the kind of California-specific
condition that Section 209(b) carves out from preemption.
The question whether California may set greenhouse-gas emission standards for itself and other
3
States is undeniably major. California has mandated
100% electric vehicles by 2036, and is forcing electrification of the country’s vehicle fleet. And the Executive
Branch intends exactly that. The National Highway
Traffic Safety Administration and EPA have set their
own fuel-economy and emission standards that impose
de facto electric-vehicle mandates in violation of their
governing statutes. The companion challenges to those
rules are awaiting decision by the D.C. Circuit. See
Texas v. EPA, No. 22-1031 (filed Feb. 28, 2022); Natural Res. Def. Council v. NHTSA, No. 22-1080 (filed
May 11, 2022). But by granting California the authority to outstrip even those mandates, EPA has put in
place a backstop to the unlawful federal rules. Simply
put, the waiver and authority claimed here are key
parts of a coordinated agency strategy to convert the
Nation from liquid-fuel-powered vehicles to electric vehicles. If that strategy seems familiar, it should. See
West Virginia v. EPA, 597 U.S. 697 (2022).
Despite the issue’s importance, the D.C. Circuit has
avoided the merits of EPA’s interpretation for over 15
years. It has met each challenge to EPA’s waiver determination with a different jurisdictional barrier.
This time, the D.C. Circuit dodged the issue under the
guise of redressability. Petitioners are entities and associations of entities that produce or sell liquid fuels
and the raw materials used to make them. Facing a
regulation designed to reduce the demand for their
products, petitioners’ standing is self-evident. They
also introduced unrebutted standing declarations
about how California’s standards will increase the sales
of electric vehicles and reduce the consumption of liquid fuel—which, after all, is their express purpose. See
App., infra, 19a-20a. But in a per curiam opinion, the
4
D.C. Circuit held that petitioners had not established
redressability because they had not submitted evidence, such as affidavits from third-party automakers,
showing precisely how automakers would adjust their
production or prices during the four years of the
waiver. Id. at 30a.
The D.C. Circuit’s standing decision is wrong and
warrants this Court’s review. Under precedents of this
Court and even the D.C. Circuit, “remov[ing] a regulatory hurdle” to the sale of a challenger’s product suffices to establish redressability. Energy Future Coalition v. EPA, 793 F.3d 141, 144 (D.C. Cir. 2015) (Kavanaugh, J.); see Bennett v. Spear, 520 U.S. 154, 169
(1997). At a minimum, challengers to governmental action can rely on the “predictable effect” of regulation
on third parties to establish causation and redressability. Department of Commerce v. New York, 588 U.S.
752, 768 (2019). Where, as here, the entire point of the
challenged regulation is to reduce consumption of the
plaintiffs’ products, a decision vacating the regulation
would obviously provide redress. Other courts of appeals applying these principles have thus found standing without relying on the sort of affidavits that the
court below demanded. Left uncorrected, the decision
below will impose an often insurmountable barrier to
challenges in the court of appeals that is the primary
home for administrative litigation.
This Court should also reach the merits of petitioners’ challenge, and finally decide whether EPA has the
authority to grant California a preemption waiver to
address global climate change. The challenged California standards are in effect only through model year
2025, so merely correcting the D.C. Circuit’s standing
mistake may mean that no court considers the merits
5
before the waiver expires. And granting review of both
questions presented is also the most reasonable way to
resolve the States’ concurrent challenge to the decision
below. The States challenged EPA’s waiver as unconstitutional because Section 209(b) violates the principle
of equal sovereignty, and the court below rejected that
constitutional argument on the merits. App., infra,
49a. Granting review of the merits would allow the
Court to consider whether EPA’s waiver is statutorily
authorized before needing to reach the States’ constitutional questions, raised in a separate petition. The
Court should grant both this petition and the States’,
and reverse.
OPINIONS BELOW
The opinion of the court of appeals (App., infra,
1a-49a) is reported at 98 F.4th 288. The EPA order
under review (App., infra, 50a-285a) is available at
87 Fed. Reg. 14,332.
JURISDICTION
The court of appeals entered judgment on April 9,
2024. This Court has jurisdiction under 28 U.S.C.
§ 1254(1).
STATUTORY PROVISIONS INVOLVED
Relevant statutory provisions are reproduced in the
appendix to this petition. App., infra, 286a-290a.
STATEMENT OF THE CASE
A. Legal Background
Title II of the Clean Air Act makes EPA the Nation’s primary regulator of motor-vehicle emissions.
6
42 U.S.C. § 7410. To effectuate a (mostly) uniform federal emissions regime, Section 209(a) of the Act prohibits States from “adopt[ing] or attempt[ing] to enforce
any standard relating to the control of emissions from
new motor vehicles.” Id. § 7543(a). This preemption
provision prevents “an anarchic patchwork of federal
and state regulatory programs.” Motor & Equip.
Mfrs. Ass’n v. EPA, 627 F.2d 1095, 1109 (D.C. Cir.
1979).
Congress allowed only one exception to Section
209(a)’s broad preemption provision: Section 209(b),
which authorizes EPA to “waive” preemption for California, under limited circumstances.
42 U.S.C.
§ 7543(b). Congress granted California this special
status because of the State’s “unique problems” with
smog and other local issues caused by criteria pollutants like ozone and particulate matter. H.R. Rep. No.
90-728, at 22 (1967). California’s atypical “geography
and prevailing wind patterns,” together with its unusually large number of vehicles, made smog a more persistent problem there than elsewhere. 49 Fed. Reg.
18,887, 18,890 (May 3, 1984) (citing 113 Cong. Rec.
30,948 (Nov. 2, 1967)).
Congress limited California’s ability to separately
regulate emissions in several ways. California may apply for a waiver only if it “determines that [its own]
State standards will be, in the aggregate, at least as
protective of public health and welfare as applicable
Federal standards.” 42 U.S.C. § 7543(b)(1). EPA must
then evaluate the application and deny a waiver if,
among other things, it finds that California’s protectiveness determination is “arbitrary and capricious,”
id. § 7543(b)(1)(A); or if California “does not need such
7
State standards to meet compelling and extraordinary
conditions,” id. § 7543(b)(1)(B).
In 1977, Congress amended the Clean Air Act to allow any other State to “adopt and enforce” California
standards “for which a waiver has been granted,” so
long as the State has a federally approved plan to attain the air-quality standards EPA sets for criteria pollutants. 42 U.S.C. §§ 7507, 7408(a), 7409. The upshot
of this unusual preemption system is that EPA sets nationwide emission standards; California may in limited
circumstances set more stringent ones in California;
and other States may either apply EPA’s standards or
adopt California’s, but may not set their own.
B. Regulatory Background
1. For decades, California used its waiver authority as Congress intended, to set emission standards to
combat local air-quality problems like smog. See, e.g.,
38 Fed. Reg. 10,235, 10,318 (Apr. 26, 1973); 59 Fed.
Reg. 48,557, 48,626 (Sept. 22, 1994). In recent years,
however, California has sought to transform this exception for tackling localized pollution into a tool for
addressing global climate change through forced electrification of its vehicle fleet.
That effort initially failed. In 2008, EPA denied California’s first application for a waiver allowing it to set
emission standards to address climate change. EPA
determined that Section 209(b)’s preemption waiver
permitted California to enact standards only to address “local and regional” pollution where the “causal
factors are local to California”—which obviously did
not include global climate change. 73 Fed. Reg. 12,156,
12,163 (Mar. 6, 2008).
8
The day after President Obama took office, California sought reconsideration of EPA’s denial of its waiver
application for greenhouse-gas standards.
EPA
granted reconsideration, reversed itself, and issued the
waiver. 74 Fed. Reg. 32,755, 32,783 (July 8, 2009). A
number of affected parties challenged EPA’s decision,
but the D.C. Circuit held that the case was moot because California had “deemed” compliance with federal
standards to satisfy the State’s standards as well.
Chamber of Commerce v. EPA, 642 F.3d 192, 206 (D.C.
Cir. 2011).
2. In 2012, California applied for a new waiver to
allow it to impose even more standards aimed at curbing greenhouse-gas emissions. This case concerns that
2012 waiver application and the “Advanced Clean Car”
standards that it imposes. Those standards govern all
new passenger cars, light-duty trucks, and mediumduty vehicles sold in California for model years 2015
through 2025.
As relevant here, the Advanced Clean Car standards have two key features that require a preemption
waiver. First, California’s greenhouse-gas emission
standards limit carbon-dioxide emissions and thus effectively force manufacturers to produce and sell fewer
cars that run on liquid fuel. 78 Fed. Reg. 2,112, 2,137
(Jan. 9, 2013). Second, the California standards include
a “zero-emission vehicle” mandate, which requires
each car manufacturer to produce and deliver for sale
an increasing percentage of electric or fuel-cell vehicles (or purchase regulatory “credits” instead). Cal.
Regs. tit. 13, § 1962.2(b). By model year 2025, the required percentage of zero-emission vehicles will rise to
around 22%. Ibid. California explained that the mandated zero-emission vehicles “can dramatically reduce
9
petroleum consumption . . . compared to conventional
technologies.” Advanced Clean Cars Waiver Request
7-9 (May 2012), https://www.regulations.gov/document/EPA-HQ-OAR-2021-0257-0006.
3. In 2013, EPA granted a waiver for California’s
Advanced Clean Cars program. EPA concluded that
California’s standards met Section 209(b)’s criteria—
including that they were “needed to meet compelling
and extraordinary conditions”—because the threat of
global climate change was itself “compelling.” 78 Fed.
Reg. at 2,130. Notably, EPA credited California’s finding that the cost of its regulations would be “more than
offset by consumer fuel savings over the life of the vehicles.” 78 Fed. Reg. at 2,138. At the time, however,
California had kept in place its “deemed to comply”
provision, and so potential challengers were stuck with
the unfavorable D.C. Circuit standing precedent. California maintained that provision until 2018, when EPA
set less stringent standards during the Trump Administration.
4. After that change in Administration, EPA reverted to its original approach to Section 209. In a 2019
joint rulemaking with NHTSA, EPA rescinded the
2013 preemption waiver for California’s greenhousegas standards and zero-emission-vehicle mandate,
again reasoning that climate change is not the kind of
“peculiar,” California-specific condition covered by
Section 209(b). 84 Fed. Reg. 51,310, 51,328, 51,339
(Sept. 27, 2019). In addition, EPA found that California did not “need” its standards to “meet” climatechange conditions because California’s standards
would likely result in “no change in temperatures or
physical impacts resulting from anthropogenic climate
change in California.” Id. at 51,341 (emphasis added).
10
C. Proceedings Below
1. On his first day in office, President Biden signed
Executive Order 13,990, directing EPA to consider
“suspending, revising, or rescinding” the 2019 withdrawal of California’s 2013 waiver. 86 Fed. Reg. 7,037
(Jan. 25, 2021). EPA dutifully followed the President’s
lead and reinstated California’s waiver. App., infra,
57a.
In granting the waiver, EPA flipped back to its 2013
understanding of Section 209(b). It concluded that the
waiver was justified in part because California needs
its emission program as a whole—not the particular
Advanced Clean Cars program that was the subject of
the waiver—to address its criteria-pollution problems.
Id. at 158a-166a. EPA also found that California
needed its emission standards and zero-emission vehicle mandate because the effects of global climate
change in California are “extreme,” and because there
is a “logical link” between local air-pollution problems
and greenhouse-gas emissions. Id. at 207a, 215a.
To date, 17 States and the District of Columbia have
adopted California’s greenhouse-gas standards, its
zero-emission-vehicle mandate, or both. CARB, States
that Have Adopted California’s Vehicle Regulations
(June 2024), https://ww2.arb.ca.gov/our-work/programs/
advanced-clean-cars-program/states-have-adoptedcalifornias-vehicle-regulations. Together with California, those jurisdictions account for more than 40% of
the Nation’s new vehicle market. 87 Fed. Reg. 14,332,
14,358 (Mar. 14, 2022).
2. Petitioners are entities that produce or sell liquid
fuels and the raw materials used to produce them,
along with associations whose members include such
entities. They challenged EPA’s waiver reinstatement
11
in the D.C. Circuit. App., infra, 2a. Petitioners filed
detailed standing declarations, explaining that the reinstatement of California’s standards would depress
demand for fuel, injuring them financially. Id. at 19a20a. The State of Ohio, along with a coalition of 16
other States, separately challenged the reinstatement
on the ground that California’s unique exemption from
nationwide preemption violates the constitutional
equal-sovereignty principle.
In defending the waiver reinstatement, EPA did not
contest petitioners’ Article III standing. On the merits, it primarily relied on what it refers to as its “whole
program” approach. Under this reading of the Clean
Air Act, Section 209(b)(1)(B) is satisfied if “California
needs its program as a whole to meet compelling and
extraordinary conditions.” C.A. EPA Br. 84 (emphasis
added). In other words, EPA argued that California
can tack on any emission standards it likes to its emissions “program,” “so long as” the State’s criteriapollutant problems “persist.” Id. at 66.
Unlike EPA, California and other state and local intervenors challenged petitioners’ standing. They contended that automakers were independently increasing electric-vehicle production in response to consumer
demand, and that petitioners had not “established any
probability that manufacturers would change course if
EPA’s decision were vacated.”
C.A. California
Br. 13-15. But their own intervention motion attached
declarations asserting that “additional gasoline-fueled
vehicles would be sold during these model years” if
EPA’s waiver were overturned. C.A. States’ Int. Mot.,
Scheehle Decl. ¶¶ 17-18. In reply, petitioners further
explained that they had standing because vacating the
waiver would remove a “direct regulatory impediment”
12
to their products’ use. C.A. Reply 4 (citing Energy Future Coal., 793 F.3d at 144). They also noted that California itself had told EPA that the waiver was “critical
for incentivizing production and deployment of zeroemission vehicles.” Id. (quoting C.A. J.A. 237).
At oral argument, however, counsel for the state
and local intervenors began making similar arguments
under the rubric of mootness. California contended
that automakers could no longer change their production and sales plans for vehicles covered by California’s
waiver—that is, through model year 2025. In response,
petitioners moved to file a supplemental brief explaining why their petitions were not moot, along with supplemental declarations from individuals experienced in
vehicle-emissions compliance, who explained that “automobile manufacturers could and likely would change
their production, pricing, and/or distribution plans for
Model Year 2025 as late as December 2025, but at a
minimum well into 2025.” C.A. Pet. Standing Addendum, Kreucher Decl. ¶ 5.
3. The court of appeals held that petitioners lack
Article III standing to challenge EPA’s waiver. App.,
infra, 30a. Although the court declined to “definitively
decide” whether petitioners had established injury and
causation, it did not question either showing. Id. at
21a. After all, petitioners had explained that “by requiring vehicle manufacturers to sell vehicles that use
less or no liquid fuel, California’s . . . requirements depress the demand for liquid fuel.” Id. at 19a.
Instead, the court of appeals concluded that petitioners had failed to show that their injuries would be
redressed if EPA’s decision were set aside. App., infra, 30a. The court reasoned that petitioners’ claims
were not “mooted by the passage of time,” but rather
13
that petitioners had lacked standing from the start. Id.
at 25a. The court faulted petitioners for “fail[ing] to
point to any evidence affirmatively demonstrating that
vacatur of the waiver would be substantially likely to”
prompt automakers to produce fewer electric vehicles
or alter their prices so that fewer would be sold. Id. at
23a. According to the court, petitioners had thus failed
to establish that—even if the waiver had been vacated
at the moment it was reinstated in 2022—automakers
would have changed any production or prices before
the end of model year 2025. Id. at 23a-24a.
The court of appeals also declined to consider petitioners’ supplemental declarations. App., infra, 30a.
The court reasoned that there was no “good cause” to
supplement the record because petitioners could not
“have reasonably believed” that “their standing was
‘self-evident’ from the record” when they filed their
opening brief. Id. at 31a.
Finally, the court of appeals rejected the States’
equal-sovereignty argument on the merits. App., infra, 49a. The court concluded that the “fundamental
principle of equal sovereignty” does not operate “as a
limit on the Commerce Clause or other Article I powers.” Id. at 36a (citation omitted).
REASONS FOR GRANTING THE PETITION
When petitioners filed suit, EPA’s waiver controlled
for the next four years. As a matter of common sense,
if that waiver were set aside and California were unable to require automakers to produce electric vehicles
instead of liquid-fuel vehicles, automakers would make
or sell at least one more liquid-fuel vehicle over the
course of those four years. That is the whole point of
this hard-fought litigation: that the waiver would do
14
something to reduce California vehicles’ consumption
of liquid fuel, which necessarily would shift at least a
dollar of business away from liquid-fuel sellers. Indeed, the federal government—never one shy about
raising standing objections—did not even contest petitioners’ Article III standing. Yet the court of appeals
blinded itself to the obvious, and faulted petitioners for
failing to prove by affidavit how third-party automakers would naturally behave.
This Court should grant review to ensure that the
court of appeals’ contrived standing decision does not
imperil future challenges to administrative action. The
court of appeals’ demand for record evidence of automaker behavior cannot be squared with this Court’s
standing decisions, and it conflicts with decisions from
several courts of appeals. Especially concerning, it
would chill many legitimate agency rule challenges
that hinge on third-party action.
This Court should also resolve the merits of petitioners’ challenge to EPA’s statutory authority, together with the States’ constitutional equal-sovereignty challenge. For over a decade, the D.C. Circuit
has avoided resolving whether EPA has authority to
grant a preemption waiver to allow California to address global climate change. The court of appeals’
dodge of the merits here is just the latest installment.
EPA’s (current) position that Congress granted California, alone among the States, the ability to set vehicle-emission standards to combat global climate
change is patently wrong, and raises serious constitutional issues for the reasons discussed in the States’ anticipated petition. Without this Court’s immediate review, California’s unlawful standards will continue to
15
dictate the composition of the Nation’s automobile
market.
I. THE D.C. CIRCUIT’S STANDING DECISION
WARRANTS THIS COURT’S REVIEW
A. The Decision Below Is Wrong
In the decision below, the D.C. Circuit erected barriers to demonstrating redressability that have no basis in this Court’s Article III jurisprudence. These barriers are especially problematic in cases like this one,
in which the agency action concerns a question of national importance. Such major questions should not be
artificially insulated from judicial review.
1. To demonstrate Article III standing, a plaintiff
must show that he suffered a concrete injury, that the
injury is fairly traceable to the challenged action, and
that his “injury will be redressed by a favorable decision.” Lujan v. Defenders of Wildlife, 504 U.S. 555, 561
(1992) (internal quotation marks omitted). A plaintiff
seeking to demonstrate redressability does not need to
establish that a favorable judicial decision would completely cure his injury. Rather, a judicial decision need
only “take steps to slow or reduce” the injury. Massachusetts v. EPA, 549 U.S. 497, 525 (2007). Thus, when
a plaintiff asserts an economic injury, he satisfies the
redressability requirement if a favorable decision
would put even one dollar back in his pocket. Uzuegbunam v. Preczewski, 592 U.S. 279, 292 (2021).
When a plaintiff is the direct object of the challenged regulation, there is usually little question that a
favorable decision from the court would provide redress. See Lujan, 504 U.S. at 561-562. The same
should be true when a plaintiff alleges an “injury pro-
16
duced by determinative or coercive effect” of the challenged regulation “upon the action of someone else.”
Bennett v. Spear, 520 U.S. 154, 169 (1997). Thus, as
then-Judge Kavanaugh explained, if a plaintiff can
show that a favorable decision “would remove a regulatory hurdle” to third-party conduct that would benefit the plaintiff, that is ordinarily “enough to demonstrate redressability.”
Energy Future Coalition,
793 F.3d at 141; see Corner Post, Inc. v. Board of Governors of the Fed. Rsrv. Sys., 603 U.S. __ (2024) (Kavanaugh, J., concurring) (slip op., at 8) (“[E]ntire classes of administrative litigation . . . have traditionally
been brought by unregulated parties.”).
Even when a plaintiff’s injury arises from “the unfettered choices made by independent actors,” rather
than a rule’s “coercive or determinative effect,” a plaintiff still may establish standing, as long as he can “adduce facts showing that” the third party will behave in
such a way as to “permit redressability of injury.”
Lujan, 504 U.S. at 562. This Court has explained that
a plaintiff may rely on “the predictable effect of Government action on the decisions of third parties,” and
has not required affidavits detailing how third parties
will behave. Department of Commerce, 588 U.S. at 768
(emphasis added). For example, it is predictable that
government regulation of one business “may cause
downstream or upstream economic injuries to others in
the chain.” FDA v. Alliance for Hippocratic Medicine,
602 U.S. __ (2024) (slip op., at 12). By contrast, standing may not rest on “speculation about the decisions of
independent actors” when those decisions would be unlawful or irrational.
Department of Commerce,
588 U.S. at 768 (internal quotation marks omitted).
Thus, when a plaintiff’s standing theory relies on
17
“counterintuitive” assumptions about third-party behavior, the plaintiff may need to support that theory
with “stronger evidence.”
California v. Texas,
593 U.S. 659, 678 (2021).
Department of Commerce illustrates the difference
between predictable effects (which do not require robust record evidence) and counterintuitive effects
(which do). There, the plaintiffs challenged the inclusion of a census question about citizenship, which they
contended would injure them by causing third-party
noncitizen households to decline to respond to the census. 588 U.S. at 766-767. This Court concluded that
those effects were sufficiently predictable to establish
the causation element of standing—which, like the redressability element, turns on the effect of government
action (or its removal). Id. at 768; see Alliance for Hippocratic Medicine, 602 U.S. at __ (slip op., at 8)
(“[C]ausation and redressability . . . are often flip sides
of the same coin.”) (internal quotation marks omitted).
The Court did not hold that affidavits from noncitizens
attesting that they did not plan to participate in the
census were required. The Court found it sufficient
that noncitizen households had responded to the census at lower rates in the past, and credited the plaintiffs’ common-sense prediction that noncitizens would
respond at even lower rates if the census asked about
their citizenship. See 588 U.S. at 768.
An effect of agency action is “predictable,” rather
than “counterintuitive,” when the agency itself intends
or presupposes that effect. In Massachusetts, for example, this Court relied on EPA’s own statements and
programs to find that ordering EPA to set emission
standards would redress petitioners’ injuries. 549 U.S.
18
at 526. The Court observed that EPA promoted voluntary emissions-reductions programs, and “would presumably not bother with such efforts,” unless it
thought that emissions reductions would have some effect on the environment. Ibid. In other words, an
agency’s own assumptions about the design of its rule
are strong evidence of the rule’s predictable effects.
2. The decision below departs from this Court’s
sensible approach to redressability. First, petitioners’
injury arises from the “determinative or coercive effect” of California’s standards on third-party automakers. Bennett, 520 U.S. at 169. By requiring automakers to produce vehicles that consume less or no liquid
fuel, California’s standards and EPA’s waiver pose a
legal barrier to the use of petitioners’ products that a
favorable decision would redress. Under this Court’s
cases, no more is needed.
But even if petitioners had to show more, the predictable effect of EPA’s waiver on automakers is obvious: automakers will make and sell more electric vehicles to comply with California’s regulations. Otherwise, California and EPA “would presumably not
bother with such efforts.” Massachusetts, 549 U.S. at
526. If the regulations go away, then the government
will no longer be forcing automakers to sell more electric vehicles than they would otherwise produce in response to market forces. So automakers will make
more vehicles that run on liquid fuel, or they will adjust
their prices in response to consumer demand. That is
Economics 101, not a proposition that requires an affidavit for support.
The contrast with this Court’s recent decision in
Murthy v. Missouri, 603 U.S. __ (2024), further illus-
19
trates the point. Murthy involved several circumstances that may call redressability into question—
none of which is present here. First, Murthy did not
involve direct government regulation. Here, whatever
independent incentives automakers may have to increase electric-vehicle production, compliance with
California’s standards is mandatory. Second, in
Murthy the government’s alleged influence might not
have mattered at all. Id., slip op., at 12. Here, the
whole point of California’s standards (and EPA’s
waiver) is to require electrification beyond what the
market was demanding. Third, and what the Court in
Murthy called the “key point,” id. at 25 n.10, the government action there had concluded by the time suit
was brought. There was no obvious ongoing harm for
the courts to correct, and so this Court could only
“speculat[e]” about redressability. Id. at 22, 2425. Here, California’s standards and mandate were reinstated just months before petitioners brought suit
and are still in place today. Unlike Murthy, this is a
case where redressability should be beyond question.
The court of appeals nevertheless demanded that
the fuel-manufacturer petitioners supply additional evidence of automakers’ plans. Although the court
acknowledged that it was “possible” that automakers
would change their plans and sell more liquid-fuel vehicles, it faulted petitioners for failing to supply “record evidence,” such as “additional affidavits.” App., infra, 24a (citation omitted). Petitioners’ standing declarations already pointed out that California itself had
projected that a waiver would “reduce emissions
through reductions in fuel production.” C.A. Pet.
Standing Addendum, Swenton Decl. at 5-6 (citation
20
omitted). They further explained that petitioners’ injuries would be ameliorated if the waiver were vacated.
C.A. Pet. Standing Addendum, Swenton Decl. at 7. Another declaration from the California Air Resources
Board projected that without the standards, “additional gasoline-fueled vehicles” would likely be “produced and sold during these model years.” C.A. States’
Int. Mot., Vanderspek Decl. ¶ 22. But that was not
enough for the court of appeals. In context, it appears
that the only kind of evidence the court would have
found sufficient is an affidavit from an automaker itself, promising to change its production or pricing if the
waiver were vacated.
That requirement is doubly wrong. First, the court
of appeals did not even acknowledge Bennett or Department of Commerce, or recognize that this Court
has allowed plaintiffs to draw logical inferences about
rational economic behavior in assessing causation and
redressability. The court below did not ask whether
the withdrawal of a special regulatory license to California will have “predictable effects” on vehicle sales.
Department of Commerce, 558 U.S. at 768. It simply
assumed that every effect must match up to a line in an
affidavit.
Second, making matters worse, the court of appeals
appeared to require plaintiffs to obtain affidavits from
the directly regulated parties—here, the automakers.
But directly regulated parties may have good reasons
for not wanting to participate in the litigation. Maybe
they intend to pass on the costs, or the government has
garnered their complicity with some carrot that makes
up for the regulatory stick. Indeed, that is exactly
what happened here, as several automakers entered
into “California Framework Agreements” committing
21
themselves to acceding to California’s standards in exchange for certain benefits, like additional lead time.
C.A. Resp.-Int. Br. 4.
Petitioners’ standing to challenge an agency action
should not depend on automakers’ current preferences
to partner with them. The contrary rule adopted below
creates an unworkable hurdle to establishing standing
in agency rule challenges—one with no basis in precedent or logic.
3. The court’s flawed approach could doom any
challenge to a similar time-limited agency rule that requires some lead time to implement. Petitioners sued
within 60 days of EPA’s March 2022 order. Yet the
court held that petitioners already could not obtain effective relief because of the waiver’s “relatively short,”
four-year “duration.” App., infra, 22a; see Davis v.
FEC, 554 U.S. 724, 734 (2008) (standing is assessed as
of the date “when the suit was filed”). Additionally, by
grounding its determination in standing, rather than
mootness, the court dismissed the case without even
holding EPA to its burden of establishing mootness or
considering exceptions.
B. The Decision Below Creates A Conflict
Among The Courts Of Appeals
By imposing artificial hurdles on Article III’s redressability requirement, the court of appeals split
from several other courts of appeals. The Second,
Fifth, Eighth, and Ninth Circuits—and even the D.C.
Circuit in other cases—have all found standing based
on a law’s coercive or predictable effects on third parties, without requiring the sort of record evidence demanded below. Under the D.C. Circuit’s approach in
22
this case, those cases would have been (wrongly) dismissed on standing grounds.
The Second Circuit has found standing based on a
rule’s predictable effects on third parties, without requiring third-party affidavits or similar evidence. In
NRDC v. NHTSA, 894 F.3d 95 (2018), the court of appeals considered an environmental group’s challenge
to NHTSA’s decision to delay a rule increasing civil
penalties for violations of fuel-economy standards. The
petitioners asserted an environmental injury based on
the assumption that third-party automakers would be
less compliant when civil penalties were lower. Id. at
104. In finding standing, the court relied on “common
sense and basic economics,” which “tell us that the increased cost of unlawful conduct will make that conduct
less common.” Id. at 105. Automaker intervenors
there had posited that penalties “ha[d] the potential”
to affect their decisions, ibid., but the court did not demand affidavits proving how automakers would behave.
The Fifth Circuit has followed the same approach.
In General Land Office v. Biden, 71 F.4th 264 (2023),
the court of appeals considered Texas’s challenge to
the Department of Homeland Security’s decision to divert funds appropriated for the construction of a wall
along the United States–Mexico border. Texas asserted injuries premised on the assumption that the diversion of funds would cause more unlawful immigration. Without requiring affidavits from undocumented
immigrants, the Fifth Circuit adopted the commonsense point that “[i]n the absence of longer walls, at
least some illegal aliens who otherwise would have
been prevented from entering Texas will seek” benefits
from the State. Id. at 273.
23
The Eighth Circuit, too, has relied on the predictable effects on third parties to find an injury redressable, without requiring a third-party affidavit. Wieland
v. Department of Health & Human Services, 793 F.3d
949 (2015), involved a challenge to provisions of the Affordable Care Act that required certain insurers to
cover contraceptive services. Plaintiffs, who wanted a
contraception-free option, satisfied the redressability
requirement, because although an order enjoining
those laws would not require insurers to offer a
contraception-free option, it was “likely” that insurers
would respond that way. Id. at 957.
The Ninth Circuit has applied similar reasoning. It
found standing for plaintiffs challenging a California
directive that required certain insurers to offer abortion coverage. See Skyline Wesleyan Church v. California Dep’t of Managed Health Care, 968 F.3d 738,
750 (2020). The court of appeals did not demand affidavits from the insurers, concluding both that the directive had a “determinative or coercive effect” on the
insurers, and that “the predictable effect” of a favorable judicial decision included that “at least one insurer
would be willing to sell” a plan without abortion coverage. Ibid.
The decision below is not even faithful to the D.C.
Circuit’s own standing precedent. In Energy Future
Coalition, 793 F.3d 141, a case with strikingly parallel
facts to this one, the D.C. Circuit held that fuel producers had standing to challenge an EPA rule effectively
banning vehicle manufacturers from using certain fuel
in emissions testing. Id. at 144. In an opinion by thenJudge Kavanaugh, the court held that the plaintiffs had
established redressability, reasoning that “if EPA permitted vehicle manufacturers to use” the contested test
24
fuel, “there is substantial reason to think that at least
some vehicle manufacturers would use it.” Ibid. The
court credited the common-sense, predictable effects
of EPA’s rule on third parties. Yet here, after criticizing petitioners for believing their standing was “selfevident” under existing precedent, App., infra, 31a, the
court below failed to even address this precedent on
which petitioners’ standing argument was based.
Ultimately, the court of appeals’ decision in this case
cannot be squared with any of the above decisions. In
each of them, the court relied on common-sense inferences about how third parties behave in response to legal barriers to certain behavior. None of them demanded the specific factual showing that the court required here. This Court should correct the D.C. Circuit’s outlier position before it sows significant confusion in this area.
C. The Question Presented Is Important And
Warrants Review In This Case
The question presented is exceptionally important,
and this case presents an appropriate vehicle to consider it.
1. The decision below threatens to chill legitimate
challenges to agency action. The D.C. Circuit has traditionally served as the primary home for litigation under the Administrative Procedure Act, and it is the exclusive venue for challenges to emission standards under the Clean Air Act. That makes its new barrier to
agency challenges especially problematic. As the decisions in the circuit split illustrate, there are many circumstances in which third parties directly regulated by
an agency rule have different incentives from an in-
25
jured petitioner. Here, the preferences of car manufacturers and fuel manufacturers may diverge, including because car manufacturers have been offered some
regulatory flexibility that benefits them but not fuel
producers. In other cases, a similar dynamic may arise
between businesses and consumers, insurers and insured parties, and any number of other sets of potential
petitioners. If every regulatory petitioner in the D.C.
Circuit must secure the cooperation of a directly regulated party to establish standing, a significant swath of
challenges may be doomed from the start.
The D.C. Circuit’s unnecessary and unprecedented
hurdle also creates bad incentives for agencies. Under
the D.C. Circuit’s rule, agencies could intentionally
structure their actions to placate directly regulated
parties and thereby foreclose future litigation. Those
actions would still have sweeping effect, but the directly regulated parties—who would be the only
potential plaintiffs—would have no incentive to sue.
The result is an agency roadmap of particular concern
because it insulates even major decisions like this one
from judicial review.
At bottom, the entire purpose of California’s standards and EPA’s waiver determination is to reduce
liquid-fuel usage and mandate electrification. That
goal is existential to the liquid-fuel industry, even if it
does not immediately threaten car manufacturers.
Fuel manufacturers are the obvious parties to challenge the regulations. The fact that fuel producers are
not directly regulated, when they are the direct target
of the regulations, should not prevent them from establishing their standing to sue.
26
2. This case presents an appropriate vehicle for addressing this important issue. The redressability question determines petitioners’ standing, as neither the
court of appeals nor EPA has questioned petitioners’
showing of injury or causation. See App., infra, 20a.
EPA has raised concerns about mootness, see id. at
25a, but the Court can decide this case before it becomes moot. The party asserting mootness “bears the
burden to establish” that the case “has become moot.”
West Virginia, 597 U.S. at 719. To meet that burden,
EPA would have to show that “it is impossible” for the
Court “to grant any effectual relief.” United States v.
Washington, 596 U.S. 832, 837 (2022) (emphasis
added). It is far from impossible here: if this Court
grants certiorari in October Term 2024, it will presumably render a decision before model year 2025 ends.
And even if EPA could somehow establish mootness,
this case would fall within the capable-of-repetition exception because of the order’s relatively short duration
and the likelihood that petitioners will be “subjected to
the same action again” when EPA issues future waivers. United States v. Sanchez-Gomez, 584 U.S. 381, 391
(2018).
II. THIS COURT SHOULD ALSO REACH THE
MERITS AND VACATE THE WAIVER
This Court should also grant the second question
presented and decide whether EPA has the authority
to grant California a preemption waiver to address
global climate change. Because California’s waiver expires at the end of model year 2025, it is quite possible
the D.C. Circuit will not decide the merits on remand
in time for this Court’s subsequent review. This EPA
will no doubt take the same approach to its next waiver
27
determinations, and petitioners will then spend years
suffering ongoing injury from California’s next set of
unlawful standards and mandates. Reaching the merits now would avoid that serious unfairness. EPA is
wrong on the merits, and there is no reason to wait additional years to resolve an issue the D.C. Circuit has
punted for over a decade.
A. EPA’s Decision Is Wrong
The Clean Air Act does not authorize the preemption waiver that EPA granted here. Section 209(a) establishes federal control over motor-vehicle-emission
standards. 42 U.S.C. § 7543(a). Because of California’s
unique “smog problem,” Section 209(b) gives that State
alone the right to set its own emission standards. Motor Vehicle Mfrs. Ass’n of the U.S., Inc. v. New York
State Dep’t of Env’t Conservation, 17 F.3d 521, 526 (2d
Cir. 1994). But Congress’s baseline was nationwide
preemption, and it tailored California’s special exemption accordingly. As a result, EPA must find that California’s standards are “need[ed]” to “meet compelling
and extraordinary conditions” in California. 42 U.S.C.
§ 7543(b)(1)(B).
The California regulations here do not meet the
statutory criteria. First, California’s standards do not
target conditions “extraordinary” to California because they were created to address global climate
change, which is by definition not a phenomenon particular to California. Second, California does not
“need” its separate standards to “meet” those conditions because, by EPA’s own admission, the standards
will not materially reduce the impacts of climate
change in California or anywhere else. And EPA’s pri-
28
mary defense—that California needs its “whole program,” even if not these particular standards—lacks
any basis in the text or common sense.
1. Global climate change is not an
“extraordinary” California condition
within the meaning of Section 209
The Clean Air Act’s text, structure, and history
demonstrate that the phrase “compelling and extraordinary conditions” refers to California’s distinctive local pollution problems; it does not encompass conditions with global cause and effect, like climate change.
a. California’s separate emission standards must be
needed to meet “compelling and extraordinary conditions.” 42 U.S.C. § 7543(b)(1)(B). The plain meaning of
“extraordinary” is “most unusual.” Webster’s New International Dictionary 807 (3d ed. 1961). On its own,
that definition could mean “most unusual” compared to
ordinary pollution problems or “most unusual” compared to other States’ problems. In context, it must
mean the latter. The Clean Air Act pairs “extraordinary” with “compelling,” and “compelling” already
captures a sense of magnitude. To avoid rendering “extraordinary” redundant, it must mean “most unusual”
as compared to other States.
Related statutory provisions support reading the
phrase “compelling and extraordinary” to encompass
severe local conditions. For example, Section 177 authorizes other States to adopt California’s standards as
part of approved plans for combatting the six criteria
pollutants that cause local pollution problems. See
42 U.S.C. § 7507. Congress thus plainly contemplated
that the standards California would adopt under Sec-
29
tion 209(b)—that other States might copy under Section 177—would help States attain local ambient airquality standards within their respective borders.
More generally, the structure of Section 209 makes
clear that Section 209(b) is an exception from a uniform
federal regulatory regime. See 42 U.S.C. § 7543(a). It
would make little sense to permit California to function
as a junior-varsity EPA and deviate from a national
regulatory framework to address conditions that are
broadly shared throughout the Nation.
Section 209(b)’s history and purpose confirm that it
authorizes preemption waivers only for California
standards aimed at local air-quality issues. In drafting
Title II, Congress repeatedly identified California’s
“peculiar” circumstances: its “unique problems” resulting from local emissions and pollution concentrations interacting with the State’s distinctive “climate
and topography.” H.R. Rep. No. 90-728, at 22 (1967).
As the D.C. Circuit explained decades ago, “clearly the
intent” of the waiver provision was to “focus on local
air quality problems” that “may differ substantially
from those in other parts of the nation.” Ford Motor
Co. v. EPA, 606 F.2d 1293, 1303 (1979) (emphasis
added).
b. Global climate change is not a condition “extraordinary” to California. By definition, global climate
change is neither unique to California nor uniquely felt
by the State. As EPA found in 2019, when it comes to
the effects of climate change, California is not “worsepositioned in relation to certain other areas.” 84 Fed.
Reg. at 51,348 n.278. In fact, “[m]any parts of the
United States, especially western States, may have issues [caused by climate change] related to drinking water” and “wildfires, and effects on agriculture.” Id. at
30
51,348. In other words, “effects related to climate
change in California” are “not sufficiently different
from the conditions in the nation as a whole to justify
separate State standards.” Id. at 51,344. EPA did not
revisit that finding in 2022. The agency thus provided
no basis to depart from its prior conclusion, let alone
the heightened showing necessary for a reversal.
To be sure, EPA argued below that California’s
standards do address local conditions because they
may have side effects on local criteria pollution. But
that argument is wrong both legally and factually. As
a legal matter, EPA cannot contrive a new goal for California’s standards not presented in California’s waiver
application. No one disputes that the express purpose
of California’s standards was to regulate global climate
change. Moreover, EPA’s argument is not supported
by the factual record. In the waiver reinstatement,
EPA relied on the “logical link” between ozone pollution and greenhouse gases—namely, that ozone levels
are “exacerbate[d]” by higher temperatures caused by
global warming. App., infra, 207a-208a. But EPA previously found that the State’s rules would produce
“likely no change” to climate-change conditions—including rising temperatures—in California. 84 Fed.
Reg. at 51,341. If California’s standards will not
change temperatures, then they cannot affect ozone
levels under EPA’s “logical link” theory either.
2. California does not “need” its own
emission standards to “meet” climatechange conditions
Even if California faced “extraordinary” conditions
within the meaning of Section 209(b) from global climate change, it does not “need” its greenhouse-gas
31
standards and zero-emission-vehicle mandate to
“meet” those conditions. To the contrary, as EPA explained in 2019, California’s standards “will not meaningfully address global air pollution problems of the
sort associated with [greenhouse-gas] emissions.”
84 Fed. Reg. at 51,347, 51,349.
a. A Section 209(b) waiver is authorized when
“need[ed]” to “meet” conditions in California—that is,
only if the proposed California emission standards
would appreciably affect the conditions that warrant
them. That accords with the ordinary meaning of the
statutory terms “need” and “meet.” The verb “need”
means to “be necessary.” Webster’s New International
Dictionary, supra, at 1512. And the term “necessary”
typically means “essential; indispensable.” American
Heritage Dictionary 877 (1st ed. 1969). The verb
“meet” is complementary. In this context, it means to
“satisfy (a demand, need, obligation).” Id. at 816.
Putting the terms together, two things are clear.
First, California must “need”—i.e., require as essential
or very important—specific standards that differ from
federal standards. Second, California’s standards
must meaningfully address the conditions that give rise
to California’s need for separate standards. At a minimum, if the State’s proposed standards have no impact
on those conditions, then they cannot be said to be necessary, essential, or indispensable to “meet” the conditions the State faces.
b. Based on EPA’s own undisturbed factual findings, California does not satisfy that standard for a
preemption waiver. In vacating California’s waiver,
EPA previously found that California’s greenhousegas standards would “lea[d] to little to no change” in
“[greenhouse-gas] emissions at a national level,” and
32
“would result in an indistinguishable change in global
temperatures” and “likely no change in temperatures
or physical impacts resulting from anthropogenic climate change in California.” 84 Fed. Reg. at 51,341,
51,353 (emphases added). Critically, in reinstating the
waiver, EPA did not disturb these findings about the
futility of California’s standards.
3. EPA’s whole-program approach is wrong
In defending its reinstatement decision, EPA has
primarily argued that Section 209(b)(1)(B)—which
permits EPA to grant a preemption waiver only if
“need[ed]” to “meet” “compelling and extraordinary
conditions”—is effectively irrelevant. Under EPA’s
“whole program” approach, so long as California needs
any separate standards at all—say, to combat smog—
the State has satisfied the “need[s] . . . to meet” requirement. See 87 Fed. Reg. at 14,335. At that point,
California can add on any other emission standards it
wants and tackle global problems as it sees fit.
EPA’s whole-program approach is atextual and defies common sense. EPA relies on language elsewhere
in Section 209(b) requiring that California “determine[] that the State standards will be, in the aggregate, at least as protective of public health and welfare
as applicable [federal] standards.”
42 U.S.C.
§ 7543(b)(1) (emphasis added). But Section 209(b)’s “in
the aggregate” language does not carry down to the
rest of 209(b). For example, Subsection (b)(1)(C) requires EPA to ensure that manufacturers have sufficient lead time to meet California’s standards. See
42 U.S.C. § 7521(a)(2). EPA does not assess whether
manufacturers would have adequate lead time “in the
aggregate”—that would make no sense. See 84 Fed.
33
Reg. at 51,332; see also C.A. Pet. Br. 46. Similarly,
EPA has a separate duty in Section 209(b)(1)(B) to determine whether California “need[s] such State standards to meet compelling and extraordinary conditions.”
42 U.S.C. § 7543(b)(1)(B). That determination, like the
neighboring lead-time determination, is not done “in
the aggregate.”
EPA’s reading would also make the Section
209(b)(1)(B) criteria meaningless. Congress already
determined that California “need[s]” its own emissions
program by creating the preemption exception in the
first place. On EPA’s view, however, subsection
(b)(1)(B) serves no independent purpose so long as California has any air-quality issues. This assertion cannot withstand minimal scrutiny, as the D.C. Circuit
panel appeared to recognize at oral argument. See C.A.
Oral Arg. Tr. 45:30 (Wilkins, J., criticizing EPA’s
“whole program” approach).
4. Clear-statement rules favor petitioners’
reading
Even if EPA’s interpretation were possible, several
clear-statement rules require petitioners’ reading.
First, principles of constitutional avoidance require
petitioners’ reading. The State petitioners have argued that Section 209(b) deviates from the “fundamental principle of equality of the states under the Constitution.” Bolln v. Nebraska, 176 U.S. 83, 89 (1900). This
equal-sovereignty question is at least a serious one,
and this Court should adopt a more modest interpretation of California’s waiver authority to avoid it. Solid
Waste Agency of N. Cook Cty. v. U.S. Army Corps of
Eng’rs, 531 U.S. 159, 160 (2001). Even if Congress
could grant California the unique ability to address a
34
local problem, it would be a far graver intrusion on
equal-sovereignty principles to grant California alone
the ability to address global climate change. Cf. South
Carolina v. Katzenbach, 383 U.S. 301, 328-329 (1964)
(“The doctrine of the equality of States” does not bar
“remedies for local evils which have subsequently appeared.”).
Second, the major-questions doctrine applies to California’s efforts to tackle global climate change and
force a transition to electric vehicles. This Court “expect[s] Congress to speak clearly if it wishes to assign
to an agency decisions of ‘vast economic and political
significance.’ ”
Utility Air Regul. Grp. v. EPA,
573 U.S. 302, 324 (2014) (citation omitted). On EPA’s
view, Section 209 authorizes the agency to permit California to adopt vehicle-emission standards to tackle
climate change, and to force a transition to electric vehicles that would have enormous repercussions for the
national economy, the States’ electric grids, and national security. This Court should “greet” EPA’s “assertions of ‘extravagant statutory power over the national economy’ with ‘skepticism.’ ” West Virginia,
597 U.S. at 724 (citation omitted).
Third, the federalism canon points in the same direction. Congress must be “unmistakably clear in the
language of the statute” if it “intends to alter the ‘usual
constitutional balance between the States and the Federal government.’ ” Gregory v. Ashcroft, 501 U.S. 452,
460-461 (1991) (citation omitted). Yet under EPA’s
view, California alone among the States can regulate
the nation’s automobile market in the service of addressing climate change and forcing a transition to
electric vehicles.
35
B. The Question Presented Is Important, Is
Implicated In The States’ Petition, And
Repeatedly Evades Review
The extent of EPA’s authority to grant California a
preemption waiver warrants this Court’s immediate
review. It is a question that shapes the direction of the
entire country’s automobile industry but that has repeatedly evaded judicial scrutiny. And it is a question
antecedent to the constitutional issue that the court of
appeals reached and that is the subject of the State petitioners’ concurrent challenge.
1. Section 209(b), if construed to allow California
to tackle nationwide issues like global climate change,
becomes a huge source of power to regulate the country’s economy. California is a significant market in its
own right, and 17 States and the District of Columbia
have opted into at least some of California’s standards.
See supra, p. 10. Additionally, both EPA and NHTSA
have relied on California’s standards in setting their
respective (and unlawful) vehicle-emission standards
aimed at forcing electrification. See 86 Fed. Reg.
74,434, 74,457-74,458 (Dec. 30, 2021); 87 Fed. Reg.
25,710, 25,762-25,765 (May 2, 2022). No wonder California’s governor described its vehicle-emission rules
as “one of the most significant steps to the elimination
of the tailpipe as we know it.” Coral Davenport et al.,
California to Ban the Sale of New Gasoline Cars, N.Y.
Times (Aug. 24, 2022), https://www.nytimes.com/2022/
08/24/climate/california-gas-cars-emissions.html.
A wait-and-see approach would embolden California
to stretch Section 209(b) even further. Since petitioners brought this case, California has adopted its
so-called Advanced Clean Cars II standards, along
with Advanced Clean Fleets and Advanced Clean
36
Trucks rules, which collectively mandate 100% electrification of every class of new vehicles by 2036. See
CARB, Public Hearing to Consider the Proposed Advanced Clean Cars II Regulations 12 (Apr. 12, 2022),
http://ww2.arb.ca.gov/sites/default/files/barcu/regact/2022
/accii/isor.pdf. EPA’s waiver thus enables California to
force automakers to electrify their entire fleets in California and any State that adopts its standards.
2. This Court should also grant review of the second question because the States’ anticipated petition
presents a serious constitutional question that should
be considered together with petitioners’ statutory challenge. The State petitioners are challenging the D.C.
Circuit’s decision holding that Section 209 does not violate the principle of equal sovereignty. Unless this
Court grants review of both questions presented here,
the Court will not have complete briefing on a narrower
statutory alternative to resolving the States’ constitutional challenge.
3. Finally, this Court should hear the second question presented because it has for too long evaded this
Court’s review and may otherwise continue to do so.
The challenged waiver is in effect only through model
year 2025. That means that there will likely be time for
a merits decision in this Court, or a remand and potential merits decision in the court of appeals, but not both
without having to litigate mootness issues that may
complicate this Court’s review.
Petitioners have endured decades of regulatory
whiplash only for the D.C. Circuit to repeatedly reject
any legal challenges on threshold grounds. Absent this
Court’s review, petitioners will be back at square one,
having to litigate additional challenges to EPA’s next
waiver, all while suffering ongoing injury. Critical
37
American industries deserve the certainty that can
only be provided by this Court’s finally defining the extent of EPA’s authority under Section 209(b).
CONCLUSION
The petition for a writ of certiorari should be
granted.
Respectfully submitted.
ERIC D. MCARTHUR
SIDLEY AUSTIN LLP
1501 K Street NW
Washington, DC 20005
Counsel for American Fuel &
Petrochemical Manufacturers,
Domestic Energy Producers
Alliance, Energy Marketers of
America, and National Association of Convenience Stores
MICHAEL BUSCHBACHER
JARED M. K ELSON
BOYDEN GRAY PLLC
801 17th Street NW
Suite 350
Washington, DC 20006
Counsel for Clean Fuels Development Coalition, ICM,
Inc., Illinois Corn Growers
Association, Kansas Corn
Growers Association, Michigan Corn Growers Association, Missouri Corn Growers
Association, and Valero Renewable Fuels Company, LLC
JEFFREY B. WALL
Counsel of Record
MORGAN L. RATNER
ZOE A. JACOBY
SULLIVAN & CROMWELL LLP
1700 New York Avenue NW
Suite 700
Washington, DC 20006
(202) 956-7660
wallj@sullcrom.com
LESLIE B. ARFFA
SULLIVAN & CROMWELL LLP
125 Broad Street
New York, NY 10004
Counsel for Valero Renewable
Fuels Company, LLC
38
RICHARD S. MOSKOWITZ
AMERICAN FUEL & P ETROCHEMICAL M ANUFACTURERS
1800 M Street NW
Suite 900 North
Washington, DC 20036
Counsel for American Fuel &
Petrochemical Manufacturers
BRITTANY M. PEMBERTON
BRACEWELL LLP
2001 M Street NW
Suite 900
Washington, DC 20036
Counsel for Diamond Alternative Energy, LLC and Valero
Renewable Fuels Company,
LLC
MATTHEW W. MORRISON
SHELBY L. DYL
PILLSBURY WINTHROP SHAW
PITTMAN LLP
1200 Seventeenth Street NW
Washington, DC 20036
Counsel for Diamond Alternative Energy, LLC, Iowa Soybean Association, The Minnesota Soybean Growers Association, and South Dakota Soybean Association
JULY 2, 2024
APPENDIX
TABLE OF CONTENTS
Page
Appendix A — Court of appeals opinion
(Apr. 9, 2024) . . . . . . . . . . . . . . . . . . . . . 1a
Appendix B — Decision of the Environmental
Protection Agency (Mar. 14, 2022) . . 50a
Appendix C — Statutory provisions:
42 U.S.C. § 7507—New motor
vehicle emission standards in
nonattainment areas . . . . . . . . . . . 286a
42 U.S.C. § 7543—State
standards . . . . . . . . . . . . . . . . . . . . . 287a
1a
APPENDIX A
UNITED STATES COURT OF APPEALS FOR THE
DISTRICT OF COLUMBIA CIRCUIT
No. 22-1081, Consolidated with
22-1083, 22-1084, 22-1085
STATE OF OHIO, et al.,
Petitioners
v.
ENVIRONMENTAL PROTECTION AGENCY
AND MICHAEL S. REGAN, IN HIS OFFICIAL
CAPACITY AS ADMINISTRATOR OF THE U.S.
ENVIRONMENTAL PROTECTION AGENCY,
Respondents,
ADVANCED ENERGY UNITED, et al.,
Intervenors
September 15, 2023, Argued; April 9, 2024, Decided
On Petitions for Review of a Final Action
of the Environmental Protection Agency
(1a)
2a
OPINION OF THE COURT
Before: Wilkins, Childs, and Garcia, Circuit Judges.
Opinion for the Court filed Per Curiam.
Per Curiam: These consolidated petitions for review
concern a 2022 decision by the Environmental Protection
Agency (“EPA”) to reinstate the EPA’s prior decision,
in 2013, to waive federal preemption of two California
regulations regarding automobile emissions under the
Clean Air Act. The regulations in question are a standard
limiting greenhouse gas emissions and a requirement that
a certain percentage of new vehicles manufactured in the
state each year be zero-emissions vehicles (“ZEV”), see
13 Cal. Code Regs. §§ 1961.3, 1962.2, respectively. Two
sets of Petitioners challenge the EPA’s decision. The
first group of Petitioners comprises seventeen states
(“State Petitioners”).1 The second group of Petitioners
includes entities that produce or sell liquid fuels and the
raw materials used to produce those fuels, along with
associations whose members include such entities (“Fuel
Petitioners”). 2 Both State and Fuel Petitioners claim that
1. State Petitioners are the State of Ohio, State of Alabama,
State of Arkansas, State of Georgia, State of Indiana, State of
Kansas, Commonwealth of Kentucky, State of Louisiana, State of
Mississippi, State of Missouri, State of Montana, State of Nebraska,
State of Oklahoma, State of South Carolina, State of Texas, State of
Utah, and State of West Virginia.
2. Fuel Petitioners are American Fuel & Petrochemical
Manufacturers, Clean Fuels Development Coalition, Diamond
Alternative Energy, LLC, Domestic Energy Producers Alliance,
3a
the EPA was not authorized to grant California the waiver
under the Clean Air Act. Fuel Petitioners argue that the
EPA exceeded its statutory authority under the Clean
Air Act. State Petitioners, meanwhile, contend that the
EPA’s waiver reinstatement decision was contrary to law
because the relevant California regulations are preempted
by a separate federal statute, the Energy Policy and
Conservation Act of 1975 (“EPCA”), 49 U.S.C. § 32919(a).
State Petitioners also claim that by granting a waiver
to California alone, the EPA violated a constitutional
requirement that the federal government treat states
equally in terms of their sovereign authority. We hold that
Fuel Petitioners lack standing to raise their statutory
claim, and that State Petitioners lack standing to raise
their preemption claim, because neither set of Petitioners
has demonstrated that their claimed injuries would be
redressed by a favorable decision by this Court. While
we hold that State Petitioners have standing to raise their
constitutional claim, we reject it on the merits.
I.
A.
While the Clean Air Act typically grants states broad
discretion to meet federal air quality goals, emissions
standards for new automobiles are promulgated at the
Energy Marketers of America, ICM, Inc., Illinois Corn Growers
Association, Iowa Soybean Association, Kansas Corn Growers
Association, Michigan Corn Growers Association, Minnesota
Soybean Growers Association, Missouri Corn Growers Association,
National Association of Convenience Stores, South Dakota Soybean
Association, and Valero Renewable Fuels Company, LLC.
4a
federal level. The Clean Air Act empowers the EPA to
promulgate federal emissions standards for those vehicles,
see 42 U.S.C. § 7521, and it preempts any corresponding
state regulation, expressly preventing the adoption of
emissions standards for new vehicles and/or engines as
follows:
(a) Prohibition
No State or any political subdivision thereof
shall adopt or attempt to enforce any standard
relating to the control of emissions from new
motor vehicles or new motor vehicle engines
subject to this part. No State shall require
certification, inspection, or any other approval
relating to the control of emissions from any
new motor vehicle or new motor vehicle engine
as condition precedent to the initial retail sale,
titling (if any), or registration of such motor
vehicle, motor vehicle engine, or equipment.
Id. § 7543(a) (“Section 209(a)”). However, the Clean Air
Act permits the EPA to waive application of Section 209(a)
to any state under certain circumstances:
(b) Waiver
(1) The Administrator shall, after notice
and opportunity for public hearing, waive
application of this section to any State which
has adopted standards (other than crankcase
emission standards) for the control of emissions
5a
from new motor vehicles or new motor vehicle
engines prior to March 30, 1966, if the State
determines that the State standards will be,
in the aggregate, at least as protective of
public health and welfare as applicable Federal
standards. No such waiver shall be granted if
the Administrator finds that—
(A) the determination of the State is
arbitrary and capricious,
(B) such State does not need such State
st a nda rds t o meet comp el l i ng a nd
extraordinary conditions, or
(C) such State standards and accompanying
enforcement procedures are not consistent
with section 7521(a) of this title.
(2) If each State standard is at least as stringent
as the comparable applicable Federal standard,
such State standard shall be deemed to be at
least as protective of health and welfare as such
Federal standards for purposes of paragraph
(1).
(3) In the case of any new motor vehicle or new
motor vehicle engine to which State standards
apply pursuant to a waiver granted under
paragraph (1), compliance with such State
standards shall be treated as compliance with
applicable Federal standards for purposes of
this subchapter.
6a
Id. § 7543(b) (“Section 209(b)”). California is the only
state that had adopted standards (other than crankcase
emission standards) for the control of emissions from new
motor vehicles or new motor vehicle engines as of March
30, 1966. See Motor & Equip. Mfrs. Ass’n v. EPA, 627 F.2d
1095, 1100 n.1, 201 U.S. App. D.C. 109 (D.C. Cir. 1979).
If California applies to promulgate automobile
emissions standards that it has determined are at least
as protective of public health and welfare as the existing
federal regulations, the Clean Air Act requires the EPA to
waive preemption as to those regulations, unless certain
criteria (the “waiver denial criteria”) are met. 42 U.S.C.
§ 7543(b). The EPA may refuse to grant a waiver only if: (1)
California’s “determination . . . is arbitrary and capricious,”
(2) California “does not need such State standards to meet
compelling and extraordinary conditions,” or (3) the
“standards and accompanying enforcement procedures
are not consistent with [42 U.S.C. § 7521(a)].” Id. § 7543(b)
(1)(A)–(C). In other words, the federal regulations continue
to act as the floor for emissions regulations, but California
can seek to enact its own more stringent regulatory
program above those federal requirements.
Sections 209(a) and (b) of the Clean Air Act together
make up a statutory compromise between several
competing interests. When Congress enacted the Clean
Air Act in 1967, California suffered from significant air
quality and pollution problems caused by motor vehicle
emissions, which federal emissions regulations were
unlikely to adequately address. See S. Rep. No. 90-403,
at 33–34 (1967); H.R. Rep. No. 90-728, at 21–23, 96–97
7a
(1967). California was also the only state with its own
motor vehicle emissions standards, and its leadership in
automobile emissions regulation had been valuable to the
federal government in crafting the Clean Air Act. See
S. Rep. No. 90-403, at 33–34; H.R. Rep. No. 90-728, at
21–23, 96–97. At the same time, automobile manufacturers
were growing concerned that other states might begin
regulating automobile emissions, subjecting them to a
patchwork of regulatory obligations and significantly
increasing manufacturing costs. See H.R. Rep. No.
90-728, at 21; see also Engine Mfrs. Ass’n v. EPA, 88
F.3d 1075, 1079, 319 U.S. App. D.C. 12 (D.C. Cir. 1996).
Congress enacted Sections 209(a) and (b) to balance the
fears of automobile manufacturers, California’s need for
bespoke regulation, and the federal interest in allowing
California to test new emissions regulations. Section
209(a) addresses the fears of automakers and ensures
national uniformity in automobile emissions standards
by preempting state regulation. See 42 U.S.C. § 7543(a).
Meanwhile, Section 209(b) grandfathers in California’s
regulatory program and allows it to continue innovating
new solutions to automobile pollution. See id. § 7543(b);
see also Engine Mfrs. Ass’n, 88 F.3d at 1080.
B.
The D.C. Circuit is familiar with interpreting the
Clean Air Act. Shortly following the enactment of Section
209(b), the D.C. Circuit addressed the question of how
California should determine that its regulations are more
protective than the federal regulations. See Motor & Equip.
Mfrs. Ass’n, 627 F.2d at 1095. California sought to impose
8a
regulations on oxides of nitrogen that were significantly
more stringent than their federal counterparts. Id. at
1110 n.32. However, due to technological constraints,
emissions control devices could not be constructed to
meet both California’s oxides of nitrogen standard and
a carbon monoxide standard as stringent as the federal
standard. Id. In an effort to impose its high oxides of
nitrogen standard, California proposed a carbon monoxide
standard that was less stringent than the federal carbon
monoxide standard. Id. The EPA allowed California’s
stringent oxides of nitrogen standard to make up for
its less stringent carbon monoxide standard, as long as
its regulatory program as a whole was more protective
than the federal regulations. Id. Dissatisfied with this
decision, opponents of California’s regulations argued
that Section 209(b) required California to show that
its carbon monoxide standard was individually more
protective than the federal carbon monoxide standard. In
1977, Congress resolved this dispute by amending Section
209(b). The new language of Section 209(b) made explicit
that California need only determine that its standards are,
“in the aggregate, at least as protective of public health
and welfare” as the federal standards. 42 U.S.C. § 7543(b)
(1). So long as California has made that determination,
the EPA must grant California a waiver unless the EPA
finds that any of the waiver denial criteria are met. See
id. § 7543(b)(1)(A)–(C). The amendment ensures that
California is not required to determine that each new
proposed regulation is more protective than its federal
counterpart. Id. It was intended to give California the
“broadest discretion in selecting the best means to protect
9a
the health of its citizens and the public welfare.” H.R. Rep.
No. 95-294, at 301–02 (1977). 3
After Congress amended Section 209(b) to provide
that California need only determine that its standards
were, “in the aggregate,” at least as protective as the
federal standards, the EPA decided to apply a similar
approach to its analysis of whether California’s proposed
standards met any of the waiver denial criteria. See 42
U.S.C. § 7543(b)(1)(A)–(C). Thus, in examining whether
any of the waiver denial criteria applied, the EPA
considered only whether California’s proposed standards,
in the aggregate, met any of the criteria—not whether
each individual standard could be denied under any of
the criteria. The EPA continued to evaluate California’s
waiver applications under Section 209(b) using this
aggregate method of evaluation for decades. In the fiftyfive years since Section 209(b) was originally enacted,
the EPA has granted California seventy-five waivers
using the aggregate method of evaluation. See 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. 14337 (Mar. 14, 2022) (“2022
Waiver Reinstatement Decision”); see also EPA, Vehicle
3. The 1977 Clean Air Act amendments also empowered
other states to choose between adopting the federal standards or
the California standards. 42 U.S.C. § 7507. As of the date of this
opinion, seventeen states have chosen to adopt some portion of
the California regulations. See Cal. Air Res. Bd., States that Have
Adopted California’s Vehicle Regulations, https://perma.cc/HCS4X7NP (last visited Mar. 27, 2024).
10a
Emissions California Waivers and Authorizations,
https://perma.cc/5T7U-L8GE (last visited Mar. 27, 2024).
In the 1960s and 1970s, California’s emissions
standards focused on ozone-generating pollutants, like
nitrogen oxides, but over time, California expanded
its regulatory program to restrict a variety of other
emissions, such as methane and other greenhouse gases.
See, e.g., California State Motor Vehicle Pollution
Control Standards; Waiver of Federal Preemption, 43
Fed. Reg. 25729, 25735 (June 14, 1978); California State
Motor Vehicle Pollution Control Standards; Waiver of
Federal Preemption Notice of Decision, 49 Fed. Reg.
18887, 18890 (May 3, 1984). In 1993, the EPA approved
a waiver of California’s first ZEV standard, which
required an annually increasing percentage of vehicles
sold in California to produce zero tailpipe emissions.
See California State Motor Vehicle Pollution Control
Standards; Waiver of Federal Preemption; Decision, 58
Fed. Reg. 4166 (Jan. 13, 1993).
C.
In recent decades, California has continued to face
significant pollution and climate challenges. It contains
seven of the ten worst areas for ozone pollution in the
country and six of the ten worst areas for small particulate
matter. See 2022 Waiver Reinstatement Decision, 87 Fed.
Reg. at 14377 n.469. It also faces “increasing risks from
record-setting fires, heat waves, storm surges, sea-level
rise, water supply shortages and extreme heat.” Id. at
14363; see also id. at 14338–39 & nn.37, 43. And these
conditions are exacerbated by climate change. Id. at
11a
14350 & n.165. Moreover, pollution and climate change
have particularly harmful impacts on California due to its
large agriculture and ocean-based economies, dependence
on an over-stressed water supply, long coastlines, and
susceptibility to wildfires. See California State Motor
Vehicle Pollution Control Standards; Notice of Decision
Granting a Waiver of Clean Air Act Preemption for
California’s 2009 and Subsequent Model Year Greenhouse
Gas Emission Standards for New Motor Vehicles, 74 Fed.
Reg. 32744, 32746 (July 8, 2009).
To combat these challenges, in 2005, California
applied for a waiver for a new set of regulations limiting
greenhouse gas emissions. See Cal. Air Res. Bd., LowEmission Vehicle Greenhouse Gas Program, https://
perma.cc/VC85-GQ2S (last visited Mar. 27, 2024). The
request sparked disagreement among several subsequent
presidential administrations. Under President George
W. Bush’s Administration, the EPA initially denied the
waiver on the basis that the standards were not addressing
“compelling and extraordinary conditions.” California
State Motor Vehicle Pollution Control Standards;
Notice of Decision Denying a Waiver of Clean Air Act
Preemption for California’s 2009 and Subsequent Model
Year Greenhouse Gas Emission Standards for New Motor
Vehicles, 73 Fed. Reg. 12156, 12159–63 (Mar. 6, 2008). One
year later, under the Obama Administration, the EPA
determined that its initial decision to deny the waiver
had been based on an incorrect interpretation of Section
209(b), and ultimately granted the waiver. California
State Motor Vehicle Pollution Control Standards;
Notice of Decision Granting a Waiver of Clean Air Act
Preemption for California’s 2009 and Subsequent Model
12a
Year Greenhouse Gas Emission Standards for New Motor
Vehicles, 74 Fed. Reg. 32744, 32745–46 (July 8, 2009).
In 2012, California applied for the waiver at issue in
this case, seeking to promulgate a new set of regulations
called the Advanced Clean Car Program. See California
State Motor Vehicle Pollution Control Standards; Notice of
Decision Granting a Waiver of Clean Air Act Preemption
for California’s Advanced Clean Car Program and a
Within the Scope Confirmation for California’s Zero
Emission Vehicle Amendments for 2017 and Earlier
Model Years, 78 Fed. Reg. 2112 (Jan. 9, 2013). The new
regulations included a Low Emission Vehicle (“LEV”)
Program, which set emissions requirements for new cars
in Model Years 2017 to 2025 with the goal of reducing
carbon dioxide emissions by thirty-four percent, and a
ZEV Program, which required around fifteen percent of
manufacturers’ fleets to be electric cars by Model Year
2025. Id. The EPA initially granted the waiver in 2013.
Id. In response, automobile manufacturers in California
began making investments to meet both programs’
requirements. See, e.g., Industry Resp.-Intervenor Br.
2–4.
In 2018, after car manufacturers had adjusted their
fleets to comply with California’s Advanced Clean Car
Program, the EPA changed its course. It issued a notice of
proposed rulemaking to withdraw the portions of the 2013
waiver covering California’s LEV and ZEV standards.
See The Safer Affordable Fuel-Efficient (SAFE) Vehicles
Rule for Model Years 2021-2026 Passenger Cars and Light
Trucks, 83 Fed. Reg. 42986 (Aug. 24, 2018).
13a
The EPA withdrew the 2013 waiver on September
27, 2019. The Safer Affordable Fuel-Efficient (SAFE)
Vehicles Rule Part One: One National Program, 84 Fed.
Reg. 51310 (Sept. 27, 2019) (“2019 Withdrawal Decision”).
The EPA offered three bases for the withdrawal. Id. at
51328–41. First, the 2013 waiver conflicted with a recent
determination by the National Highway Traffic Safety
Administration (“NHTSA”) that state greenhouse gas
regulations were preempted by a provision of the EPCA
that prohibits states from enacting their own fuel economy
standards. Id. at 51337–38; see also 49 U.S.C. § 32902(a),
(f) (empowering the NHTSA to set federal fuel economy
standards); id. § 32919(a) (preempting state fuel economy
standards). Second, the EPA had decided that it would
no longer follow a “whole program” interpretation of
Section 209(b), and instead would evaluate whether each
individual California standard met the requirement that
it be necessary to “meet compelling and extraordinary
conditions.” 2019 Withdrawal Decision, 84 Fed. Reg. at
51341 (quoting 42 U.S.C. § 7543(b)(1)). Third, California
could not show that its LEV and ZEV regulations were
necessary to meet compelling and extraordinary conditions
because California could not show a “particularized
nexus” between greenhouse gas emissions and California’s
air pollution problems. Id. According to the EPA, because
greenhouse gas pollution from global sources is blended
in the atmosphere, the consequences of climate change
from which California suffered were not “compelling and
extraordinary.” Id. at 51333–34.
Following recission of the 2013 waiver, automobile
manufacturers such as Honda, Ford, Volvo, BMW,
14a
and Volkswagen entered into independent agreements
with California to continue reducing emissions. See
Revised 2023 and Later Model Year Light-Duty Vehicle
Greenhouse Gas Emissions Standards, 86 Fed. Reg.
74434, 74458 (Dec. 30, 2021). Under these agreements,
the automakers would continue to meet the LEV
and ZEV standards in the California regulations. Id.
Automakers were motivated to sign these agreements by
the investments they had already made in updating their
fleets and growing consumer demand for electric vehicles.
See J.A. 155–57.
In 2021, under the Biden Administration, the EPA
revisited its 2019 withdrawal of the 2013 waiver. California
State Motor Vehicle Pollution Control Standards;
Advanced Clean Car Program; Reconsideration of
a Previous Withdrawal of a Waiver of Preemption;
Opportunity for Public Hearing and Public Comment,
86 Fed. Reg. 22421 (Apr. 28, 2021). On March 14, 2022, the
EPA reinstated its 2013 waiver for California’s Advanced
Clean Car Program. 2022 Waiver Reinstatement Decision,
87 Fed. Reg. at 14332. As a result of that reinstatement,
California’s LEV and ZEV standards for Model Years
2017 through 2025 came back into force. Id. at 14333.
The EPA provided three explanations for its 2022 Waiver
Reinstatement Decision: the EPA exceeded its inherent
authority to revisit its 2013 decision; it improperly
rejected the “whole program” approach; and it improperly
considered the NHTSA’s view of the EPCA, which was
beyond the scope of Section 209(b). Id. at 14333–35.
15a
D.
On May 12, 2022, State Petitioners filed a petition
for review in this Court challenging the EPA’s decision
to reinstate the 2013 waiver (22-1081). That same day,
three groups of Fuel Petitioners filed petitions for
review of the same EPA action (22-1083, 22-1084, and
22-1085). The Court consolidated these cases (22-1081).
California and several other states and cities (collectively,
“California”), 4 environmental organizations, 5 and
automobile manufacturers6 have intervened in support
of respondents in the consolidated case.
4. The state and city intervenors are the City of Los Angeles,
the City of New York, Massachusetts, Pennsylvania, the District
of Columbia, California, Colorado, Connecticut, Delaware, Hawaii,
Illinois, Maine, Maryland, Minnesota, Nevada, New Jersey, New
Mexico, New York, North Carolina, Oregon, Rhode Island, Vermont,
and Washington.
5. The environmental organization intervenors are the Center
for Biological Diversity, the Clean Air Council, the Conservation Law
Foundation, the Environmental Defense Fund, the Environmental
Law and Policy Center, the National Parks Conservation Association,
the Natural Resources Defense Council, the Public Citizen, the
Sierra Club, and the Union of Concerned Scientists.
6. The automobile manufacturer intervenors are Ford Motor
Company, Volkswagen Group of America, Inc., BMW of North
America, LLC, American Honda Motor Co., Inc., Volvo Car USA
LLC, the National Coalition for Advanced Transportation, Advanced
Energy Economy, Calpine Corporation, National Grid USA, the New
York Power Authority, and the Power Companies Climate Coalition.
16a
In their petition, Fuel Petitioners argue that the 2022
decision was arbitrary and capricious and exceeded the
EPA’s authority under Section 209(b) because climate
change is not a “compelling and extraordinary condition,”
and California does not “need” its standards to “meet”
its climate conditions. See, e.g., Fuel Pet. Br. 10–11. In
challenging the EPA’s determination of California’s
“need,” Fuel Petitioners argue that the EPA’s aggregate
approach is wrong. Id. Meanwhile, State Petitioners
claim that by granting a waiver to California, but not to
any other state, the EPA has violated State Petitioners’
constitutional right to equal sovereignty. See State Pet.
Br. 28–33. State Petitioners also claim that the waiver
is contrary to the preemption of state fuel economy
standards set out in the EPCA. See State Pet. Br. 33–41.
We hold that neither Fuel Petitioners as to their
statutory claims nor State Petitioners as to their EPCA
claims establish standing to bring suit, and thus we do
not reach the merits of their claims. We reject State
Petitioners’ constitutional claim on the merits.
II.
A.
We begin with the question whether either State or
Fuel Petitioners have standing based on their assertions
that the waiver will cause them economic injury. Fuel
Petitioners premise their standing as to the entirety of
their petition for review on their claimed economic injury.
State Petitioners, meanwhile, premise their standing for
17a
their claim that the waiver is preempted by the EPCA on
their alleged economic injury.
A “showing of standing is ‘an essential and unchanging’
predicate to any exercise of our jurisdiction.” Fla.
Audubon Soc. v. Bentsen, 94 F.3d 658, 663, 320 U.S. App.
D.C. 324 (D.C. Cir. 1996) (en banc) (quoting Lujan v. Defs.
of Wildlife, 504 U.S. 555, 560, 112 S. Ct. 2130, 119 L. Ed. 2d
351 (1992)). “[S]tanding is assessed as of the time a suit
commences.” Del Monte Fresh Produce Co. v. United
States, 570 F.3d 316, 324, 386 U.S. App. D.C. 406 (D.C.
Cir. 2009). The “irreducible constitutional minimum of
standing contains three elements.” Lujan, 504 U.S. at 560.
First, the plaintiff must have suffered an injury-in-fact—
an “invasion of a judicially cognizable interest which is (a)
concrete and particularized and (b) actual or imminent,
not conjectural or hypothetical.” Bennett v. Spear, 520
U.S. 154, 167, 117 S. Ct. 1154, 137 L. Ed. 2d 281 (1997).
Second, there must be a “causal connection between the
injury and the conduct complained of—the injury must be
fairly traceable to the challenged action of the defendant,
and not the result of the independent action of some third
party not before the court.” Id. Third, “it must be ‘likely,’
as opposed to merely ‘speculative,’ that the injury will be
‘redressed by a favorable decision.’” Lujan, 504 U.S. at
561 (quoting Simon v. E. Ky. Welfare Rts. Org., 426 U.S.
26, 38, 43, 96 S. Ct. 1917, 48 L. Ed. 2d 450 (1976)).
“A petitioner bears the burden of establishing each”
of the elements of standing. Chamber of Com. of U.S. v.
EPA, 642 F.3d 192, 200, 395 U.S. App. D.C. 193 (D.C.
Cir. 2011). To meet that burden, a petitioner must “show
18a
a ‘substantial probability’ that it has been injured, that
the defendant caused its injury, and that the court could
redress that injury.” Sierra Club v. EPA, 292 F.3d 895,
899, 352 U.S. App. D.C. 191 (D.C. Cir. 2002) (quoting API v.
United States EPA, 216 F.3d 50, 63, 342 U.S. App. D.C. 159
(D.C. Cir. 2000)). And a petitioner may not wait to attempt
to meet its burden of demonstrating standing until after
the respondent contests the issue. Rather, absent “good
cause shown,” a petitioner whose standing is not readily
apparent must show that it has standing in “its opening
brief.” Id. at 900–01. A petitioner may carry this “burden
of production by citing any record evidence relevant to its
claim of standing and, if necessary, appending to its filing
additional affidavits or other evidence sufficient to support
its claim.” Id.; see also D.C. Cir. R. 28(a)(7).
Whether a petitioner has standing to challenge a
particular government action depends, in part, upon
whether the petitioner is “an object of the action” at
issue. Lujan, 504 U.S. at 561. When a petitioner is an
object of the action it seeks to challenge, causation and
redressability are usually easy to demonstrate. Id. But
when, as here, the petitioner “is not [it]self the object of
the government action or inaction he challenges, standing
is not precluded, but is ordinarily ‘substantially more
difficult’ to establish.” Id. at 562 (quoting Allen v. Wright,
468 U.S. 737, 758, 104 S. Ct. 3315, 82 L. Ed. 2d 556 (1984)).
Because any injury to petitioners “hinges on actions taken
by manufacturers, the petitioners carry ‘the burden of
adduc[ing] facts showing that those [third-party] choices
have been or will be made in such manner as to produce
causation and permit redressability of injury.’” Chamber
19a
of Com., 642 F.3d at 201 (alterations in original) (quoting
Ctr. for Biological Diversity v. United States DOI, 563
F.3d 466, 477, 385 U.S. App. D.C. 257 (D.C. Cir. 2009)).
As we will explain, these principles compel the
conclusion that both State and Fuel Petitioners lack
standing premised on their claimed economic injuries
because neither group of Petitioners has met their burden
of demonstrating that those injuries are redressable.
B.
Fuel Petitioners argue that, by requiring vehicle
manufacturers to sell vehicles that use less or no liquid
fuel, California’s LEV and ZEV requirements depress
the demand for liquid fuels.7 Fuel Petitioners and their
members, who produce and sell liquid fuels and the
raw materials used to produce those fuels, are thereby
financially injured by the reduction in demand for those
products. Fuel Pet. Br. 16; Fuel Pet. Reply Br. 3–4. In
support of Fuel Petitioners’ contention that they are
economically injured by the waiver, Fuel Petitioners
offer over a dozen declarations by individuals who are
affiliated with Fuel Petitioner entities and organizations;
the individuals explain that the entity or organization is
7. Fuel Petitioners include both associations and individual
entities. Fuel Pet. Br. 16. Because, as we explain, we conclude that
all Fuel Petitioners have failed to establish redressability, we need
not address whether any of the Fuel Petitioner associations have
established organizational standing. Cf. Sierra Club, 292 F.3d at
898 (laying out the requirements for establishing organizational
standing).
20a
involved with producing or selling fuel and that the waiver
causes Fuel Petitioners economic injury by reducing the
demand for fuel and related products.
State Petitioners, meanwhile, allege three financial
injuries that they contend are caused by the waiver.
First, the waiver causes manufacturers to increase the
cost of conventional vehicles elsewhere in the country in
order to account for the cost of meeting the requirements
imposed on manufacturers by the waiver granted to
California. State Petitioners explain that because they
purchase conventional vehicles, the increase in the prices
for those vehicles that results from the waiver causes
State Petitioners financial harm. State Pet. Br. 14–15.
Second, State Petitioners contend that the greater shift
to electric vehicles that results from the waiver will
cause State Petitioners to generate less fuel-tax revenue.
Id. Finally, State Petitioners argue that the increase
in electric vehicles caused by the waiver will affect the
States’ electrical grids. In support of their standing
claims, State Petitioners offer a declaration from each
individual State Petitioner and a declaration from an
economist, Benjamin Zycher, Ph.D. Each State Petitioner’s
declaration states that the state purchases conventional
(that is, gas-or diesel-powered) vehicles. State Pet.
Add. 6–36. In his declaration, Dr. Zycher contends that
California’s ZEV requirement will have several economic
impacts on State Petitioners, including an increase in the
cost of conventional vehicles nationwide, a “decline in the
quality of delivered state services,” a reduction in “fuel
tax revenues available for the provision of highway and
21a
road services,” and an “increase in the costs and prices of
delivering electric power services.” State Pet. Add. 38–39.
The EPA and California both dispute that State
and Fuel Petitioners’ allegations and evidence establish
injury and causation sufficient to support standing. EPA
Br. 23–28 (arguing State Petitioners fail to demonstrate
standing); California Br. 9–15 (arguing both State and Fuel
Petitioners fail to demonstrate standing). For example,
as to causation, California argues that both groups of
Petitioners fail to demonstrate that their alleged injuries
are caused by the 2022 waiver reinstatement, rather than
the original 2013 waiver or rising consumer demand for
electric vehicles more generally. California Br. 11, 14. But
this Court need not definitively decide whether either
set of Petitioners has established injury or causation.
However robust their claims of injury and causation
are, State and Fuel Petitioners spend considerably less
time explaining how those injuries are redressable.
Indeed, even assuming that both sets of Petitioners have
established injury and causation sufficient for standing,
Petitioners’ standing arguments fail for the same reason:
Both groups of Petitioners fall far short of meeting their
burden of demonstrating a “substantial probability” that
their alleged injuries would be redressed by a favorable
decision by this Court. Am. Petroleum, 216 F.3d at 63; see
also Sierra Club, 292 F.3d at 899–900.
Fuel Petitioners assert in their opening brief—
without explanation or citation—that this Court could
redress their injuries “by setting aside the action.” Fuel
Pet. Br. 16. Fuel Petitioners’ declarations offer little
22a
more; to the extent that Fuel Petitioners’ declarations
discuss redressability at all, the declarations state that
the injuries discussed therein “would be substantially
ameliorated if EPA’s decision were set aside.” State
Petitioners’ opening brief is similarly conclusory regarding
redressability. State Petitioners assert that their “injuries
are redressable because a judgment setting aside the
waiver would eliminate the source of their injuries.” State
Pet. Br. 16. However, none of the declarations submitted
by State Petitioners with their opening brief addresses
redressability at all.
The difficulty for Fuel and State Petitioners is
that their claimed injuries “hinge[] on” the actions of
third parties—the automobile manufacturers who are
subject to the waiver. Chamber of Com., 642 F.3d at
201. Redressability, too, “hinge[s] on the response of”
those same automobile manufacturers. Lujan, 504 U.S.
at 562. Both groups of Petitioners’ injuries would be
redressed only if automobile manufacturers responded
to vacatur of the waiver by producing and selling fewer
non-conventional vehicles or by altering the prices of their
vehicles such that fewer non-conventional vehicles—and
more conventional vehicles—were sold.
And, aside from turning on the actions of the automobile
manufacturers subject to the waiver, redressability is
further complicated by the relatively short duration of
the waiver that Petitioners challenge. These petitions
for review concern only the EPA’s decision, in March
2022, to reinstate the waiver it had previously granted
California as to Model Years 2017 through 2025. See 2022
23a
Waiver Reinstatement Decision, 87 Fed. Reg. 14337. Thus,
to meet their burden of demonstrating redressability,
both sets of Petitioners must demonstrate a “substantial
probability” not only that automobile manufacturers are
likely to respond to a decision by this Court by changing
their fleets in a way that alleviates their injuries in some
way, but also that automobile manufacturers would do so
relatively quickly—by Model Year 2025. Am. Petroleum,
216 F.3d at 63.
The record evidence provides no basis for us to
conclude that manufacturers would, in fact, change course
with respect to the relevant model years if this Court were
to vacate the waiver. To begin, Petitioners fail to point to
any evidence affirmatively demonstrating that vacatur of
the waiver would be substantially likely to result in any
change to automobile manufacturers’ vehicle fleets by
Model Year 2025. The only evidence points in the opposite
direction, indicating that automobile manufacturers need
years of lead time to make changes to their future model
year fleets. In a comment submitted to the EPA during the
rulemaking process regarding the EPA’s 2019 recission
of the 2013 waiver, for example, Ford Motor Company
stated that its product cycle requires several years of
lead time for planning, and that its “regulatory lead time
(i.e., awareness of future regulatory requirements)” is
seven years. J.A. 637. Ford explained that, as a result,
if the regulatory landscape shifted in some way, “little
or nothing could be done to re-optimize the company’s
product plans, which are largely fixed for the next few
years.” Id. Further, the record indicates that other
automobile manufacturers would also require years
24a
of lead time to alter their product plans. In comments
submitted to the EPA during the EPA’s rulemaking
process regarding the 2022 waiver reinstatement, Tesla,
Inc. and Toyota Motor North America, Inc., explained
that their vehicle product cycles, too, can also begin years
before a vehicle is launched. J.A. 371, 477; see also J.A.
370 n.5 (summarizing similar statements from Chrysler
Group LLC, Hyundai America Technical Center, Inc.,
and Mitsubishi Motors North America). Thus, even
if automobile manufacturers were inclined to change
course so as to alleviate the Petitioners’ injuries within
the given model years, it is far from clear that they could
do so within the model years covered by the waiver. 8 To
be sure, it is possible that manufacturers could change
their prices without modifying their production cycles,
which may redress Petitioners’ injuries because pricing
could affect the mix of conventional and electric vehicles
purchased. But Petitioners point us to no evidence that
manufacturers would change their prices by Model Year
2025 either.
Despite the paucity of evidence in the record
regarding the redressability of their injuries, neither
group of Petitioners attempts to explain in any detail
how their injuries are redressable, let alone to “cit[e] any
record evidence” or to file “additional affidavits or other
8. We also note that several automobile manufacturers have
intervened in support of the EPA in this case. Those manufacturers
explain in their brief in support of the EPA that “both internal
sustainability goals and external market forces” are prompting
manufacturers to transition toward electric vehicles, irrespective
of California’s regulations. Industry Resp.-Intervenor Br. 6–7.
25a
evidence sufficient to support” redressability. Sierra Club,
292 F.3d at 900–01. Nor, for that matter, does either set
of Petitioners grapple with the relatively short nature of
the waiver they challenge. Rather, all Petitioners seem to
have treated redressability as a foregone conclusion. See
Crete Carrier Corp. v. EPA, 363 F.3d 490, 494, 361 U.S.
App. D.C. 54 (D.C. Cir. 2004) (petitioners lacked standing
where they failed to produce “actual evidence” regarding
how the regulated parties “would respond” to vacatur);
Branton v. FCC, 993 F.2d 906, 912, 301 U.S. App. D.C. 244
(D.C. Cir. 1993) (“A court is rightly reluctant to enter a
judgment which may have no real consequence, depending
upon the putative cost-benefit analyses of third parties
over whom it has no jurisdiction and about whom it has
almost no information.”).
When asked about redressability at oral argument,
c ou n s el for F uel Pet it ione r s e mph a s i z e d t h at
redressability—as with each prong of standing—is
assessed when a lawsuit is first filed. Oral Argument
Transcript 74; see also Del Monte, 570 F.3d at 325 (“[S]
tanding is assessed as of the time a suit commences.”). True
enough. But that does not help Fuel Petitioners: Even “as
of the time” this lawsuit commenced, Fuel Petitioners had
failed to point to any evidence in the record showing that
their alleged injuries were redressable. Del Monte, 570
F.3d at 325. Put differently, the flaw in Fuel Petitioners’
standing arguments is not—as counsel for Fuel Petitioners
contended at oral argument, Oral Argument Transcript
74–75—that their standing arguments were sufficient
when originally filed, but that their claims have been
mooted by the passage of time. Fuel Petitioners’ standing
arguments were deficient from the start.
26a
State Petitioners, meanwhile, argue that, to the
extent that there is any doubt that they have met their
burden of demonstrating causation and redressability, this
Court should resolve it in their favor given the “special
solicitude” to which states are entitled when they seek to
protect their “quasi-sovereign interests.” Massachusetts
v. EPA, 549 U.S. 497, 518–20, 127 S. Ct. 1438, 167 L. Ed. 2d
248 (2007); see also State Pet. Br. 16. We disagree. The
“special solicitude” afforded to states can relax standing
requirements only so far. Massachusetts, 549 U.S. at 520.
Even the “greater leeway” afforded to states seeking to
protect quasi-sovereign interests cannot save defective
standing claims when, as here, the record is “almost
completely silent” with respect to an element of a state’s
standing. Alaska v. U.S. Dep’t of Agric., 17 F.4th 1224,
1230, 454 U.S. App. D.C. 493 (D.C. Cir. 2021).
State and Fuel Petitioners’ sparse treatment of
redressability is particularly surprising because, in a
previous case, this Court noted that it could not presume
redressability in essentially the same circumstances.
In Chamber of Commerce of the United States v. EPA,
the Chamber of Commerce and the National Automobile
Dealers Association, on behalf of their automobile dealer
members, petitioned for review in this Court of the EPA’s
decision to grant California a waiver, under Section 209(b),
with respect to automobile Model Years 2009 through 2016.
642 F.3d at 196–97. There, the petitioners—automobile
dealers who, like the Petitioners in this case, were not
directly subject to the waiver—explained that automobile
manufacturers’ responses to the waiver injured them in
two ways. First, automobile manufacturers would respond
27a
to the waiver by altering the mix of vehicles they sold in
California and other states; as a result, vehicle dealers
would be injured because they would be unable to obtain
specific vehicles that their customers wanted to buy. Id. at
201. And second, the California standards would increase
automobile manufacturers’ costs and, in turn, increase
the prices of the automobiles they manufactured. Id. The
automobile dealers believed they would be injured by those
increased vehicle costs because they would have to choose
whether to keep their prices the same, and accordingly
lower their profit margins, or to increase their prices
to account for the increased vehicle costs, at the risk of
turning away customers. Id.
The Chamber of Commerce Court ultimately resolved
petitioners’ claims on mootness grounds, not standing.
Id. at 204, 206. But before reaching that conclusion, the
Court expressed serious doubts that the petitioners
had met their burden of demonstrating redressability.
Id. at 205. The record before the Court indicated that
vacatur of the challenged waiver may not result in any
change on the part of automobile manufacturers. And,
the Court noted, “Petitioners ha[d] offered no evidence
to the contrary, and no evidence that, if the waiver were
vacated, [automobile manufacturers] would proceed on
a different course more favorable to the petitioners.” Id.
at 205–06. So even if petitioners’ claims were not moot,
their failure to introduce redressability evidence made
it—at a minimum—rather unclear whether their claims
were redressable.
As the EPA and intervenors correctly recognize,
State and Fuel Petitioners’ standing submissions run into
28a
precisely the same problem here. In its response brief,
the EPA explains in some detail how State Petitioners
have failed to substantiate the redressability of their
injuries. EPA Br. 26. California, meanwhile, argues that
neither group of Petitioners has provided any evidence
that vacatur would remedy their injuries. California
Br. 13. Further underlining the point, California offers
an expert declaration by Joshua M. Cunningham,
the Chief of the Advanced Clean Cars Branch of the
California A ir Resources Board, who explains in
specific terms why the Petitioners’ claims are unlikely
to be redressed by a favorable decision by this Court.
California Add. 84–85; 96–99. Cunningham explains that
automobile manufacturers have already made a number
of public commitments regarding both vehicle pricing
and availability with respect to the remaining model
years covered by the challenged waiver; those public
commitments would tend to suggest that neither group
of Petitioners’ claims are redressable. As Cunningham
puts it, “manufacturers have likely already made pricing
decisions for” the remaining model years. California
Add. 96. Cunningham also states that “manufacturers
are already selling more qualifying vehicles in California
than the State’s standards require,” suggesting that
vacatur of the zero-emission vehicle mandate would not
redress Petitioners’ injuries. California Add. 98. Indeed,
record evidence supports the fact that manufacturers
already exceed California’s ZEV requirements. See J.A.
300–02. Yet despite these arguments against their theory
of redressability, neither State nor Fuel Petitioners
meaningfully addressed the redressability of their
29a
economic injuries in their reply briefs.9 State Pet. Reply
Br. 3, Fuel Pet. Reply Br. 3–6.
Ultimately, the record evidence, coupled with the
filings of the EPA and intervenors, provide this Court
with no basis to conclude that Petitioners’ claims are
redressable—a necessary element of standing that
Petitioners bear the burden of establishing. As in Chamber
of Commerce, “Petitioners have offered no evidence to
the contrary, and no evidence that, if the waiver were
vacated, [automobile manufacturers] would proceed on
a different course more favorable to the petitioners.”
642 F.3d at 205. Rather, both State and Fuel Petitioners
“offer only assertions, not facts, to support their claims
about the likely response” of automobile manufacturers
to a favorable decision by this Court. Crete Carrier Corp.,
363 F.3d at 494. But “[s]peculative and unsupported
assumptions regarding the future actions of third-party
market participants are insufficient to establish Article
III standing.” Id. 10 Petitioners may not proclaim that their
9. This Court denied a motion by State Petitioners to file with
their reply brief new evidence regarding their standing. Per Curiam
Order, Aug. 9, 2023. That proposed supplemental evidence, however,
concerned only State Petitioners’ allegations of economic injuries
stemming from the waiver, not the redressability of those injuries.
ECF 2019756. At any rate, the evidence was too late. See D.C. Cir.
R. 28(a)(7).
10. We conclude that Petitioners have failed to introduce
sufficient evidence to raise a dispute of fact as to whether changes
to the remaining model year f leets are substantially likely if
vacatur were to occur, so we have no need to refer this to a district
judge or special master as a disputed factual issue for resolution
before making our ruling on redressability. See FCC v. ITT World
30a
injuries are redressable and expect this Court to take
them at their word. On this record, redressability poses
a “fatal stumbling block” for both sets of Petitioners. Cato
Institute v. SEC, 4 F.4th 91, 95, 453 U.S. App. D.C. 184
(D.C. Cir. 2021). We accordingly hold that both State and
Fuel Petitioners lack standing premised on their economic
injuries because they have failed to meet their burdens of
demonstrating that their claims are redressable.
C.
After oral argument, Fuel Petitioners filed a motion
to supplement the record and to file a supplemental brief
regarding their standing. Fuel Pet. Mot. to Supp. 1. Fuel
Petitioners contend that the EPA and California raised for
the first time at oral argument the question whether Fuel
Petitioners’ claims could be redressed within the relevant
model years—an issue Fuel Petitioners argue pertains
to mootness, not the redressability of their claims. Fuel
Pet. Mot. to Supp. 1–2. Fuel Petitioners argue that they
should be allowed to file new evidence with this Court to
“address that new argument.” Fuel Pet. Mot. to Supp. 1.
We deny Fuel Petitioners’ motion to supplement
the record and to file a supplemental brief. As we have
explained, a petitioner must generally demonstrate
standing in its opening brief, either by “citing any record
evidence relevant to its claim of standing” or, where
necessary, by “appending to its filing additional affidavits
Commc’ns, Inc., 466 U.S. 463, 469, 104 S. Ct. 1936, 80 L. Ed. 2d 480
(1984) (citing 28 U.S.C. § 2347(b)(3)); Fed. R. App. R. 48(a).
31a
or other evidence.” Sierra Club, 292 F.3d at 900–01. This
Court has, on rare occasion, accepted late affidavits or
other evidence in support of standing for “good cause”
shown. Am. Libr. Ass’n v. FCC, 401 F.3d 489, 495–96, 365
U.S. App. D.C. 207 (D.C. Cir. 2005) (quoting Sierra Club,
292 F.3d at 900); Nat’l Council for Adoption v. Blinken, 4
F.4th 106, 112, 453 U.S. App. D.C. 199 (D.C. Cir. 2021). We
have found “good cause” when, for example, “’the parties
reasonably, but mistakenly, believed’ that they ‘sufficiently
demonstrated standing’ or when they ‘reasonably assumed
that their standing was self-evident.’” Nat’l Council for
Adoption, 4 F.4th at 111 (quoting Twin Rivers Paper Co.
LLC v. SEC, 934 F.3d 607, 614, 443 U.S. App. D.C. 74 (D.C.
Cir. 2019)).
No such good cause exists here. We do not think Fuel
Petitioners could have reasonably believed that they had
adequately demonstrated standing or that their standing
was “self-evident” from the record when they filed their
opening brief. Twin Rivers, 934 F.3d at 614. As this
Court and the Supreme Court have repeatedly explained,
redressability is “’substantially more difficult’ to establish”
when, as here, Petitioners are not directly regulated by
the government action they seek to challenge. Lujan, 504
U.S. at 562 (quoting Allen, 468 U.S. at 758). Indeed, as
noted above, this Court has previously expressed doubt
that petitioners seeking to challenge a Section 209 waiver
had demonstrated redressability where they had failed to
put any such evidence in the record. Chamber of Com., 642
F.3d at 205. And Fuel Petitioners should have been aware
that redressability may pose a particularly challenging
obstacle here, consider ing the relatively nar row
32a
timeframe of the particular waiver Petitioners challenge
and the evidence in the record showing that automobile
manufacturers generally require years of lead time to
make changes to their future model year fleets. Yet Fuel
Petitioners failed to meaningfully address redressability
in their opening brief at all, either by “identify[ing] . . .
record evidence” or by offering the Court evidence of their
own. Sierra Club, 292 F.3d at 899.
Second, even if Fuel Petitioners reasonably believed
that their standing was “self-evident” when they filed their
opening brief, Petitioners offer no explanation for having
failed to address redressability in their reply brief after
California raised the issue in its opposition brief. Twin
Rivers, 934 F.3d at 614. In this respect, Fuel Petitioners’
motion relies on a false premise: Oral argument was
plainly not the first time that California argued that
Fuel Petitioners had failed to demonstrate redressability.
Rather, as we have explained, California explicitly argued
that Fuel Petitioners had offered no evidence regarding
the redressability of their injuries, and California
provided the Court with a declaration that addressed
the point. Having failed even to attempt to respond to
California’s arguments regarding redressability at the
reply stage, Fuel Petitioners provide this Court with no
reason to allow them to do so now.
III.
State Petitioners also argue that the EPA’s 2022
decision is “contrary to constitutional right” under 5
U.S.C. § 706(2)(B) because Section 209(b) of the Clean Air
33a
Act is unconstitutional. They rely on the equal sovereignty
principle, which the Supreme Court applied in Shelby
County v. Holder, 570 U.S. 529, 133 S. Ct. 2612, 186
L. Ed. 2d 651 (2013), to hold that Fifteenth Amendment
legislation that disparately impacts states’ control over
voting procedures must be “sufficiently related to the
problem it targets.” Id. at 542 (quoting Nw. Austin Mun.
Util. Dist. No. One v. Holder, 557 U.S. 193, 203, 129 S. Ct.
2504, 174 L. Ed. 2d 140 (2009)). State Petitioners argue
that this principle also categorically prohibits Congress
from using its Commerce Clause power in a way that
withdraws sovereign authority from some states but not
others. And Section 209(b), they say, violates that principle
by preempting the authority of every state but California
to regulate motor vehicle emissions. We conclude that
State Petitioners have standing to raise this constitutional
claim, but we join the two other circuits to have considered
the issue in rejecting State Petitioners’ request to extend
the equal sovereignty principle in this fashion. See NCAA
v. Governor of New Jersey, 730 F.3d 208, 239 (3d Cir. 2013),
abrogated on other grounds by Murphy v. NCAA, 584 U.S.
453, 138 S. Ct. 1461, 200 L. Ed. 2d 854 (2018); Mayhew v.
Burwell, 772 F.3d 80, 95 (1st Cir. 2014).
A.
To assess State Petitioners’ standing for this
constitutional claim, we again “assume that on the merits”
petitioners “would be successful.” City of Waukesha v.
EPA, 320 F.3d 228, 235, 355 U.S. App. D.C. 100 (D.C. Cir.
2003). Assuming State Petitioners’ constitutional theory
is correct, Section 209(b) and the EPA’s 2022 decision
34a
violate their constitutionally protected interest in equal
sovereignty by leaving them with less regulatory authority
over vehicle emissions than California. This claimed
injury is akin to the type of dignitary injury recognized
in equal protection cases. Heckler v. Mathews, 465 U.S.
728, 739–40, 104 S. Ct. 1387, 79 L. Ed. 2d 646 (1984). And,
State Petitioners argue, invalidating the decision would
redress that injury and restore their sovereign equality
by removing California’s greater authority.
Respondents resist that analysis on the ground that
State Petitioners do not ask this court to increase their
own sovereign authority over motor vehicle emissions.
The States instead seek to reduce California’s authority.
The Supreme Court has repeatedly held, however, that
this type of “leveling down” remedy is sufficient to support
standing when a party asserts a constitutional right to
equality. As the Court has put it, “when the ‘right invoked
is that to equal treatment,’ the appropriate remedy
is a mandate of equal treatment, a result that can be
accomplished by withdrawal of benefits from the favored
class as well as by extension of benefits to the excluded
class.” Heckler, 465 U.S. at 740 (quoting Iowa-Des Moines
Nat’l Bank v. Bennett, 284 U.S. 239, 247, 52 S. Ct. 133, 76
L. Ed. 265 (1931)); see also Sessions v. Morales-Santana,
582 U.S. 47, 72–73, 137 S. Ct. 1678, 198 L. Ed. 2d 150 (2017).
That principle developed in cases applying the Fourteenth
Amendment’s Equal Protection Clause. But Respondents
have not identified—and we do not perceive—any material
reason to treat the right to equal sovereignty claimed here
35a
any differently for standing purposes.11 And under the
logic of the Equal Protection cases, holding Section 209(b)
unconstitutional and vacating the waiver would redress the
claimed constitutional injury by leaving all states equally
positioned, in that none could regulate vehicle emissions.
Accordingly, unlike with their asserted economic injuries,
State Petitioners’ asserted constitutional injury can be
redressed even absent evidence that manufacturers will
change their plans before the waiver expires.12
11. Although we find State Petitioners’ claimed dignitary
harm sufficiently analogous in kind for purposes of standing, we do
not suggest that this harm is commensurate with equal protection
injuries based on the perpetuation of “archaic and stereotypic
notions” and stigmatization of members “of [a] disfavored group as
‘innately inferior.’” Heckler, 465 U.S. at 739 (quoting Miss. Univ. for
Women v. Hogan, 458 U.S. 718, 725, 102 S. Ct. 3331, 73 L. Ed. 2d
1090 (1982)).
12. State Petitioners’ standing for their constitutional claim
under 5 U.S.C. § 706(2)(B) does not revive their statutory preemption
claim under § 706(2)(A). As the Supreme Court has repeatedly
held, standing “is not dispensed in gross; rather, plaintiffs must
demonstrate standing for each claim that they press and for each
form of relief that they seek.” TransUnion LLC v. Ramirez, 594
U.S. 413, 431, 141 S. Ct. 2190, 210 L. Ed. 2d 568 (2021); see also, e.g.,
DaimlerChrysler Corp. v. Cuno, 547 U.S. 332, 352, 126 S. Ct. 1854,
164 L. Ed. 2d 589 (2006); Davis v. Fed. Election Comm’n, 554 U.S.
724, 734, 128 S. Ct. 2759, 171 L. Ed. 2d 737 (2008). We are aware of
no precedent or rationale that would allow parties to bring claims
over which we otherwise would lack jurisdiction—such as State
Petitioners’ statutory preemption claim—by appending another
claim subject to a different standing analysis.
36a
B.
Turning to the merits, we reject State Petitioners’
theory. The Supreme Court has held that the Constitution
contains a “fundamental principle of equal sovereignty.”
Shelby County, 570 U.S. at 544. But neither the Supreme
Court nor any other court has ever applied that principle as
a limit on the Commerce Clause or other Article I powers.
As explained below, the rationale of Shelby County and the
cases on which it relied in fact suggests that the principle
imposes no such limit. The parties’ remaining arguments
confirm that conclusion. We therefore hold that Section
209(b) is subject to traditional rational basis review for
Commerce Clause legislation and—as no one disputes—
that it is constitutional under that standard.
Shelby County addressed the constitutionality of the
Voting Rights Act’s (“VRA”) coverage formula, which
required some but not all states to obtain approval from
federal authorities before enacting voting-related laws, a
process known as preclearance. Id. at 536–37. The Court
did not disturb South Carolina v. Katzenbach, 383 U.S.
301, 86 S. Ct. 803, 15 L. Ed. 2d 769 (1966), which held that
the coverage formula in the Voting Rights Act of 1965 was
constitutional because it was “rational in both practice
and theory.” Shelby County, 570 U.S. at 550 (quoting
Katzenbach, 383 U.S. at 330); see also id. at 550–51
(discussing the exceptional circumstances that supported
Katzenbach’s conclusion). Instead, the core question in
Shelby County was whether Congress had sufficient
justification for continuing to subject those states to the
preclearance requirement in its 2006 reauthorization of
37a
the Voting Rights Act. Id. The Supreme Court relied in
part on the “fundamental principle of equal sovereignty,”
id. at 544, to hold that the VRA’s coverage formula was
unconstitutional because it was founded on “decades-old
data and eradicated practices,” id. at 551, instead of being
tailored to “current conditions,” id. at 557. The Court did
not outright reject the coverage formula for treating states
differently; instead, it held that the formula’s “disparate
geographic coverage” was not “sufficiently related to
the problem that it targets.” Id. at 550–51 (quoting Nw.
Austin, 557 U.S. at 203).
State Petitioners do not ask us to apply Shelby
County’s test that a statute’s “disparate geographic
coverage” must be “sufficiently related to the problem that
it targets.” State Pet. Reply Br. 13 (“Shelby County never
suggested this test applies in other contexts.”). Indeed,
they forfeited any argument that the waiver here fails
Shelby County’s “sufficiently related” test by raising that
argument for the first time in their reply brief. State Pet.
Reply Br. 14–15. Instead, State Petitioners rely on Shelby
County to argue that the equal sovereignty principle
operates as a categorical bar on Congress’s Commerce
Clause authority—that is, that the principle prohibits
Congress from enacting Commerce Clause legislation
that leaves some states with more sovereign authority
than others, regardless of Congress’s reasons for doing
so. State Pet. Br. 24–25, 28–29 (“Section 209(b) violates
the equal-sovereignty doctrine by allowing California to
exercise sovereign authority that § 209(a) takes from every
other State.”); State Pet. Reply Br. 10, 12.13
13. State Petitioners half-heartedly suggest that “Congress
arguably complies with the equal-sovereignty doctrine when it
38a
For several reasons, Shelby County does not
support State Petitioners’ request that we apply the
equal sovereignty principle as a categorical limit on
Congress’s authority over interstate commerce. First,
the central debate in Shelby County was the scope of
Congress’s power to enforce the Fifteenth Amendment
“by appropriate legislation.” 570 U.S. at 536 (quoting U.S.
Const. amend. XV). The Court used equal sovereignty
as a background principle in applying that phrase. Id.
at 544–45. State Petitioners confirm that textual link in
their brief to us, arguing that Shelby County means that
“in deciding whether such legislation was ‘appropriate,’
courts must consult the background principle of equal
sovereignty.” State Pet. Br. 24.
But unlike the Fifteenth Amendment, Congress’s
Commerce Clause power is not limited to “appropriate
legislation.” The Commerce Clause instead declares
unconditionally that Congress has the power “to regulate
commerce with foreign nations, among states, and with
the Indian tribes.” U.S. Const. art. I § 8, cl. 3. As the
Supreme Court has explained, the Commerce Clause is
“a grant of plenary authority to Congress,” Hodel v. Va.
empowers only a single State (or a single subset of States) to regulate
a matter of unique concern to that State (or that subset of States),”
such as if Congress were to allow just one state to regulate a mineral
that exists only in that state. State Pet. Br. 26–27. Such a law would
fit with State Petitioners’ categorical theory because it would not
“deny sovereign authority to any State capable of exercising it.” State
Pet. Reply Br. 14. As the example indicates, this suggestion is not
substantively different from the theory that the equal sovereignty
principle imposes a categorical limit on Congress’s Commerce Clause
authority, and we therefore do not address it separately.
39a
Surface Mining & Reclamation Ass’n, 452 U.S. 264, 276,
101 S. Ct. 2352, 69 L. Ed. 2d 1 (1981), and “acknowledges
no limitations” other than those “prescribed in the
constitution” and “expressed in plain terms,” Gibbons v.
Ogden, 22 U.S. 1, 196, 6 L. Ed. 23 (1824).
Second, in requiring that the VRA’s coverage formula
be sufficiently related to the problem it targets, Shelby
County repeatedly emphasized that the VRA was
“extraordinary,” 570 U.S. at 536, because it intruded on
states’ power to regulate elections, a “sensitive area of
state and local policymaking,” id. at 545 (quoting Lopez
v. Monterey County, 525 U.S. 266, 282, 119 S. Ct. 693,
142 L. Ed. 2d 728 (1999)), which “the Framers of the
Constitution intended the States to keep for themselves,”
id. at 543 (quoting Gregory v. Ashcroft, 501 U.S. 452, 461,
111 S. Ct. 2395, 115 L. Ed. 2d 410 (1991)). The VRA was
therefore a “drastic departure from basic principles of
federalism.” Id. at 535. Because the VRA departed from
the traditional balance of state and federal power over
elections, the Court required a heightened showing that
subjecting specific states to the preclearance requirement
was still “appropriate” considering the nation’s current
conditions. Id. at 555.
Section 209(b) is not “extraordinary” in that way. The
Constitution places regulation of all matters affecting
interstate commerce—including vehicle emissions—
squarely within Congress’s domain, not that of the states.
See Miss. Comm’n on Env’t Quality v. EPA, 790 F.3d 138,
180–83, 416 U.S. App. D.C. 69 (D.C. Cir. 2015); see also
Massachusetts, 549 U.S. at 528–29. Indeed, in discussing
40a
the Constitution’s assignment to Congress of control over
interstate commerce the Court has stressed that “[n]o other
federal power was so universally assumed to be necessary”
and “no other state power was so readily relinquished.”
H. P. Hood & Sons, Inc. v. Du Mond, 336 U.S. 525, 534,
69 S. Ct. 657, 93 L. Ed. 865 (1949). Accordingly, no one
questions that Congress could readily preempt all states
from regulating motor vehicle emissions, or that Congress
itself could set different vehicle emissions standards for
different regions of the country. See Sec’y of Agric. v. Cent.
Roig Refin. Co., 338 U.S. 604, 616, 70 S. Ct. 403, 94 L. Ed.
381 (1950) (recognizing Congress’s authority to “devise
. . . a national policy with due regard for the varying
and fluctuating interests of different regions”); Hodel v.
Indiana, 452 U.S. 314, 332, 101 S. Ct. 2376, 69 L. Ed. 2d
40 (1981). Shelby County does not support requiring a
heightened justification for disparate intrusions into
areas over which the Constitution grants Congress such
comprehensive control. As the Third Circuit put it, “there
is nothing in Shelby County to indicate that the equal
sovereignty principle is meant to apply with the same force
outside the context of ‘sensitive areas of state and local
policymaking.’” NCAA, 730 F.3d at 239 (quoting Shelby
County, 570 U.S. at 545).
Further, State Petitioners ask us not only to venture
beyond the bounds Shelby County set for the equal
sovereignty principle but also to dramatically increase
its force. Recall that Shelby County did not establish
a categorical bar against Congress leaving states
with different levels of sovereign authority even in the
traditionally state-dominated context of voting; it required
only that Congress show the disparate treatment is
41a
“sufficiently related to the problem that it targets.” 570
U.S. at 550–51 (quoting Nw. Austin, 557 U.S. at 204).
Indeed, the Court reaffirmed Katzenbach’s holding that
Congress could do so with sufficient evidence. Id. Yet
State Petitioners ask us to hold that the equal sovereignty
principle operates as a categorical bar against treating
states differently in the context of Commerce Clause
legislation. State Pet. Br. 28–29; State Pet. Reply Br.
10–11. Given that the Constitution grants Congress
primacy over interstate commerce, that would be a highly
counterintuitive conclusion.
State Petitioners also rely on a series of cases known
as the equal footing cases, which Shelby County cited as
applying the equal sovereignty principle. See 570 U.S.
at 544. Those cases involved congressional attempts to
place limits on new states as a condition of admission
to the Union and identified “equal sovereignty” as an
“attribute . . . guaranteed to” each state “upon admission.”
United States v. Louisiana, 363 U.S. 1, 16, 80 S. Ct.
961, 4 L. Ed. 2d 1025 (1960), supplemented sub nom.
United States v. Louisiana, 382 U.S. 288, 86 S. Ct. 419,
15 L. Ed. 2d 331 (1965). For example, Coyle v. Smith, 221
U.S. 559, 31 S. Ct. 688, 55 L. Ed. 853 (1911), held that
Congress had no authority to prohibit Oklahoma from
moving its state capital as a condition of admission into
the United States. Id. at 567–68. The Court’s opinion
addressed whether Congress’s power to admit new
states into the Union allowed such a condition, which was
concededly beyond any of Congress’s other enumerated
powers. Id. The Court explained that Congress could not
use its admission power to require a new state to give up
42a
an aspect of sovereignty that the thirteen original states
retained. Id. To do so, the Court concluded, would create
a “union of states unequal in power, as including states
whose powers were restricted only by the Constitution,
with others whose powers had been further restricted by
an act of Congress accepted as a condition of admission.”
Id. at 567. State Petitioners here seize on that and similar
language to support their argument that the equal
sovereignty principle must mean Congress generally has
no power to legislate in ways that leave the states with
unequal sovereign authority.
The equal footing cases, however, do not directly
apply either outside of the admission context or to Article
I powers like the Commerce Clause. Shelby County
itself reaffirmed prior holdings that the doctrine is not
a “bar on differential treatment outside th[e] context” of
states’ admission into the Union. 570 U.S. at 544. Shelby
County, of course, drew on the equal footing cases and
concluded that the principle of equal sovereignty they
discuss remained “highly pertinent” in the context of that
case. Id. But for all the reasons explained above, Shelby
County does not extend the principle even further to any
(let alone all) Article I legislation.
The equal footing cases themselves also support that
conclusion. Those cases contemplated—though, to be
sure, only in dicta—that even if Congress treated states
differently at the time of admission, it would not violate
the equal footing guarantee so long as it acted within the
scope of its plenary powers over interstate commerce.
The Court suggested in Coyle that Congress could treat
states differently if—instead of using its admission
43a
power—it enacted “legislation intended as a regulation
of commerce,” because to do that would be acting “within
the sphere of the plain power of Congress.” 221 U.S. at
574; see also id. at 572–74; Pollard v. Hagan, 44 U.S. 212,
229–30, 11 L. Ed. 565 (1845). Such a condition would not
put states on an impermissibly unequal footing because it
“would not operate to restrict the state’s legislative power
in respect of any matter which was not plainly within the
regulating power of Congress.” Coyle, 221 U.S. at 574.
Accordingly, the equal footing cases fit neatly with the
conclusion that the equal sovereignty principle is not a
categorical bar on Congress deploying its plenary power
over interstate commerce in ways that differentially affect
states’ legislative power.
The parties also debate whether State Petitioners’
theory is supported by the Constitution’s text, founding
era history, and law of nations principles. We address
each in turn and conclude these other indicators of
constitutional meaning do not support State Petitioners’
theory.
The Constitution does not contain any textual provision
suggesting an equal sovereignty limit on Congress’s
Article I powers generally or on the Commerce Clause in
particular. As already discussed, the Commerce Clause
is a plenary grant of authority to regulate interstate
commerce which the Supreme Court has held is subject
only to those limitations “prescribed in the constitution”
and “expressed in plain terms.” Gibbons, 22 U.S. at 196.
To the extent the Constitution’s text sheds light on
the question, it appears to cut against State Petitioners,
44a
because the Constitution does impose certain equalitybased limitations on other Article I powers. For example,
the text of Article I, Section 8 states that laws concerning
bankruptcy, naturalization, and duties shall be “uniform.”
See U.S. Const. art. I, § 8, cl. 1, cl. 4. Similarly, Article
I, Section 9 prohibits “[p]reference . . . given by any
Regulation of Commerce or Revenue to the Ports of one
State over those of another.” U.S. Const. art. I, § 9, cl. 6.
State Petitioners argue that these textual provisions do
not suggest the absence of a general equal sovereignty
limit on Article I. As they point out, these provisions speak
only to whether Congress can treat states differently
when Congress itself does the legislating, not whether
Congress can allow some but not other states to exercise
the sovereign authority to legislate on an issue. That is, the
provisions guarantee the states equal treatment for only
specific subjects rather than equal sovereignty for only
those subjects. The key for present purposes, however,
is that even though the Founders plainly knew how to
include equality-based protections for states in Article I
when they wished to, they did not include any mention of
State Petitioners’ broad equal sovereignty principle. The
fact that some constitutional clauses explicitly contain an
equality-based guarantee therefore supports a negative
inference—though perhaps only a mild one—that the
Commerce Clause is not so constrained.
There are, of course, “constitutional doctrines
that are not spelled out in the Constitution but are
nevertheless implicit in its structure and supported by
historical practice,” such as the doctrine of state sovereign
immunity. Franchise Tax Bd. v. Hyatt, 139 S. Ct. 1485,
45a
1498–99, 203 L. Ed. 2d 768 (2019). That category also
includes limits on the Commerce Clause, such as the Tenth
Amendment anticommandeering doctrine, which are
supported by the historical context in which our federal
structure was created. See New York v. United States,
505 U.S. 144, 163–66, 112 S. Ct. 2408, 120 L. Ed. 2d 120
(1992) (discussing founding era debates supporting the
anticommandeering doctrine). The evidence the parties
provide from the founding era, however, does not show
that State Petitioners’ version of the equal sovereignty
principle has a comparable historical pedigree. It is true,
as State Petitioners urge, that the general subject of state
sovereignty and the states’ relation to each other and the
new federal government was a core focus at the founding.
Despite that focus, however, State Petitioners have
identified no evidence that the Founders contemplated the
type of inviolable equal state sovereignty State Petitioners
ask us to announce.
The equal sovereignty debate at the founding centered
on how states would be represented in Congress, with the
smaller states arguing for equal representation for each
state and the larger states seeking “equality for each
voter” in the form of proportional representation. See
Wesberry v. Sanders, 376 U.S. 1, 11-14, 84 S. Ct. 526, 11
L. Ed. 2d 481 (1964) (summarizing the Great Compromise
debates); Letter from James Madison to Thomas Jefferson
(Oct. 24, 1787), in 12 The Papers of Thomas Jefferson
270, 279 (Julian P. Boyd ed., 1955) (discussing how the
“little States insisted on retaining their equality in both
branches” while the “large states . . . urged that as the
new Government was to be drawn principally from the
46a
people immediately”). For example, New Jersey delegate
William Paterson used the concept of “equal sovereignty”
to support his argument for a single legislative chamber
with an equal vote for each state. Wesberry, 376 U.S. at 11
(citing 3 The Records of the Federal Convention of 1787,
at 251 (Max Farrand ed., 1911)). Eventually, these debates
led to the Great Compromise, which established two forms
of equality central to Article I: “equal sovereignty” in
the Senate in the form of equal representation for each
state and equal representation for each voter in the
House in the form of proportional representation. U.S.
Const. art. I, §§ 2, 3; see also The Federalist No. 39, at
255 (James Madison) (Jacob E. Cooke ed., 1961). The
Founders’ preoccupation with the manner and extent of
state equality under the Constitution also appears to have
yielded the specific equality-based limits on Congress’s
legislative authority discussed above. If the Constitution
also contained State Petitioners’ fundamental yet unstated
limit on Congress’s authority to legislate, one would expect
ample historical evidence of that limit at the founding.
State Petitioners point us to none. Cf. New York, 505 U.S.
at 163–66.
In fact, as State Petitioners admit, the Constitution
includes one provision that expressly allows Congress to
enhance the sovereign authority of some states without
granting that authority equally to all states. State Pet.
Reply Br. 10. Article I, Section 10 provides that “No State
shall, without the Consent of Congress, lay any Duty of
Tonnage, keep Troops, or Ships of War in time of Peace,
enter into any Agreement or Compact with another
State, or with a foreign Power.” U.S. Const. art. I, § 10,
47a
cl. 3. That is, Congress has the power to grant individual
states greater authority to, for example, assess taxes and
even enter compacts with foreign powers—indisputably
elements of “sovereignty”—without extending the same
authority to other states. See Wheeling, P. & C. Transp.
Co. v. City of Wheeling, 99 U.S. 273, 283, 25 L. Ed. 412
(1878) (“Taxation, beyond all doubt, is the exercise of a
sovereign power. . . .”); Cuyler v. Adams, 449 U.S. 433,
440, 101 S. Ct. 703, 66 L. Ed. 2d 641 (1981) (compacts
necessarily “tend[] to the increase of political power”
for the states (quoting U.S. Steel Corp. v. Multistate Tax
Comm’n, 434 U.S. 452, 468, 98 S. Ct. 799, 54 L. Ed. 2d
682 (1978))). Early Congresses used Article I, Section 10
in this very manner, granting specific states legislative
authority to impose tonnage duties. See, e.g., Act of Feb.
9, 1791, ch. 5, 1 Stat. 190 (consenting to Maryland statute
imposing duty at Port of Baltimore); Act of Aug. 11, 1790,
ch. 43, 1 Stat. 184 (consenting to Georgia, Maryland, and
Rhode Island statutes imposing tonnage duties). If this
provision were—as State Petitioners would have it—a
limited exception to an otherwise generally applicable
equal sovereignty guarantee implicit in the Constitution,
we would expect to see some founding era discussion
of how the provision interacts with that broader equal
sovereignty principle. Yet State Petitioners identify no
evidence of that either.
The only affirmative support State Petitioners identify
for their theory comes from law of nations principles.
They argue that the Founders expected international
law of nations principles to govern the states and that
those principles included a notion of equal sovereignty
48a
that would render federal legislation unconstitutional if
it treated states differently. State. Pet. Br. 18; State Pet.
Reply Br. 12 (“At the founding, the law of nations entitled
all sovereigns to perfect equality.” (internal quotation
marks omitted)). That argument is unpersuasive.
International law contained no analog for the relation in
our constitutional system between the federal government
and the states, and so it would be surprising if the law of
nations dictated limits on Congress’s authority in relation
to the states. And, as it turns out, the Supreme Court has
effectively explained that the Constitution’s Supremacy
Clause defeats State Petitioners’ reasoning. In Gibbons,
the Court held that while states may have equal sovereign
authority to regulate commerce in the absence of federal
action, that authority is “subjected . . . to the superior
power of Congress” when Congress acts. 22 U.S. at 70.
Indeed, the Gibbons Court cited the very same law of
nations principles that State Petitioners rely on, but only
to describe the relationship between the states when
Congress has not acted pursuant to its commerce power.
Id. at 69–70. No case since Gibbons has said otherwise.
The nature and extent of equality between the states
has been a central debate throughout our country’s
history, from the founding to the admission of new
states and beyond. But State Petitioners point us to
no meaningful support for their novel request to apply
the equal sovereignty principle as a categorical limit on
Congress’s power to regulate interstate commerce. The
First and Third Circuits—the only appellate courts to
have considered similar arguments—have found Shelby
County’s discussion of the equal sovereignty principle
inapplicable to Commerce Clause and Spending Clause
legislation for similar reasons. See NCAA, 730 F.3d at
49a
238–39 (Commerce Clause); Mayhew, 772 F.3d at 95
(Spending Clause).
Section 209(b) is subject to the rational basis review
normally applied to Commerce Clause legislation. See
Hodel, 452 U.S. at 276–77. And because State Petitioners
present no argument that Section 209(b) or the waiver
at issue cannot survive that review, we reject their
constitutional challenge.
St at e Pet it ioner s’ r eque st t o set a side t he
Administrator’s decision on these grounds is denied.
So ordered.
50a
APPENDIX B
ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2021-0257; FRL-9325-01-OAR]
California State Motor Vehicle Pollution Control
Standards; Advanced Clean Car Program;
Reconsideration of a Previous Withdrawal of a
Waiver of Preemption; Notice of Decision
AGENCY: Environmental Protection Agency.
ACTION: Notice of decision.
SUMMARY: The Environmental Protection Agency
(EPA) has completed the reconsideration of its 2019
action withdrawing a 2013 Clean Air Act (CAA) waiver
of preemption for California’s greenhouse gas (GHG)
emission standards and zero emission vehicle (ZEV)
sale mandate, which are part of California’s Advanced
Clean Car (ACC) program. This decision rescinds EPA’s
2019 waiver withdrawal, thus bringing back into force
the 2013 ACC program waiver, including a waiver of
preemption for California’s ZEV sales mandate and GHG
emissions standards. In addition, EPA is withdrawing
the interpretive view of CAA section 177 included in its
2019 action, that States may not adopt California’s GHG
standards pursuant to section 177 even if EPA has granted
California a waiver for such standards. Accordingly, other
States may continue to adopt and enforce California’s
GHG standards under section 177 so long as they meet
the requirements of that section.
51a
DATES: P
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