# Petition — Mountain States Legal Foundation v. Costle

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1981
- **Citation:** 450 U.S. 1050

## Text

Supreme Court, U.S,
FILED s

80-1084 | saw 2 1981

MICHAEL RODAK, JR., CLERK

No.

IN THE

Supreme Court of the United States
October Term, 1980

MOoOuNTAIN STATES LEGAL FOUNDATION, et al.,
Petitioners,

versus

Douc.as M. COsTLE,
IN HIS OFFICIAL CAPACITY AS ADMINISTRATOR OF
THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, et al.,
Respondents.

PETITION FOR A WRIT OF CERTIORARI
TO THE
UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

James G. WaTT, COUNSEL OF RECORD
GALE A. NORTON

MOouNTAIN STATES LEGAL FOUNDATION
1200 LINCOLN STREET, SuiTE 600
DENVER, COLORADO 80203

(303) 861-0244

ATTORNEYS FOR THE PETITIONERS

QUESTIONS PRESENTED FOR REVIEW
Questions relating to the merits:

1. In order to force the Colorado General Assembly to enact
an automobile emission control inspection and maintenance
program, the Environmental Protection Agency withheld over
$300 million in federal highway and sewage treatment facility funds
and imposed a ban on major industrial construction. Did the EPA
action violate the constitutional political rights of legislators and
citizens by:

(a) removing decisionmaking regarding the establishment of
a state program from the legislature and placing it in the hands
of a national administrative agency, thereby attenuating
political accountability, destroying the legislative discretion of
elected officials, and removing ultimate control over
legislators from the people of the state?

(b) restricting legislative debate and public input into the
legislative process by imposing a deadline for enacting
legislation?

(c) chilling legislative expression and compelling political
conformity?

(d) coercing state legislators to pass legislation meeting
federally imposed criteria, and thereby interfering with the
integral state function of deliberative lawmaking?

2. Has the EPA Administrator exceeded his authority under
the Clean Air Act by:

(a) using withholdings of federal highway and sewage
treatment funds inappropriately and coercively to obtain state
legislative action?

(b) “conditionally approving” the state implementation plan
submitted by Colcrado rather than either approving or

. disapproving the plan?

(c) placing a moratorium on new industrial construction

“ahi
without having specific authority in the state implementation
plan?

Questions relating to the standing of petitioners:

1. Where legislators and citizens alleged that EPA actions
deprived them of constitutional rights, and further alleged that EPA
actions in violation of the Clean Air Act directly and monetarily
affected them, did these petitioners have standing to challenge EPA
actions?

2. Did the court of appeals err in holding that the State of
Colorado was the “real party in interest” and hence the only party
with standing to challenge EPA action regarding the state air
pollution control implementation plan?

s*%

-ili-

IN THE SUPREME COURT OF THE UNITED STATES

MOUNTAIN STATES LEGAL FOUNDATION, a non-profit
corporation, on behalf of its members who are citizens of the State
of Colorado; THE FOLLOWING MEMBERS OF THE SENATE
AND HOUSE OF REPRESENTATIVES OF THE STATE OF
COLORADO IN THEIR RESPECTIVE OFFICIAL CAPA-
CITIES AS INDIVIDUALLY ELECTED LEGISLATORS OF
THE STATE OF COLORADO: Senator FRED E. ANDERSON;
Senator DAN D. NOBLE; Senator L. DUANE WOODARD;
Senator DONALD A. SANDOVAL; Representative ROBERT F.
BURFORD,; Representative JOHN G. HAMLIN; Representative
W. H. (Bill) BECKER; Representative BOB LEON KIRSCHT;
Representative CARL B. BLEDSOE; Representative C. MICHAEL
CALLIHAN; Senator RALPH A. COLE; Representative FRANK
DE FILIPPO; Representative STEVEN J. DURHAM; Representa-
tive CARL H. GUSTAFSON; Representative WILLIAM F.
HILSMEIER; Senator DON MacMANUS; Representative JOHN
R. McELDERRY; Representative RAY POWERS; Representative
FRANK H. RANDALL; Representative PAUL D. SCHAUER;
Representative BEV SCHERLING; Representative JAMES M.
SHEPARD; Representative CARL E. SHOWALTER; Representa-
tive A. J. (Mick) SPANO; Representative KATHY SPELTS;
ond ch NICK THEOS; and the STATE OF COLORADO
ex rel. MOUNTAIN STATES LEGAL FOUNDATION,

Petitioners,

DOUGLAS M. COSTLE, in his official capacity as Administrator
of the UNITED STATES ENVIRONMENTAL PROTECTION
AGENCY; ROGER L. WILLIAMS in his official capacity as
Regional Administrator of Region VIII of the UNITED STATES
ENVIRONMENTAL PROTECTION AGENCY; the UNITED
STATES ENVIRONMENTAL PROTECTION AGENCY; and
the STATE OF COLORADO ex rel. J. D. MacFARLANE,
Respondents.

a

-iv-

TABLE OF CONTENTS

QUESTIONS PRESENTED FOR REVIEW. ....... 000. ee eevee

I I SPD Lae a © arwae a's b bo 08

JURISDICTION

en I oe ek exe w habe ehees

ee es cee belewaiewcee wha ee

SUMMARY OF THE ARGUMENT.........eccceeeees es ee

REASONS FOR GRANTING THE WRIT..........ceeceeeees

I. E.P.A.’s DEMAND THAT THE STATE LEGISLATURE
Enact A New INSPECTION AND MAINTENANCE
PROGRAM OR FACE SEVERE SANCTIONS VIOLATED
THE CONSTITUTIONAL RIGHTS OF LEGISLATORS AND
I eeu CeCe ace oe cna waeee ces Caves

A. The EPA action destroys the constitutional
balance of national and state powers..........

3.

The concept of federalism embodied in the
Constitution prevents the national govern-
ment from interfering with sovereign state
government functions. .............eee0:

EPA’s action unconstitutionally coerces the
state legislature and thereby displaces state
decisionmaking, in excess of the commerce
and spending powers. ..........eeeeeeeee

Preemption is the only constitutional way for
the national government to regulate in the
absence of state cooperation. ...........4.

B. The EPA action destroys the process of political
accountability that is crucial to constitutional
IIE 650554 cok k nc ecuhadwiesasny vos

11

-\V-

Il. THe E.P.A. ADMINISTRATOR'S ACTIONS EXCEEDED
His AUTHORITY UNDER THE CLEAN AiR ACT...... 15

Ill. THe Court or APPEALS ERRED IN DENYING
PETITIONERS STANDING TO ASSERT THEIR RIGHTS
UNDER THE CONSTITUTION AND THE CLEAN AiR ACT 17

A. As a result of the EPA action, petitioners have
suffered injury in fact in the form of economic
harm and deprivation of their constitutional
ee ances veccphosecess « 17

B. Petitioners have standing as aggrieved parties to
seek judicial review under section 307 of the
EE Oe 20

C. Petitioners have shown standing to assert
violation of their constitutional rights and thus

may address all issues properly before the Court. 22

SO 23

-vi-

TABLE OF AUTHORITIES
Cases
Page
Aissmay, BPA, S2i F.20 842 (9m Cir. 1975)... ccc ccc eee 6
Arlington Heights v. Metropolitan Housing Development
PE CEOE Pe. sce edscasccssveccccsoes 18
ASARCO, Inc. v. EPA, 578 F.2d 319 (D.C. Cir.
ei hese bea vesenesecscesscess 21
Association of Data Processing Services Organizations, Inc.
ES ) 17
ER GS 15
0 15
Brown v. EPA, 521 F.2d 827 (9th Cir. 1975), vacated,
431 U.S. 99 (4977), reinstated in part, 566
ETE ey vcs pvevsccssecesveccees 6, ll
Citizens to Save Spencer County v. EPA, 600 F.2d 844
eR Ce ken i syne se bse beessscccseees 21
Coleman v. Miller, 307 U.S. 433 (1939). ......cccccccccseee 18
Connecticut Light & Power Co. v. FPC, 324 U.S. 515
GN eee esc ynccpcdanccesssccens 16
EEE MP POP CRPEL), ccc ccc cece esc ceece 8

District of Columbia v. Train, 521 F.2d 971 (D.C. Cir. 1975),
vacated sub. nom. EPA v. Brown, 431 U.S. 99

EE ESE 6, ll
Duncan v. McCall, 139 U.S. 449(1891). 0... 0... ce ee eee 15
Dunn v. Blumstein, 405 U.S. 330 (1972)... 0.0... ccc cee eee 8
EPA v. Brown, 431 U.S. 99 (1977). ....... ccc ccccccccece 6,7
Friends of the Earth v. EPA, 499 F.2d 1118

EE ET 21
Fry v. United States, 421 U.S. 542 (1975)... 0... ccc cece eee eee 7
Gravel v. United States, 408 U.S. 606 (1972)............006- 14
Harley-Davidson Motor Co. v. EPA, 598 F.2d 228

a 21
Harrington v. Bush, 553 F.2d 190 (D.C. Cir. 1977). .......... 19
Hunt v. Washington Apple Advertising Commission,

cece ce cbeesvccsccces 2
Indiana and Michigan Electric Co. v. EPA, 509 F.2d 839

I 21

Kansas v. Colorado, 206 U.S. 46(1907)......... cc eee eee ee 13

=>

-Vii-
Kennedy v. Sampson, 511 F.2d 430 (D.C. Cir. 1974). ......... 18
Lane County v. Oregon, 74 U.S. (7 Wall.) 71 (1869). ....... 9,13

Maryland v. EPA, 530 F.2d 215 (4th Cir. 1975),
vacated sub nom. EPA v. Brown, 431 U.S. 99

ogg aE Ning Setanke SA AAR aks eal 29 SE RL ee Aa 6, 8
Margand v. Wirtz, 392U.S. 16S (TSGB)... ic cece cc cscecces 6
McCoy-Elkhorn Coal Corp. v. EPA, 622 F.2d 260

Oe ore Ue ne Perio ee ius bua ee 21
Montgomery County v. Califano, 449 F. Supp. 1230

I no ge wa alan are 10
National League of Cities v. Usery, 426 U.S. 833

Ne Re ee Laer yeas oda 7, 8, 9, 13, 22
NRDC v. EPA, 483 F.2d 690 (8th Cir. 1973)............005. 21
NRDC v. EPA, 489 F.2d 390 (Sth Cir. 1974). ...........0005 21
Oklahoma v. Civil Service Commission, 330 U.S. 127

| ARIE SSS Spr eit ge cee ron St, Ray a 7, 10
Oregon v. Mitchell, 400 U.S. 112(1970)... 2... cee cee eee 8
Pacific Legal Foundation v. Costle, No. 80-828

(U.S., petition for cert. filed Nov. 22, 1980). .............. 6
Pennsylvania v. EPA, 500 F.2d 246 (3d Cir. 1974). ............ 6
Powell v. McCormack, 395 U.S. 486 (1969). ...........005- 13
Reuss v. Balles, 584 F.2d 461 (D.C. Cir. 1978),

Cate, Bem, SSP UD F8F IPT Oe civ voce cccccscever 19
Scripps-Howard Radio v. Federal Communications

CONE, SOO Wh. CREE: acdc ccc ccccncccescread 22
Sharon Steel Corp. v. EPA, 597 F.2d 337

I ga eM hd cL chs a ea ehEw RE 21
Sierra Club v. Adams, 578 F.2d 389

SU I seh ea we bree uls 22
Sierra Club v. Morton, 405 U.S. 727 (1972). ...... 0. cece eens 22
South Terminal Corp. v. EPA, 504 F.2d 646 (1st Cir. 1974)... .. 21
Steele v. Louisville & Nashville Ry., 323 U.S. 192

a soak aah SHE Let eee OP ETE n Ob ods k se 05a eel 13
Steward Machine Co. v. Davis, 301 U.S. 548 (1937). ....... 9,10
Stromberg v. California, 283 U.S. 359(1931)........... 00 eee 15
Tenney v. Brandhove, 341 U.S. 367(1951)......... 00 eee 14
United States v. Brewster, 408 U.S. 501 (1972). .........0000- 14
United States v. Butler, 297 U.S. 1(1936)...........00 0 eee 9,10
United States v. Carolene Products Co., 304 U.S. 144

ORR IRATE FS EIEE Uae ot PIBCiRgm eS Gp ager Sep Pa ra ng ee 12
United States v. Darby, 312 U.S. 100 (1941). ......... 00.0005. 7

United States v. Harriss, 347 U.S. 612 (1954). .........0.5. 14,15

rs

-Vill-

United States v. Helstoski, 442 U.S. 477

Se i ae at ee as bt yuk kan aa 14
United States v. SCRAP, 412 U.S. 669 (1973). ..........0 eee 18
Veazie Bank v. Fenno, 75 U.S. (8 Wall.) 533

aera ea gd waged ee’ 8
Warth v. Seldin, 422 U.S. 490 (1975). 0... cc ccc cece cccecs 22
West Virginia State Board of Education v. Barnette,

en cc a akins . Gib ew ae ees cams wee-s 14

Constitution, Statutues and Regulations

Page
United States Constitution:
Article I, § 6 (Speech or Debate Clause)................. 14
Article 1, § 8 (Commerce Clause).............cccccccees 7
Article IV, § 4 (Guaranty Clause)................. 1,12, 15
Se 1,4, 14,15,22
es ceca been 1,4, 7, 8, 11, 13,22
Se os LN ess be baweanaceevces 22
ee, BOP, co boas ea cin scueecuecceec us en |
Ri GS Dg 2 10
Clean Air Act, 42 U.S.C. §§ 7401-7642 (Supp. I 1977):
BB oak 1,16
RS eek ll
Se ES RS sa a 16
I Ras BPN inca esc unccdeccaeescves |
ee RE ALAS ot es |) Se 16
ce Ee 6, 20
SONNE Fr 7, ik Pt, S POPs vc ces cccccs 1,2, 20, 21,22
NR aS ce ip ee 1,16
Colo. Rev. Stat. § 42-4-312(1)(c)(1973) (as amended
a a Dak we ae ee dae bens'en sees 18
Colo. Rev. Stat. § 42-4-313(4) (1973) (as amended
CN ee wee ead wanes wsuenes 18
Colo. Senate Bill 1, 1979 Colo. Sess. Laws 406. ...... 2,3, 18,19
ee OER, oon cena vecteccccccecccensert 17
Oe NR CRO oon cece cc ncs be revecncssccsuns |

oe 4

“ix.

Other Authorities
Page
Comment, The Federal Conditional Spending Power: A
Search for Limits, 70 Nw. U.L. Rev. 293, 303 (1975)..... 10

Kaden, Federalism in the Courts: Agenda for the 1980's, in
Advisory Commission on Intergovernmental Relations,
The Future of Federalism in the 1980's (to be published
| MMM a OE SE 13

Palmer, The Case for a Speech or Debate Privilege for State
Legislators in Federal Courts, 13 Valparaiso U.L. Rev. 501

fog RS OE ae 14
Ripple & Kenyon, State Sovereignty—A Polished But Slippery
Crown, 54 Notre Dame Lawyer 745, 759 (1979)....... 11

Stewart, Pyramids of Sacrifice? Problems of Federalism in
Mandating State Implementation of National Environ-
mental Policy, 86 Yale L.J. 1196, 1257 (1977).......... 10

>.

PETITION FOR A WRIT OF CERTIORARI
TO THE
UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

The petitioners, twenty-seven members of the Colorado
General Assembly, including the leadership of both the Democratic
and Republican parties, and Mountain States Legal Foundation on
behalf of its officers, members, and supporters, respectfully request
that a writ of certiorari issue to review the judgment of the Tenth
Circuit Court of Appeals entered in this proceeding.

OPINIONS BELOW

On petition for review of a final rulemaking action of the
Environmental Protection Agency, 44 Fed. Reg. 57401 (1979), the
Tenth Circuit Court of Appeals rendered a decision that is reported
at 630 F.2d 754 (1980). The court’s decisior. is included herein as

Appendix A; the EPA order appears herein as Appendix B.
JURISDICTION

The judgment of the Tenth Circuit Court of Appeals was
rendered on August 29, 1980. Petitioners’ timely Petition for
Rehearing and Suggestion for Rehearing En Banc was denied on
October 6, 1980. The order denying the petition is included herein
as Appendix C. The jurisdiction of this Court is invoked under 28
U.S.C. §1254(1)(1976).

RELEVANT AUTHORITIES

The following authorities are relevant in resolving the issues of
this case: Section 307 of the Clean Air Act, 42 U.S.C. §7607 (Supp.
1 1977), was the basis for petitioners’ standing in the Tenth Circuit.
Petitioners have alleged violations of sections 110, 176, and 316 of
the Clean Air Act, 42 U.S.C. §§7410, 7506, 7616 (Supp. I 1977),
and of the United States Constitution, article IV, §4, and
amendments I, V, and X. Because these provisions are lengthy, the
pertinent text is appended hereto as Appendix D.

2
STATEMENT OF THE CASE

Jurisdiction of the Tenth Circuit Court of Appeals was predi-
cated on section 307 of the Clean Air Act, 42 U.S.C § 7607 (Supp. |
1977), which vests jurisdiction for review of EPA administrative
orders in the courts of appeals. See also Fed. R. App. P. 15.

This controversy stems from an EPA demand that the State of
Colorado change its automobile emission inspection and main-
tenance (I/M) legislation to meet certain EPA criteria, or face the
imposition of over $300 million in fund withholding sanctions and
an industrial construction moratorium. Petitioners presented
evidence that the threatened sanctions, amounting to approximate-
ly 15% of the state’s total budget, would cause a deprivation of vital
services, thousands of lost jobs, and disruption of the Colorado
economy.

Mountain States Legan Foundation’ and twenty-seven
members of the Colorado General Assembly, including both
Democratic and Republican leadership’, filed suit to challenge
EPA's demand for legislative action and its threats to impose massive
sanctions as unjustified interference with the government and
people of Colorado.

In the 1979 legislative session, the Colorado General Assembly
passed Senate Bill 1, which commissioned a study to compare two
alternate approaches to automobile emissions control. The Bill also
provided that if no subsequent action was taken by the legislature, a
program that was a hybrid of the two approaches would auto-
matically go into effect on January 1, 1981.

When Senate Bill 1 was passed, legislators believed that it would
be acceptable to EPA. See Appendix B at 40a. However, EPA's final

‘Mountain States Legal Foundation is a non-profit public interest law center,
dedicated to bringing before the courts those issues vital to the individual rights
and freedoms protected by the United States Constitution and the nation’s legal
traditions. The Foundation is supported entirely by the donations of its
members. In this lawsuit the Foundation represented its officers, members, and
supporters residing within the nonattainment areas wherein the EPA has
required that an I/M program be established, and also those residing in the
remainder of Colorado. Mountain States Legal Foundation has standing to
assert the interests of its members whose rights are affected by the EPA action.
Hunt v. Washington Apple Advertising Commission, 432 U.S. 333 (1977).

*This lawsuit does not concern the advantages or disadvantages of 1/M
programs. The legislators who are parties to this lawsuit represent all points of
view on the 1/M question.

3

rulemaking action challenged hereim required the legislature to
amend specific provisions of the Senate Bill 1 program or face the
imposition of severe sanctions. The EPA ruling was in the form of a
“conditional approval” of the relevant portions of the state imple-
mentation plan (SIP). Failure to pass complying legislation would
result in disapproval of the SIP and imposition of sanctions until
such time as the state should acquiesce.

The EPA order set specific deadlines and directives for state
executive and legislative action. For example, EPA demanded that
legislation be introduced by February 1, 1980, and that it be passed
by the legislature and signed by the Governor by March 1, 1980.
This crucial timetable is set forth in full in the Tenth Circuit's
opinion, as well as in the EPA rulemaking announcement. Appen-
dix A at 4a-Sa and Appendix B at 40a.

For failure to comply with this timetable, EPA's order
threatened to impose severe sanctions, which included withholding
$132 million in sewage facility construction grants, withholding
and unspecified amount (later set at over $165 million) of highway
construction and air pollution control grants, and banning new
industrial construction in Colorado's major cities. Appendix B at
43a-46a. The sanctions threatened were so severe as to portend
economic disruption for the state if they continued for a significant
period of time. See section Ill. A. infra. It is important to note that
the funds which EPA threatened to withhold were ot funds for the
establishment or operation of an |/M program. EPA threatened to
accelerate the im, vsition of sanctions should the state fall behind
schedule in passing legislation. Appendix B at 44a.

Petitioners’ filed the instant petition for review of the EPA
action in December 1979 in the court of appeals. The Colorado
Attorney General intervened a few weeks later. The Attorney
General sought primarily to have the court define the limits of
federal authority vis-a-vts the states without reference to the instant
conflict between the state and EPA.

The Attorney General did not strongly pursue tenth amend-
ment issues in its brief or oral arguments, but it did razse these issues.
The Attorney General's brief stated that applying sanctions because
legislative authority was not in place on March 1, 1980, if
reasonable progress was being made toward adoption of an I/M

*Mountain States Legal Foundation originally filed this suit as ex relutone
counsel for the State of Colorado. Following the intervention of the Colorado
Attorney General, petitioners did not actively pursue standing wm that capacity.

* 4

statute, “vould be an arbitrary exercise of the Adminsitrator’s
authority under the statute and also would be contrary to the tenth
amendment.” Brief of Intervenor at 8.

The day before EPA announced it would begin imposing
sanctions, the Tenth Circuit granted petitioners’ motion to stay the
imposition of sanctions until May 1, 1980, When the stay expired,
the Colorado Attorney General moved for an additional stay, but
this motion was denied on May 7, 1980. On that date, the
legislature passed new I/M legislation, which was subsequently
approved by EPA. Sanctions officially remained in effect against
Colorado from May 2 until July 16, 1980. 45 Fed. Reg. 47683
(1980).

1/M legislation passed the Colorado General Assembly only
narrowly, and many legislators stated in floor debates that they
voted for the legislation in its existing form only because the EPA
had blackmailed them into cooperation. The number of legislators
who voted for the I/M bill, yet stated they did so only because of
EPA's coercion, exceeded the “swing vote.” In short, the Colorado
General Assembly would not have passed EPA’s version of I/M
legislation without EPA coercion. Furthermore, bills have been pre-
filed for the 1981 session of the Colorado legislature which will
rescind or alter the 1980 I/M legislation.

The Tenth Circuit’s decision did not reach the merits of the
petitioners’ arguments; it noted only that Mountain States Legal
Foundation and the legislators had raised “a panoply of serious
constitutional and statutory contentions.” Appendix A at 27a. The
Tenth Circuit based its ruling upon a lack of standing to bring tenth
amendment and Clean Air Act arguments. The court did not accord
the petitioners standing as to their claims involving denial of their
own first amendment and other personal rights.

SUMMARY OF THE ARGUMENT

The petitioners, as legislators and citizens of Colorado, were
injured in fact by EPA action and were within the zone of interests
protected by the statutes and constitutional provisions involved
herein. The petitioners thus had standing to assert their rights,
particularly first amendment rights, and such standing was not
destroyed by the failure of the State of Colorado to strongly present

“L.e., the number of legislators who would have to change their votes in order
to reverse the final outcome of the vote.

sovereignty arguments.

Inherent in the Constitution is a federal form of government
that allows for maximum input by citizens and that establishes clear
lines of authority and accountability. Administrative actions that
unnecessarily disrupt this essential balance between the state and
national governments are invalid and, if provisions of the Clean Air
Act are interpreted to allow such actions, those provisions should be
declared unconstitutional.

The voices of citizens attempting to participate in the legislative
process were drowned out by the more powerful voice of the
national government, threatening imposition of sanctions if the
state failed to comply. Legislator-petitioners were forced to take
legislative positions different from what they would have chosen
absent EPA pressure. The rights of citizens and legislators were thus
violated by the EPA Administrator.

The uncertain nature of national/state relations demands
further clarification from this Court. Petitioners assert that the
court of appeals erred in denying petitioners, as citizens and
legislators, an opportunity to raise the constitutional issues that
directly affect them, and petitioners urge this Court to utilize EPA’s
egregious interference with state decisionmaking as a forum for
elucidating the issues of political accountability raised herein.

REASONS FOR GRANTING THE WRIT

I. E.PRA’s DEMAND THAT THE STATE LEGISLATURE
ENACT A NEW INSPECTION AND MAINTENANCE
PROGRAM OR FACE SEVERE SANCTIONS VIOLATED
THE CONSTITUTIONAL RIGHTS OF LEGISLATORS
AND CITIZENS.

The strength of the federal structure of the United States
government is of continuing importance to citizens. A national
government interference with state government affects, not just the
state as an abstract entity, but also the constitutional rights of
citizens and legislators. Resolution of the present conflict between
Colorado citizens and the EPA will have a significant impact on
EPA’s policy in Colorado and other states regarding Clean Air Act
implementation. However, it will have much more profound
impact in determining whether the constitutional rights of citizens
to a politically responsive government will be preserved.

The primary concern of petitioners in pursuing this litigation is
to ensure the survival of the federal form of government and of the

6

political accountability inherent in that form. Briefly, this case
illustrates that recent congressional attempts at “cooperative
federalism” are, in reality, “coercive federalism.” The state is left
with no realistic option but to acquiesce to EPA’s demands. The
federal agency controls the enactment and operation of a state
program, and consequently the state legislature’s constituents lose
their voice in state government. State elected officials are prevented
from performing their representational duties.

A. THe EPA ACTION DESTROYS THE CONSTITUTIONAL
BALANCE OF NATIONAL AND STATE POWERS.

This case is only one small part of a continuing major problem:
preserving the constitutional balance of powers between the
national and state governments. One of the primary areas of
conflict has been the “cooperative federalism” scheme created by the
Clean Air Act. The constitutionality of the EPA’s continuing
attempt to demand state legislation regarding automobile 1/M
programs was seriously questioned by three U.S. Circuit Courts of
Appeals in Maryland v. EPA, 530 F.2d 215 (4th Cir. 1975), vacated
sub nom. EPA v. Brown, 431 U.S. 99 (1977); District of Columbia
v. Train, 521 F. 2d 971 (D.C. Cir. 1975), vacated sub nom. EPA v.
Brown, 431 U.S. 99 (1977); Brown v. EPA, 521 F.2d 827 (9th Cir.
1975), vacated, 431 U.S. 99 (1977), reinstated in part, 566 F.2d
665 (9th Cir. 1977). These cases were consolidated in the Supreme
Court decision in Brown v. EPA, supra.®

In each of the decisions reviewed by this Court, the court of
appeals struck down, as being in excess of statutory authority, EPA
regulations that directed state legislatures to establish an I/M
provram, but the courts further noted that grave constitutional
issues might be raised by the EPA interpretation of the Clean Air
Act. See 431 U.S. at 102. In particular, the courts noted that serious

*Two other cases addressing this point were also decided but did not reach the
Supreme Court for review: Pennsylvania v. EPA, S00 F.2d 246 (3rd Cir. 1974);
Alaska v. EPA, 521 F.2d 842 (9th Cir. 1975). Of the six circuit court decisions,
only Pennsylvania v. EPA held that the EPA had power to require establishment
of a state 1/M_ program. It relied heavily on the subsequently overruled
Muryland v. Wirtz, 392 U.S, 183 (1968), and thus the continuing validity of the
decision is suspect.

A petition for certiorari has been filed in this Court in the case of Pacific Legal
Foundation v. Costle, No, 80-828. Although the underlying issues of that
litigation resemble the instant case, the factual situation raised entirely different
procedural problems, Pacific Legal Foundation was filed pursuant to section 304
of the Clean Air Act, 42 U.S.C. § 7604 (Supp. 1 1977).

=

state sovereignty issues were presented by the Administrator's
actions. The EPA’s appeal from serveral circuit court decisions
holding the imposition of sanctions to be unconstitutional was
vacated as moot when the EPA Administrator conceded a lack of
authority to impose requirements on the state and therefore with-
drew his regulations. 431 U.S. at 103. Thus this Court has not yet
provided guidance for evaluating EPA’s authority to dictate
legislation to states.

A new analysis of constitutional principles is necessary because
of the change in circumstances created by the growth of the national
government during the past few decades. Never before could the
national government threaten such large cutbacks, on a percentage
basis, of a state’s budget. Only recently has the national government
acquired the power to pull strings on state government actions.
When the “balance” of power between the states and national
government was more than just a theoretical concept, the distortion
of the political process herein challenged could not have occurred. It
was rot possible for the federal government to force states to enact
legislation; states truly had “the simple expedient of not yielding.”
Oklahoma v. Civil Service Commission. 330 U.S. 127, 143 (1947).

From the time that the tenth amendment was introduced in the
first session of Congress to quell the states’ fears about surrendering
power to a central government, United States v. Darby, 312 U.S.
100, 124 (1941), the courts have grappled with the delineation of
state and national spheres of power. This controversy calls upon the
Court to make a major decision regarding the future relationship of
the national and state governments.

1. The concept of federalism embodied in the Con-
stitution prevents the national government from
interfering with sovereign state government
functions.

The most important recent judicial pronouncement regarding
state sovereignty is National League of Cities v. Usery, 426 U.S.
833 (1976). The Court set forth the basic rule that Congress may
not exercise its authority, even under the otherwise plenary
commerce power, in a manner that “impairs the States’ integrity or
their ability to function effectively in a federal system,” 426 U.S. at
843, quoting Fry v. United States, 421 U.S. 542, 547n.7 (1975).
An action which operates to “directly displace the States’ freedom to
structure integral operations in areas of traditional governmental
functions” is beyond the scope of congressional power. 426 U.S. at

8

852. The application of this rule is far from clear, and further
explanation by this Court is necessary.

An integral state function is an activity “essential to separate and
independent existence” of the state, Coyle v. Smith, 221 U.S. 559
(1911), quoted in National League of Cities, 426 U.S. at 845. In
Coyle, the activity at issue was the selection of a site for the state
capitol and in the National League of Cities, it was the determina-
tion of pay and working conditions of state employees. The activity
at issue here is state legislative decisionmaking.

There is no state government function as basic and essential to
the existence of a state as deliberative lawmaking by the state
legislature. This Court has recognized that the powers reserved to
the states by the tenth amendment include “the right to pass laws, to
give effect to laws through executive action, to administer justice
through the courts, and to employ all necessary agencies for
legitimate purposes of State government. ...” Veazie Bank v.
Fenno, 75 U.S. (8 Wall.) 533, 547 (1869). See also Oregon v.
Mitchell, 400 U.S. 112 (1970); Dunn v. Blumstein, 405 U.S. 330
(1972). In the challenge to the EPA requirement that the State of
Maryland enact an I/M program, the Fourth Circuit said, “[I]f
there is any attribute of sovereignty left to the states it is the right of
their legislatures to pass, or not to pass, laws.” Maryland v. EPA,
530 F.2d 215, 225 (4th Cir. 1975).

2. EPA’s action unconstitutionally coerces the state legislature
and thereby displaces state decistonmaking, in excess of
the commerce and spending powers.

National League of Cities, supra, analyzed state sovereignty as
limiting the commerce power. In contrast, this case presents a
combined exercise of the commerce power and the spending power.
Certain aspects of the Colorado situation raise the crucial issue of
congressional power to condition funding that was left unresolved
by National League of Cities, 426 U.S. at 852 n.17.

National League of Cities established the basic framework for
analysis of constitutionality under the commerce power. Essential-
ly, courts must determine whether the national government has
exercised its commerce power authority in a manner that
“displaces” state decisionmaking regarding an integral state govern-
ment function. 426 U.S. at 852. In the present case, the EPA is
attempting to interfere in one of the most essential state functions —
lawmaking — by imposing severe and unnecessary sanctions
against the states. The result is to shift decisionmaking from the

9

state to the national government and to destroy the state's
autonomy. The severity of EPA’s intrusion into state affairs violates
the basic constitutional principles of federalism.

The national government is constitutionally prohibited from
interfering with the “functions essential to separate and indepen-
dent existence” of the states, National League of Cities, 426 U.S. at
845, quoting Lane County v. Oregon, 74 U.S. (7 Wall.) 71, 76
(1869). The constitutional limitation was explicitly and clearly
stated in National League of Cities:

Congress may not exercise that power [i.e., the commerce
power] so as to force directly upon the States its choices as to
how essential decisions regarding the conduct of integral
governmental functions are to be made.
426 U.S. at 855. EPA’s coercion of the Colorado General Assembly
interferes with integral state government functions and thus exceeds
the commerce power under National League of Cities.

Although there is a need for further clarification of commerce
power analysis, there is a considerably more pressing need for
delineation of the spending power. Boundaries upon the use of the
national government’s spending power have never been clearly
established by this Court. The law is presently in a state of confusion
on this major issue, and it is submitted that the instant case presents
a valuable opportunity for clarification. Petitioners argue that EPA’s
action is just as certainly unconstitutional under spending power
analysis because the spending power is limited where it begins to
interfere with state sovereignty. See United States v. Butler, 297 U.S.
1 (1936).

To determine the constitutionality of conditions placed upon
federal funding, petitioners urge the Court to examine whether:

(1) The national government action interferes with an inte-
gral state government function. (The interference with state
lawmaking was discussed above).

(2) The spending power is exercised in a coercive manner.
Steward Machine Company v. Davis, 301 U.S. 548 (1937).

Steward Machine discussed the constitutionality of various
degrees of pressure brought to bear upon the states by the national
government. It established a distinction which is applicable here,
although Steward Machine presented a substantially different
factual situation. The primary consideration in assessing the consti-
tutionality of national government actions is whether those actions
are “weapons of coercion, destroying or impairing the autonomy of
the states.” 301 U.S. at 586. The Court further elucidated:

10

[T]he location of the point at which pressure turns into

compulsion, and ceases to be inducement, would be a ques-

tion of degree, — at times, perhaps, of fact.
301 U.S. at 590. Thus the relevant determination under Steward
Machine is whether the EPA’s action has gone beyond the bounds of
mere “inducement” and become “coercion.” For several reasons, the
petitioners urge that such coercion exists in the present situation
and that the coercion analysis would be an appropriate method for
testing national government authority.

The degree to which funds subject to withholding are related to
the compliance sought may be an important factor in determining
whether coercion exists. The often-reiterated reason for finding
that conditions placed on funding are not coercive is that the state
may simply choose not to participate in the offending program.
Oklahoma v. Civil Service Commission, 330 U.S. 127 (1947).
However, that option becomes illusory when the condition is
attached to a variety of major funding programs. See Stewart,
Pyramids of Sacrifice? Problems of Federalism in Mandating State
Implementation of National Environmertal Policy, 86 Yale L.J.
1196, 1257 (1977). A state may be willing to forego participation in
a particular program in order to avoid objectionable conditions, but
be unable to risk the loss of all federal funding. Here, for example,
the state had no realistic choice but to give in to EPA demands. An
unrestricted power “to condition the expenditure of an appropria-
tion would tend to nullify all constitutional limitations upon legis-
lative power.” United States v. Butler, 297 U.S. at 74.

When the federal government threatens a state with economic
crisis, its demands must surely be seen as coercive. Comment, The
Federal Conditional Spending Power: A Search for Limits, 70 Nw.
U.L. Rev. 293, 303 (1975). The states’ overwhelming dependence
on federal funds makes federal coercion a serious concern because
“economic pressure may threaten such havoc to a state’s well being
as to cause the federal legislation to cross the line which divides
inducement from coercion. . . .” Montgomery County v. Califano,
449 F. Supp. 1230, 1247 (D. Md. 1978).

Furthermore, other consequential effects on the state must be
considered. For example, the withholding of sewage treatment
grants could cause the subdivisions of the state to violate the Federal
Water Pollution Control Act and to incur penalties under 33 U.S.C
§ 1319 (Supp. I 1977).

If conditions placed on funding are confined to those which
ensure proper expenditure of the federal funds, the danger of misuse

ll

of the national government's dominant position is not as great. But
the EPA conditions, including passage of I/M legislation, did not
apply to administration of the spending programs; the EPA instead
used the offer of national government funds in one area “to force
surrender of tenth amendment autonomy in another.” Ripple &
Kenton, State Sovereignty — A Polished But Slippery Crown, 54
Notre Dame Lawyer 745, 759 (1979).

Review by this Court is necessary to provide guidance to
Congress and the states about when conditions on funding become
an unconstitutional intrusion into state sovereignty.

3. Preemption is the only constitutional way for the
national government to regulate in the absence of
state cooperation.

The supremacy clause does not provide any authority for the
national government to pursue its current course of action through
the EPA. Instead, it provides one constitutionally permissible means
for the national government to accomplish its objectives — through
the mechanism of preemption. The national government may
prevent the states from regulating a field; it may not conscript state
authority to regulate that field in a manner dictated by Congress.
See District of Columbia v. Train, 521 F.2d 971 (D.C Cir. 1975).

The Clean Air Act, section 110(c), 42 U.S.C. § 7410(c) gives the
EPA Administrator authority to promulgate a federal plan if the
state does not enact a satisfactory SIP. This means of regulating is
constitutionally preferred over making the states into “puppets of a
ventriloquist Congress.” Brown v. EPA, 521 F.2d 827, 839 (9th Cir.
1975).

Establishment of a federal 1/M program in Colorado would be
merely physically intrusive, in the same negligible manner that
existence of the federally operated Post Office is intrusive. In
contrast, the EPA tactic of establishing an I/ M program by coercing
the state into passing legislation funding its own program distorts
the state decisionmaking process and destroys the federal system.
EPA should not be allowed to utilize a means that intrudes upon
constitutional structures and freedoms when a much less intrusive
and less restrictive means is available.

The foregoing brief analysis of state sovereignty reveals that the
instant case presents a compelling factual situation — where an
interference with state decisionmaking actually occurred because of

12

national government coercion — and also presents legal issues with
immense future ramifications. The true urgency of the state
sovereignty analysis does not arise, however, from the national
government actions’ impact upon the state per se, but rather from
the impact on citizens and officials of the affected state. The
following section analyzes the constitutional deprivations which
have occurred as a result of the EPA’s usurpation of state decision-
makion analyzes the constitutional deprivations which have
occurred as a result of the EPA’s usurpation of state decisionmaking.

B. THE EPA ACTION DESTROYS THE PROCESS OF POLITICAL
ACCOUNTABILITY THAT IS CRUCIAL TO CONSTITUTIONAL
GOVERNMENT.

A basic component of the American constitutional system is the
accountability of government (o the people. A representative form
of government anticipates that citizens can voice their views to
elected officials and those officials can then act to meet the needs of
their constituents. This structure of political accountability was
incorporated into the Constitution through, inter alia, the
guarantee of a republican form of government in article IV, section
4, the freedom of speech, and the citizens’ right to petition the
government. An essential structural safeguard of political account-
ability is the division of power and responsibilities between the state
and national governments, each of which is a representative
government and each of which must therefore be accountable to the
electorate.

The EPA action distorts this essential political structure by
forcing the Colorado General Assembly to sign its name to legisla-
tion mandated by the federal agency. The EPA has essentially tried
to get its own program enacted while avoiding political reprisals if
the program is ineffective or burdensome and while forcing the state
to fund the program.

If the program proves unworkable, to whom do citizens turn for
redress? Not to the legislature — revocation of the 1/M law would
presumably evoke the same sanctions, and thus the legislature could
not act. Not to the EPA — the program in question is a matter of
state law. Thus the citizens are denied effective recourse. See United
States v. Carolene Products Co., 304 U.S. 144, 152-53 n.4 (1938),
suggesting that “legislation which restricts those political processes
which can ordinarily be expected to bring about repeal of undesir-
able legislation, is to be subjected to more exacting judicial
scrutiny.”

13

The right of citizens to a politically accountable government —
i.e., agovernment that can respond to the electorate or be voted out
of office — is basic to this nation’s constitutional structure. A recent
article by Professor Lewis B. Kaden summarizes the reasons that a
federal form of government is desirable: (1) It increases oppor-
tunities for public communication with officials. (“Proximity
increases accountability by increasing access.”) (2) It promotes
variety in political choice by allowing cultural differences to find
expression in different places. (3) It permits the states to serve as
laboratories for experimentation. Beyond these factors, Kaden
found that “the case for a federal form rests most fundamentally on
the capacity of a federal system to enhance and protect individual
liberty.” Kaden, Federalism in the Courts: Agenda for the 1980's, in
Advisory Commission on Intergovernmental Relations, The Future
of Federalism in the 1980's (to be published 1981).

The tenth amendment is not the only Constitutionai basis for
the federal structure of government. In Kansas v. Colorado, 206
U.S. 46, 81 (1907), this Court emphasized that the national govern-
ment’s role as exercising just enumerated powers “appears from the
Constitution, independently of the Amendments.” This point was
also made in Lane County v. Oregon, 74 U.S. (7 Wall.) 71, 76
(1869), quoted in National League of Cities, 426 U.S. at 844,
where the Court noted that “in many articles of the Constitution the
necessary existence of the states, and within their proper spheres,
the independent authority of the states, is distinctly recognized.”

One part of the Constitutional structure of political account-
ability is the right and responsibility of legislators to speak freely.
The elected representatives of the people are charged with faithfully
fulfilling their obligation to their constitutents based upon their own
best judgment and the expressed wishes of the people. “It is a
principle of general application that the exercise of a granted power
to act in behalf of others involves the assumption toward them of a
duty to exercise the power in their interest and behalf.” Steele v.
Louisville & Nashville Ry., 323 U.S. 192, 202 (1944). To perform
this obligation to represent constituents, it is necessary that legisla-
tors be protected from external pressures that would override the
electorat-’s concerns. Powell v. McCormack, 395 U.S. 486, 503
(1969), quotes the writings of James Wilson:

In order to enable and encourage a representative of the public
to discharge his public trust with firmness and success, it is
indispensably necessary, that he should enjoy the fullest liberty
of speech, and that he should be protected from the resent-

14

ment of every one, however powerful, to whom the exercise of
that liberty may occasion offence.
See also, United States v. Harriss, 347 U.S. 612 (1954),

A legislator’s freedom of speech is hampered by fear of reprisal
to his constituents should he choose to speak and vote freely. Such
forced compliance is antithetical to the first amendment. This Court
eloquently stated the proposition in West Virginia State Board of
Education v. Barnette, 319 US. 624, 641 (1943):

We set up government by consent of the governed, and the Bill
of Rights denies those in power any legal opportunity to
coerce that consent. Authority here is to be controlled by
public opinion, not public opinion by authority.

Another constitutional provision illustrating the need for legis-
lative independence is the speech or debate clause, U.S.Const. art. 1,
§ 6. This Court noted in United States v. Brewster, 408 U.S. 501,
507 (1972), that the purpose of the clause was “to protect the
integrity of the legislative process by insuring the independence of
individual legislators.” See also United States v. Helstoski, 442 U.S.
477, 492 (1979). This independence includes freedom from control
by other segments of the government. Gravel v. United States, 408
U.S. 606, 618 (1972). Although the speech or debate clause does
not, by its terms, apply to state legislators, a similar immunity for
them has often been recognized, based on the same underlying
principles. See Tenney v. Brandhove, 341 U.S. 367 (1951); Palmer,
The Case for a Speech or Debate Privilege for State Legislators in
Federal Courts, 13 Valparaiso U.L. Rev. 501 (1979),

EPA imposed strict deadlines for legislative action in its order,
and it provided that the imposition of sanctions would be acceler-
ated if the state fell behind schedule. Appendix B at 44a. Limiting
the time for legislative debate had a chilling effect on freedom of
expression by the legislators and restricted input by citizens.

These restrictions on legislative action, i.e., violiating the first
amendment rights of legislators by limiting debate, forcing them to
vote according to EPA’s dictates under threat of harm to their
constituents, and disturbing the independence of state legislators
envisioned by the Constitution, are unnecessary infringements on
the political rights of legislators in their representative capacities.

The political rights of citizens were also seriously infringed by
the EPA action. An essential feature of American government is the
notion that elected officials are ultimately responsible to the people.
From the citizens’ point of view, the foremost constitutional
embodiment of the right to participate in governmental decision-

15

making is the right to petition the government for redress of
grievances. The right also flows from the first amendment freedom
of expression. Both of these rights are based upon the need for
citizen input into the marketplace of ideas in order to maintain a free
society. Stromberg v. California, 283 U.S. 359 (1931); Bond v.
Floyd, 385 U.S. 116 (1966).

Affidavits in the Tenth Circuit record reveal that citizens
represented by Mountain States Legal Foundation were told their
lobbying and petitioning efforts regarding I/M legislation were
futile because legislators had to vote in accordance with federal
dictates. These citizens were denied their rights because EPA had
rendered the state legislative process unable to respond to
constituents,

The same structure of government requiring citizen input is also
reflected in the guarantee of a republican form of government.®
Such representation is impossible when the voices of the electorate
are drowned out by the voice of a more powerful entity such as a
federal agency. The state legislature is not free to exercise its
perception of the will of the people, and thus its operations are no
longer republican in nature. See Duncan v. McCall, 139 U.S. 449,
461 (1891).

The citizens and legislators of Colorado were deprived of their
political rights when the EPA short-circuited the traditional political
process and extorted compliance from the state legislature. Review
by this Court is urgently necessary to protect these political rights in
the context of national government coercion.

li. THE E.PR.A. ADMINISTRATOR'S ACTIONS EXCEEDED

HIS AUTHORITY UNDER THE CLEAN AIR ACT,

In addition to the constitutional infirmities identified above, the
petitioners allege that EPA’s threats and subsequent imposition of
sanctions violated the Clean Air Act in four respects: (1) Many EPA
duties under the Act (including federal promulgation of a plan) are
triggered by disapproval of a state plan, and thus it is crucial to the

*The petitioners seek to utilize the guaranty clause, not as an independent
cause of action, but as an indication that the structure of the Constitution
requires that state governments represent the state's electorate. See, United States
v. Harriss, 347 U.S, 612 (1945) (employing “the American ideal of government
by elected representatives” as a standard for evaluating first amendment claims).
A political question is not raised in this instance, See Baker v. Carr, 369 U.S, 186
(1962).

16

statutory structure that EPA either approve or disapprove a state
plan (or portions thereof). EPA’s attempt to “conditionally approve”
the Colorado SIP disguises a failure to perform statutory duties.
Furhtermore, EPA used the device of conditional approval as an
additional mechanism for placing coercive pressure on the state
legislature and thereby upsetting the statutory balance between
national and state authority. (2) The EPA has no authority to
impose a ban on industrial construction, Sections 110 and 172 of the
Act, 42 U.S.C. §§ 7410(a)(2)(1) and 7502(a)(1) (Supp. | 1977),
discuss stationary source bans only as provisions of state plans and
do not grant the EPA administrative power to impose a ban absent
enabling authority in the SIP. (3) Withholding of highway funds
under section 176(a) of the Act, 42 U.S.C. § 7506(a) (Supp. |
1977), is appropriate only when a state has not submitted a SIP. The
statute does not contemplate using the severe sanction of withhold-
ing highway funds for altering a minor aspect of an otherwise
satisfactory plan. (4) Similarly, the Administrator withheld sewage
facility construction grants under circumstances not contemplated
by section 316 of the Act, 42 U.S.C. § 7616 (Supp. 11977). There is
no blanket authority for the EPA to withhold sewage treatment
funds based upon an aspect of the SIP unrelated to sewage treat-
ment facilities and to the increased mobile and stationary source
pollution resulting directly from new facilities.

Because the Clean Air Act divided responsibility between
national and state governments, any action taken by the Adminis-
trator to expand federal control must be affirmatively set forth in
the statute. Connecticut Light & Power Co, v. FPC, 324 U.S. 51S
(1945). The Administrator's actions exceeded the bounds of the
national government role contemplated by the Clean Air Act. The
Administrator has not met the burden of showing clear congres-
sional authorization for his actions that interfere with state
autonomy.

V7

lil. THE COURT OF APPEALS ERRED IN DENYING
PETITIONERS STANDING TO ASSERT THEIR RIGHTS
UNDER THE CONSTITUTION AND THE CLEAN AIR
ACT.

A. AS A RESULT OF THE EPA ACTION, PETITIONERS HAVE
SUFFERED INJURY IN FACT IN THE FORM OF ECONOMIC
HARM AND DEPRIVATION OF THEIR CONSTITUTIONAL
RIGHTS.

Petitioners have shown injury to their economic interests and
constitutional rights, and have also based their claim of standing on
the fact that they were directly regulated by the EPA action. They
have alleged the type of interests sought to be protected by the Clean
Air Act and by the constitutional provisions guaranteeing free
speech, the right to petition the government, and a representative,
federal form of government. The legislators and citizens herein have
standing under the test established in Association of Data Process-
ing Services Organizations, Inc. v. Camp, 397 U.S. 150 (1970),
which requires a showing of: (1) Injury in fact and (2) an interest
“arguably within the zone of interests to be protected or regulated
by the statute or constitutional guarantee in question.” 397 U.S. at
153.

From an economic standpoint, the record reveals that the
economy of Colorado would be injured by long-term withholding
of funds resulting in lost jobs and income.’ Citizens would be
deprived of essential services. The continued unavailability of
sewage treatment facilities could halt construction of new homes in
part of the affected region and could adversely affect water quality.
Affidavit of Ira Hardin, Motion for Expedited Review and Stay
Pending Review, Exhibit E. The ban on new stationary sources
would prevent construction of major industrial facilities within the
nonattainment area (and even some facilities outside the nonattain-
ment area, 44 Fed. Reg. 37679), thus hindering Colorado's
economic development.

The evidence presented to the Tenth Circuit revealed injury to
the members of Mountain States Legal Foundation not merely
because of public expenditures in the ordinary sense, but also
because each automobile owner would be required to pay an

"One year of EPA sanctions was estimated to result in a loss of 25,000 jobs.
Affidavit of Jay R. Lower, Motion for Expedited Review and Stay Pending
Review, Exhibit C.

18

inspection fee of $10.00 and additional amounts up to $100.00 for
repairs necessary to bring vehicles into compliance.’ This manda-
tory fee for 1/M constitutes a personal stake in the outcome of the
litigation.

Of course, economic injury is not the only kind of injury that
can support standing. Arlington Heights v. Metropolitan Housing
Development Corp., 429 U.S 252 (1977); United States v. SCRAP,
412 U.S. 669 (1973). Serious violations of the constitutional rights
of citizens and legislators have taken place as a result of the EPA
action. Colorado legislators were specifically required to take
action under the challenged EPA order. The order required that
legislation be introduced and passed, that it contain specific
provisions, that it amend aspects of prior legislation, and that the
legislature act within a specified time frame. Appendix-B at 40a.
Obviously, this requirement has a strong impact upon individual
legislators, particularly the legislative leadership, who were all
petitioners in the instant litigation.

The legislator-petitioners have standing to challenge the EPA
action because it directly affects their activities as legislators. Under
the analysis adopted by the District of Columbia Court of Appeals
in Kennedy v. Sampson, S11 F.2d 430 (D.C. Cir. 1974), relying on
Coleman v. Miller, 307 U.S. 433 (1939), a legislator’s interest in
protecting the effectiveness of his vote can be the basis for showing
injury in fact. The court stated that “[n]o more essential interest
could be asserted by a legislator” than vindicating the effectiveness
of his vote. 511 F.2d at 436. In Coleman, supra, this Court found
that state legislators had standing as aggrieved parties to challenge
the procedure used in voting cn a constitutional amendment. The
Court noted that the standing of public officials was not dependent
upon any showing of “private damage.” 307 U.S. at 445. Standing
of legislators must be premised upon some damage to them as

*The estimated costs of $22.00 - $29.00 per car, based on the study commis-
sioned by Colorado Senate Bill 1, were presented in the Reply Brief of
Petitioners, Exhibit E. The fact that all proposed I/M legislation required
payment of inspection fees by automobile owners was also presented by peti-
tioners. Reply Brief of Petitioners 4. The I/M legislation as passed requires
payment of an inspection fee of $10.00 per automobile. Colo. Rev. Stat. §
42-4-313(4)(a) and (b)(1973)(as amended by Senate Bill 52) provides that a
licensed station shall charge a fee for performing adjustments required for
issuance of a certification of emissions adjustment not to exceed $15.00. Model
year 1981 or later automobiles may be required to expend up to $100.00 for
repairs. Colo. Rev. Stat. § 42-4-312(1)(c)(1973)(as amended by Senate Bill 52).

19

legislators. Harrington v. Bush, 553 F.2d 190 (D.C. Cir. 1977);
Reuss v. Balles, 584 F.2d 461 (D.C. Cir. 1978), cert. denied 439
U.S. 997 (1978). Such a showing has been made in this case.

The petitioners were injured by a direct interference with the
legislative process. The entire purpose of EPA’s threats to impose
sanctions and subsequent actual imposition of sanctions was to
force the passage of EPA-dictated legislation. The record contains a
transcript of Colorado General Assembly debates with numerous
statements by legislators that they were voting for the conference
version of the I/M legislation only because of the EPA “blackmail.”
It is apparent from the record that EPA’s form of I/M legislation
would not have passed the Colorado legislature without imposition
of sanctions. The legislators also expressed a desire to amend the
legislation if EPA’s ability to reimpose sanctions were halted, and
amendment efforts appear likely to occur despite the risk of
sanctions. Clearly, an actual and continuing interference with the
Colorado legislative process has taken place, and petitioners have
been injured in their capacity as legislators. Thus the legislator-
petitioners have proper standing.

As discussed more fully in section I.B., supra, the deadlines
imposed by EPA limited the time for legislative debate, thereby
abridging the freedom of speech of legislators and limiting the
citizens’ right to petition the government.’ The threat that sanctions
would be imposed if legislators failed to follow EPA’s dictates in
enacting legislation had a chilling effect on legislative debate. Such a
chilling effect also occurred through the utilization of federal
government power to drown out the voices of the citizens.

*Colo. Senate Bill 1 § 3, 1979, Colo. Sess. Laws 406, amending Colo. Revised
Statutes 1973 to add § 42-4-306.5(5), was interpreted by EPA and the court of
appeals to establish March 1, 1980, as a “self-imposed” deadline for legislative
action. Appendix at Sa. This assertion misapprehends the import of the
inclusion of the March | date in Senate Bill 1. Merely labelling the deadline as
“self-imposed” does not resolve the crucial problems of EPA interference with
state decisionmaking. The March 1, 1980, target date for future legislative
action was selected “so that not less than ten months be available for the
implementation of said sections [i.e., the implementation of an |/M program].”
Senate Bill 1, § 3, 1979 Colo. Sess. Laws 406. The date had relevance only as an
attempt to allow sufficient lead time for implementation of the program. It
should be noted that the I/M program established under EPA's directives delayed
the implementation one year until January 1, 1982. Obviously, the delay in the
implementation date destroyed any necessity to begin work on implementation
by March 1, 1980.

20

The Court’s opinion is dangerously overbroad in stating that it is
the exclusive power of the Attorney General to represent the state in
all matters of public interest. The Court pronounces a rule that the
Attorney General “is the exclusive legal representative of the state in
all litigation with regard to matters of public interest, and he alone
has the right to represent the state as to litigation involving a subject
matter of statewide interest.” Appendix A at 28a (emphasis added).
This pronouncement ignores statutory restrictions on the Colorado
Attorney General’s power and it fails to consider situations where
individual rights might be integrally involved with matters of
“public interest.” Such a pronouncement precludes challenges to
EPA actions by environmental groups because such issues would be
of “statewide interest.” The Court's pronouncement contains no
limitation of the Attorney General’s authority to matters of
governmental interests, and thus may seriously infringe the right to
vindicate individual claims and injuries.

The Tenth Circuit's ruling ignored the personal rights raised by
petitioners. This Court should exercise its review power to prevent
such a deprivation of rights and undue denial of a judicial hearing.

B. PETITIONERS HAVE STANDING AS AGGRIEVED PARTIES TO
SEEK JUDICIAL REVIEW UNDER SECTION 307 OF THE CLEAN
Air ACT.

The Clean Air Act contains two provisions for judicial review of
EPA actions. Section 304, 42 U.S.C. § 7604 (Supp. 1 1977), allows
citizens, without any particular showing of injury, to challenge EPA
failures to perform nondiscretionary duties. Similarly, Congress
structured broad review of final agency action under section 307 of
the Act, 42 U.S.C. § 7607 (Supp. I 1977). The first issue here is
whether the congressional grant of standing is, as the Tenth Circuit
ruled, limited to the State of Colorado itself to challenge an EPA
ruling on the state implementation plan or whether citizens and
legislators have standing. Secondly, even if the Tenth Circuit's
reading of the Act to imply an “aggrieved party” showing is valid,
the issue is presented whether the lower court erred as a matter of
law by refusing to acknowledge that the EPA’s demand for action by
the legislature gave them standing as aggrieved parties.

The Tenth Circuit's opinion characterizes the State of Colorado
as “the real party in interest” for purposes of challenging EPA action
on the state implementation plan. Appendix A at 27a. Such a
holding is entirely contrary to the long line of cases decided under
the Clean Air Act. Environmental interests and regulated industries

21

have consistently been accorded standing to challenge SIPs. See,
e.g., Indiana and Michigan Electric Co. v. EPA, 509 F.2d 839 (7th
Cir. 1975); Harley-Davidson Motor Co. v. EPA, 598 F.2d 228
(D.C. Cir. 1979), and Sharon Steel Corp. v. EPA, 597 F.2d 377 (3rd
Cir. 1979), allowing those within the zone of interests sought to be
regulated by a statute to have equal standing with those within the
zone of interests sought to be protected by a statute. The legislators
are members of a body directly subject to the EPA’s regulatory
action, in the form of deadlines for introduction and passage of
legislation.

Section 307 has provided a legitimate vehicle for many lawsuits
filed by environmental groups for review of EPA actions, and their
standing has been unchallenged. See, e.g., Citizens to Save Spencer
County v. EPA, 600 F.2d 844 (D.C. Cir. 1979); ASARCO, Inc. v.
EPA, 578 F.2d 319 (D.C. Cir. 1978); Friends of the Earth v. EPA,
499 F.2d 1118 (2d Cir. 1974); NRDC v. EPA, 489 F.2d 390 (Sth Cir.
1974); NRDC v. EPA, 483 F.2d 690 (8th Cir. 1973). Even more
expansively, actions have been maintained by entities only indirectly
affected by the Clean Air Act. See, e.g., McCoy-Elkhorn Coal
Corp. v. EPA, 622 F.2d 260 (6th Cir. 1980) (coal company had
standing to challenge a portion of Clean Air Act as unconstitutional
because it diminished the Company’s market); South Terminal
Corp. v. EPA, 504 F.2d 646 (1st Cir. 1974) (various oil companies,
retailers, and parking companies brought suit to challenge regional
air quality transportation control plan which limited the number of
parking spaces in the city of Boston).

Since EPA actions on SIPs, including the Colorado plan, often
contain provisions affecting the interests of specific individuals or
groups, it would be unfair to limit standing to the state. “The state”
is an amorphous entity without the sensitivity to violation of
individual rights that would be afforded by allowing the affected
individuals to sue. American jurisprudence is based upon litigation
of rights by affected individuals; it has not often set up governmen-
tal entities as the sole defenders of rights and rendered individuals
entirely unable to litigate their claims. Certainly this approach
would not be satisfactory where, as in the Clean Air Act, Congress
has specifically encouraged public input.

To limit standing to challenge EPA actions on SIPs to state
goverments would prevent suits raising purely environmental
concerns as well as those raising other constitutional and statutory
infractions. The Tenth Circuit's decision, as applied to this case,
effectively renders standing under section 307 of the Clean Air Act

22

(which contains no language restricting standing) more restricted
than standing under the Administrative Procedure Act (which
permits review by a person “adversely affected or aggrieved”). 5
U.S.C. § 702 (1976).

C. PETITIONERS HAVE SHOWN STANDING TO ASSERT VIOLA-
TIONS OF THEIR CONSTITUTIONAL RIGHTS AND THUS MAY
ADDRESS ALL ISSUES PROPERLY BEFORE THE COURT.

As demonstrated by the preceding sections, petitioners have
sustained injury in fact as a result of the EPA’s actions. They have
shown that their interests lie within the scope of the constitutional
guarantees discussed herein and that their regulation by the EPA
under authority of the Clean Air Act brings them within the scope of
interests protected under the Act. Petitioners are entitled to pursue
these interests in the courts.

This Court has not clearly decided the issue of standing to
challenge tenth amendment violations. The question was specifi-
cally left open in National League of Cities v. Usery, 426 U.S. 833,
836n.7 (1976). The issue of state sovereignty was properly an issue
in this litigation, and was fully briefed in an adversary manner by all
petitioners. Although the Colorado Attorney General did not
forcefully argue for protection of state sovereignty, the issue was
raised and a tenth amendment violation was asserted by the
Attorney General. Mountain States Legal Foundation and the
legislators did not exceed their role in this litigation by arguing that
the EPA had infringed upon the powers reserved to the states under
the tenth amendment. As explained earlier, these parties established
standing under section 307 of the Clean Air Act, and thereby are
able to assert the broader public issues. This Court stated the basic
rule in Sierra Club v. Morton, 405 U.S. 727, 737 (1972):

[T]he fact of economic injury is what gives a person standing

to seek judicial review under the statute, but once review is

properly invoked, that person may argue the public interest in
support of his claim that the agency has failed to comply with
its statutory mandate.
Accord, Warth v. Seldin, 422 U.S. 490, 501 (1975); Scripps-
Howard Radio v. Federal Communications Commission, 316 U.S.
4, 14-15 (1942); Sierra Club v. Adams, 578 F.2d 389 (D.C. Cir.
1978).

Whether or not petitioners are accorded standing to argue
violations of state sovereignty, the Tenth Circuit committed a
serious error by failing to accord petitioners standing to protect
their first amendment and other personal constitutional rights.

a3

CONCLUSION

For the above reasons, petitioners submit that the Tenth Circuit
erred in its determination that petitioners, as legislators and citizens
of Colorado whose rights were violated, lacked standing to assert
the statutory and constitutional infirmities of the EPA action. A
multiplicity of constitutional rights of Colorado legislators and
citizens have been violated by the EPA and, if the Clean Air Act is
interpreted to authorize the EPA’s actions, the Act should be
declared unconstitutional. Vital issues about the future of federal-
ism in America are presented by petitioners, and the EPA actions
herein present a uniquely egregious violation of the principles of
federalism. The balancing of powers necessary for a continuation of
the federal system requires guidance from this Court.

Petitioners urge this Court to issue a writ of certiorari to reverse
the Tenth Circuit's denial of standing and to resolve the merits of this
lawsuit.

Respectfully submitted,

MOUNTAIN STATES LEGAL FOUNDATION
James G. Watt

Gale A. Norton

1200 Lincoln Street, Suite 600

Denver, Colorado 80203

(303) 861-0244

Attorneys for the Petitioners

la

APPENDIX A

UNITED STATES COURT OF APPEALS

TENTH CIRCUIT

MOounNTAIN STATES LEGAL FOUNDATION,
et al.,

Petitioners,

v. No. 79-2261

DouG-tas M. CosTLe, et al.,
Respondents.

STATE OF COLORADO ex rel.

J. D. MACFARLANE,
Petitioner-Intervenor.

ON PETITION To REviEW ACTION OF THE
ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY
[AuGusT 29, 1980]

James G. Watt and Gale A. Norton, Mountain States Legal
Foundation, Denver, Colorado (James W. Sanderson of Saunders,
Snyder, Ross & Dickson, Denver, Colorado, with them on the
brief), for Petitioner.

Donald W. Stever, Jr., Attorney, Department of Justice,
Washington, D.C. (James W. Moorman, Assistant Attorney
General, and Angus Macbeth, Deputy Assistant Attorney General,
Washington, D.C., Barbara H. Brandon, Kenneth A. Reich and

2a

Jose Allen, Attorneys, Department of Justice, Washington, D.C.,
with him on the brief) (Michele Beigel Corash, General Counsel,
and Bruce Diamond, James N. Cahan and Eric Smith, Attorneys,
Environmental Protection Agency, Washington, D.C., Christine
Shaver, Attorney, Environmental Protection Agency, Denver,
Colorado, of Counsel), for Respondents.

Janice L. Burnett, Assistant Attorney General, Natural Resources
Section, the State of Colorado (J. D. MacFarlane, Attorney
General, Richard F. Hennessey, Deputy Attorney General, Mary J.
Mullarkey, Solicitor General, and Lawrence A. DeClaire, Assistant
Attorney General, Natural Resources Section, the State of
Colorado, with her on the brief), Denver, Colorado, for Intervenor.

Jackson B.-Battle, Robert J. Golten and Robert F. Wiggington,
Boulder, Colorado, filed an amicus curiae brief for National Wild-
life Federation.

Before BARRETT, DOYLE and McKAY, Circuit Judges.

BARRETT, Circuit Judge.

Mountain States Legal Foundation, hereinafter referred to as
Mountain States’, twenty-seven (27) named members of the Senate
and House of Representatives of the State of Colorado in their
respective official capacities as individually elected legislators of the
State of Colorado, and the State of Colorado ex. rel. Mountain
States, hereinafter jointly referred to as Mountain States, et al., or
petitioners, filed a petition for review challenging the constitutional
and statutory authorization of a final rulemaking decision of the
federal Environmental Protection Agency (EPA) conditionally
approving portions of the Colorado air quality control implementa-
tion plan. The petition, dated December 4, 1979, was filed
pursuant to the Clean Air Act, 42 U.S.C. §§ 7401 et seg. and rule 15
of Fed. R. App. Proc., 28 U.S.C.A. The State of Colorado, ex rel. J.
D. McFarlane, Attorney General, intervened.

3a
BACKGROUND

Section 307(b)(1) of the Clean Air Act, 42 U.S.C. § 7607(b)(1),
involves a complex web of exclusive jurisdiction governing review
of various actions of the Administrator of EPA. Decisions handed
down prior and subsequent to the 1977 amendments to the Act
make it clear that exclusive jurisdiction for review of regulations or
actions of the Administrator of EPA vests in the courts of appeals.
Anaconda Company v. Ruckelshaus, 482 F.2d 1301 (10th Cir.
1973); U. S. Steel Corp. v. U. S. Environmental Protection Agency,
595 F.2d 207 (Sth Cir. 1979); Lubrizol Corp. v. Train, 547 F.2d
310 (6th Cir. 1976).

The Clean Air Act creates a complicated statutory framework.
The responsibility for plans to clean up the air is divided between
the federal and state governments. The Act requires the EPA
Administrator to establish ambient air quality standards for various
pollutants. 42 U.S.C. § 7409. Each state governor is then required
to submit a state implementation plan (SIP) designed to accomplish
these standards. 42 U.S.C. § 7410. The EPA Administrator there-
after either approves or disapproves the SIP. 42 U.S.C. §
7410(a)(2)(A) through (K). Thus, the Congress clearly intended the
final decision to be that of the EPA. See 42 U.S.C. §§ 1857(a)(2)(b),
1857c-5, 1857c-6; 42 U.S.C. §§ 7410(a)(2)(1); 7413(a)(5S);
7502(a)(1). See also: 42 U.S.C. § 7411(d)(1)(2), (A) and (B);
7412(d), (1) and (2).

If a state fails to promulgate an acceptable plan, the Act requires
that the EPA Administrator formulate and promulgate a federal
plan for the governing area. 42 U.S.C. § 7410(c). The 1972
Colorado SIP submitted by the Governor met the approval of the
EPA Administrator. 40 C.F.R. § 52.320, et seg. However, the 1972
Colorado SIP was required to be revised by virtue of 1977 amend-
ments to the Act dealing with “nonattainment areas”, i.e., air
quality control regions that fail to meet air quality standards. 42
U.S.C. §§ 7501-7508. States with “nonattainment areas”, such as
Colorado, were required to submit revised SIPs by January 1, 1979,
further, if a state appeared to be unable to meet air quality control
standards by December 31, 1982, an additional requirement is
imposed by the Act: The implementation of an automobile
emission inspection and maintenance (I/M) program. 42 U.S.C. §
7502(b)(11)(B). In the event of a state's failure to comply, the EPA
contends it is empowered to ban new construction in nonattain-

4a

ment areas pursuant to 42 U.S.C. § 7410(a)(2)(1), and to withhold
federal grants pursuant to 42 U.S.C. §§ 7506(a) and 7616(b).

The EPA’s Final Rulemaking on Approval of the Colorado SIP,
44 Fed. Reg. 57401 (October 5, 1979), amended 40 C.F.R. part 52,
so as to approve in part the revised Colorado SIP mandated by the
nonattainment provision of the Clean Air Act. The revised SIP was
submitted to EPA by the State on January 2, 1979. EPA published a
notice of proposed rulemaking on May 11, 1979. See 44 Fed. Reg.
27691. The final rulemaking notice included four different types of
dispositions as to various portions of the SIP: Approval, conditional
approval, disapproval, and no final action. The instant case par-
ticularly relates to the attainment of the ambient air quality
standards for ozone and carbon monoxide in “nonattainment
areas” where EPA required I/M programs. These areas included
portions of Larimer, Weld, Adams, Arapahoe and El Paso
Counties, and the Counties of Denver, Boulder, Douglas and
Jefferson.

The EPA contended that Colorado Senate Bill 1, establishing an
1/M program to begin on January 1, 1981, and commissioning a
study of the effectiveness of various I/M-type programs, was not
“adequate enabling authority.” Accordingly, the legislation did not
receive complete EPA approval. The Administrator found that the
legislation was deficient in several respects: (1) the legislature
retained the right to approve I/M standards before they were to go
into effect; (2) the bill contained no provision for retest after
maintenance; (3) its appropriateness for 1981 and later model
vehicles was questioned; (4) it lacked schedules for implementation
of various administrative elements of the program; (5) the bill
needed provisions for recordkeeping; (6) there were no demonstrat-
ed commitments to reduce emissions by at least 25% or to
implement and enforce the program; and (7) the bill did not provide
for unannounced inspection of facilities. 44 Fed. Reg. 57404-05. As
a result of these alleged deficiencies, EPA ruled: “It is clear, however,
that the program passed by the legislature does not meet the require-
ments of the Clean Air Act and additional action by the legislature is
essential.” 44 Fed. Reg. 57405. The EPA Final Rulemaking of
October 5, 1979, set forth a timetable for the Colorado state
legislature and Governor to follow as a basis for achieving full
approval:

January 1, 1980 - Senate Bill 1 study to be completed
and submitted to legislature.
January 12, 1980- I/M program to be included on list

Sa

of Governor's Call Items for the
1980 legislative session,

February 1, 1980- Study results in the form of a draft
final report to be submitted to legis-
lature.

February 1, 1980- Bill introduced in the legislature
- copy submitted to EPA.

March 1, 1980 - Submission to EPA of legislation
signed into law by the Governor, as
well as schedules (milestones, dates,
responsible agency) to implement
the [/M program and corrections to
other noted deficiencies.

44 Fed. Reg. 57405 (1979).

We here observe that the March 1, 1980, “deadline” above
referred to was in fact the creation of the Colorado General
Assembly, by virtue of its passage of Senate Bill 1 in June of 1979
which provided, inter alia: “The general assembly shall. . . take
legislative action thereon, if any, not later than March 1, 1980...”
C.R.S. 1973, 42-4-306.5(5). The deadline was self-imposed by the
Colorado legislature.

The Administrator’s mandate was followed by a listing of the
consequences of noncompliance, including imposition of the
sanctions contained in §§ 176(a) and 316(b) of the Act, 42 U.S.C.
§§ 7506(a) and 7616(b), and a prohibition on construction of
certain new major facilities in nonattainment areas, 42 U.S.C. §
7410(a)(2)(1). 44 Fed. Reg. 38471 (July 2, 1979). The Administra-
tor emphasized the effect of noncompliance: “Due to potentially
severe impacts resulting from the imposition of sanctions, it is vital
that the effects be well understood.” 44 Fed. Reg. 57408. Among
the Administrator's “examples” of affected projects were planning
and research grants, sewage treatment grants totaling $132 million
(itemized by project), and an unspecified amount of federal
highway funds. The EPA further warned that if it appeared that the
state would not meet EPA’s schedule, the imposition of sanctions
would be accelerated. 44 Fed. Reg. 57408. These “admonishments”
were made by EPA Regional Administrator Roger L. Williams
following his meeting on February 28, 1980, with leadership of the
Colorado General Assembly during which time the leadership
expressed no hope that its own March 1, 1980, deadline would be
met and that there was little prospect for the passage of an
acceptable I/M program before the end of the legislative session.

6a

On March 1, 1980, EPA notified this Court of its intention to
disapprove the carbon monoxide and ozone portions of the
Colorado SIP and that it would impose the Section 110(a)(2)(1)
moratorium on construction of new major or modified stationary
sources of these pollutants in the affected nonattainment areas
pursuant to authority it claimed under 42 U.S.C. 7410(a)(2)(1). At
that time, EPA would also begin to exercise its authority under
Sections 176(a) and 316(b) of the Clean Air Act, 42 U.S.C, 7506(a)
and 7616(b), to limit federal funds.

The Mountain States petition for review challenges (a) the EPA
withholding of federal funds under the Clean Air Act and imposi-
tion of a stationary source ban as coercive action designed to
achieve specific state legislative action, (b) the EPA Administrator's
action under the Clean Air Act of “conditionally approving” or
disapproving the SIP, (c) the actions of the EPA Administrator under
the Clean Air Act in requiring the Colorado General Assembly to
pass legislation meeting EPA criteria and an EPA timetable, and (d)
the various actions of the EPA Administrator in violation of the
Administrative Procedure Act, the Tenth Amendment, the First
Amendment, the Fifth Amendment and Article IV, Section 4
(guarantee of a republican form of government) of the United States
Constitution,

The State of Colorado, by and through its Attorney General, as
Intervenor, filed a brief in direct, absolute conflict with the
contentions raised by Mountain States. The State contended: (a) the
EPA Administrator had not exceeded his statutory authority in
conditionally approving the Colorado SIP, (b) the actions proposed
by EPA pursuant to the Clean Air Act, §§ 176(a), 316 and
110(a)(2)(1), do not violate the Tenth Amendment, (c) EPA's
conditional approval does not infringe on First Amendment rights
to freedom of speech and to petition the government for redress of
grievances, (d) due process of law has not been violated, (e) EPA's
conditional approval of the Colorado SIP does not abridge the
guarantee of a republican form of government, and (f) Mountain
States lacks standing to represent the State of Colorado in an ex
relatione capacity.

PROCEEDINGS FOR STAY PENDING REVIEW
Following the filing of the aforesaid Petition for Review,

Mountain States, et al., filed a Motion for Stay pending this Court's
review. The matter was briefed and argued before this Court,

7a

following proper notice.

On March 13, 1980, this Court entered its Order granting
injunctive relief staying enforcement by the EPA of any and all
sanctions to and including May 1, 1980. We further ordered the
Petition for Review submitted. In relation to the May 1, 1980,
deadline, the Court observes that in the course of oral arguments
presented on March 13, 1980, the State of Colorado, by and
through the Colorado Attorney General, represented that it was
likely that the Colorado General Assembly would enact legislation
adopting an I/M program acceptable to EPA on or about May 1,
1980, The Attorney General expressly disclaimed any agreement
with the constitutional and statutory challenges raised by Mountain
States, et al., in their Petition for Review. In fact, the Attorney
General acknowledged that he did not share the views expressed by
Mountain States, et al., in challenging the constitutionality of the
Clean Air Act and/or the actions taken by EPA preceding EPA’
imposition of sanctions. The Attorney General's sole argument
before this Court was that the action of the EPA in imposing the
funding withholding sanctions prior to final adjournment of the
1980 session of the Colorado General Assembly would be arbitrary
and capricious action because the General Assembly was making
reasonable efforts to cure the deficiencies,

On May 2, 1980, this Court's injunctive order expired. On that
date the Administrator of EPA imposed the funding and construc-
tion sanctions. On May 7, 1980, the Colorado legislature adopted
1/M legislation, signed into law by Governor Lamm on May 23,
1980. EPA informed this Court on May 15, 1980, that it tentatively
believed the legislation to be adequate under the Clean Air Act and
had submitted for publication in the Federal Register a notice
proposing approval of 1/M legislation as part of the SIP. It was in
this setting that this Court, on May 29, 1980, upon its own motion,
ordered the parties to file memoranda by June 9, 1980, “showing
cause, if any there be, why the appeal should not be dismissed for
mootness.”

In response to this Court's “mootness” order, the parties have
responded as follows:

(1) The Colorado Attorney General took no position on the
matter. His position is unexplained.

(2) EPA urged that the Court dismiss the action as moot. EPA
points out that while, strictly speaking, the case will be moot only
after EPA has taken the final action to approve the I/M legislation
as part of the State Implementation Plan following the notice of

-

Sa

rulemaking and the comments which may be submitted, the Agency
will act promptly, and anticipates lifting all sanctions so that no
action will be taken under §§ 176(a) and 316. EPA contends that
under Article III of the United States Constitution the jurisdiction of
federal courts is limited to those suits presenting a “live controversy”
at the time the court reviews the case, citing to Sosna v. lowa, 419
U.S. 393 (1975) and DeFunis v. Odegaard, 416 U.S, 312 (1974),
and that this requirement precludes Article Ill courts from issuing
advisory opinions which cannot affect the rights of the parties in the
case before them, citing to North Carolina v. Rice, 404 U.S. 244
(1971) and Oil Workers Unions v. Missouri, 361 U.S. 363 (1960).

EPA also relies on the recent decision of County of Los Angeles v.

Davis, __. U.S. —_., 59 L. Ed. 2d 642 (1979) for the proposition
that a case is moot when the issues are no longer live or the parties
lack a legally cognizable interest in the outcome and where there is
no reasonable expectation that the alleged violation will recur.

As to the contention that the legislators and citizens of Colorado
must be protected from “coercion,” EPA contends that since the
Colorado legislature had acted, it no longer requires any
“protection” from the alleged “coercion,” and thus yf this Court
should reach the merits, it would be merely advising the parties as to
their constitutional right, should this issue ever arise in the future.
[Memo of EPA, June 10, 1980, pp. 5-6).

With reference to any contention that the matters presented are
“capable of repetition yet evading review,” thus coming within the
exception to the mootness doctrine applied in Wemstenr v.
Bradford, 423 U.S. 147 (1975) and Sosna v. lowa, supra, EPA
argues that it cannot be demonstrated that the administrative order
or action that expired will be repeated and that the new order will
again evade review. EPA states that the alleged “coercion” could
only occur again if the Colorado legislature either repeals its 1/M
legislation or fails to implement its provisions; further, that if such
“speculative” events should come to pass, petitioners could again
file suit after EPA imposes a construction moratorium or funding
restrictions.

(3) Mountain States strongly argued that the issues are not moot,
will not become moot, and demands judicial resolution. Mountam
States contends:

Senate Bill 52, enacting the EPA-dictated version of an
inspection and maintenance program, was narrowly
passed by the Colorado General Assembly. A shift of
only two votes in the Senate would have defeated the

9a

measure. Attached to this memorandum are affidavits
[12 of State Senators and Representatives] and a trans-
cript of debates. . . conclusively [demonstrating] that if
the EPA sanctions had not been invoked, the legislation
in its existing form, $.B. 52, would have been over-
whelmingly defeated in both the Senate and House. . .
Furthermore, if sanctions are lifted and the threat of
reimpositior is removed, the program will almost surely
be modified. The direct and continuing effect of EPA's
pressure tactics violates the rights of Colorado citizens
.. . If the status of this case has been changed so that the
Court considers the case moot, it is because the Court
itself has allowed this to happen... The petitioners
expected a decision [from this Court] by that time [May
1, 1980]... The legislature passed legislation only after
the Court had refused to prevent EPA from blackmailing
the legislature and only after sanctions had actually been
imposed. When this lawsuit was initiated, petitioners
contended that the threatened sanctions had a chilling
impact upon the legislature. Since that time, the
sanctions have become a reality, and their ability to
control legislative action has been proven... To date
this Court has chosen to step aside and allow EPA to
intrude into the functions constitutionally given to the
Colorado government. . . Ruling that this case is moot
will have severely negative public policy implications.
Legislators must not be required to sacrifice the state
budget and allow irreparable damage to the state
economy in order to have their rights judicially clarified.
Declaring the issue of this case [the preservation of the
constitutional form of government in America] to be
moot would be an unfair and irresponsible act that
should not be tolerated by this Court or the Supreme
Court of the United States.

{Memorandum of Mountain States, filed June 9, 1980,
pp. 1-6].

THE THRESHOLD ISSUE OF STANDING

EPA has consistently contended that petitioners, Mountain
States, et al. “...lack standing to assert any constitutional

10a

arguments on behalf of the State of Colorado. . . for review since
only the state has standing to make those arguments. The state,
moreover, has epxressly opposed petitioners’ arguments; therefore,
there is no case or controversy with respect to these arguments.”
[Brief of EPA, p. 28]. EPA, citing to those “standing” requirements
articulated in Duke Power Co. v. Carolina Env. Study Group, 438
U.S. 59 (1978); Simon v. Eastern Ky. Welfare Rights Org., 426
U.S. 26 (1976); Warth v. Seldin, 422 U.S. 490 (1975) and O'Shea v.
Littleton, 414 U.S. 488 (1974), argues, inter alia:

One of the “prudential concerns” recognized by the

Supreme Court is that one party should not be permitted

to rest his claim to relief on the rights of another who

does not press those rights. Duke Power Company,

supra, at 80. The rationale for this limitation was

expressed by the Court as follows:

There are good and sufficient reasons for this
prudential limitation on standing when rights
of third parties are implicated — the avoid-
ance of the adjudication of rights which those
not before the Court may not wish to assert,
and the assurance that the most effective
advocate of the rights at issue is present to
champion them.

Neither petitioner, Mountain States Legal Founda-
tion, nor the individual petitioner-legislators, has alleged
a sufficient “personal stake” in this controversy to entitle
it to raise constitutional arguments on behalf of the State
of Colorado.2_/Only the State has sta.iding to press
claims aimed at protecting its sovereign powers under
the Tenth Amendment. Here, the State of Colorado has
intervened in this case and has directly opposed each of
petitioners’ constitutional and statutory arguments.

Hence, the one party with clear standing to raise the
constitutional arguments made by petitioners not only
declined to make those arguments but expressly rejected
them. Therefore, this case presents no justiciable case or
controversy wit!, regard to the constitutional arguments
raised here and the court need not address them. Duke
Power Company, supra. [Emphasis supplied}.

lla

Moreover, the state attacks Mountain States’ standing
to raise constitutional claims on the state’s behalf;
respondents adopt the state’s reasoning. Brief for
Colorado, at 30-34. EPA and the state both rely on this
Court’ decision in Gallagher v. Continental Ins. Co.,
502 F.2d 827 (10th Cir. 1974), as authority for the
proposition that Mountain States lacks standing to raise
claims belonging to the state. There the court held that a
group of citizens and taxpayers lacked standing to
recover (on behalf of the state of Colorado) alleged over-
payments made in connection with a highway project.

a ae a

Although the state did not challenge the standing of
the individual petitioner legislators herein, they have no
better claim to standing than Mountain States, under
Gallagher, the other authorities cited in the state's brief,
and the principles discussed above, apply with equal
force to the legislators’ standing [sic].

Even if state law permitted the petitioner legislators to
press the state’s constitutional claims, the “prudential
concerns” recognized by the Supreme Court in Duke
Power, Co., supra, dictate that this court should not
allow the legislators (or Mountain States) standing to
raise claims that the state itself declines to raise and in fact
Opposes.

[Brief of EPA, pp. 29-31).

In addition, EPA contends that no “case or controversy” exists
entitling the State of Colorado, as Intervenor, to an advisory
opinion. EPA points out that the State of Colorado, through its
Attorney General, has taken a position directly contra to that of
Petitioners, and accordingly:

Colorado contends that, as far as it is concerned, EPA
has not unlawfully trenched upon the state’s sovereign
rights. Notwithstanding this contention, it urges this
court to “set forth the standards according to which EPA
must adhere in implementing the sanctions provisions of
the Clean Air Act.” Colorado’s Brief at 17. Colorado

>

12a

makes this request out of its concern that the federal
agencies, because of their “tremendous powers” and the
states’ concomitant dependence on continued receipt of
federal funding, might, at some unspecified time in the
future, unlawfully invade Colorado’s sovereign rights;
and, although the state steadfastly maintains the EPA has
not yet done so, it apparently believes that the mere
potentia! for future unlawful action by EPA is sufficient
justification for this court to sketch the constitutional
boundaries of EPA’s authority under the Clean Air Act.
See Brief for Colorado at 9-11, 16 and 17.

The lack of a dispute with regard to the Tenth
Amendment issues between the federal government and
the only party with standing to raise these issues — the
State of Colorado — deprives this case of the indispens-
able Article III “case or controversy” which is the
predicate for the exercise of federal judicial power, and
consequently short-circuits further consideration by this
court of all Tenth Amendment claims. Therefore,
whatever the depths of Colorado’s concerns with regard
to the potential abuse of power by EPA or other federal
agencies, those concerns cannot vest this court with
jurisdiction to render an advisory opinion.

In conclusion there is no case or controversy here
because Colorado contends that the Clean Air Act passes
constitutional muster under the Tenth Amendment and
the petitioners lack standing to raise any contrary Tenth
Amendment claims. Thus any decision on these issues
would be purely advisory and beyond the judicial power
of this court under Article III.

[Brief of EPA, pp. 33-35].

The State of Colorado, by and through its Attorney General,
contends that Mountain States is without standing to represent the
sovereign interest of the State of Colorado in an ex relatione
capacity:

.. .[A]n action concerning matters of general public

l3a

welfare is appropriately instituted in the name of the
attorney general or in the name of the state ex rel.
attorney general. See, e.g., State ex rel. Taylor v. Lord,
28 Or. 498, 43 P. 421 (1896); Coco v. Oden, 143 La.
718,79 So. 287 (1918); State ex rel. Attorney General v.
Cunningham, 81 Wisc. 440, 51 N.W. 724 (1892);
United States v. Throckmorton, 98 U.S. 61, 70 (1878).

C.R.S. 1973, 24-31-101 et seq. provides that the
attorney general shall appear for the state in all actions:

In which the state is a party or is interested
when required to do so by the governor.

C.R.S. 1973, 24-31-101(1)(a). In this case, by executive
order No. D0030-74 the Governor ordered the attorney
general to intervene in this action to represent the
interests of the state. (See attached exhibit C.)

Unless a statute provides otherwise, the attorney
general has the exclusive right to represent the state in
actions to enforce its interests. State Board of Pharmacy
v. Hallett, 88 Colo. 331, 296 P. 540 (1937). Colorado
has passed no legislation authorizing a private person to
represent the state in this or any other such action.

A similar issue arose in an action brought by citizens
and taxpayers of Colorado seeking recovery of the
amounts allegedly unlawfully disbursed in payment of
work done on a tunnel construction project. This circuit
held that these citizens had no standing to seek to recover
these alleged overpayments on behalf of the State of
Colorado. [Gallagher v. Continental Insurance Co., 502
F.2d 827 (10th Cir. 1974)]. Characterizing the suit as a
derivative action on behalf of the State of Colorado, this
circuit found that there was no authority under the
Colorado law for maintaining such an action.

bo bd

Despite its clear lack of authority, petitioner Moun-
tain States Legal Foundation may urge this court to imply
authority for its actions from common law cases in

Kn

l4a

which private persons sought to act as relators.
Petitioner’s argument should be rejected.

The doctrine in Colorado at common law was that a
private person could not, as a matter of right, bring an
action for wrongs done to the public. Private persons
could represent the people as a relator only where the
injury, in addition to affecting the public, peculiarly
affected them. People ex rel. Byers v. Grand River Bridge
Co., 13 Colo. 11, 21 P. 898 (1889); People ex. rel.
Jerome v. Regents of State University, 24 Colo. 175
(1897); People ex rel. v. Blake, 128 Colo. 111, 260 P.2d
592 (1953).

The petition for judicial review, filed with this court on
December 4, 1979 by petitioner, is utterly devoid of any
allegations of fact attempting to demonstrate that
Mountain States Legal Foundation has any special
interest in this matter other than that of the general
public. Thus, even under the common law test,
Mountain States Legal Foundation has no standing to
represent the state as a relator in this action. McCamant
v. Denver, 31 Colo. App. 287, 501 P.2d 142 (1972).

Petitioners may also erroneously seek to premise their
ex relatione status on Colo. R. Civ. P. 106, which
provides that if the district attorney declines to bring an
action under rule 106(a)(3) it may be brought upon the
relation and complaint of any person. Rule[s] 106(a)(3),
however, refers only to actions involving usurpation of
office or franchise and is irrelevant to the situation
herein.

Moreover, even if rule 106 or the common law
provided a proper basis for authority for petitioner's
attempt to attain ex relatione status, it should be noted
that the state has not declined to become involved in this
action but has intervened as a party. Petitioners may have
serious standing problems concerning their right to raise
the tenth amendment issue (see respondent’s memoran-
dum in opposition to petitioner’s motion for stay
pending review, pp. 25-28). This does not give them the

lSa

right to bootstrap themselves, however, into a position
whereby, without any authority whatsoever, they
purport to represent the state and thus obtain standing to
raise issues they would otherwise be unable to raise. See
Gallagher v. Continental Insurance Co., supra.

[Brief of Intervenor, pp. 30-34).

Mountain States did not specifically address the “standing” issue,
apparently of the view that the challenge is without substance.
Contending that “this controversy” calls upon the court to make a
major decision regarding the future relationship of the national and
state governments [Brief of Petitioners, p. 13], Mountain States
urges that the EPA Administrator's action be invalidated under the
Administrative Procedure Act, 5 U.S.C. §706, and that, in
addition, relevant portions of the Clean Air Act be declared
unconstitutional. Relying heavily on National League of Cities v.
Usery, 426 U.S. 833 (1976), Mountain States argues that the
essence of that decision “. . . is that courts must determine whether
the national government has exercised its commerce power
authority in a manner that ‘displaces’ state decisionmaking
regarding an integral state government function. This involves a
determination of (1) whether an integral function is involved and (2)
whether state decisionmaking has been displaced. If both of these
factors are present, then the action of the national government is
unconstitutional as violative of the tenth amendment.” [Brief of
Petitioners, p. 15]. [Footnote omitted].

Mountain States, et al., contends that in this case EPA is
attempting to interfere in one of the most essential state functions —
lawmaking — by imposing severe and unncessary sanctions against
the states, the result of which is to shift decisionmaking from the
state to the national government and to destroy the state's
autonomy. After recounting the severe impact of the threatened
sanctions, 1.e., halt to various projects, loss of jobs, serious financial
difficulties for local governments, Mountain States concludes: “In
short, the EPA sanctions threaten economic havoc for the state, its
political subdivisions, and its people. It is difficult to imagine that
the state government could compensate for the loss of federal funds
or that the economy could adjust to such a setback. Consequently, it
is likely that citizens of Colorado would be deprived of essential
services.” [Brief of Petitioners, p. 10].

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GENERAL PRINCIPLES OF STANDING

The critical, principal question here is whether any of the peti-
tioners qualify as “aggrieved” persons entitled to judicial review of
final agency action, or whether the petitioners have presented a
sufficient “case or controversy” to import justiciability between the
petitioners and the respondent within the meaning of Article III of
the United States Constitution.

The question of standing involves “whether the litigant is entitled
to have the court decide the merits of the dispute or of particular
issues.” Warth v. Seldin, 422 U.S. 490, 498 (1975). In Duke Power
Co. v. Carolina Env. Study Group, 438 U.S. 59 (1978), the
Supreme Court recognized “injury in fact” as the one constant
element in judicial statements concerning standing:

The essence of the standing inquiry is whether the
parties seeking to invoke the court’s jurisdiction have
“alleged such a personal stake in the outcome of the
controversy as to assure that concrete adverseness which
sharpens the presentation of issues upon which the court
so largely depends for illumination of difficult constitu-
tional questions.” Baker v. Carr, 369 U.S. 186, 204
(1962). As refined by subsequent reformulation, this
requirement of a “personal stake” has come to be under-
stood to require not only a “distinct and palpable injury,”
to the plaintiff, Warth v. Seldin, 422 U.S. 490, 501
(1975), but also a “fairly traceable” causal connection
between the claimed injury and the cha'lenged conduct.
Arlington Heights v. Metropolitan Housing Dev. Corp.,
429 U.S. 252, 261 (1977).

438 U.S. at p. 72.

“Injury in fact” means concrete and certain harm. It may be the
out-of-pocket costs to a business resulting from obedience to a new
governmental rule, Hunt v. Washington Apple Advertising
Comm’r., 432 U.S. 333 (1977), or the unwanted result of a govern-
ment rule whether or not a pecuniary loss is sustained. Arlington
Heights v. Metropolitan Housing Corp., 429 U.S. 252 (1977).
Even so, in the absence of a specific statutory grant of a right of
review, a plaintiff must allege some particularized injury that sets
him apart from the man on the street. United States v. Richardson,
418 U.S. 166 (1974). Thus, in National Collegiate Athletic

17a

Association v. Califano, F.2d (No. 78-1632, 10th Cir.,
April 17, 1980) we held that a plaintiff has standing if he is “injured
in fact” by the defendant's conduct and that the “injury in fact” must
constitute concrete and certain harm.

It is well established that judicial review of final agency action by
an “aggrieved” person will not be denied uniess there is a persuasive
reason to believe that such was the purpose of Congress. Morris v.
Gressette, 432 U.S. 491 (1977). A party must clearly demonstrate
by facts alleged that “he himself adversely affected” or those he
represents have been “injured in fact” by the agency’s conduct. Sierra
Club v. Morton, 405 U.S. 727 (1972); Data Processing Service v.
Camp, 397 U.S. 150 (1970).

STANDING IN RELATION TO PERTINENT
STATUTORY PROVISIONS OF THE CLEAN AIR ACT
AND A COLORADO STATUTE

It is necessary in cases involving “standing” contentions to
concentrate on the specific statutory framework from which the
challenges have their origin in order to place the issue in proper
focus. Thus, in the case at bar, we must first analyze the Clean Air
Act in its pertinent parts together with any relevant Colorado
statutes.

The [EPA] Administrator is directed to “. . . cooperate with and
encourage cooperative activities by all Federal departments and
agencies having functions relating to the prevention and control of
air pollution, so as to assure the utilization in the Federal air
pollution control program. . . [in conjunction with]. . . coopera-
tive activities by the States and local governments for the prevention
and control of air pollution...” 42 U.S.C. § 7402(b) and (a).
“Each State shall have the primary responsibility for assuring air
quality within the entire geographic area comprising such State by
submitting an implementation plan for such State which will specify
the manner in which national primary and secondary ambient air
qualtiy standards will be achieved and maintained within each air
quality control region in such State.” 42 U.S.C. § 7407(a) [emphasis
supplied]. The Administrator is directed to make various deter-
minations relative to a State plan which, by the language of the
statute must include “the comprehensive measures and require-
ments” to be approved by the Administrator with an “attainment”
date not later than December 31, 1982. 42 U.S.C. § 7410. Should
there exist any “nonattainment areas” within a State from and after

18a

June 30, 1979, in which construction or modification is not then
being pursued, the Administrator contends that he is directed to
terminate construction of any major stationary source under 42
U.S.C § 7410(a)(2)(1), and to withhold certain federal assistance
funds from the affected “nonattainment areas,” if the Governor of
the affected state has not submitted an implementation plan which
considers the required elements enumerated in 42 U.S.C. § 7502 or
if reasonable efforts toward such submission are not being made
after July 1, 1979. 42 U.S.C. §§ 7506(a)(3) and 7616(b)(2). Thus,
the Congress expressly authorized the sanctions imposed in this
case; furthermore, it is ludicrous to imagine that the Congress did
not understand the significance of the economic impact of the
funding restrictions it directed.

Significantly, the Act deals with compliance requirements beyond
state plans and provides for private penalties. The Act mandates
exclusive review in the courts of appeals governing the grant or
denial of waivers to companies unable to comply with applicable
standards, 42 U.S.C. §§ 7411(j), 7412(c), 7413(d) and 7419 and
establishes a procedure empowering the Administrator to impose
noncompliance penalties against the affected party following notice
and hearing. 42 U.S.C. § 7420. In terms of “citizen suits,” they are,
in our view, clearly authorized by direct proceedings in the district
courts under 42 U.S.C. §§ 7604 when the EPA Administrator is
charged with failure to perform a non-discretionary duty. See 38
ALR Fed. 578. In our view, Congress thus restricted citizens’ suits to
actions seeking to enforce specific non-discretionary clear-cut
requirements of the Clean Air Act. Anaconda Co. v. Ruchelshaus,
482 F.2d 1301 (10th Cir. 1973).

The EPA Administrator’s Final Rulemaking on Approval of the
Colorado SIP of October 5, 1979, challenged here, was solely and
exclusively directed to the State Plan. The 1977 amendment to the
Clean Air Act required that a specific schedule be adopted to
establish the inspection/ maintenance (I/M) program, as “expedi-
tiously as possible.” To be acceptable, an I/M program must
achieve the required 25% reduction in both hydrocarbon and
carbon monoxide exhaust emissions by 1987. It was in this setting
that the EPA Administrator on March 14, 1980, published a final
rule, 45 F.R. 16486, disapproving the carbon monoxide and ozone
portions of the Colorado State Implementation Plan, invoking the
restrictions on construction of major new or modified stationary
sources and announcing that it would begin withholding certain
financial assistance form the affected “nonattainment areas.”

19a

We have heretofore observed that the State of Colorado, by and
through its Attorney General, has in fact intervened in this case. The
position of the State of Colorado is completely in contradiction to
that of Mountain States and the twenty-seven members of the
Colorado General Assembly on the constitutional and statutory
challenges raised by the petitioners. The sole contention raised by
the State of Colorado was that the imposition of the sanctions by the
EPA Administrator prior to final adjournment of the 1980 session
of the Colorado General Assembly would constitute arbitrary and
capricious action by the EPA. Thus, the State of Colorado, by and
through its chief legal officer, the Attorney General, has elected to
disassociate itself with the contentions raised by petitioners herein
involving constitutional and statutory challenges to EPA’s actions
taken or threatened. We observe that this posture is one which, at all
times, must necessarily have been known to all state officials and to
the officers and members of Mountain States. Even so, there is
nothing whatsoever in this record indicating that (a) the Governor
of Colorado at any time directed the Attorney General to raise the
challenges presented here by petitioners, or (b) the General
Assembly [or any one of the twenty-seven legislators who appear as
petitioners here] requested the Attorney General to prosecute suit
against the EPA, notwithstanding the provisions of C.R.S. 1973,
24-31-101(1)(a):

The attorney general of the state shall be the legal
counsel and advisor of each department, division, board,
bureau, and agency of the state government other than
the legislative branch. He shall attend in person at the
seat of government during the session of the general
assembly and term of the supreme court and shall appear
for the state and prosecute and defend all actions and
proceedings, civil and criminal, in which the state is a
party or is interested when required to do so by the
governor and he shall prosecute and defend for the state
all causes in the appellate courts in which the state ts a
party or interested. [Emphasis supplied].

Attached to Intervenor’s Brief as Exhibit “C,” is a copy of an
Executive Order executed by Governor Richard D. Lamm, dated
December 21, 1979, ordering the Attorney General to intervene in
this lawsuit pursuant to C.R.S. 1973, 24-31-101(1)(a) as one in
which “the State is interested.” Intervention was granted on January

20a

30, 1980.

One must necessarily ask: Who represents the State of Colorado?
In light of the complete, unequivocable conflict in postions
heretofore emphasized between petitioners and the State of

Colorado, by and through the Attorney General, the issue must be
addressed.

I.
STANDING OF MOUNTAIN STATES TO SUE FOR ITSELF

We hold that Mountain States doe not have standing to sue in its
own right. There is no showing that the challenged EPA actions will
in anywise impair the functions and activities of Mountain States.
There is no contention that Mountain States will suffer loss of
membership, sustain financial loss or any other impairment as a
result of the actions of the EPA, whether actually taken or
threatened. Furthermore, Mountain States cannot satisfy the
standing requirement contained in § 10(a) of the Administrative
Procedure Act, 5 U.S.C. § 702:

A person suffering legal wrong because of agency
action, or adversely affected or aggrieved by agency
action within the meaning of a relevant statute, is entitled
to judicial review thereof.

We hold that Mountain States has not demonstrated that it has a
sufficient “personal stake” in the outcome of the controversy to
render itself, as an organization deeply interested in the problem, an
“aggrieved person” with a demonstrated “legal wrong” or claimed
invasion of a “legal right.” Unites States v. SCRAP, 412 U.S. 669
(1973); Sierra Club v. Morton, supra. Notwithstanding the fact
that Mountain States has advanced constitutional claims on behalf
of its officers, members, supporters, and the State of Colorado, we
conclude that Mountain States has nothing more than an indirect
stake in the action. In Sierra Club v. Morton, supra, the matter was
well articulated:

The requirement that a party seeking review must
allege facts showing that he is himself adversely affected
does not insulate executive action from judicial review,
nor does it prevent any public interests from being pro-
tected through the judicial process. It does serve as at

2la

least . rough attempt to put the decision as to whether
review will be sought in the hands of those who have a
direct stake in the outcome. That goal would be under-
mined were we to construe APA to authorize judicial
review at the behest of organizations or individuals who
seek to do no more than vindicate their own value prefer-
ences through the judicial processes.

405 U.S. at p. 740.

In Natural Res. Def. Coun., Inc. v. United States Env. P. Agcy.,
481 F.2d 116 (10th Cir. 1973), Judge Breitenstein, writing for this
Court, noted that 42 U.S.C § 1857h-5(b)(1), which was the
predecessor to § 7607(b)(1), simply provides that a petitioner
seeking review of the EPA Administrator’s action in approving or
promulgating any implementation plan under § 1857c-5 of the
Clean Air Act may do so by filing a petition in the appropriate
United States Court of Appeals, without any requirement that the
person or organization seeking review is a person “adversely
affected or aggrieved” as required under 5 U.S.C. § 702. Notwith-
standing the “blanket invitation to all the world to petition a court
of appeals for review” under § 1857h-5(b)(1), we held that a party
attacking agency action, whether it be in connection with rule
making or after an adjudicatory type hearing, must have standing,
which, under Article III, requires a showing of injury in fact
bringing the party within the zone of interests protected by the
Clean Air Act.

ll.
STANDING OF MOUNTAIN STATES TO SUE FOR
Its OFFICERS, MEMBERS AND SUPPORTERS

We turn now to the question of whether Mountain States has
standing to sue on behalf of its officers, members, and supporters
who are citizens of and reside in the “nonattainment” areas of the
State of Colorado affected by the EPA action, and those officers,
members and supporters “in the remainder” of Colorado who are
deprived of their constitutional and statutory rights.

We hold that there is nothing contained in this record showing
that the officers, members and supporters of Mountain States have
that necessary “personal stake” demonstrating injury in fact. The
only resources they may have committed or advanced are those

e*%

-%

22a

representing membership fees or tax payments, the former consti-
tuting voluntary action unassociated with issues involved here, and
the latter in a class common to all taxpayers generally. There is no
showing that their activities within the Mountain States organi-
zation have been or will be affected in any manner as a result of the
challenged EPA actions. There is nothing about the EPA action,
including the sanctions, which can be considered compulsion by
unwanted and unlawful government edict constituting injury per se
traceable to the officers, members or supporters of Mountain
States. There is no analogy here to that loss of accounts experienced
by the apple dealers in Hunt v. Washington Apple Advertising
Comm'n., 432 U.S. 333 (1977) or the inability of a builder to
undertake a program of low-cost building in an area included in
restrictive zoning ordinances, as set forth in Arlington Heights v.
Metropolitan Housing Corp., 429 U.S. 252 (1977). In terms of the
“legal wrongs” or “zones of interests” tests relative to standing to
sue, under the Administrative Procedures Act, individuals, as
officers, members and supporters of an organization, must
demonstrate that the challenged statutes and/or regulations have
some articulable “cause-and-effect” relation to an identifiable
“injury” which, in fact, affects them:

. . .Petitioners must allege facts from which it reason-

ably could be inferred that, absent the r ts

zoning practices, there is a substantial probability that

they would have been able to purchase or lease. . . and

that, if the court affords the relief requested, the asserted

inability of petitioners will be removed.

Warth v. Seldin, 422 U.S. at p. 504.

The crux of petitioners’ requested legal redress, as identified in
the Petition for Review, is an order from this Court setting aside the
actions of the Administrator of EPA on a variety of constitutional
grounds essentially targeted at the threatened “punitive sanctions
against the State of Colorado.” Significantly, the Petition states that
prior to filing said Petition, Mountain States dispatched a letter to
Governor Lamm requesting him “to direct the Attorney General to
protect the interests of the State of Colorado”; further, both
formally and informally, specific requests were made of the
Attorney General to “protect the sovereign interests of the State of
Colorado from federal government intrusion into the internal
affairs of the State” by filing the Petition for Review within the
requisite time limit, to-wit, by December 4, 1979. The Petition
states that because representatives of the Attorney General's office

23a

stated that there was no present intention to challenge the Admin-
istrator’s rulemaking order of October 5, 1979, “. . . Mountain
States Legal Foundation takes it upon itself the responsibility to file
this Petition ex relatione on behalf of the sovereign State of
Colorado. Should the Governor of the State of Colorado direct the
Attorney General to represent the state’s interest in this grave
constitutional matter, the Mountain States. ..would eagerly
welcome his involvement.” The foregoing is, in our view, an implicit
acknowledgment by petitioners that the challenges advanced by
them are, in reality, [if accepted as true based on the pleadings
contained in the Petition] challenges directly affecting the sovereign
State of Colorado. As thus cast, these challenges could only be
advanced here by the Attorney General. In fact, however, the
Attorney General, in intervention, has refused to associate the
interests of the State of Colorado with the challenges advanced by
petitioners,

In Gallagher v. Continental Insurance Company, 502 F.2d 827
(10th Cir. 1974), this Court held that a growp of citizens and
taxpayers had no standing to recover, on behalf of the State of
Colorado, alleged overpayments made in connection with a
highway project. We there said:

Plaintiffs urge that as state citizens and taxpayers they
may sue for the recovery of unlawfully disbursed funds.
Viewed in this light, the suit is a derivative action to
assert state rights. Authority to bring a suit of that nature
depends on state law. Colorado has no constitutional or
statutory authorization for maintenance of derivative
actions on behalf of the state. It has been held that absent
statutory authorization citizens and taxpayers may not
bring a derivative suit on behalf of the state. . . In some
cases courts have implied such a right. . . In Colorado,
the right would have to be implied. We agree with the
district court that it is not “the province of the federal
judiciary to fashion implied state rights of action.”
[Citations omitted].

$02 F.2d at 832.

The issue of “standing” in a case very similar to the case at bar was
before this court in Natural Res. Def. Coun., Inc., v. United States
Env. P. Agcy., supra. There, the petitioners, although not asserting
constitutional issues, did challenge the EPA Administrator's
approval of portions of implementation plans submitted under the
Clean Air Act by Colorado, New Mexico and Utah. We held that

24a

the petitioners were without standing. The petitions for review
were dismissed. We there said, in relevant part:

We believe that the question is whether the party
attacking agency action has standing, not whether the
issue itself is justiciable. . . [F]actors [to be considered]
are whether the attack on agency action is by a person
within the zone of protected interests... .

We come then to the effect of §1857h-5(b)(1). By
permitting anyone in the world to petition for review of
agency action without hindrance or limitation, Congress
attempts to authorize private attorney generals to assert
a public interest. If A

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385007_1058%3A1. Public record. Not legal advice.
