Amicus Curiae Brief — Diamond Alternative Energy, LLC, et al., Petitioners v. Environmental Protection Agency, et al.
Supreme Court briefAug 7, 2024
Ask Donna
What actually matters in this document.
Text
No. 24-7
In the Supreme Court of the United States
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
BRIEF OF WESTERN STATES PETROLEUM
ASSOCIATION, AMERICAN TRUCKING ASSOCIATIONS,
INC., NATIONAL FEDERATION OF INDEPENDENT
BUSINESS, INC., CALIFORNIA ASPHALT PAVEMENT
ASSOCIATION, OREGON FUELS ASSOCIATION,
WASHINGTON OIL MARKETERS ASSOCIATION,
CALIFORNIA FUELS & CONVENIENCE ALLIANCE,
ARIZONA PETROLEUM MARKETERS ASSOCIATION,
AND NEVADA PETROLEUM MARKETERS &
CONVENIENCE STORE ASSOCIATION AS AMICI
CURIAE IN SUPPORT OF PETITIONERS
Katherine C. Yarger
Counsel of Record
LEHOTSKY KELLER
COHN LLP
700 Colorado Blvd.,
#407
Denver, CO 80206
(512) 693-8350
katie@lkcfirm.com
Counsel for Amici Curiae
Gabriela Gonzalez-Araiza
LEHOTSKY KELLER
COHN LLP
200 Massachusetts Ave.,
NW, Suite 700
Washington, DC 20001
TABLE OF CONTENTS
Table of Authorities .................................................. ii
Interest of Amici Curiae ........................................... 1
Summary of Argument ............................................. 4
Argument .................................................................. 6
I. The D.C. Circuit’s opinion muddles both
redressability and mootness doctrines. ......... 6
A. The D.C. Circuit set an unduly high bar
for Petitioners to demonstrate
redressability. ........................................... 8
B. The D.C. Circuit’s opinion engenders
confusion between redressability and
mootness. ................................................. 11
C. The D.C. Circuit’s erroneous decision
erects increasingly high standing obstacles
for parties challenging federal regulations.
15
II. This Court should review the merits and
vacate the waiver granted to California. ..... 19
Conclusion .............................................................. 24
(i)
ii
TABLE OF AUTHORITIES
Page(s)
Cases
Abbott Lab’ys v. Gardner,
387 U.S. 136 (1967) ............................................. 7
Ala. Ass’n of Realtors v. HHS,
594 U.S. 758 (2021) ........................................... 20
Competitive Enter. Inst. v. NHTSA,
901 F.2d 107 (D.C. Cir. 1990) ............................. 9
Corner Post, Inc. v. Bd. of Governors of Fed.
Rsrv. Sys.,
144 S. Ct. 2440 (2024) ................................... 8, 19
Dep’t of Com. v. New York,
588 U.S. 752 (2019) ....................................... 9, 10
FDA v. All. for Hippocratic Med.,
602 U.S. 367 (2024) ......................................... 7, 8
Friends of the Earth, Inc. v. Laidlaw Env’t
Servs. (TOC), Inc.,
528 U.S. 167 (2000) ..................................... 11, 12
Gregory v. Ashcroft,
501 U.S. 452 (1991) ........................................... 19
iii
In re: MCP No. 189, National Highway
Traffic Safety Administration,
Department of Transportation, Corporate
Average Fuel Economy Standards for
Passenger Cars and Light Trucks for
Model Years 2027 and Beyond and Fuel
Efficiency Standards for Heavy-Duty
Pickup Trucks and Vans for Model Years
2030 and Beyond (6th Cir.)......................... 16, 20
Iowa v. Granholm,
No. No. 24-01721 (8th Cir.)............................... 16
Kentucky v. EPA,
No. 24-1087 (D.C. Cir.) ..................................... 16
Kingdomware Techs., Inc. v. United States,
579 U.S. 162 (2016) ........................................... 18
Louie v. Dickson,
964 F.3d 50 (D.C. Cir. 2020) ............................. 12
Lujan v. Defs. of Wildlife,
504 U.S. 555 (1992) ................................. 7, 12, 13
Maldonado v. D.C.,
61 F.4th 1004 (D.C. Cir. 2023) ................... 12, 15
Murthy v. Missouri,
144 S. Ct. 1972 (2024) ....................................... 12
Narragansett Indian Tribal Historic Pres.
Off. v. FERC,
949 F.3d 8 (D.C. Cir. 2020) ............................... 14
iv
National Resources Defense Council v.
NHTSA,
No. 22-1080 (D.C. Cir.) ..................................... 16
Nebraska v. EPA,
No. 24-1129 (D.C. Cir.) ..................................... 16
Ohio v. EPA,
98 F.4th 288 (D.C. Cir. 2024)
................................................... 10, 11, 14, 17, 18
Steel Co. v. Citizens for a Better Env’t,
523 U.S. 83 (1998) ............................................... 8
Super Tire Eng’g Co. v. McCorkle,
416 U.S. 115 (1974) ........................................... 15
Texas v. EPA,
No. 22-1031 (D.C. Cir.) ..................................... 16
U.S. Forest Serv. v. Cowpasture River Pres.
Ass’n,
590 U.S. 604 (2020) ........................................... 19
United States v. Washington,
596 U.S. 832 (2022) ..................................... 12, 15
West Virginia v. EPA,
597 U.S. 697 (2022)
....................................... 12, 14, 15, 19, 20, 21, 22
Western States Trucking Ass’n v. EPA,
No. 23-1143 (D.C. Cir.) ..................................... 16
Statutes
42 U.S.C. § 7543(b) ................................................. 22
v
49 U.S.C. § 32902(b)(3) .......................................... 17
Other Authorities
73 Fed. Reg. 12156, 12160 (Mar. 6, 2008) ............. 23
Anh Bui & Peter Slowik, Market Spotlight:
Electric Vehicle Market and Policy
Developments in U.S. States, 2023, The
International Council on Clean
Transportation (June 4, 2024),
https://perma.cc/EG6N-3MW2.................... 16, 17
David R. Wooley & Elizabeth M. Morss,
Clean Air Act Handbook: A Practical
Guide to Compliance § 5:38 (33d ed.
2023) .................................................................. 23
Exec. Order 14037, 86 Fed. Reg. 43583
(Aug. 5, 2021) .................................................... 16
Stephen Breyer, Judicial Review of
Questions of Law and Policy, 38 ADMIN.
L. REV. 363, 370 (1986) ..................................... 20
U.S. Const. art. III.................................................... 7
Zero-Emission Vehicles Act of 2018, S. 3664,
115th Cong. ....................................................... 21
Zero-Emission Vehicles Act of 2019, H.R.
2764, 116th Cong. ............................................. 21
Zero-Emission Vehicles Act of 2019, S. 1487,
116th Cong. ....................................................... 21
vi
Zero-Emission Vehicles Act of 2020, H.R.
8635, 116th Cong. ............................................. 21
Zero-Emission Vehicles Act of 2020, S. 4823,
116th Cong. ....................................................... 21
INTEREST OF AMICI CURIAE
Western States Petroleum Association (WSPA) is
a non-profit trade association that represents a large
portion of the petroleum exploration, production, refining, transportation, and marketing companies in
Arizona, California, Nevada, Oregon, and Washington.1 Founded in 1907, WSPA is dedicated to ensuring that Americans continue to have reliable access
to petroleum and petroleum products through policies that are socially, economically, and environmentally responsible.
American Trucking Associations, Inc. (ATA), is
the national association of the trucking industry. Its
direct membership includes approximately 2,400
trucking companies and in conjunction with 50 affiliated state trucking organizations, it represents over
30,000 motor carriers of every size, type, and class of
motor carrier operation. The motor carriers represented by ATA haul a significant portion of the
freight transported by truck in the United States and
virtually all of them operate in interstate commerce
among the states. ATA regularly represents the common interests of the trucking industry in courts
throughout the nation, including this Court.
The National Federation of Independent Business, Inc. (NFIB) is the nation’s leading small business association. NFIB’s mission is to promote and
protect the right of its members to own, operate, and
1 In accordance with Rule 37.6, no counsel for any party has
authored this brief in whole or in part, and no person or entity,
other than amici or their counsel, has made a monetary contribution to the preparation or submission of this brief. Counsel of
record received timely notice of the intent to file this brief pursuant to Rule 37.2.
(1)
2
grow their businesses. NFIB represents, in Washington, D.C., and all 50 state capitals, the interests of its
members. An affiliate of NFIB, the NFIB Small Business Legal Center, Inc. (NFIB Legal Center) is a nonprofit, public interest law firm established to provide
legal resources and be the voice for small businesses
in the nation’s courts through representation on issues of public interest affecting small businesses. To
fulfill its role as the voice for small business, the
NFIB Legal Center frequently files amicus briefs in
cases that will impact small businesses.
California Asphalt Pavement Association is a
nonprofit trade association that represents members
of the asphalt pavement industry in California. The
industry is a primary consumer of liquid asphalt, a
petroleum-based product that is produced as part of
the oil refining process. Because there is no alternative for liquid asphalt, any reduction or elimination
of the availability of this product as an indirect result
of California’s emissions standards will severely
harm the industry. It will disrupt the ability of local,
state, and federal agencies—the industry’s largest
customers—to build and maintain roads and highways. Beyond impacting the 15,735 men and women
employed in manufacturing asphalt pavement mixtures, California’s standards will put at risk the
343,000 American jobs involved in the construction
of that infrastructure.
The Oregon Fuels Association (OFA) is the voice
of Oregon’s locally-owned fuel stations, fuel distributors, and heating oil providers. OFA members are at
the forefront of environmental stewardship within
the industry as the leading suppliers of biodiesel and
other low carbon fuels. Often multi-generational,
3
family-owned businesses, members fuel Oregon’s
economy by providing career opportunities to thousands of employees across the state. OFA is a leading
advocate for common sense regulations that balance
affordable fuels and environmental stewardship.
Washington Oil Marketers Association (WOMA)
is a nonprofit trade association with individual and
corporate members that market petroleum products
in Washington State and associate members that sell
products and services that support the petroleum industry. WOMA members account for nearly 80% of
all petroleum products sold in Washington State, including 68,000,000 gallons of heating oil to residential and industrial users. WOMA is the only association in Washington State that focuses on all aspects
of the petroleum marketing industry and monitors
legislative and regulatory issues involving fuel, energy, alcohol, tobacco, transportation, the environment, and the state budget and taxes. WOMA also
lobbies on behalf of petroleum marketers and oil heat
dealers with state government agencies and the legislature in Olympia and stays engaged with related
state and national associations.
The California Fuels and Convenience Alliance
(CFCA) is the industry’s statewide trade association
representing the needs of small and minority wholesale and retail marketers of gasoline, diesel, lubricating oils, motor fuels products, and alternative fuels,
including but not limited to, hydrogen, compressed
natural gas, ethanol, renewable and biodiesel, and
electric charging stations; transporters of those products; and retail convenience store operators.
Since 1967, the Arizona Petroleum Marketers Association (APMA) has been the state’s leading trade
4
association representing the petroleum marketing,
convenience store and related industries. APMA’s
primary purpose is to protect and advance its members’ legislative and regulatory interests in the
state’s and nation’s capitols.
The Nevada Petroleum Marketers & Convenience
Store Association (NPM&CSA) is a statewide trade
association that represents an extensive membership
of liquid fuel and lubricant distributors, transporters, retailers, and convenience store owners. The fuel
distribution, transportation, retailing, and convenience industry are critical components of Nevada’s
economy with stations and stores in every county.
Nevada has more than 1229 C-stores employing more
than 18,000 employees. Annual gross sales are more
than $4.7 billion with fuel sales accounting for $2.6
billion.
SUMMARY OF ARGUMENT
This case forms part of a sprawling constellation
of regulatory challenges addressing increasingly
stringent regulations of internal combustion
vehicles. These include regulations promulgated by
California and authorized by the Environmental
Protection Agency’s (EPA’s) Clean Air Act waivers,
EPA’s own tailpipe emission standards, and the
National Highway Traffic Safety Administration’s
(NHTSA’s) corporate average fuel economy
standards.
Petitioners, like amici and their members, stand
to be injured by California’s regulations, which will
indisputably reduce the demand for liquid fuels. But
despite numerous active and ongoing cases
challenging the regulations, the D.C. Circuit has
5
continuously dodged ruling on the merits. Here it did
so by manipulating standing doctrine.
The D.C. Circuit’s opinion engenders confusion in
two primary ways.
First, it sets a rigid standard for Petitioners to
prove redressability. The court rejected Petitioners’
arguments that their injuries would be redressed by
vacatur of the waiver in light of the “predictable” and
indeed intended “effects” of EPA’s waiver. Instead,
the court demanded a much stronger showing of
evidence from regulated entities that they would
alter their behavior in response to a favorable ruling
from the court.
Second, the court conflated redressability and
mootness doctrines. The court focused on the time
that had elapsed since the start of the litigation, and
the remaining regulatory timeframe, and concluded
there was insufficient time for the requested relief to
have any effect. But the court labeled this inquiry,
which is quintessential mootness, as one of
redressability. In doing so, it not only ignored
important details attendant to each distinct doctrine,
but it also flipped the burden of proof from
Respondents to Petitioners. And worse still, since
Petitioners
had
demonstrated
that
car
manufacturers could and would alter their behavior
if the court ruled in their favor, the court’s conclusion
was also incorrect.
These errors create significant obstacles to
standing in other contexts. If left undisturbed, it
incentivizes agencies to regulate in short timeframes
that are set to expire before a court may render a
decision. And it also prompts questions about how
the court’s analysis here fits in with industries
6
requiring long lead times to reach regulatory
compliance.
Moreover, this Court should grant the petition to
review the merits of EPA’s Clean Air Act waiver here,
which authorizes California to regulate global
greenhouse gas emissions.
The issues presented are poised to recur as
challenges to EPA and NHTSA’s next set of vehicle
regulations are already under way in the D.C. Circuit
and the Sixth Circuit. Left uncorrected, the court’s
decision below may hinder these regulatory
challenges such that a court may never reach the
merits of these important questions.
ARGUMENT
I. The D.C. Circuit’s opinion muddles both redressability and mootness doctrines.
As explained by Petitioners, the D.C. Circuit departed from Supreme Court precedent and its own
prior decisions when it imposed a barrier to merits
review based on an improperly stringent and novel
standard for demonstrating redressability. Rather
than allowing Petitioners to show standing from the
“determinative or coercive effect” of EPA’s Advanced
Clean Cars I waiver, the court demanded proof that
any decision in Petitioners’ favor would cause directly regulated entities to alter their plans. See
Pet.15-21. So although a petitioner may usually rely
on the “predictable effect” of regulation on third parties to establish causation and redressability, see Pet.
16-17, the D.C. Circuit here required Petitioners to
obtain evidence from the directly regulated entities
themselves. See Pet.20-21. In so doing, the court also
7
improperly entangled the concepts of redressability
and mootness.
Under Article III of the Constitution, an “affected
party” seeking to challenge federal agency action in
federal court must establish that there is an actual
“case or controversy” for the court to resolve. U.S.
Const. art. III. Under the longstanding three-part
test for standing, a party must demonstrate that it
has suffered (1) an injury in fact; (2) that is “fairly
traceable” to the agency’s action; and (3) that is redressable by favorable judicial relief. Lujan v. Defs.
of Wildlife, 504 U.S. 555, 560-61 (1992) (internal quotations marks and alterations omitted). Causation
and redressability are “flip sides of the same coin”:
“If a defendant’s action causes an injury, enjoining
the action or awarding damages for the action will
typically redress that injury. So the two key questions in most standing disputes are injury in fact and
causation.” FDA v. All. for Hippocratic Med., 602 U.S.
367, 380-81 (2024) (citation omitted).
In the context of challenges to agency rulemaking,
the quintessential injury-in-fact from an agency’s
rule is the imposition of compliance costs directly on
the party or industry challenging the regulation. See
Abbott Lab’ys v. Gardner, 387 U.S. 136, 140 (1967)
(There is a “basic presumption of judicial review” under the APA for parties who have been “adversely affected or aggrieved by agency action.” (citation and
quotation marks omitted)). “[T]he Court has [also]
identified a variety of familiar circumstances where
government regulation of a third-party individual or
business may be likely to cause injury in fact to an
unregulated plaintiff.” All. for Hippocratic Med., 602
U.S. at 384-85 (emphasis added) (collecting cases).
8
An unregulated party may assert an injury from “upstream” or “downstream” effects of the regulation for
others involved, like manufacturers, retailers, or customers. Id.; see also Corner Post, Inc. v. Bd. of Governors of Fed. Rsrv. Sys., 144 S. Ct. 2440, 2460 (2024)
(Kavanaugh, J., concurring) (“An unregulated plaintiff . . . [may] challenge an allegedly unlawful agency
rule that regulates others but also has adverse downstream effects on the [unregulated party].”). Actions
brought by unregulated parties are a class of “historically common and vitally important litigation
against federal agencies.” Corner Post, 144 S. Ct. at
2469 (Kavanaugh, J., concurring).
In the decision below, the D.C. Circuit created a
nearly impossible burden. First, the court distorted
the redressability requirement by demanding that
unregulated parties prove how third parties will react to a favorable decision on the merits. Second, the
court muddled the distinction between standing and
mootness by lodging in redressability a determination that sounds in mootness. Together, these twin
errors make standing prohibitively difficult for unregulated parties to prove.
A. The D.C. Circuit set an unduly high bar for
Petitioners to demonstrate redressability.
The D.C. Circuit reconfigured standing doctrine
by imposing an ill-considered and unworkable requirement that unregulated plaintiffs must prove
how third parties would react to a favorable decision
on the merits.
Ordinarily, a plaintiff establishes that its injuries
are redressable by showing “a likelihood that the requested relief will redress the alleged injury.” Steel
Co. v. Citizens for a Better Env’t, 523 U.S. 83, 103
9
(1998). Unregulated entities—whose injuries depend
in part on the actions of regulated third parties—may
rely on “the predictable effect of Government action
on the decisions of third parties” to demonstrate redressability. Dep’t of Com. v. New York, 588 U.S. 752,
768 (2019). For example, in Competitive Enterprise
Institute v. NHTSA, 901 F.2d 107 (D.C. Cir. 1990), a
consumer group petitioned the D.C. Circuit for review of the NHTSA’s fuel economy standards for passenger cars. Petitioners argued that NHTSA’s rule
demanding greater fuel efficiency hindered the ability of its members to “buy larger passenger vehicles.”
Id. at 112. Respondents argued petitioners failed to
show redressability because manufacturers may not
necessarily respond to a court decision by producing
larger vehicles. Id. at 116-17. But the D.C. Circuit
pointed to “past experience” showing that manufacturers do respond to lower fuel efficiency standards
by producing larger vehicles and that consumer demand was in favor of larger vehicles so manufacturers would probably respond to those “market forces”
to “meet that consumer demand.” Id. at 117. Indeed,
“an entire line of cases finds redressability [in] . .
. circumstances turning on third-party conduct that
is voluntary but reasonably predictable.” Competitive
Enter. Inst., 970 F.3d at 384; see id. at 381-82 (collecting cases).
Petitioners adequately demonstrated that the
third-party conduct necessary to alleviate their injury was a “reasonably predictable” result of a favorable ruling. California’s Advanced Clean Cars program would mandate that car manufacturers produce fewer vehicles that consume liquid fuel. Petitioners (who produce liquid fuel) indicated that their
10
injury (reduced demand for liquid fuel) would be mitigated by a favorable ruling vacating EPA’s authorization of California’s Advanced Clean Cars program.
Petitioners supported redressability with “over a
dozen declarations by individuals who are affiliated
with Fuel Petitioner entities and organizations . . . explain[ing] that the entity or organization
is involved with producing or selling fuel and that the
waiver causes Fuel Petitioners economic injury by reducing the demand for fuel and related products.”
Ohio v. EPA, 98 F.4th 288, 301 (D.C. Cir. 2024).
Nonetheless, the D.C. Circuit dismissed their petition for lack of standing, concluding that they failed
to demonstrate “a ‘substantial probability’ . . . 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.” Id. at
302 (citation omitted).
Rather than allowing Petitioners to rely on the
“predictable effects” of the rule, the D.C. Circuit demanded “record evidence,” or “additional affidavits”
“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.” Dep’t of Com., 588 U.S. at 768;
Ohio v. EPA, 98 F.4th at 300, 302-03, 305. In other
words, the court expected Petitioners to obtain definitive evidence from the regulated car manufacturers
that they would alter their production, pricing, and
distribution in response to a favorable court decision.
This requirement is as unnecessary as it is unrealistic.
As Petitioners explain, the D.C. Circuit failed to
acknowledge evidence that Petitioners’ harms would
11
be redressed through the predictable effects of a favorable decision on third parties’ conduct and did not
respond to caselaw supporting this approach. See
Pet. 20. Instead, the court imposed a novel evidentiary requirement—demanding Petitioners to adduce
evidence from the regulated party, who participated
as intervenor-respondents in the litigation. Id. This
onerous requirement asks far too much of unregulated parties, who need only demonstrate that the
third-party conduct necessary to mitigate their injuries is “reasonably predictable.”
B. The D.C. Circuit’s opinion engenders confusion between redressability and mootness.
Although the D.C. Circuit couches its holding in
redressability, its analysis seems to confuse redressability and mootness. Because of the unique role the
D.C. Circuit plays in adjudicating administrative law
cases, the confusion the court has engendered carries
greater weight.
In the first half of the court’s redressability analysis, it concluded that Petitioners failed to prove that
car manufacturers would alter their production, pricing, and distribution in the event of a favorable ruling. In the second half, the court determined that Petitioners failed to show, as of the time of the court’s
decision, that “manufacturers would do so relatively
quickly—by Model Year 2025,” even though Petitioners filed their petition for review in May 2022. Ohio
v. EPA, 98 F.4th at 302 (emphasis added).
With some exceptions, mootness is “the doctrine
of standing set in a time frame.” Friends of the Earth,
Inc. v. Laidlaw Env’t Servs. (TOC), Inc., 528 U.S. 167,
189 (2000) (citation omitted). Because of this
12
characterization, lower courts sometimes “conflate[]
[the] Court’s case law on initial standing, with its
case law on mootness.” Id. at 174. The two doctrines
are closely related but distinct. “It is the doctrine of
mootness, not standing, that addresses whether an
intervening circumstance has deprived the plaintiff
of a personal stake in the outcome of the lawsuit.”
West Virginia v. EPA, 597 U.S. 697, 719 (2022)
(cleaned up) (citation omitted). But “[a] case is not
moot . . . unless it is impossible for [the Court] to
grant any effectual relief.” United States v. Washington, 596 U.S. 832, 837 (2022) (cleaned up) (emphasis
added) (citation omitted). Thus, “the heavy burden of
proving mootness falls with the party asserting a
case is moot.” Maldonado v. D.C., 61 F.4th 1004, 1006
(D.C. Cir. 2023) (emphasis added) (internal quotation
marks and citation omitted).
So while standing asks whether a party has “[t]he
requisite personal interest that must exist at the
commencement of the litigation,” mootness asks
whether that personal interest “continue[s] throughout [the] existence [of the litigation].” Laidlaw, 528
U.S. at 189 (emphasis added) (internal quotation
marks and citations omitted); Louie v. Dickson, 964
F.3d 50, 54 (D.C. Cir. 2020).2 And while a plaintiff
bears the burden of establishing the elements of
2 This Court’s standing doctrine contains additional confu-
sion stating both that standing is assessed at the outset of litigation and that each element of standing must be supported
“with the manner and degree of evidence required at the successive stages of the litigation.” Murthy v. Missouri, 144 S. Ct.
1972, 1986 (2024) (emphasis added) (citing Lujan, 504 U.S. at
561). Granting the Petition would provide an opportunity to
clarify this confusion.
13
standing, Lujan, 504 U.S. at 560-61, the party asserting mootness (typically the defendant) bears the burden of proving a case is moot.
Here, it seems the D.C. Circuit conflated the doctrines of standing and mootness, and confused their
respective burdens, by mislabeling a mootness question as a redressability one.
As explained by Petitioners, EPA did not contest
Petitioners standing, but California and other state
and local intervenors did so in their briefing, arguing
that Petitioners had not shown that “manufacturers
would change course if EPA’s decision were vacated.”
Pet.11 (quoting C.A. California Br. 13-15). Then, at
oral argument, counsel for state and local intervenors reiterated this same assertion but argued it as
a matter of mootness. Pet.12.
Petitioners moved to file supplemental briefing
and supplemental declarations demonstrating further that the matter was not moot. Id. These declarations included statements from individuals like
Walter Kreucher, who worked at Ford for over thirty
years on regulatory compliance. Id.; C.A. Pet. Standing Addendum, Kreucher Decl. ¶ 1; see also C.A. Pet.
Standing Addendum, Modlin Decl. ¶ 1 (over forty
years’ experience working in emissions and fuel economy regulatory compliance at Chrysler). Kreucher
explained that “if California’s vehicle [greenhouse
gas] emission and [zero-emission vehicle] standards
were to be eliminated or made less stringent, automobile manufacturers could and likely would change
their production, pricing, and/or distribution plans
for Model Year 2025 as late as December 2025.” C.A.
Pet. Standing Addendum, Kreucher Decl. ¶ 5; see
also C.A. Pet. Standing Addendum, Modlin Decl. ¶ 5
14
(same). The D.C. Circuit, however, refused to consider this information since it framed the issue in
terms of redressability. Ohio v. EPA, 98 F.4th at 306.
The court then proceeded to evaluate the “redressability” issue with a mootness analysis. The court
asked whether, given the short regulatory timeframe
remaining, car manufacturers might still have time
to alter their behavior. Id. at 302-303. Because manufacturers could or would no longer change their production, pricing, and distribution, the court concluded Petitioners no longer had an injury that would
be remedied by the court’s decision. Id. at 303-04.
And the court made this assessment, not as of the
time the litigation commenced, but at the time of its
decision. See, e.g., id. at 302 (“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.”); see also e.g., id.
(stating that petitioners failed to show “that automobile manufacturers would [respond to a decision by
this Court by changing their fleets] relatively
quickly—by Model Year 2025”).
In short, the court asked whether an “intervening
circumstance,” i.e., the passage of time since the Advanced Clean Cars waiver was granted, rescinded,
and reinstated, had rendered Petitioners claims
moot. West Virginia v. EPA, 597 U.S. at 719.
The D.C. Circuit’s error is problematic for at least
three reasons. First, courts already tread carefully on
the distinction between standing and mootness, and
the D.C. Circuit’s opinion blurs that carefully drawn
line. See, e.g., Narragansett Indian Tribal Historic
Pres. Off. v. FERC, 949 F.3d 8, 12 (D.C. Cir. 2020)
15
(citation omitted) (holding that a question about redressability “may sound like [a question about] mootness” but finding the proper inquiry was one of standing in light of the timing—namely that the question
arose at the time the action commenced). Second, by
deciding on standing rather than mootness, the court
liberated Respondents of their “heavy burden” to
prove mootness. Maldonado, 61 F.4th at 1006. And
third, the court dismissed a question that is still live.
This Court has explained that if resolution of an issue has the potential to affect future behavior, then
the question is not moot. Super Tire Eng’g Co. v.
McCorkle, 416 U.S. 115 (1974) (determining that a
case was not moot even though the strike upon which
the action was based had ended because a federal
court decision could substantially affect future labormanagement negotiations); see also West Virginia v.
EPA, 597 U.S. at 719-20 (declining to “dismiss [the]
case as moot” because the Government could reimpose the regulation at issue); Washington, 596 U.S.
at 837 (“A case is not moot . . . unless it is impossible
for [the Court] to grant any effectual relief.”) (cleaned
up) (emphasis added)).
C. The D.C. Circuit’s erroneous decision
erects increasingly high standing obstacles for parties challenging federal regulations.
Left uncorrected, the D.C. Circuit’s opinion creates a variety of unintended consequences. Most immediately, the decision erects a redressability obstacle for the many unregulated petitioners actively
challenging vehicle regulations in other cases in the
circuit courts. Looking forward, the D.C. Circuit’s
reasoning creates a perverse incentive for agencies to
16
regulate seriatim in shorter and shorter timeframes.
And even beyond the realm of vehicle regulations, the
court’s decision below could affect regulatory challenges in industries with similar timeframes.
The D.C. Circuit’s opinion creates confusion for
ongoing regulatory challenges in related cases. Petitioners in this case, along with other similarly unregulated parties, have filed petitions for review against
EPA and NHTSA regulations governing vehicle
emissions and fuel economy.3 These regulations are
intended to help meet the Biden Administration’s
stated goal that “50 percent of all new passenger cars
and light trucks sold in 2030 be zero-emission vehicles.” Exec. Order 14037, 86 Fed. Reg. 43583 (Aug. 5,
2021), Strengthening American Leadership in Clean
Cars and Trucks.4 The directly regulated vehicle
3 See, e.g., Kentucky v. EPA, No. 24-1087 (D.C. Cir.) (“Multi-
Pollutant Emissions Standards for Model Years 2027 and Later
Light-Duty and Medium-Duty Vehicles”); Nebraska v. EPA, No.
24-1129 (D.C. Cir.) (state challenge to EPA’s “Greenhouse Gas
Emissions Standards for Heavy-Duty Vehicles—Phase 3”); In
re: MCP No. 189, National Highway Traffic Safety Administration, Department of Transportation, Corporate Average Fuel
Economy Standards for Passenger Cars and Light Trucks for
Model Years 2027 and Beyond and Fuel Efficiency Standards
for Heavy-Duty Pickup Trucks and Vans for Model Years 2030
and Beyond, Fed. Reg. 52540, Published on June 24, 2024 (6th
Cir.); Western States Trucking Ass’n v. EPA, No. 23-1143 (D.C.
Cir.) (California’s Advanced Clean Trucks waiver); Iowa v.
Granholm, No. No. 24-01721 (8th Cir.) (petroleum equivalency
factor used to calculate fuel economy standards); see also Texas
v. EPA, No. 22-1031 (D.C. Cir.) (emissions standards for Model
Years 2023-2026); National Resources Defense Council v.
NHTSA, No. 22-1080 (D.C. Cir.) (fuel economy standards for
Model Years 2024-2026).
4 For reference, in 2023, new electric vehicles constituted
9% of sales in the United States. Anh Bui & Peter Slowik,
17
manufacturers have yet to come forward as challengers. But petitioners, including parties like the fuel
producers in this case, are directly affected by the
government’s concerted effort to reduce the consumption of liquid fuels and continue to challenge these
regulations.
The D.C. Circuit’s ruling could also incentivize
agencies to regulate in short intervals to obstruct judicial review. In this case, the short regulatory
timeframe remaining was key to the court’s determination that Petitioners’ injury was not redressable.
EPA reinstated California’s waiver for Advanced
Clean Cars in March 2022, which reactivated California’s Advanced Clean Cars program for Model
Years 2017 through 2025. Ohio v. EPA, 98 F.4th at
298. Petitioners filed their petition for review in May
2022 with over three years remaining in the regulatory timeframe. In the decision below, the court relied, in part, on the erroneous conclusion that since
Model Year 2025 was the final year of the waiver, car
manufacturers would be unable to change production, pricing, and distribution before the regulatory
period ended. Id. at 302-03.
As a result of the court’s opinion, agencies could
intentionally structure rules to evade review by making “unredressably” short timeframes. To illustrate,
by statute the NHTSA must set “average fuel economy standards for passenger and non-passenger automobiles . . . for at least 1, but not more than 5,
model years.” See, e.g., 49 U.S.C. § 32902(b)(3). If
Market Spotlight: Electric Vehicle Market and Policy Developments in U.S. States, 2023, The International Council on Clean
Transportation (June 4, 2024), https://perma.cc/EG6N-3MW2.
18
NHTSA were to opt for the minimum timeframe—
one year—the regulatory period could be complete
before a court renders its decision. Based on the timing, potential challengers would be consistently foreclosed from bringing suit.5
As a final illustration, the D.C. Circuit’s opinion
could also hinder regulatory challenges for any type
of industry with lead time for regulatory compliance,
not just car manufacturers. In denying the redressability of Petitioners’ injuries, the court placed great
weight on the fact that car manufacturers “need
years of lead time to make changes to their future
model year fleets.” Ohio v. EPA, 98 F.4th at 302. And
given the regulatory time frame, the court concluded
that manufacturers would have too little “time to alter their product plans.” Id. at 302.
Consequently, other (highly regulated) industries
seeking to challenge agency regulations could face a
steep impediment to standing. Implementation of
virtually every regulatory burden requires lead time
and planning. Under the court’s holding here, petitions for review will continually face an obstacle to
standing based on the requisite time-period required
to plan and comply and, in some circumstances, the
5 This point also illustrates that the D.C. Circuit’s timing
analysis addressed an issue of mootness, not redressability. If
such agency gamesmanship were to occur, a court could apply
its exception to mootness to hear a case that is “capable of repetition, yet evading review.” Kingdomware Techs., Inc. v.
United States, 579 U.S. 162, 170 (2016); see also id. (“That exception applies . . . where (1) the challenged action is in its duration too short to be fully litigated prior to cessation or expiration, and (2) there is a reasonable expectation that the same
complaining party will be subject to the same action again.”
(cleaned up) (citation omitted)).
19
dwindling time horizon of the regulation itself. Petition for review will be too late, since industries trying
to predict and prepare for regulatory action will be
too far along for their injuries to be redressable.
The D.C. Circuit’s opinion risks “clos[ing] the
courthouse doors on . . . unregulated plaintiffs—a
radical change to administrative law that would insulate a broad swath of agency actions from any judicial review.” See Corner Post, 144 S. Ct. at 2463
(Kavanaugh, J., concurring).
II. This Court should review the merits and vacate the waiver granted to California.
Because EPA’s grant of the waiver here allows
California to “assert[] highly consequential power beyond what Congress could reasonably be understood
to have granted [in the Clean Air Act],” the case implicates the major-questions doctrine. West Virginia
v. EPA, 597 U.S. at 724. Under the doctrine, courts
must review “assertions of extravagant statutory
power . . . with skepticism,” especially where “the
history and the breadth of the authority that the
agency has asserted, and the economic and political
significance of that assertion, provide a reason to
hesitate before concluding that Congress meant to
confer such authority.” Id. at 721, 724 (cleaned up)
(emphasis added).6
6 An agency action also implicates a major political question
if it “would upset the usual constitutional balance of federal and
state powers.” Gregory v. Ashcroft, 501 U.S. 452, 460 (1991). In
this sense, the major-questions doctrine is similar to the federalism canon—that Congress must “enact exceedingly clear language if it wishes to significantly alter the balance between federal and state power.” U.S. Forest Serv. v. Cowpasture River
Pres. Ass’n, 590 U.S. 604, 622-23 (2020); see West Virginia v.
20
The Court has noted that an issue is economically
significant where an agency claims, for example,
“power over a significant portion of the American
economy.” Id. at 722 (internal quotation marks omitted).
And the Court has found issues to be of major political significance when the agency claims the power
“to adopt a regulatory program that Congress had
conspicuously and repeatedly declined to enact itself”; the issue “has been the subject of an earnest
and profound debate across the country,” id. at 724,
732 (internal quotation marks and citations omitted);
or the agency action “intrudes into an area that is the
particular domain of state law,” Ala. Ass’n of Realtors
v. HHS, 594 U.S. 758, 764 (2021) (per curiam). No
single factor is necessary, but all factors here point
in the same direction: the decision to allow California
to force a nationwide shift in new sales from gas-powered vehicles to electric vehicles implicates a major
question. Cf. Stephen Breyer, Judicial Review of
Questions of Law and Policy, 38 ADMIN. L. REV. 363,
370 (1986) (“A court may also ask whether the legal
question is an important one. Congress is more likely
to have focused upon, and answered, major questions, while leaving interstitial matters to answer
themselves in the course of the statute’s daily administration.”).
EPA, 597 U.S. at 744 (Gorsuch, J., concurring) (“[T]he major
questions doctrine and the federalism canon often travel together.”). EPA’s reading of Section 209(b) would improperly
give California authority, shared with no other state, to overhaul the national vehicle and fuel industries to address an inherently global phenomenon.
21
Here, the vast economic impact of the section
209(b) waiver on the automobile and energy industries cannot be overstated. As relevant to amici, California’s standards will indisputably harm the petroleum industry, placing hundreds of thousands of
jobs—and billions of dollars in tax revenue—at risk.
See Br. of Amici Curiae Western States Petroleum
Ass’n et al., Ohio v. EPA, No. 22-1081 (D.C. Cir.) at
1. Downstream industries will also suffer. The asphalt industry, for example, is reliant on oil refining
for liquid asphalt, a petroleum-based product. See id.
at 2-3. And if petroleum production is curtailed, the
industry will be unable to meet its commitments to
supply those who pave America’s roads. See id.
Again, hundreds of thousands of jobs nationwide are
on the line, not to mention core elements of this country’s infrastructure. See id. at 3.
There are two primary ways the waiver implicates
questions of major political significance as well.
First, the agency has “adopt[ed] a regulatory program that Congress ha[s] conspicuously and repeatedly declined to enact itself.” West Virginia v. EPA,
597 U.S. at 724. Congress has considered and rejected (multiple times) legislation authorizing EPA to
establish an electric vehicle mandate. See, e.g., ZeroEmission Vehicles Act of 2020, S. 4823, 116th Cong.
(2020); Zero-Emission Vehicles Act of 2020, H.R.
8635, 116th Cong. (2020); Zero-Emission Vehicles
Act of 2019, S. 1487, 116th Cong. (2019); Zero-Emission Vehicles Act of 2019, H.R. 2764, 116th Cong.
(2019); Zero-Emission Vehicles Act of 2018, S. 3664,
115th Cong. (2018).
Second, the waiver is politically significant because electrification of America’s vehicle fleet “has
22
been the subject of an earnest and profound debate
across the country.” West Virginia v. EPA, 597 U.S.
at 732 (internal quotation marks and citation omitted). One need only open a newspaper or social media
to see this debate playing out in real time.
When the major-questions doctrine applies, the
agency must point to a clear statement by Congress
for the authority it claims. It is not enough that the
agency’s interpretation is textually “plausible.” West
Virginia, 597 U.S. at 723 (emphasis added). And general, “modest,” or “vague” language will not do either.
Id. EPA cannot point to a clear congressional statement that would authorize it to “grant[] California,
alone among the States, the ability to set vehicleemission standards to combat global climate change.”
Pet.14.
As the Petition and briefs of other amici ably explain, the statutory language EPA relies on here does
not authorize the waiver.
The Clean Air Act authorizes the waiver for California only where the State “need[s] such State
standards to meet compelling and extraordinary conditions.” 42 U.S.C. § 7543(b). EPA does not even try
to claim that the standards are “needed” to reduce
global greenhouse gas emissions as EPA admits the
standards will have little to no effect, though of
course it knows the effect they will have on auto manufacturing and sales. And global emissions are by no
means “compelling and extraordinary” for California. As EPA Administrator Stephen L. Johnson recognized in denying California’s first greenhouse gas
emissions regulation waiver, the standards are distinguishable because they do not address local or regional air pollution problems as the standards have
23
in every waiver since 1984. Notice of Decision Denying a Waiver of Clean Air Act Preemption for California’s 2009 Greenhouse Gas Emissions Standards for
New Motor Vehicles, 73 Fed. Reg. 12156, 12160 (Mar.
6, 2008). See also David R. Wooley & Elizabeth M.
Morss, Clean Air Act Handbook: A Practical Guide to
Compliance § 5:38 (33d ed. 2023) (noting that 2007
was the first time EPA denied California a waiver because “climate change is a national problem that requires a national solution,” though EPA then
changed course two more times, granting the waiver
in 2009 and then revoking it in 2019).
Administrator Johnson argued that the factors
considered in the past to establish “compelling and
extraordinary conditions,” such as the unique “geography and climate of California, and the large motor
vehicle population in California,” do not perform the
same causal function for greenhouse gas emissions.
73 Fed. Reg. at 12160. This is because those “elevated
atmospheric concentrations of greenhouse gases . .
. are well-mixed throughout the global atmosphere,
such that their concentrations over California and
the U.S. are, for all practical purposes, the same as
the global average.” Id. Thus, California greenhouse
gas emissions do not affect California any differently
than those same emissions from or in any other part
of the world.
24
CONCLUSION
The petition for a writ of certiorari should be
granted.
Respectfully submitted.
Gabriela Gonzalez-Araiza
LEHOTSKY KELLER
COHN LLP
200 Massachusetts Ave.,
NW, Suite 700
Washington, DC 20001
Katherine C. Yarger
Counsel of Record
LEHOTSKY KELLER
COHN LLP
700 Colorado Blvd., #407
Denver, CO 80206
(512) 693-8350
katie@lkcfirm.com
Counsel for Amici Curiae
AUGUST 2024
This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.