Amicus Curiae Brief — Diamond Alternative Energy, LLC, et al., Petitioners v. Environmental Protection Agency, et al.
Supreme Court briefAug 7, 2024
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No. 24-7
In the Supreme Court of the United States
DIAMOND ALTERNATIVE ENERGY, LLC, ET AL.,
Petitioners,
v.
ENVIRONMENTAL PROTECTION AGENCY, ET AL.,
Respondents.
On Petition for Writ of Certiorari
to the United States Court of Appeals
for the District of Columbia Circuit
BRIEF OF AMICI CURIAE TEXAS OIL & GAS
ASSOCIATION, LOUISIANA MID-CONTINENT OIL
& GAS ASSOCIATION, THE PETROLEUM
ALLIANCE OF OKLAHOMA, TEXAS
INDEPENDENT PRODUCERS AND ROYALTY
OWNERS ASSOCIATION, AND TEXAS
ASSOCIATION OF MANUFACTURERS
IN SUPPORT OF FUEL PETITIONERS
August 7, 2024
JAMES K. VINES
Counsel of Record
SAMUEL P. FUNK
EVAN S. ROTHEY
SIMS|FUNK, PLC
3102 West End Ave., #1100
Nashville, TN 37203
(615) 292-9335
jvines@simsfunk.com
Counsel for Amici Curiae
i
QUESTION PRESENTED
Amici write in support of Fuel Petitioners’ second
question presented:
Whether EPA’s preemption waiver for
California’s greenhouse-gas emission
standards and zero emission-vehicle
mandate is unlawful.
Because the waiver rule’s regulatory objective is one
of major national policy and EPA’s written
explanation for the rule fails to demonstrate clear
statutory authority to reach that major national policy
question, Amici’s brief, below, adds argument that the
mandate violates the major questions doctrine.
ii
TABLE OF CONTENTS
Page
QUESTION PRESENTED.......................................... i
TABLE OF CONTENTS ............................................ ii
TABLE OF AUTHORITIES ...................................... iii
STATEMENT OF INTEREST ....................................1
SUMMARY OF THE ARGUMENT ............................6
ARGUMENT ...............................................................7
I. Because EPA’s preemption waiver expressly
targeted the oil and gas industry, Fuel Petitioners
have standing to challenge that action. ..................7
II. The Court should strike down EPA’s agency
action under the major questions doctrine because
Congress did not clearly state that EPA may force
a nationwide shift away from fossil fuels via
regulatory delegation to California. ......................11
A.
This is a major questions case. .................11
B.
Congress did not hide an elephant-sized
mandate for forced vehicle electrification (at
California’s bidding) in the Clean Air Act’s
preemption-waiver mousehole. ..........................14
C. This case presents an appropriate vehicle to
address EPA’s expansive view of the Clean Air
Act’s preemption waiver. ...................................19
CONCLUSION ..........................................................20
iii
TABLE OF AUTHORITIES
Cases
Chamber of Commerce v. EPA,
642 F.3d 192 (D.C. Cir. 2011) .........................19
Energy Future Coalition v. EPA,
793 F.3d 141 (D.C. Cir. 2015) ...........................8
Massachusetts v. EPA,
549 U.S. 497 (2007).........................................11
Utility Air Regul. Grp. v. EPA,
573 U.S. 302 (2014).........................................14
West Virginia v. EPA,
597 U.S. 697 (2022)............. 7, 11, 12, 13, 14, 17
Statutes
42 U.S.C. § 7507 ...................................................12
42 U.S.C. § 7543 ......................... 6, 7, 13, 14–16, 18
Regulations
73 Fed. Reg. 12,156 (Mar. 6, 2008) ......................18
74 Fed. Reg. 32,755 (July 8, 2009) ......................18
78 Fed. Reg. 2,112 (Jan. 9, 2013) ........................18
84 Fed. Reg. 51,310 (Sept. 27, 2019) ...................18
87 Fed. Reg. 14,332 (Mar. 14, 2022) .......... 9, 12, 18
Other Authorities
81 Stat. 485 (1967) ...............................................16
iv
Other Authorities—Continued
California Air Resources Board, States that have
Adopted California’s Vehicle Regulations (June
2024), https://ww2.arb.ca.gov/ourwork/programs/advanced-clean-carsprogram/states-have-adopted-californiasvehicle-regulations .........................................12
Exec. Order No. 13,990,
3 C.F.R. § 13990 (2022) .............................. 8, 19
Exec. Order No. 14,037,
3 C.F.R. § 14037 (2022) ....................................8
H.R 8635, 116th Cong. § 2 (2020),
https://www.congress.gov/bill/116thcongress/house-bill/8635 .................................18
H.R. 2767, 116th Cong. § 1 (2019),
https://www.congress.gov/bill/116thcongress/house-bill/2764 .................................18
Press Release, Gavin Newsom, Governor, State of
California, Governor Newsom Statement on
Biden Administration’s Restoration of
California’s Clean Car Waiver (March 9,
2022),
https://www.gov.ca.gov/2022/03/09/governornewsom-statement-on-biden-administrationsrestoration-of-californias-clean-car-waiver/ ..10
v
Other Authorities—Continued
Press Release, U.S. Environmental Protection
Agency, EPA Reconsiders Previous
Administration’s Withdrawal of California’s
Waiver to Enforce Greenhouse Gas Standards
for Cars and Light Trucks (April 26, 2021),
https://www.epa.gov/newsreleases/epareconsiders-previous-administrationswithdrawal-californias-waiver-enforce ............9
S. 1487, 116th Cong. §1 (2019),
https://www.congress.gov/bill/116thcongress/senate-bill/1487 ...............................18
S. 3664, 115th Cong. § 2 (2018),
https://www.congress.gov/bill/115thcongress/senate-bill/3664 ...............................18
S. 4823, 116th Cong. § 2 (2020),
https://www.congress.gov/bill/116thcongress/senate-bill/4823 ...............................18
1
STATEMENT OF INTEREST1
Amici are statewide trade associations from Texas,
Oklahoma, and Louisiana, representing the oil and
gas industry and related manufacturing industries in
their respective states. These industries are the
foundational economic drivers for Texas, Oklahoma,
and Louisiana. The economies and public welfare of
these states depend on the immediate and long-term
future of these industries. Amici, and the industry
members they represent, are squarely in the
crosshairs of the Administration’s attack on fossil
fuels in the transportation sector and other key
economic sectors. EPA’s preemption waiver, here, is a
critical step in the Administration’s multi-agency
effort to cripple the oil and gas industry.
1. The Texas Oil & Gas Association (TXOGA)
represents every facet of the Texas oil and gas
industry, including small independent businesses and
major producers. Collectively, TXOGA’s membership
produces roughly 90% of Texas’ crude oil and natural
gas and operates the vast majority of the state’s
refineries and pipelines. In 2023 alone, the Texas oil
Pursuant to Supreme Court Rule 37.6, Amici state that no
counsel for any party authored this brief in whole or in part and
that no entity or person, aside from Amici, their members, and
their counsel, made any monetary contribution toward the
preparation or submission of this brief. Pursuant to Supreme
Court Rule 37.2, Amici certify that counsel of record for all
parties received notice of the intent to file this brief at least 10
days before it was due.
1
2
and natural gas industry supported over 480,000
direct jobs and paid $26.3 billion in state and local
taxes and state royalties. In turn, Texas uses state oil
and gas revenues to fund public education,
infrastructure, first responders, and economic
stabilization programs. TXOGA and each of its
members are directly impacted by EPA’s actions in
this particular rulemaking.2 For these reasons, all of
Texas Oil & Gas Association’s member companies and
the dependent sectors of Texas’ economy are subject
to profound adverse consequences from the regulatory
actions addressed in the petition.
2. Texas Independent Producers and Royalty
Owners Association (TIPRO) is one of the country’s
largest oil-and-gas trade associations. TIPRO’s nearly
3,000 members—from small family-owned operations
to large publicly traded oil and gas producers and
royalty owners of all sizes—represent Texas’s
foundational economic driver, the oil and gas
industry. In 2023, Texas supplied 23% of all oil and
gas jobs nationwide and provided highest oil and gas
payroll in the country in 2023, totaling $59 billion.
Texas produced over 1.9 billion barrels of oil and 12.2
trillion cubic feet of natural gas in 2023, both new
records. And Texas’s oil and natural gas industry
purchased American goods and services to the tune of
$288 billion, illustrating how deeply the oil and gas
2 Texas Oil & Gas Association, 2023 Annual Energy & Economic
Impact Report (Jan. 30, 2024), https://www.txoga.org/2023eeir/
3
industry is woven into the fabric of the American
economy.3 For these reasons, all of Texas Independent
Producers and Royalty Owners Association’s member
companies and individual members, and the
dependent sectors of Texas’ economy, are subject to
profound adverse consequences from the regulatory
actions addressed in the petition.
3. Texas Association of Manufacturers (TAM)
actively represents the interests of more than 600
member companies. Texan manufacturers account for
more than 11.2% of the total output in Texas—$269
billion in 2022—and employ almost 925,000 Texans in
jobs that pay more than $105,699 annually on
average. And for each manufacturing job, five
additional jobs are created in a community. For more
than twenty years, Texas has remained the number
one exporting state in the United States for
manufactured goods. As noted by the U.S.
Department of Energy, “refined products made from
oil & natural gas make the manufacturing of over
6000 everyday products and high-tech devices
possible.” These products include everything from
contact lenses and hearing aids to cell phones and
laptops.4 For these reasons, all of Texas Association of
3 Texas Independent Producers and Royalty Owners Association,
2024 State of Energy Report 3–4 (2024), https://tipro.org/tiproenergy-report-2024/.
4 Texas Association of Manufacturers, Manufacturing Matters,
https://manufacturetexas.org/manufacturing-matters; National
Association of Manufacturers, Manufacturing in the United
States: Texas, https://nam.org/manufacturing-in-the-united-
4
Manufacturer’s member companies and the
dependent sectors of Texas’ economy are subject to
profound adverse consequences from the regulatory
actions addressed in the petition.
4. Louisiana
Mid-Continent
Oil
&
Gas
Association (LMOGA) represents the oil and gas
industry in the second-largest oil producing state and
fourth-largest gas producing state. In 2019, Louisiana
supported the production of 738 million barrels of
crude oil and liquid condensate, 3.81 trillion cubic feet
of dry (or pipeline quality) natural gas, and 102.4
million barrels of natural gas plant liquids—a firstpoint-of-sale total value of $55.5 billion. The
Louisiana oil and gas industry provided $73.0 billion
dollars of direct, indirect, and related state income.
And state and local tax revenues from the industry
provided $4.5 billion to the state economy throughout
the supply chain. A total of 249,800 private sector
employees received wages or salaries in 2019
supported by oil and gas activity.5 For these reasons,
all of Louisiana Mid-Continent Oil & Gas
Association’s member companies and the dependent
states/regions/texas/; U.S. Department of Energy, Products
Made
from
Oil
and
Natural
Gas
(Nov.
2019),
https://www.energy.gov/sites/prod/files/2019/11/f68/Products%2
0Made%20From%20Oil%20and%20Natural%20Gas%20Infogra
phic.pdf.
5 ICF International, Inc., The Economic Impact of the Oil and
Natural Gas Industry in Louisiana (Oct., 5, 2020),
https://www.lmoga.com/assets/uploads/documents/LMOGA-ICFLouisiana-Economic-Impact-Report-10.2020.pdf.
5
sectors of Louisiana’s economy are subject to profound
adverse consequences from the regulatory actions
addressed in the petition.
5. The Petroleum Alliance of Oklahoma (OK
Petro) represents the oil and gas industry in the
Nation’s fourth-largest oil producing state and fifthlargest gas producing state. In 2022, Oklahoma’s oil
and gas industry produced more than 1.8 billion
barrels in proved crude oil reserves and more than 36
trillion cubic feet of natural gas reserves, directly
contributing $55.7 billion to state GDP in 2023. In
turn, Oklahoma’s oil and gas industry provided $30.7
billion in income to Oklahomans, and its total impact
accounted for 22% of statewide economic activity. The
oil and natural gas industry is Oklahoma’s largest
private-sector employer and is its largest taxpayer,
contributing a record $2.9 billion in total taxes in
2023. And beyond taxes, state royalty payments
exceeded $1.9 billion. The oil and gas industry
provides Oklahoma’s only major source of earmarked
funding for education and county roads and bridges,
totaling $288 million and $177 million, respectively,
in 2023.6 For these reasons, all of The Petroleum
U.S. Energy Information Administration, Oklahoma State
Energy
Profile
(July
18,
2024),
https://www.eia.gov/state/print.php?sid=OK; Oklahoma Energy
Resources Board, Oklahoma Oil & Natural Gas: Economic
Impact (2023), https://oerb.com/ECONOMIC-IMPACT/; OERB,
Oklahoma Oil & Natural Gas: 2023 Economic Impact Update
(Mar.
2024),
https://oerb.com/wpcontent/uploads/2024/03/Economic-Impact-Full-Report.pdf;
6
6
Alliance of Oklahoma’s member companies and the
dependent sectors of Oklahoma’s economy are subject
to profound adverse consequences from the regulatory
actions addressed in the petition.
SUMMARY OF THE ARGUMENT
1. The per curiam panel opinion of the Court of
Appeals for the D.C. Circuit wrongly held that Fuel
Petitioners lack standing to challenge EPA’s grant of
a preemption waiver under Section 209(b) of the Clean
Air Act to California’s whole “Advanced Clean Cars”
(ACC) program. Federal and California authorities
have made clear that reducing use of fossil fuels in
vehicles, potentially down to zero, is the objective of
the EPA waiver and California’s ACC program. There
can be no question that the producers, refiners, and
marketers of these same fuels have standing to
challenge a rule aimed directly at them.
2. EPA’s California Waiver Rule is one of the key
weapons in the Administration’s existential attack on
the oil and gas sector. As Fuel Petitioners
demonstrate, EPA’s expansive preemption waiver
grant misconstrues Section 209(b) of the Clean Air
Act. Pet. Cert. 26–33. Amici respectfully urge the
Court to grant Petitioner’s request for certiorari and
Mark C. Snead et al., Oklahoma’s Oil and Gas Economy (2022),
http://oerb.com/wp-content/uploads/2022/02/RegTrk-OK-OilGas-Final-Draft-20220201.pdf.
7
reverse EPA’s California Waiver Rule on those
grounds.
3. EPA’s overreach here also runs afoul of the
Court’s holding in West Virginia v. EPA, in which the
Court struck down EPA’s non-legislatively authorized
attempt to completely transform the nation’s electric
power generation fleet. 597 U.S. 697 (2022). This case
is one more instance of EPA imagining sweeping
regulatory authority where none exists, wielding the
Clean Air Act in an attempt to create seismic shifts in
American markets (with devastating economic and
societal ramifications). By abdicating regulatory
authority to the State of California through the Clean
Air Act’s narrow preemption waiver, Section 209(b),
EPA’s conduct here is far worse than its efforts
targeting
electric
power
generation.
Amici
respectfully request that the Court grant certiorari
review and rule that EPA’s preemption waiver grant
in this case violates the major questions doctrine.
ARGUMENT
I. Because EPA’s preemption waiver expressly
targeted the oil and gas industry, Fuel
Petitioners have standing to challenge that
action.
EPA admittedly has targeted the oil and gas
industry with a raft of rulemakings in a concerted
effort to force a change from fossil fuels and other
liquid-fuel propulsion to electric vehicles. See, e.g.,
8
Exec. Order No. 13,990, 3 C.F.R. § 13990 (2022); Exec.
Order No. 14,037, 3 C.F.R. § 14037 (2022).7 This
particular rulemaking—EPA’s about-face grant of a
preemption waiver to the whole of California’s
Advanced Clean Car program—is one such attack on
the industry. As a result, Fuel Petitioners have
standing to challenge the agency action—“remov[ing]
a regulatory hurdle” to the use of Fuel Petitioners’
products is enough to establish redressability. See
Energy Future Coalition v. EPA, 793 F.3d 141, 144
(D.C. Cir. 2015) (Kavanaugh, J.).
There is little question that nationwide reduction
of the use of fossil fuels in vehicles, eventually down
to zero, is the objective of EPA’s wholesale preemption
waiver for California’s ACC program. Leaders of both
EPA and California have said as much. EPA
Administrator Michael Regan, citing his belief in
“California’s long-standing statutory authority to
lead” (seemingly an admission of EPA’s abdication to
the Golden State), proceeded to roll back EPA’s prior
denial of a preemption waiver at the President’s
direction. Press Release, U.S. Environmental
Protection Agency, EPA Reconsiders Previous
Administration’s Withdrawal of California’s Waiver to
As part of the coordinated agency strategy, EPA and the
National Highway Traffic Safety Administration have also taken
other agency actions, which are currently 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).
7
9
Enforce Greenhouse Gas Standards for Cars and
Light
Trucks
(April
26,
2021),
https://www.epa.gov/newsreleases/epa-reconsidersprevious-administrations-withdrawal-californiaswaiver-enforce (emphasis added). EPA has continued
to note that the California Air Resources Board’s
(CARB) 2012 waiver request attributed certain
“benefits” of its ACC program “not to vehicle
emissions reductions specifically, but to increased
electricity and hydrogen use that would be more than
offset by decreased gasoline production and refinery
emissions.” 87 Fed. Reg. 14,332, 14,336 (Mar. 14,
2022) (emphasis added) (citing CARB Request for
Waiver of Preemption for Low Emission Vehicle and
Zero Emission Vehicle Regulations (“Advance Clean
Car Program”) (2012 Waiver Request), EPA-HQOAR-2012-0562-0004, 1, 6 (Aug. 30, 2012)). Put
differently, one of the express goals is for “net
upstream emissions” to be “reduced through the
increased use of electricity and concomitant
reductions in fuel production.” Id. (emphasis added)
(citing 2012 Waiver Request, at 15–16).
Likewise, California’s Gavin Newsom touted the
ACC program’s intended goal—“to end” the country’s
“reliance on fossil fuels” and to “make a zero-emission
future a reality for all Americans.” Press Release,
Gavin Newsom, Governor, State of California,
Governor
Newsom
Statement
on
Biden
Administration’s Restoration of California’s Clean
10
Car
Waiver
(March
9,
2022),
https://www.gov.ca.gov/2022/03/09/governor-newsomstatement-on-biden-administrations-restoration-ofcalifornias-clean-car-waiver/ (emphasis added). In
short, the very purpose of EPA’s grant of a preemption
waiver was to force nationwide conversion from
liquid-fuel-powered vehicles to electric vehicles by
abdicating the decision to California.
Contrary to the lower court’s conclusion, Fuel
Petitioners (entities and associations representing
interests at all levels of the liquid fuel supply chain)
are not ancillary to EPA’s final agency action. See
App. To Pet. Cert., 29a–30a. To be sure, automakers
are also impacted by the rulemaking. The automakers
are simply the device the agencies are using to directly
undermine, and in their view hopefully eliminate, the
Fuel Petitioners’ industries and livelihoods. There can
be no question that the producers, refiners and
marketers of these fuels have standing on all grounds
to challenge a rule (among other similarly purposed
federal regulations) aimed directly at them. The
automakers involvement does not change the ultimate
target of the EPA and the California Air Resources
Board—the oil and gas industry. A “plaintiff satisfies
the redressability requirement” by showing “that a
favorable decision will relieve a discrete injury”; a
plaintiff “need not show that a favorable decision will
relieve his every injury.” Massachusetts v. EPA, 549
U.S. 497, 525 (2007). Fuel Petitioners have standing
11
to challenge this agency action which would clearly
injure them.
II. The Court should strike down EPA’s agency
action under the major questions doctrine
because Congress did not clearly state that
EPA may force a nationwide shift away from
fossil fuels via regulatory delegation to
California.
This is not the first time EPA has wielded
“unheralded power” under the Clean Air Act to
manipulate markets and disfavor a core American
industry. See West Virginia v. EPA, 597 U.S. 697
(2022). EPA now wields its narrow preemption-waiver
power under the Clean Air Act to enable California to
choke the oil and gas industry in personal, municipal,
and corporate transportation systems nationwide.
This overly aggressive interpretation of the Clean Air
Act could have devastating economic effects on the oil
and gas industry, including Amici and throughout the
states they call home. But EPA has answered this
major question of economic and political significance
without a clear congressional mandate to do so.
A. This is a major questions case.
The major questions doctrine is an established
part of the canon for judicial review of agency
rulemaking. The major questions doctrine “‘label’ . . .
took hold because it refers to an identifiable body of
law that has developed over a series of significant
cases all addressing a particular and recurring
12
problem: agencies asserting highly consequential
power beyond what Congress could reasonably be
understood to have granted.” Id. at 734.
In West Virginia, the Court observed that the
Clean Power Plan’s “point, after all, was to compel the
transfer of power generating capacity from existing
sources to wind and solar.” Id. at 714. After all, “EPA
explained that taking any of these steps would
implement a sector-wide shift in electricity production
from coal to natural gas and renewables.” Id. at 698.
Here, the “point, after all” of EPA’s preemption
waiver for California’s Advanced Clean Cars program
is to leverage California’s mandated shift from liquidfuel-powered vehicles to electric vehicles to
nationwide effect. Not only did EPA provide the
preemption waiver, it also rescinded prior rulemaking
to allow Section 177 “opt-in” states to adopt
California’s mandates. 87 Fed. Reg. 14,332 (Mar. 14,
2022); see 42 U.S.C. § 7507. And 17 States (as well as
the District of Columbia) have adopted California’s
standards, representing approximately 40% of the
new car market and the commensurate liquid fuel
products associated with those new vehicles. See id.;
California Air Resources Board, States that have
Adopted California’s Vehicle Regulations (June 2024),
https://ww2.arb.ca.gov/our-work/programs/advancedclean-cars-program/states-have-adopted-californiasvehicle-regulations.
13
As a result, Amici’s members, are not facing a mere
“shift” in their sectors; they are facing the opening
salvo in an emerging and coordinated federal and
state blockade of the use of liquid fuels in the new
vehicle market. In turn, Texas, Oklahoma, and
Louisiana are facing the start of a “highly
consequential” destruction of their foundational
economic driver, as well as their home states’ very
prosperity, derived from the oil and gas and
manufacturing industries. The fallout from this will
be felt nationwide and abroad.
“A decision of such magnitude and consequence
rests with Congress itself, or an agency acting
pursuant to a clear delegation from that
representative body.” West Virginia, 597 U.S. at 735.
So “the Government must—under the major questions
doctrine—point to ‘clear congressional authorization’
to regulate in that manner.’” Id. at 732 (quoting
Utility Air Regul. Grp. v. EPA, 573 U.S. 302, 324
(2014)). Congress did not clearly authorize EPA to
effectively abdicate nationwide regulation to
California through Section 209(b)(1)(B) of the Clean
Air Act. And Congress did not clearly authorize EPA,
and, in turn, California, to increasingly push of liquidfuel-powered vehicles out of nearly half of the
country’s new vehicle market. There is no
congressional authorization for EPA to utilize the
Clean Air Act’s authority to destroy key industrial
14
sectors and the prosperity of the millions of citizens
who depend on those sectors.
B. Congress did not hide an elephantsized mandate for forced vehicle
electrification (at California’s bidding)
in the Clean Air Act’s preemptionwaiver mousehole.
Congress must “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). “Oblique or
elliptical language, will not supply a clear statement,”
and agencies may not “seek to hide elephants in
mouseholes or rely on ‘gap filler’ provisions.” West
Virginia, 597 U.S. at 746 (Gorsuch, J., concurring).
Here, the Clean Air Act’s state regulation
prohibition and waiver provision relied on by EPA are
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
15
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.
(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 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. . .
(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
16
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.
42 U.S.C. § 7543(a)–(b). The preemption waiver
contemplated in this provision is generally known as
“the California waiver” because California is the only
state that had adopted standards for the control of
emissions before March 30, 1966, per Clean Air Act
Section 209(b)(1). See id.
Section 209 (formerly Section 208) joined the Clean
Air Act through the Air Quality Act of 1967. See 81
Stat. 485, 501 (1967). The preemption waiver, part of
Title II—the National Emission Standards Act—
permitted limited exceptions to EPA’s preemptive
authority to set emission standards to address
“compelling and extraordinary conditions” in the
State. See id. The National Emission Standards Act
was intended to set national standards for vehicles
with actual emissions, not for vehicles without
emissions and not to dictate or eliminate fuel sources
used in new vehicles. In 1967, when the preemption
waiver was enacted, Congress could not have
conceived of mass electrification of new vehicles. And
in any event, Congress did not enable EPA to mandate
mass electrification in an enabling statute that was
unequivocally intended to set standards for vehicles
17
with actual emissions. Likewise, Congress did not
empower EPA to abdicate a sea change away from
liquid fuels at the sole discretion of the state of
California’s policy decision. No such mandate has
since been added to the enabling statute.
The sole, clear subject of these portions of the
Clean Air Act is “standards” for the “control of
emissions.” The preemption waiver simply does not
provide a clear statement that could authorize EPA to
invert federalism principles to permit California to tilt
40% of the United States’ new car market away from
liquid-fuel propulsion and towards electrification.
Authorization for emissions standards does not
equate to authorization to, in essence, eliminate
liquid-fuel-powered vehicles. EPA must “point to
‘clear congressional authorization’ to regulate in that
manner.” West Virginia, 597 U.S. at 732 (quoting
Utility Air, 573 U.S. at 324). It cannot.
EPA’s (and California’s) decision in the absence of
clear
congressional
authority
has
economic
significance. The economic ramifications of EPA’s
broad reading, particularly on Amici and their home
states, cannot be overstated. And in addition to the
primary impacts on the oil and gas industry and
secondary impacts on state revenue from the industry,
other sectors rely on the ongoing viability of the oil
and gas industry. Various business sectors, such as
the commercial aviation industry, and the United
States military (though Amici do not presume to
18
speak for them) lean heavily on the oil and gas
industry. But EPA has ignored the cascading impacts
beyond the transportation and liquid fuel business
sectors. See 87 Fed. Reg. 14332.
EPA also overlooked the political significance of its
expansive preemption waiver. Congress did not
mandate vehicle electrification through the Clean Air
Act’s preemption waiver. Indeed, congressional
attempts to legislate federal mandates for electric
vehicles have failed at least five times.8 And for
decades, EPA itself has vacillated on the scope of the
waiver with the changing political tides that followed
presidential elections.9 This history of political
uncertainty over the very decision made by EPA (or
rather abdicated to California) in this case illustrates
the commonsense conclusion that this decision
touches on a matter of vast political significance.
Moreover, EPA’s interpretation of Section 209(b) is so
gaping that principles of federalism (reflected in
8 See, S. 3664, 115th Cong. § 2 (2018),
https://www.congress.gov/bill/115th-congress/senate-bill/3664;
S. 1487, 116th Cong. §1 (2019),
https://www.congress.gov/bill/116th-congress/senate-bill/1487;
H.R. 2767, 116th Cong. § 1 (2019),
https://www.congress.gov/bill/116th-congress/house-bill/2764;
H.R 8635, 116th Cong. § 2 (2020),
https://www.congress.gov/bill/116th-congress/house-bill/8635;
S. 4823, 116th Cong. § 2 (2020),
https://www.congress.gov/bill/116th-congress/senate-bill/4823.
9 See 73 Fed. Reg. 12,156, 12,163 (Mar. 6, 2008); 74 Fed. Reg.
32,755, 32,783 (July 8, 2009); 78 Fed. Reg. 2,112 (Jan. 9, 2013);
84 Fed. Reg. 51,310, 51,328, 51,339 (Sept. 27, 2019).
19
Section 209(a)) fall out, putting California at the helm
to the detriment of its sister states, further raising the
political stakes.
C. This case presents an appropriate
vehicle to address EPA’s expansive
view of the Clean Air Act’s preemption
waiver.
To date, EPA’s everchanging interpretations of the
Clean Air Act’s preemption waiver have escaped the
eyes of this Court. This case presents the opportunity
to review EPA’s interpretation of the Clean Air Act’s
preemption waiver at its broadest. Because this is one
of many agency actions driven by Executive Order
13,990, certiorari review (particularly under the
major questions doctrine) will provide a North Star in
related cases.
And addressing these issues now will quell
uncertainty in this agency arena and address the
urgent need for resolution on the merits. Parties have
challenged EPA’s yo-yoing preemption waiver
decisions before, only to find that the passage of time
during judicial review has stymied review of the
merits of EPA’s decisions. See, e.g., Chamber of
Commerce v. EPA, 642 F.3d 192 (D.C. Cir. 2011).
Amici respectfully ask the Court to take up these
questions.
20
CONCLUSION
For the foregoing reasons, this Court should grant
the petition for certiorari, reverse the D.C. Circuit’s
standing decision and reverse the EPA California
waiver rule for being outside of statutory authority
and in violation of the major questions doctrine.
Respectfully submitted,
JAMES K. VINES
Counsel of Record
SAMUEL P. FUNK
EVAN S. ROTHEY
SIMS|FUNK, PLC
3102 West End Ave., #1100
Nashville, TN 37203
(615) 292-9335
jvines@simsfunk.com
Counsel for Amici Curiae
Texas Oil & Gas Association, Louisiana Mid-Continent Oil & Gas Association, The Petroleum Alliance of Oklahoma, Texas
Independent Producers and
Royalty Owners Association, and Texas Association
of Manufacturers
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