# Amicus Curiae Brief — Engine Mfrs. Assn. v. South Coast Air Quality Management Dist.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2004
- **Citation:** 541 U.S. 246

## Text

. | ees seeneed oo V.de-
/0) PILED
: AUG 29 2003

No. 02-1343

In The
Supreme Court of the Anited States

+

—

ENGINE MANUFACTURERS ASSOCIATION and
WESTERN STATES PETROLEUM ASSOCIATION,

Petitioners,
Vv.

SOUTH COAST AIR QUALITY
MANAGEMENT DISTRICT, et al.,

Respondents.

SJ

On Writ Of Certiorari To The
United States Court Of Appeals
For The Ninth Circuit

- ¢

JOINT BRIEF OF THE AMERICAN AUTOMOTIVE
LEASING ASSOCIATION AND NATIONAL
ASSOCIATION OF FLEET ADMINISTRATORS, INC.
AS AMICI CURIAE IN SUPPORT OF PETITIONERS
ENGINE MANUFACTURERS ASSOCIATION AND
WESTERN STATES PETROLEUM ASSOCIATION

¢

Kipp A. CODDINGTON, Esq.
(Counsel of Record)
ALSTON & BIRD
601 Pennsylvania Ave., N.W.
Washington, D.C. 20004-2601
(202) 756-3300

PAUL C. SMITH, Esq.
310 Mill Road
Falmouth, MA 02540
(508) 495-0129

August 29, 2003

COCKLE LAW BRIEF PRINTING CO. (800) 225-6964
OR CALL COLLECT (402) 342-2831 a

TABLE OF CONTENTS

INTERESTS OF AMICI CURIAE..............ccccccseeeeeeees
A. American Automotive Leasing Association ....
B. National Association of Fleet Administrators,

I. THE FLEET RULES ARE INCONSISTENT

A. Section 246 Is An Integral Part Of The Fed-
eral Clean-Fuel Vehicle Program That Was

C.

Intended To Prohibit Localities From Regu-
lating Fleet Vehicle Acquisition Decisions In
The Fleet Rules’ Reliance On Section 246
Is Undermined By The State Of Califor-
nia’s Decision To Opt Out Of The Section

The Fleet Rules Render Section 246

SECTION 209 EXPRESSLY PREEMPTS
STATE AND LOCAL REGULATION OF
VEHICLE ACQUISITION DECISIONS BY

SECTION 246 SEPARATELY PREEMPTS
THE FLEET RULES ON IMPLIED PRE-
EMPTION GROUNDS ..-ecssssceeccsssseeccsseseccossens

24

li

TABLE OF CONTENTS - Continued
‘Page
A. Congress Occupied The Field Of Fleet
Vehicle Acquisition Programs.................. 25

B. The Fleet Rules Undermine Federal Pol-
icy That Fleet Vehicle Acquisition Deci-
sions Be Regulated Uniformlly.................. 28

BILTON cccccecccccccccnscsssccccccvccssscessonccsecssoonsosooee 29

iii

TABLE OF AUTHORITIES
Page
CASES
Allway Taxi, Inc. v. City of New York, 340 F. Supp.

1120 (S.D.N.Y.), aff’d, 468 F.2d 624 (2d Cir. 1972)....... 21
Chisom v. Roemer, 501 U.S. 380 (1991) ................000. 18, 20
City of Burbank v. Lockheed Air Terminal, Inc., 411

| 25, 26, 27
Duncan v. Walker, 533 U.S. 167 (2001) ............000.0c0000 18, 20

Engine Manufacturers Association v. South Coast
Air Quality Management District, 158 F. Supp.
GS ae a 9,19

Engine Manufacturers Association v. South Coast
Air Quality Management District, 309 F.3d 550

| Ee & 9, 14, 17, 24
Geier v. American Honda Motor Co., 526 U.S. 861

EE ene 28
Hines v. Davidowitz, 312 U.S. 52 (1941) .............ccccccseeenees 28
Kamen v. Kemper Financial Services, Inc., 500 U.S.

Ee 24
Lorillard Tobacco Co. v. Reilly, 533 U.S. 525

Sian iesirteitenahdetindiasitata casa taateiasialtas aarmeatiaeaittieael 9, 16,18

Metro Systems Corp. v. City of New York, No. 78
Civ. 6146, 1979 U.S. Dist. LEXIS 14837 (S.D.N_Y.

aah tacieercanetiniirareatinrairaineeiemeercsreeel 21
New Jersey v. New York, 523 U.S. 767 (1998) ............. 24, 25
Ray v. Atlantic Richfield Co., 435 U.S. 151 (1978)......25, 29

Rice v. Santa Fe Elevator Corp., 331 U.S. 218

iv

TABLE OF AUTHORITIES — Continued

Page

Swan v. Peterson, 6 F.3d 1373 (9th Cir. 1993), cert.

denied, 513 U.S. 985 (1994) ...............ccescsccsessserscesees 24, 25
Wisconsin Public Intervenor v. Mortier, 501 U.S.

of 18
STATUTES |
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OL 13
42 U.S.C. § T51LlalcK4B)........ccccccceeeeseeeeeeeeees 15, 16, 17, 26
CI 16
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v

TABLE OF AUTHORITIES - Continued

Page
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Sp Ny Bet aiciirnnsnccnnaniuiiintinsinninseniammmainismnsiae sisi 10
RULES
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a 10
a 10
40 C.F.R. Part 88 Subpart C................ecccccsccossecessceeeess 10, 11
Cre ee 3
a ee Ce ccecescctnccecesnsnccscsmmenmnemmeecenonsions 17
BD OG, BR, SEG CD acececcccccnccsccscccsassncsscssncecees 4, 14, 28
I ee 16
GO Ped. Rag. 50,068 (1G06)..............20.cceccecccesersessererseeee 11, 12
ee 14

vi

TABLE OF AUTHORITIES -— Continued

Page
OTHER AUTHORITIES
Clean Fuel Fleet Program Implementation Guidance
(EPA 420-R-98-011, Aug. 1998) ............ccccccseccereeeeees 10, 14
David P. Currie, Motor Vehicle Air Pollution: State
Authority and Federal Pre-emption, 68 Mich. L.
Rev. 1083 (1970)................ sossseseneenecnssssssassncsneeneencess 22, 23
H. Rep. No. 728, 90th Cong., Ist Sess. (1967),
reprinted in 1967 U.S.C.C.A.N. 1938 ...........ccceesseeseeees 23
Hearings Before a Special Subcommittee on Air &
Water Pollution, 88th Cong., 2nd Sess. (1964)............... 27
Respondents’ Brief in Opposition to Petition for
Certiorari, No. 02-1343 (April 14, 2003)...............-...-ee+ 8
S. Rep. No. 192, 89th Cong., Ist Sess. 6 (1965)................. 22
OR Oe 18
U.S. EPA, General Counsel Opinion, “Transportation
Control Plans” (Aug. 11, 1972) ...........ccccssseessrreeeeeeeeees 21

~_—— ~~ ee oe ey eee

— ——

1

INTERESTS OF AMICI CURIAE

The American Automotive Leasing Association
(*AALA”) and the National Association of Fleet Adminis-
trators, Inc. (“NAFA”) respectfully submit this joint brief
in accordance with Supreme Court Rule 37.3.’ Amici do so
because the Court’s interpretation of the fleet rules at
issue (“Fleet Rules”) will determine whether the South
Coast Air Quality Management District (“SCAQMD”) and
hundrede of other localities may regulate fleets in a
»alkanized manner by prohibiting them from purchasing
or leasing, on a locality-by-locality basis, vehicles that may
otherwise be lawfully acquired.

A. American Automotive Leasing Association

AALA is a trade association representing the fleet
leasing and management industry. The industry owns
approximately 3,560,000 of the cars and light-duty vehi-
cles used by businesses throughout the United States.
While these vehicles are used predominantly for sales and
service functions, the range of commercial and State and
local governmental fleet usage is significant.

In contrast to the consumer car leasing business that
limits itself to offering the retail public alternative financ-
ing, AALA members provide comprehensive fleet consult-
ing and management services to commercial, non-profit,
and governmental organizations. The range of services
includes: .

' The parties consented to the filing of this brief, and copies of the
parties’ written consents have been filed with the Clerk of the Court.
This brief was not authored in any part by counsel for any party, and no
persons or entities other than amici curiae, its members, and counsel
made a monetary contribution toward the preparation or submission of
this brief.

2

(1) selecting and acquiring the most appro-
priate and cost-effective vehicle for the particular

work to be performed;

(2) assisting in operating and maintaining
those vehicles safely and economically, including
designing and implementing fueling, mainte-
nance, and safety programs, as well as ensuring
compliance with State and local registration and

operating requirements; and

(3) reclaiming, at the end of the lease, the
highest value from the vehicle through auction,
public sale, or other disposal

B. National Association of Fleet Administra-
tors, Inc.

NAFA members manage fleets of automobiles, light-
and medium-duty trucks and/or vans for organizations in
the United States and Canada. A substantial number of
NAFA members manage vehicles operating in California.
The majority of NAFA’s members manages fleets for
corporations, covering a wide range of manufacturing and
service organizations. Some members work for govern-
ments (local, State, and federal) or public service entities
(law enforcement, educational institutions, utilities, etc.),
while others serve financial institutions, insurance com-
panies, non-profit organizations, and the like. The typical
NAFA member manages a fleet of approximately 1,200
vehicles. This management responsibility spans each
vehicle’s life cycle, from acquisition to final disposition.

NAFA’s Pacific Southwest Chapter includes the fleet
managers for many of the government jurisdictions in the
South Coast area of California. NAFA’s members include
the fleet managers for many of the largest to many of the
smallest jurisdictions. NAFA’s 2,700 members collectively
are directly responsible for managing 2.7 million vehicles.

—

ee —

3

STATEMENT OF THE CASE

Amici adopt the statement of the Petitioners, except to
emphasize a few important facts the Court should consider
in reaching its final decision in this case.

The fleet industry possesses several! unique attributes
that persuaded Congress to establish, in the 1990 amend-
ments to the Clean Air Act, a federal clean-fuel vehicle
program that governed how California and other States
were to regulate fleets, if they were to be regulated at alll.
42 U.S.C. §§7401-7671q (2003). That federal program
included specific provisions that applied to certain fleets.
Congress recognized that fleets could expedite the intro-
duction of clean-fuel vehicles into the market, thereby
furthering air quality goals. Congress also understood that
those goals would be undermined if State and local gov-
ernments regulated fleets in a balkanized manner. An
appreciation of how fleets operate is thus critical to an
analysis of the Fleet Rules.’

Fleets come in many sizes and forms. Some are small
operations with just a few vehicles while others have tens
of thousands of vehicles. Some consist of a mix of vehicle
sizes (light-, medium-, and heavy-duty) while others are
uniform. Some are owned and operated by government
agencies, while others are private. Fleets may be centrally
fueled or rely upon public refueling stations. Fleets may
consist of either owned or leased vehicles. If the fleet owns

* For EPA's description of the fleet industry in the context of the
federal clean-fuel vehicle program, see generally, Clean Fuel Fleet
Credit Programs, Transportation Control Measure Exceptions, and
Related Provisions, 56 Fed. Reg. 50,196 (proposed Oct. 3, 1991) (noting
that the fleet industry “is unlike most other regulated industries
because the only common thread between [sic] members is the fact that
they own and operate fleets of vehicles.” /d.).

4

the vehicles, it typically possesses both title and registra-
tion, depending upon the nature of the vehicle’s financing.
If the fleet leases the vehicles, it typically holds registra-
tion while the lessor retains title. The fleet owner, opera-
tor, or manager may be a customer of a fleet leasing and
management firm that provides the vehicles and support
services.

The fleet leasing and management industry, which
AALA represents, and professional fleet managers, which
NAFA represents, share several characteristics that are
important here. First, fleets are mobile, not stationary,
sources. A véhicle may be in Los Angeles one day and Reno
the next.* This is particularly the case with larger fleets
that operate in interstate commerce. Because their inven-
tory is on the move, fleets face higher costs and opera-
tional difficulties if their vehicles are regulated differently
by each city in which they do business.‘ Uniformity in
regulation is particularly key with respect to vehicle
acquisition decisions, the activity which triggers the Fleet
Rules. Havoc would result if, for example, Los Angeles
compelled a fleet to acquire vehicles that operated on
compressed natural gas while Reno mandated that the
same fleet only acquire propane-fueled vehicles.

* The vehicle movement that is particularly relevant here is that
conducted by the fleet owner/operator in the management of his vehicle
stock. The operator, for example, may shift vehicles among geographic
areas in response to customer needs or business conditions. If the Fleet
Rules are upheld, local governments could regulate these intra-fleet
transfers in a conflicting manner.

* Clean Fuel Fleet Emission Standards, Conversions, and General
Provisions and Amended Heavy-Duty Averaging, Banking and Trading
Credit Accounting Regulations, 58 Fed. Reg. 32,474, 32,476 (proposed
June 10, 1993) (“the need for uniformity among state programs is very
important for fleets operating in more than one state”).

5

Second, fleets provide tangible air quality and fuel
economy benefits over general population vehicles because
fleets are managed to extract the maximum economic
value from each vehicle. Fleets generate environmental
and energy benefits in numerous ways, including:

Fleet vehicles are better maintained, on aver-
age, than general population vehicles. For eco-
nomic and other reasons, fleets ensure that
vehicles and their subsystems, such as emission
control equipment, are properly inspected and
maintained. Regular vehicle inspection and
maintenance provide numerous benefits, includ-
ing enhanced safety, improved emission perform-
ance, and better fuel economy. Properly
maintained vehicles emit less pollution and con-
sume less fuel. In contrast, general population
vehicles tend to be poorly maintained, even when
they are operated in regions of the country that
are subject to Clean Air Act requirements relat-
ing to vehicle inspection and maintenance.

Fleet vehicles are “right-sized.” Vehicle size is
an important factor in determining how much
fuel a vehicle consumes. Fleets carefully select
their vehicles to be no larger than is necessary
for the task at hand, in large measure to con-
serve fuel and thus reduce costs. In contrast, the
general population tends to acquire vehicles that
may be larger than necessary (such as sport util-
ity vehicles) or without regard to a vehicle’s fuel
economy.

Local regulations such as the Fleet Rules undermine
these benefits by creating an incentive for managed fleets
to disband in favor of driver reimbursement programs.

6

Fleets exist when the economics of vehicle acquisition,
operation, maintenance, and disposal dictate that such
decisions be made collectively in the form of a fleet. If the
economics no longer work because a local regulator tells
the fleet what vehicles to acquire, the fleet typically has
the option of reconstituting itself as a driver reimburse-
ment program. Employees in driver reimbursement
programs use their personal vehicles to conduct company
business and the company (or government agency), in
turn, reimburses its employees for work-related expenses
associated with the vehicles’ use (fuel charges, for exam-
ple). Because driver reimbursement programs rely upon
employee-provided vehicles, the environmental and energy
benefits previously provided by the managed fleet are lost.

Congress was well aware of these unique attributes of
fleets when it enacted the federal clean-fuel vehicle pro-
gram in 1990. Congress recognized that certain fleets, due
to their centralized structure and relatively high inventory
turnover, might expedite the introduction of clean-fuel
vehicles into the marketplace. That laudable environ-
mental goal would be undermined if State and local
governments imposed a patchwork of well-intentioned
local vehicle acquisition programs that made it more
economical for fleets to convert to driver reimbursement
programs.

To address that concern, Congress stipulated that if
the States were to regulate fleets’ vehicle acquisition
decisions, they could do so only by adhering to minimum
federal requirements. Congress established those re-
quirements in the Clean Air Act’s clean-fuel vehicle pro-
gram by striking a careful balance among the competing
interests of stringent federal controls, fleet autonomy, and
State implementation. The Fleet Rules disrupt that
balance.

- eee

———EEe —_—

7

SUMMARY OF ARGUMENT

Section 246 does not support enactment of the Fleet
Rules. Properly construed in the context of the entire
federal clean-fuel vehicie program in part C of title II of
the Clean Air Act, section 246 instead is a limit on State
discretion to regulate fleets. The State of California was
aware of this fact when it opted out of section 246 a decade
ago and replaced it with a non-fleet substitute program.
That opt out undercuts SCAQMD’s position that section
246 somehow supports the Fleet Rules.

Federal law makes clear that local efforts to regulate
vehicle acquisition decisions by fleets, such as the Fleet
Rules, are preempted. This conclusion follows from section
209, the Clean Air Act’s express preemption provision, the
language and legislative history of which indicate that
localities are preempted from dictating to fleets what cars
and trucks they may acquire. It also follows from section
246, a provision which separately occupies the field of fleet
vehicle acquisition programs and sets national policy that
such programs be implemented uniformly.

ARGUMENT

Petitioners have focused their attention on why the
Fleet Rules constitute preempted “standards” under
section 209(a) (42 U.S.C. § 7543(a)). Amici have lengthy
experience with the fleet program provisions under section
246 of the Clean Air Act, 42 U.S.C. § 7586, and so are
uniquely positioned to explain why the Fleet Rules are
inconsistent with and separately preempted by the Clean
Air Act’s provisions governing clean-fuel vehicles and
fleets.

8

I. THE FLEET RULES ARE INCONSISTENT
WITH SECTION 246.

The Court of Appeals adopted without comment the
District Court’s assertion that section 246 suggests con-
gressional support for local regulation of vehicle acquisi-
tion decisions by fleets:

Furthermore, [section 246] expressly recognizes

that Fleet Rules’ must be established in areas

with particularly high pollution levels, and au-
thorizes restrictions on the purchase of fleet ve-
hicles to meet clean-air standards. Specifically,
section 246 requires that “each state in which
there is located all or part of a covered area...
shall submit ... a state implementation plan re-
vision ... to establish a clean-fuel vehicle pro-
gram for fleets under this section.” Section 246
also mandates that “a specified percentage of all
new covered fleet vehicles . . . purchased by
each covered fleet operator in each covered area
shall be clean-fuel vehicles and shall use clean
alternative fuels.” It is not rational to conclude
that the CAA would authorize purchasing re-
strictions on the one hand, and prohibit them, as

a prohibited adoption of a “standard” [under sec-

tion 209], on the other.

* Although the District Court capitalized the term “Fleet Rules,” it
is unclear if the District Court was referring to SCAQMD’s Fleet Rules
or to fleet programs generally. As explained below, the Fleet Rules were
not and could not have been issued pursuant t section 246 so it would
be erroneous to conclude that the provision authorized them, as
Respondents now suggest. See Respondents’ Brief in Opposition to
Petition for Certiorari, No. 02-1343 (April 14, 2003), at 4 (“Most
significantly for purposes of the instant case, the CAA also authorizes
states to adopt clean-fuel vehicle fleet rules, which have the same effect
as the Fleet Rules in this case”) (citing section 246); id. at 16 (“Congress
not only foresaw purchase restrictions like these, it affirmatively
authorized them”) (citing section 246).

te ET cage et

9

Engine Mfrs. Ass’n v. South Coast Air Quality Mgmt. Dist.,
158 F.Supp. 2d 1107, 1118 (C.D. Cal. 2001) (internal
citations omitted); see Engine Mfrs. Ass’n v. South Coast
Air Quality Mgmt. Dist., 309 F.3d 550, 551 (9th Cir. 2002)
(adopting District Court’s reasoning).

This interpretation misconstrues section 246 by
neglecting to examine the provision in its statutory con-
text.

A. Section 246 Is An Integral Part Of The
Federal Clean-Fuel Vehicle Program That
Was Intended To Prohibit Localities From
Regulating Fleet Vehicle Acquisition De-
cisions In A Non-Uniform Manner.

Section 246 cannot be read in isolation but must be
construed in the context of the Clean Air Act. Lorillard
Tobacco Co. v. Reilly, 533 U.S. 525, 542, 549 (2001) (courts
“must give meaning to each element” of the law and are
“not at liberty to pick and choose which provisions in the
legislative scheme” they will consider). Section 246 is part
of the Clean Air Act’s clean-fuel vehicle program, a statu-
tory scheme that prohibits, not authorizes, localities from
regulating fleet vehicle acquisition decisions in a balkan-
ized manner.

Congress enacted the federal clean-fuel vehicle pro-
gram in the 1990 amendments to the Clean Air Act as part
of a new, comprehensive effort to spur the introduction of
clean-fuel vehicles into highly polluted areas around the
country, including Los Angeles. The federal program is
set forth in part C of title II of the Clean Air Act and spans
ten statutory sections: sections 241 (Definitions); 242

10

(Requirements applicable to clean-fuel vehicles); 243
(Standards for light-duty clean-fuel vehicles); 244 (Ad-
ministration and enforcement as per California stan-
dards); 245 (Standards for certain heavy-duty clean-fuel
vehicles); 246 (Centrally fueled fleets); 247 (Vehicle con-
versions); 248 (Federal agency fleets); 249 (California pilot
test program); and 250 (General provisions). 42 U.S.C.
§§ 7581-7590. Implementing regulations issued by the
U.S. Environmental Protection Agency (“EPA”) are in part
88 of title 40 of the Code of Federal Regulations.* EPA
issued separate program guidance in 1998. Clean Fuel
Fleet Program Implementation Guidance (EPA 420-R-98-
011, Aug. 1998).

This federal plan is based upon “clean-fuel vehicles,”
which Congress defined as vehicles in certain weight
classes that EPA had certified to meet specific standards.
42 U.S.C. §§ 7581(7), 7582, 7583, 7585; 40 C.F.R. Part 88
Subpart A.” Federally certified clean-fuel vehicles were to
be used in two programs: (1) a federally administered Pilot
Test Program for the State of California to demonstrate
the effectiveness of clean-fuel vehicles in controlling air
pollution (42 U.S.C. § 7589; 40 C.F.R. Part 88 Subpart B);*
and (2) a federally administered Clean Fuel Fleet Program

* See, e.g., 40 C.F.R. Part 88 Subpart A (Emission Standards for
Clean-Fuel Vehicles), Subpart B (California Pilot Test Program), and
Subpart C (Clean-Fuel Fleet Program) (2002).

’ A current list of EPA-certified clean-fuel vehicles is available at
http://www.epa.gov/otaq/cff.htm.

* The California Pilot Test Program was a federal mandate for the
production, sale and distribution of clean-fuel light-duty vehicles and
trucks to ultimate purchasers, including fleets subject to section 246. 42
U.S.C. § 7589%(cX1). The program also California to make
available clean alternative fuels for use in clean-fuel vehicles. Id.
§ 7589(cX2XA). Other States could opt into the California Pilot Test
Program under certain conditions. Id. §§ 7589(f1), (4).

11

(“CFFP”) under section 246 for certain centrelly fueled
fleets (42 U.S.C. § 7586; 40 C.F.R. Part 88 Subpart C).

The CFFP is a critical part of the federal clean-fuel
vehicle program because it provided a carefully tailored
mechanism by which “covered fleets” could be used to
spur the introduction of EPA-certified clean-fuel vehicles
into “covered areas”” that constituted many of the coun-
try’s most populated regions, including Los Angeles. 42
U.S.C. §§ 7586(a), (b). Subject to limited opt-out rights
(discussed further below), the CFFP required States

* A “covered fleet” is “10 or more motor vehicles which are owned or
operated by a single person.” 42 U.S.C. § 7581(5). Congress, and later
EPA through regulation, specified (1) how vehicle ownership or control
was to be used in the determination of a “covered fleet”; and (2) vehicle
types that were exempt, such as vehicles used for law enforcement
purposes. /d.; 40 C.F.R. § 88.302-94 (definitions of “control” and “owned
or operated, leased or otherwise controlled by such person”). A “covered
fleet vehicle” was limited to motor vehicles that (1) met EPA certifica-
tion and related standards; and (2) were in “covered fleets” that were
——. fueled or capable of being centrally fueled. 42 U.S.C.

” A “covered area” is (1) any ozone nonattainment area with a 1980
population of 250,000 or more classified as Serious, Severe or Extreme;
and (2) any carbon monoxide nonattainment area with a 1980 popula-
tion of 250,000 or more and a design value at or above 16.0 parts per
million. 42 U.S.C. § 7586(aX2). In the early 1990s, there were twenty-
two “covered areas”: (1) SCAQMD; (2) Atlanta; (3) Baltimore; (4) Baton
Rouge; (5) Beaumont-Port Arthur; (6) Boston-Lawrence-Worcester, (7)
Chicago-Gary-Lake County; (8) Denver-Boulder; (9) Paso; (10)
Greater Connecticut; (11) Houston-Galveston-Brazoria; (12) Milwaukee-
Racine; (13) New York-Northern New Jersey-Long Island; (14) Phila-
delphia-Wilmington-Trenton; (15) Providence; (16) Sacramento Metro;
(17) San Diego; (18) San Joaquin Valley; (19) Southeast Desert Modified
Air Quality Management District; (20) Springfield (Western Massachu-
setts); (21) Ventura County; and (22) Washington (District of Columbia).
Emission Standards for Clean-Fuel Vehicles and Engines, Require-
ments for Clean-Fuel Vehicle Conversions, and California Pilot Test
Program, 59 Fed. Reg. 50,042, 50,043 (Sept. 30, 1994) (to be codified at
40 C.F-.R. pt. 88).

12

(including California)" in which was locatea all or part of a
“covered area” to impose a vehicle acquisition program on
“covered fleet operators” through State Implementation
Plan (“SIP”) revisions. Id. § 7586(b); 40 C.F.R. § 88.302-94
(definition of “covered fleet operator”). The CFFP included
both light- and heavy-duty vehicles, with the latter typi-
cally equipped with diesel engines that operate on diesel
fuel. 42 U.S.C. § 7586(b).

The States’ section 246 SIPs had to satisfy numerous
prescriptive requirements that were spelled out in the
Clean Air Act, federal regulations, and EPA’s guidance
document for the fleet program.“ For example, the SIPs
had to: -

¢ be implemented by the State, not localities
such as SCAQMD, through the SIP revision
process (42 U.S.C. § 7586(a)(1));

*¢ be vehicle- and fuel-neutral by stipulating
that the “choice of clean-fuel vehicles and
clean alternative fuels shall be made by the
covered fleet operator” (Id. at § 7586(d));

" Six of the original twenty-two “covered areas” were in California.
59 Fed. Reg. supra at 50,043. In addition to California, the twenty-two
“covered areas” fell within the following States: (1) Georgia; (2) Mary-
land; (3) Louisiana; (4) Texas; (5) Massachusetts; (6) New Hampshire;
(7) Illinois; (8) Indiana; (9) Colorado; (10) Connecticut; (11) Wisconsin;
(12) New Jersey; (13) New York; (14) Delaware; (15) Pennsylvania; (16)
Rhode Island; (17) Virginia; and (18) the District of Columbia. Jd.

* Not all aspects of the CFFP were to be implemented through
SIPs. Some requirements, such as labels for heavy-duty clean-fuel
vehicles, were directly imposed on the States by EPA. 40 C.FR.
§ 88.305-94. Congress also directed EPA to issue regulations to “ensure
that certain transportation control measures including time-of-day or
day-of-week restrictions, and other similar measures that restrict
vehicle usage, do not apply to any clean-fuel vehicle that meets the
requirements of this section.” 42 U.S.C. § 7586(h); 40 C.F.R. § 88.307-

ee moe ee —_——~

° provide maximums flexibility to fleet eperators
by, for example, “taking into consideration
operational range, specialty uses, vehicle and
fuel availability, costs, safety, resale value of
vehicles and equipment and other relevant
factors” (Id. at § 7586(a)\4));

* take “all measures necessary” to make the
program “economic from the standpoint of
vehicle owners” (Id. at § 7511a(cX4XA));

¢ require fuel providers “to make clean alterna-
tive fuel available to covered fleet operators
at locations at which covered fleet vehicles
are centrally fueled” (Jd. at § 7586(e));

* include a credit program for fleet operators
(Id. at § 7586(f); 40 C.F.R. § 88.304-94);

¢ allow covered fleet operators to satisfy regu-
latory requirements through vehicle conver-
— “¥ U.S.C. § 7587; 40 C.F.R. § 88.306-

; an

* Congress defined “clean alternative fuel,” in part, as “any fuel
(including methanol, ethanol, or other alcohols (including any mixture
thereof containing 85 percent or more by volume of such alcohol with
gasoline or other fuels), reformulated gasoline, diesel, natural gas,
nae ND On, call etn & pane come Cndains
i * 42 U.S.C. §7581(2)

14

* sa percen vehicle acquisition re-
—_ > year (42 U.S.C.
§ 7586(b))."*

In a few instances, EPA granted the States discretion
to implement the federal program in a manner to meet
local needs. For example, EPA allowed the States to grant
compliance exemptions in situations where the fleet
operator was unable to acquire the necessary vehicles.
These limited grants of federal discretion did not touch
upon core-program considerations, such as vehicle- and
fuel-neutrality, that were dictated by federal law. EPA
viewed the limited amount of State flexibility under the
federal scheme as important but necessarily narrow in
scopé.”

Against the backdrop of part C of title II of the Clean
Air Act, section 246 cannot logically be read to reflect
congressional support for the Fleet Rules. Engine Mfrs.
Ass’n, 309 F.3d at 551. For example, section 246 is inextri-
cably linked to federal “clean-fuel vehicles.” The Fleet
Rules have nothing to do with “clean-fuel vehicles.” 42
U.S.C. § 7581(7).

In the State of California, section 246 is also tied to
the California Pilot Test Program under section 249, a

“ The CFFP was supposed to begin in model year 1998. 42 U.S.C.
§ 7586(b). EPA subsequently delayed the implementation date to model
year 1999 due to vehicle availability issues. Clean Fuel Fleet Programs,
63 Fed. Reg. 20,103 (April 23, 1998) (to be codified at 40 C.F.R. pt. 88).

“ See Clean Fuel Fleet Program Implementation Guidance, at 4
(EPA 420-R-98-011, Aug. 1998) (“EPA's interpretation allowing this
narrow and limited use of state discretion with regard to compliance
_ exemptions is applicable to only Section 246(aX4)”); 58 Fed. Reg. supra

at 32,476 (“after careful consideration of ... relevant CAA provisions,
EPA agreee with the concerned parties that regulations governing key
program definitions are necessary for the effective and efficient

implementation of the fleet program”).

a

———

15

—_—.

separate initiative to provide California fleets with suffi-
cient quantities of clean-fuel vehicles, including certified
cars and trucks operating on diesel fuel. 42 U.S.C. § 7589.
By limiting vehicle choice through prohibitions on the
acquisition of diesel vehicles, Fleet Rules flatly contradict
the purpose of section 249. ~

Even if section 246 could rationally be read out of
context from part C of title II of the Clean Air Act, Re-
spondents have conveniently avoided the many require-
ments of section 246 that the Fleet Rules contradict, most
notably the provision’s requirement that fleet programs be
vehicle- and fuel-neutral. It is true that Congress author-
ized fleet programs in section 246. Congress did so, how-
ever, in a prescriptive manner that stipulates in almost
excruciating detail how the States and specific localities
within those States, including the SCAQMD, could regu-
late fleet vehicle acquisition decisions. Read in full, section
246 is a limit on local fleet regulation rather than a grant
of unfettered regulatory authority to the SCAQMD.

B. The Fleet Rules’ Reliance On Section 246
Is Undermined By The State Of Califor-
nia’s Decision To Opt Out Of The Section
246 Fleet Program.

The Clean Air Act gave the States, including Califor-
nia, the right to opt out of the CFFP and replace it with a
substitute program, subject to federal approval. 42 U.S.C.
§ 75lla(cX4XB). In addition to being contingent upon
federal approval, substitute programs had to meet a two-
prong test. First, they had to consist “exclusively of provi-
sions other than those required under this chapter for the
area”; and second, they had to achieve, in EPA’s judgment,
emission reductions equivalent to those that would have
been generated by the federal clean-fuel vehicle program.
Id. Bece~se the CFFP program was separately required to

16

be implemented in the SCAQMD, th> first prong of this
two-part test prohibited California from electing, as a
substitute for the CFFP, a fleet program such as the Fleet
Rules that failed to conform to the federal scheme.”

California exercised its opt-out rights and thus never
submitted a CFFP SIP under section 246.” California
elected to use its Low Emission Vehicle (“LEV”) regula-
tions as the substitute program. The LEV program was an
acceptable substitute because it satisfied the opt-out
provision’s two-prong test. Jd. In particular, the LEV
program was not otherwise required to be implemented
in California under the Clean Air Act. Id.

This history casts the SCAQMD’s reliance on section
246 in this case in an entirely different light. Congress did
not merely, as Respondents suggest, authorize the States

“ The opt-out provision appears in the section of the Clean Air Act
dealing with general SIP requirements. 42 U.S.C. §§ 7511a(cX4\B), (d),
(e). The provision indicates that States may opt out of “all or a portion
of the clean-fuel vehicle program prescribed under part C of subchapter
II” which includes the California Pilot Test Program and the CFFP. 42
U.S.C. § 751la(cX4XB). The “portion of” language should not be
construed to allow States to dismantle the carefully prescribed federal
fleet program in section 246 by selectively implementing only those
elements that appeal to them. The opt-out provision does not refer to
“all or a portion of the clean-fuel fleet program in section 246,” and
given the numerous restrictions that Congress built into the section 246
program, it would be irrational to interpret the opt-out authority to
allow that outcome. Lorillard Tobacco Co., 533 U.S. at 542. In any
event, when California sought federal approval of its decision to opt out
faite SS, Oe Oe Ee aa on ie
entire provision, not a portion of it. It thus is too i
SCAQMD to claim that the opt-out provision somehow authorizes its
Fleet Rules.

" Conditional Approval of California’s Substitute Program for the
Clean-Fuel Fleet Program, 58 Fed. Reg. 62,532 (Nov. 29, 1993) (to be
codified at 40 C.F.R. pt. 52).

17

to regulate fleets in an open-ended manner (Engine Mfrs.
Ass'n, 309 F.3d at 551). Congress instead gave the States a
choice — either regulate fleets in the manner prescribed by
section 246, or implement a substitute program consistent
with the restrictions provided by the Clean Air Act’s opt-
out provision. 42 U.S.C. § 751la(c\4\B). California chose
the latter course a decade ago when it pledged to EPA that
the State would implement its LEV regulations in lieu of
section 246." The Fleet Rules are not part of the LEV
program and SCAQMD was, and is, bound by California’s
choice. Given that background, SCAQMD’s reliance on
section 246 to defend its Fleet Rules is ironic.

In upholding the Fleet Rules, the Court of Appeals
effectively allowed California to negate its opt-out com-
mitment to EPA. The Clean Air Act does not authorize the
States, let alone localities such as the SCAQMD that are
regulated under section 246, to change their opt-out
decision without federal oversight. Because they are the
product of a unilateral decision by a locality that circum-
vents the federal approval process for substitute programs
that Congress established for fleet vehicle acquisition
programs under section 246, the Fleet Rules are unauthor-
ized under, not supported by, the Clean Air Act.

C. The Fleet Rules Render Section 246
Meaningless.

Respondents’ interpretation of section 246 is errone-
ous because it would allow localities (including the

” When it sought EPA approval of the LEV program as a substi-
tute for the CFFP under section 246, California even discussed how its
decision would impact the SCAQMD. Conditional Approval of Califor-
nia’s Substitute Program for the Clean-Fuel Fleet Program, 58 Fed.
Reg. 27,253, 27,255 (proposed May 7, 1993).

18

SCAQMD) that were specifically regulated under that
provision to implement a fleet program that ceuflicts with
section 246. That outcome renders the provision meaning-
less. Duncan v. Walker, 533 U.S. 167, 173 (2001).

Surely if Congress had intended to allow the
SCAQMD to regulate fleets in a manner that conflicts with
section 246, Congress would have said so explicitly be-
cause such a result would have marked a striking depar-
ture from the carefully crafted federal clean-fuel vehicle
scheme under part C of title II of the Clean Air Act. The
failure of Congress, either in statutory language or legisla-
tive history, to say anything in support of local enactment
of rogue fleet programs such as the Fleet Rules reveals
Respondents’ interpretation of section 246 to be flawed.
Chisom v. Roemer, 501 U.S. 380, 396 (1991).

Il. SECTION 209 EXPRESSLY PREEMPTS
STATE AND LOCAL REGULATION OF VEHI-
CLE ACQUISITION DECISIONS BY FLEETS.

The Fleet Rules must satisfy the Supremacy Clause of
the United States Constitution, which commands that
Federal laws “shall be the supreme Law of the Land; ...
any Thing in the Constitution or Laws of any State to the
Contrary notwithstanding.” U.S. Const., art. VI, cl. 2.
Federal preemption may be either express or implied
(Lorillard Tobacco Co., 533 U.S. at 540-541), and local
ordinances are analyzed the same as state laws (Wisconsin
Pub. Intervenor v. Mortier, 501 U.S. 597, 605 (1991)).
When assessing whether a local enactment is preempted,
the courts are “not at liberty to pick and choose which
provisions in the [federal] legislative scheme” they will
consider, but instead must examine the-federal law as a
whole. Lorillard Tobacco Co., 533 U.S. at 549.

Two subsections of section 209, the relevant express
preemption provision, are at issue here:

~ a —

19

(a) No State or any political subdivision thereof
shall adopt or attempt to enforce any standard
relating to the control of emissions from new mo-
tor vehicles or new motor vehicle engines subject
to this part. No State shall require certification,
inspection, or any other approval relating to the
control of emissions from any new motor vehicle
or new motor vehicle engine as condition prece-
dent to the initial retail sale, titling (if any), or
registration of such motor vehicle, motor vehicle
engine, or equipment...

(d) Nothing in this part shall preclude or deny
to any State or political subdivision thereof the
right otherwise to control, regulate, or restrict
the use, operation, or movement of registered or
licensed motor vehicles.

42 U.S.C. § 7543(a), (d).

Faced with these provisions, the District Court only
analyzed the first sentence of subsection (a) and concluded
that it merely preempts local “standards” that have an
impact on auto manufacturers. “Where a state regulation
does not compel manufacturers to meet a new emissions
limit, but rather affects the purchase of vehicles, as the
Fleet Rules do, that regulation is not a standard” that is
preempted under section 209. Engine Mfrs. Ass’n, 158
F. Supp. 2d at 1118. The District Court effectively rewrote
the first sentence of section 209(a) to read: “No State or
any political subdivision thereof shall adopt or attempt to
enforce any standard (i) relating to the control of emis-
sions from new motor vehicles or new motor vehicle
engines subject to this part and (ii) imposing a burden
on manufacturers of the same” (emphasis added). This

20

judicial rewrite of section 209 was also adopted by the
Court of Appeals.

The lower courts erred in grafting a “manufacturer-
protection” limit onto the first sentence of section 209(a).
First and foremost, that is not what the sentence says. The
focus of that sentence is on State and local requirements
without regard to the entity that is regulated. It expressly
preempts State and local actions that constitute “stan-
dard[s] relating to the control of emissions” from new
motor vehicles or engines that are “subject to this part.”
The term “manufacturer” appears nowhere in section 209,
let alone the first sentence. Congress provided a definition
of “manufacturer” in section 216 (42 U.S.C. § 7550(1)) and
indicated the provisions of title II to which that definition
applied (sections 202, 203, 206, 207, and 208), notably
excluding section 209. If Congress had intended the term
“manufacturer” to be included or otherwise read into
section 209, it presumably would have said so. Chisom,
501 U.S. at 396.

Reading section 209(a) narrowly to limit federal
preemption to local regulations that impact manufacturers
alone also places the subsection at odds with the remain-
der of the provision. Section 209(d), for example, preserves
the authority of State and local governments to regulate
the “use, operation, or movement” of registered or licensed
motor vehicles. Regulations pertaining to the “use, opera-
tion, and movement” of motor vehicles impose burdens on
vehicle purchasers, owners, and lessors, not manufactur-
ers. If section 209(a) is limited to regulations that only
burden manufacturers, section 209(d) is rendered null.
Duncan, 533 U.S. at 173-174. Section 209(d) only has
meaning if section 209(a) preempts local regulations such
as the Fleets that prohibit vehicle users from purchasing

7ase2- °°

- o- ee

21

or leasing vehicles that may otherwise be lawfully re-
quired.”

The legislative history confirms that Congress in-
tended vehicle users such as fleets to fall within the scope
of section 209. Section 209 has its roots in the 1965 Na-
tional Emission Standards Act, which authorized the
federal Department of Health & Human Services to set
national emission standards for new motor vehicles. The
1965 law was passed in response to efforts by California
and other States to regulate new motor vehicle emissions.

“ This interpretation of section 209(d) is consistent with the
reasoning of Metro Systems Corp. v. City of New York, No. 78 Civ. 6146,
1979 U.S. Dist. LEXIS 14837 (S.D.N.Y. Jan. 26, 1979) and Allway Taxi,
Inc. v. City of New York, 340 F. Supp. 1120 (S.D.N.Y.), aff’d, 468 F.2d
624 (2d Cir. 1972), two cases which upheld municipal taxi ordinances
that required vehicles to meet certain air pollution standards. The
Metro Systems court noted that the challenged regulations “only [took]
effect subsequent to and apart from the initial, all-encompassing
licensing scheme of the State of New York.” 1979 U.S. Dist. LEXIS
14837, at *14. Likewise, the Allway Taxi court cautioned that the
imposition of State emission standards immediately after a new car is
acquired and registered “would be an obvious circumvention of the
Clean Air Act and would defeat the Congressional purpose” behind
section 209. Allway Taxi, 340 F. Supp. at 1124. Metro Systems and
Allway Taxi support the uncontested proposition that section 209 does
not prohibit States from imposing certain in-use requirements on motor
vehicles at some point after the new vehicle is originally sold or leased
to the user.

In a legal opinion issued in 1972, just a few years after section 209
was enacted, EPA’s General Counsel similarly concluded that a State
vehicle regulation would only survive preemption if “a reasonable
time following initial retail sale (e.g., one year after such sale or
upon second sale, second titling, or second registration)” had passed
before the regulation took effect. U.S. EPA, General Counsel Opinion,
“Transportation Control Plans” (Aug. 11, 1972) (emphasis added). The
Fleet Rules, which prohibit fleets from acquiring new vehicles in the
first instance, do not pass this test of reasonableness.

22

When considering the 1965 law, the Senate Commit-
tee on Public Works stated that “it would be more desir-
able to have national standards rather than for each State
to have a variation in standards and requirements which
could result in chaos insofar as manufacturers, dealers,
and users are concerned.” S. Rep. No. 89-192, at 6 (1965)
(emphasis added). The Committee offered the hope that
“individual States will accept national standards rather
than additionally impose restrictions which might cause
undue and unnecessary expense to the user.” Jd. at 8
(emphasis added). Although the 1965 Act did not contain a
preemption provision, it also did not contain an express
authorization for California to continue down the path of a
separate regulatory scheme. See David P. Currie, Motor
Vehicle Air Pollution: State Authority and Federal Pre-
emption, 68 Mich. L. Rev. 1083, 1087 (1970) (hereinafter
“Motor Vehicle Air Pollution”) (“Although the pre-emption
provision was not enacted until 1967, the 1965 history is
pertinent, since several individuals indicated concern at
that time with the pre-emption problem”).

Between 1965 and 1967, several States continued to
enact legislation related to vehicle emissions. Congress
responded to these efforts by enacting the 1967 Air Quality
Act. The 1967 Act included the identical language that
appears in sections 209(a) and (d) today (then sections
208(a) and (c)). The preemption language emerged follow-
ing hearings by a subcommittee of the Senate Public
Works Committee that dealt with the “automotive problem
alone.” Motor Vehicle Air Pollution, at 1089. Because the
hearings focused on vehicle manufacturers, it is little
surprise that the legislative history reflects an emphasis
on their concerns.

Manufacturers were not Congress’ exclusive concern
in 1967 when it enacted the relevant provisions of section
209, however. Congress enacted section 209(d) (then
section 208(c)) at the same time, a provision which, as

23

explained above, affects vehicle users such as fleets, not
manufacturers. Congress intended both vehicle users and
manufacturers to fall within the scope of section 209. See
H. Rep. No. 90-728 (1967), reprinted in 1967 U.S.C.C.ALN.
1938, 1955-56 (noting that federal preemption is necessary
to preclude “chaos” to vehicle users).”

The legislative history thus does not support an
interpretation of section 209 that somehow limits that
provision’s reach to matters involving manufacturers.
Congress specifically and repeatedly referred to vehicle
“users,” a class of persons that implicitly if not explicitly
excludes manufacturers. Because fleets “use” vehicles, it is
clear that Congress intended section 209 to cover fleets as
well.

The legislative record takes on added significance here
because local, not State, regulation is involved. Congress
plainly was worried that vehicle users such as fleets would
face different and costly standards if the scope of federal
and State responsibilities was not carefully defined. Surely
if Congress was worried about conflicting vehicle user

* Upon review of these and other legislative materials, a member
poe Illinois Air Pollution Control Board wrote that section 209 was
e +

to protect the manufacturer against having to build engines
which would comply with a multiplicity of standards (Sena-
tor Muskie); to protect the vehicle owner from having
to deal with different standards in each state in
which he drives (Senator Muskie); to avoid the unneces-
sary duplication of federal standards ((HEW Deputy] Un-
dersecretary Coston); to avoid “unnecessary expense” to
the owner (the Senate Public Works Committee); and gen-
erally to avoid “chaos” and “confusion” (Thomas Mann [of
the AMA], Undersecretary Coston, and the Senate Public
Works Committee).

Motor Vehicle Air Pollution, at 1090-91 (emphasis added).

24

requirements at the State level, it also was worried about
conflicting requirements at the local level. Against that
record, it strains credibility to believe that the Fleet Rules,
which allow a local government to dictate to fleets what
vehicles they may acquire, are somehow consistent with
the legislative history of section 209.

III. SECTION 246 SEPARATELY PREEMPTS THE
FLEET RULES ON IMPLIED PREEMPTION

GROUNDS.

In a one-sentence footnote, the Court of Appeals
declined to consider whether section 246 separately
preempts the Fleet Rules on implied preemption grounds,
considerations that amici raised in their brief below.
Engine Mfrs. Ass’n, 309 F.3d at 551 n.1. The Court of
Appeals did so in reliance on Swan v. Peterson, 6 F.3d
1373, 1383 (9th Cir. 1993), cert. denied, 513 U.S. 985
(1994) for the proposition that courts generally will not
consider arguments raised on appeal only by amici.

The Court of Appeals erred in declining to consider
amici’s implied preemption arguments. “When an issue or
claim is properly before the court, the court is not limited
to the particular legal theories advanced by the parties,
but rather retains the independent power to identify and
apply the proper construction of governing law.” Kamen v.
Kemper Fin. Servs., Inc., 500 U.S. 90, 99 (1991). The
meaning and application of section 246 are at issue in this
case, and thus amici’s arguments (1) were properly before
the Court of Appeals, and (2) are properly before the Court.”

* Amici’s position is unlike that of amici in New Jersey v. New
York, 523 U.S. 767, 781 n.3 (1998) There, amici took positions that the
party which they were supporting had essentially renounced. Petition-
ers here have not renounced amici’s interpretation of section 246.

(Continued on following page)

25

The District Court discussed the relationship between
section 209 and 246 when assessing whether the Fleet
Rules were preempted. Respondents similarly seek to
justify the Fleet Rules on the theory that section 246
limits the scope of express preemption under section 209.
See note 5, supra. Amici thus are not raising novel claims
that are tangential to the Court’s resolution of whether
section 209, alone or in conjunction with section 246,
preempts the Fleet Rules. Amici instead seek to bring to
the Court’s attention legal claims that are intimately
related to those already at issue — namely, that section 246
does not limit express preemption under section 209, but
instead separately and independently preempts the Fleet
Rules on implied preemption grounds.

A. Congress Occupied The Field Of Fleet Ve-
hicle Acquisition Programs.

A State or local law is preempted if the “scheme of
federal regulation [is] so pervasive as to make reasonable
the inference that Congress left no room for the States to
supplement it.” Ray v. Atlantic Richfield Co., 435 U.S. 151,
157 (1978) (quoting Rice v. Santa Fe Elevator Corp., 331
U.S. 218, 230 (1947)); accord City of Burbank v. Lockheed
Air Terminal, Inc., 411 U.S. 624, 633 (1973). The analysis
turns on the “peculiarities and special features of the
federal regulatory scheme in question.” City of Burbank,
411 U.S. at 638. Even if the local control is “deep-seated in

26

the police power of the States,” it is preempted in the face
of a pervasive federal scheme. Jd.

The pervasive nature of the federal clean-fuel vehicle
program (including section 246) reveals a congressional
intent to occupy the field of fleet vehicle acquisition
programs of the type at issue here. In section 246, for
example, Congress specified, in part: (1) the geographic
locations where fleets were to be regulated (specifically
including the SCAQMD); (2) the type and size of fleets
that were to be regulated; (3) the type and quantities of
vehicles those fleets were to acquire; and (4) the type of
fuels, including diesel, that would qualify for the program.
42 U.S.C. § 7586. For States such as California that
elected to opt out of the section 246 program, Congress
carefully limited that choice by (1) subjecting the State’s
opt-out decision to federal approval, and (2) prohibiting
local enactment of rogue fleet programs as a substitute for
section 246. Id. § 751la(c\4\B).

The Fleet Rules intrude upon and contradict this
pervasive federal scheme. They are not authorized under
section 246 and conflict with the provision’s procedural
and substantive requirements. They are not part of the
LEV program, California’s EPA-approved substitute for
the section 246 program. They were never reviewed or
approved by EPA, contrary to the congressional require-
ment that all section 246 substitute programs be approved
by federal authorities.

It is too late in the day for Respondents to defend the
Fleet Rules on the theory that they are shielded from field
preemption because they are based upon California's
police powers or SCAQMD’s pioneering role in air pollu-
tion matters. Amici do not question the leading role that
California and SCAQMD have played in air quality issues
over the years. However, that history is irrelevant here in
light of the fact that Congress occupied the field of fleet

27

vehicle acquisition programs no later than 1990, when
section 246 and the other provisions of the federal clean-
fuel vehicle program became law.” Additionally, this case
deals with mobile sources, an area where the federal
interest dominates over State and local concerns. City of
Burbank, 411 U.S. at 639.”

The fact that Congress occupied the field of fleet
vehicles acquisition programs no later than 1990 is consis-
tent with the continuing expansion of federal power over
local air quality matters. With each subsequent amend-
ment of the Clean Air Act, for example, Congress advanced
further into State and local matters.“ That accretion of
federal power largely explains why the Clean Air Act has
become the most complex environmental law ever enacted.

a
Any pre-1990 State of California legislation that purports to
cutherize the Fiest Rules would ttesif be preemypted.

* Similarly, in congressional testimony in 1964, Warren Dorn of
the Air Pollution Control Board, Los Angeles County Board of Supervi-
sors, revealed that he wrote to the President of the United States to
argue for greater Federal oversight of mobile sources because “neither
the county of Los Angeles nor any other agency of local government has
the legal authority” to adequately address air pollution from mobile
sources. Hearings Before a Special Subcommittee on Air & Water
Pollution, 88th Cong., at 23 (1964). This statement by a key local

28

Against that backdrop, the Court should treat with skepti-
cism Respondents’ claims that there is something inher-
ently “local” about fleet programs that places them outside
the realm of federal control.

B. The Fleet Rules Undermine Federal Pol-
icy That Fleet Vehicle Acquisition Deci-
sions Be Regulated Uniformly.

A local enactment is preempted if it conflicts with the
federal scheme. Geier v. American Honda Motor Co., 529
U.S. 861, 869-74 (2000). Conflict preemption exists when a
local ordinance “stands as an obstacle to the accomplish-
ment and execution of the full purposes and objectives of
Congress.” Hines v. Davidowitz, 312 U.S. od (1941).
Co in establishing the section program
ae io: i fleets were regulated uniformly
throughout the country.”

The Fleet Rules, which stand for spe ape oo
local governments are free to regulate vehicle acquisiti
decisions by fleets in a manner that conflicts with the
federal scheme, undermine that purpose. Indeed, under
Respondents’ interpretation of the Clean Air Act, cities
throughout the United States could regulate the same
fleet differently, a situation that would lead to untenable
results and contravene the careful policy choices regarding
fleets that Congress set forth in part C of title II of the
Clean Air Act.

The Court has not hesitated to strike down local
enactments that “aim[] precisely at the same ends” as the

Provisions and Amended Heavy-Duty Averaging, Banking and Trading
Credit Accounting Regulations, 58 Fed. Reg. 32,474 (proposed June 10,
1993).

29 7

relevant federal law. Ray, 435 U.S. at 165. Here, both
Congress and SCAQMD seek to spur the introduction of
cleaner-burning vehicles by imposing vehicle acquisition
requirements on fleets. SCAQMD does so, however, in a
manner that “[rjefuse[s] to accept the federal judgment”
about how that task was to be accomplished. Jd. In Ray,
the Court was troubled by the fact that the State of Wash-
ington sought to exclude from Puget Sound vessels that
the federal government had otherwise certified for that
use, and thus found those and related aspects of the State
law to be preempted. Jd. Similarly here, the SCAQMD (1)
prohibits fleets from acquiring vehicles that meet all other
applicable federal standards, and (2) regulates fleets in a
manner that violates section 246. Because the Fleet Rules
thus conflict with the approach for fleet regulation set
forth by Congress, they are preempted.

CONCLUSION

The decision of the Court of Appeals should be re-
versed because the Fleet Rules are expressly preempted by
section 209, a provision that shields fleets from local
regulation of their vehicle acquisition decisions. Nothing
in section 246 limits the scope of federal preemption of the
Fleet Rules or supports their enactment. The Fleet Rules
instead violate section 246’s prescriptive procedural and
substantive requirements.

Alternatively, the decision of the Court of Appeals
should be remanded to address why section 246 separately
preempts the Fleet Rules on implied preemption grounds.
In enacting section 246, Congress occupied the field of
vehicle acquisition programs for fleets. The Fleet Rules

30

intrude upon that domain and frustrate federal policy that
fleets be regulated uniformly, if at all.

Respectfully submitted,

Kipp A. CODDINGTON, Esq.
(Counsel of Record)
ALSTON & BIRD |
601 Pennsylvania Ave., N.W.
Washington, D.C. 20004-2601
(202) 756-3300

PAuL C. SMITH, Esq.
310 Mill Road

Falmouth, MA 02540
(508) 495-0129

Counsel for Amici Curiae
August 29, 2003

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385014_0643%3A13. Public record. Not legal advice.
