# Opposition Brief — City of New York v. Metropolitan Taxicab Board of Trade

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 2011
- **Citation:** 562 U.S. 1264

## Text

| : I Sun.eme ¢ ‘oun, 0S.
| i FILED

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1 No. H-618

jn The
Supreme Court of the United States

CITY OF NEW YORK, et al.,

Petitioners,

METROPOLITAN TAXICAB
BOARD OF TRADE, et a/.,

Respondents

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

a ——___—— ¢@ —_-

BRIEF IN OPPOSITION

RICHARD D. EMERY
Counsel of Record
EMERY CELLI BRINCKERHOFF
& ABADY LLP
ELIZABETH S. SAYLOR
75 Rockefeller Plaza, 20th FI
New York, New York 10019
(212) 763-5000
remery@ecbalaw.com

Counsel for Respordents
January 24, 2011

COCKLE LAW BRIEF PRINTING CO (800) 225 64964
OR CALL COLLECT (402) 342.2831

QUESTION PRESENTED

Did the Second Circuit err when it affirmed a
preliminary injunction, holding that the preemption
provision of the Energy Policy and Conservation Act
likely prohibited adoption of taxi fleet vehicle rules
which were indistinguishable in purpose and effect
from predecessor regulations that petitioners con-
ceded were preempted under that statute — and which
the district court determined, after an evidentiary
hearing, imposed a “de facto mandate” that was
“essentially a command to taxicab owners to meet [a]
higher mpg standard”?

CORPORATE DISCLOSURE STATEMENT
PURSUANT TO SUPREME COURT RULE 29.6

Respondents Metropolitan Taxicab Board of
Trade, Midtown Car Leasing Corp., Bath Cap. Corp,
Ronart Leasing Corp., Geid Cab Corp., Linden
Maintenance Corp., and Ann Taxi Inc. do not have
parent corporations and there is no publicly held

company that owns 10% or more of their stock.

il]

TABLE OF CONTENTS

Page
UIE BODEN BoE F S0E) osc evsesvccesendeccccsvencsecsagnnens i
CORPORATE DISCLOSURE STATEMENT PUR-
SUANT TO SUPREME COURT RULE 29.6 ...... il
py OR a ayy tg yt > ne nee Vv
Py BP ee BEG VU IRIY LOI ov iesinviccresivrnccnscessyeccresseseane I
SEAL EMEINE OF TEI: CASE.........cccccscscocssessccnvnses ]
iy: 5 Se a cok neat a vanbalatsiaes ss easel ten 1
B. The Enjoined and Rescinded First Vehicle
sd sc ak ons ccignieds yadda van sacee. sesretaeeaaanaiere 4
i, Re UNIS FOI sv viciicik cies desnseecccesccevecees 5
D. The Second Preliminary Injunction Motion .... 8
E. The District Court’s Ruling ................0........2.. 9
F. The Second Circuit’s Ruling ........................... 12
REASONS FOR DENYING THE PETITION ....... 14

I THE SECOND CIRCUIT'S INTERPRE-
TATION OF EPCA’S PREEMPTION PRO-
VISION IS CORRECT AND DOES NOT
CONFLICT WITH THE DECISION OF
PAE SF Te ARTE wi vey sexstcciashrresnnetes 16

A. The Decision Is Fully Consistent With
Governing Law and Does Not Even
Colorably Conflict With The Decision
OE Pee CUO GANAIE os i coocesisecsicorscecrcess a

B. The Second Circuit Correctly Decided
The Preemption Question This Case
PROCURITY PPOGOTIAG o..0a cen decccscecscescscwneeysses 21

IT]

TABLE OF CONTENTS — Continued

Page

THIS IS NOT A REMOTELY APPROPRI-

ATE CASE TO SETTLE GENERAL

RULES CONCERNING EPCA PREEMP-
SIR Tts ls ecaitccs dusted pbadsuatseqecbesaiaevatesceoes taaneehs
THERE IS NO URGENT NEED FOR
THIS COURT'S “IMMEDIATE INTER-
TED seccdcincssesns

CONCLUSION ...

30

34
38

TABLE OF AUTHORITIES

Page
FEDERAL CASES
Aetna Life Ins. Co. of Hartford, Conn. v. Ha-
WOOFER, DOS U.S. B27 (1GST) nceccesccsccsescrsevorsescseccreseoncte
Am. Auto. Mfrs. Ass’n v. Cahill, 152 F.3d 196
Ge Rt RI aatebtnesncroryerte ere ANE AP erin mime eronrnpe eee 32

Associated Builders & Contractors v. Mich.
Dep't of Labor & Econ. Growth, 543 F.3d 275
ee se eee eS EO 19

Association of Taxicab Operators, USA v. City
of Dallas, No. 3:10-CV-769-K, 2010 WL

5584449 (N.D. Tex. Aug. 30, 2010)..................c00000 0
Bilski v. Kappos, 130 S. Ct. 3218 (2010) .......0..ccccc00.. 27

Jal. Div. of Labor Standards Enforcement v.
Dillingham Constr, N.A., Inc., 519 U.S. 316

Pf RE Rat emp rette Ore ae nae REET 13, 14, 18
Chevron U.S.A. Inc. v. Natural Res. Def. Coun-

CBR TI, BE CE TR Ce ecacacacccnscctccesecesescccccccnss 24
Cohens v. Virginia, 19 U.S. 264 (1821)..........00.00000... 22

Ctr. for Auto Safety v. Thomas, 847 F.2d 843
(D.C. Cir. 1988), vacated on other grounds,

Oe ee ee CR, GE, BO io niicccdnacessecsssencsencessses 25
Dist. of Columbia v. Greater Wash. Bd. of
EPS, GO US. TZ CAGED viv vesicévcdevaicsevsiecnnssivavsxces 19

Engine Manufacturers Ass'n v. South Coast Air
Quality Management District, 541 U.S. 246
SET iincchvenurduiatenlinteasevesatanuaccmedumuusecunteceutderan passim

Vi

TABLE OF AUTHORITIES — Continued

Page
Engine Mfrs. Ass’n v. U.S. EPA, 88 F.3d 1075
A UR ——__ERIRRRIDS NE a Cer eng Pe On OD 29
FMC Corp. v. Holliday, 498 U.S. 52 (1990)............... 26
Food and Drug Admin. v. Brown & Williamson
Tobacco Corp., 529 U.S. 120 (2000).................0... 27
Gade v. Natl Solid Wastes Mgm’t Ass'n, 505
RP ee SE MeN crehonaccnaccavencsvsvscincnesessensenesoust aapeeacnca
Geter v. Am. Honda Motor Co., Inc., 529 U.S
Be RD ccccdcsccuevcnceacccocosne: icesleusandsccawnenssh 29
Golden Gate Rest. Assoc. v. City and County of
S.F., 546 F.3d 639 (9th Cir. 2008).................. 20
Golden State Transit Corp. v. City of L.A., 475
ie MI IIE ccc ccévenabasesecsarsevsons “ 29
Green Alliance Taxicab Assoc. v. King County, No
CO8-1048RA,!, 2010 WL 2643369 (W.D. Wash
BE Bs HD aeccsccesscdensescpencvesceess: 37

Green Mountain Chrysler Plymouth Dodge Jeep
Ceombie, 508 fF. Supp. 2d 295 (D. Vt. 2007).....27, 29

Hughes v. Alexandria Scrap Corp., 426 U.S

794 (1976)........... ree 36
Lane v. Wilson, 307 U.S. 268 (1939) 21
Massachusetts v. E.PA., 549 U.S. 497 (2007) 27

Metro. Taxicab Bd. of Trade v. City of New
York, No. 08-7837, 2008 WL 4866021
(S.D.N_Y. Oct. 31, 2008)..... 0, 29,

ad

TABLE OF AUTHORITIES — Continued

Page

N.Y. State Conference of Blue Cross & Blue

Shield Plans v. Travelers Ins. Co., 514 U.S.

G45 (LOGS) ...cccecscsnnetneeeees ae passim
Ophir v. City of Boston, 647 F. Supp. 2d 86 (D

i : PI}

Nia88. BOOB) vvvsccccscale a | re 37
Pilot Life Ins. Co. v. Dedeaux, 481 U.S. 41

CEOS T ) ..ccccocccnacceseeneeneeeeenaaane 27
Retailer Indus. Leaders Ass’n v. Fielder. 475

I 3d 180 (4th Cir. 2007) ....... 19
Texas v. Hopwood, 518 U.S. 1033 (1996) 24
Travelers Indem. Co. uv. Bailey, 129 S. Ct. 2195

(ZOOS) q keccoccccccucenteeneee z 2/
United States 1 Locke, 529 U.S. 89 (2000) 20
United States v. Price, 361 U.S. 304 (1960) 27
United States v. Williams, 184 F.3d 666 (7th

Cir. 1999) +"
STATUTES AND RULES
42 U.S.C. § 7410 Ze
42 U.S.C. § 7543(a), (d) 1, 5, 32. 36
42 U.S.C. 8§ 7581-7590 . 33
42 U.S.C. § 7586 . . 28
12 U.S.C. § 13235(a) 28

49 U.S.C. § 32919(a), (c) 5. 36

TABLE OF AUTHORITI Continued

Rule UO! Le Lit Ol Ne YO! |
{Mla No ‘
Rule of the (if if Ne f

O3(c)( 10) 1]

Kk, Gre man. Supreme f
ed. 2009

PROVISIONS INVOLVED

In addition to Energy Policy and Conservation
Act (“EPCA”) provision and the challenged rules set
forth in the petition (Pet. 1-2), the rescinded prede-
cessor to the challenged rules and the Clean Air Act’s
(“CAA”) preemption provision are also relevant to this
action:

Rules of the City of New York tit. 35 § 3-
03(c)10)-(11) (JA31-32)

42 U.S.C. § 7543(a)

No State or any political subdivision thereof
shall adopt or attempt to enforce any stand
ard relating to the control of emissions from
new motor vehicles or new motor vehicle en-
gines

—-.-- - @

STATEMENT OF THE CASE
A. INTRODUCTION

Petitioners and amici seek review of the Second
Circuit’s decision in order to decide the limits EPCA’s
express preemption provision imposes on programs at
the state and local level that provide incentives to
purchase more fuel efficient automobiles. But peti
tioners freely concede that no other court of appeals
has decided that question, let alone done so in a
manner that even allegedly conflicts with the decision

below. indeed, no appellate court has construed

EPCA’s preemption provision (and no district court

has invalidated an incentive

In fact, the question whether EPCA preempts
incentives is not at issue in this case. The district
court enjoined the challenged rules (“Replacement
Rules”) after determining that they were indistin-
guishable in purpose and effect from predecessor
rules (“Rescinded Rules” or “25/30 MPG Rules”)

which had explicitly mandated the purchase of vehi

» |

cles with a fuel economy rating of at least 25 miles
per gallon (“mpg”). Petitioners have now expressly
conceded that the Rescinded Rules were preempted
under EPCA. The district court held that the Replace-
ment Rules amounted to a de facto mandate and that
the differences between the two sets of rules reflected
only “procedural maneuvering” and “creative draft
ing.” The court also found pretextual petitioners’
assertion that the Replacement Rules were “police
power regulations aimed at adjusting driver in

COmMme

Although the Second Circuit decision affirming
preliminary relief did not rely on the de facto man
date finding — concluding instead that the Replace
ment Rules were preempted because they referenced
fuel economy standards — the Second Circuit did not
overturn or question that finding. (Nor did it disturb
the district court’s holding that the Replacement
Rules were also preempted by the CAA.) The court
even highlighted that petitioners continue to operate
incentives for hybrid taxis, without any suggestion of

disapproval

Petitioners’ assertions that the Second Circuit
struck down all incentive programs therefore depend
on an unsupported reading of the decision that is
utterly abstracted from the facts and procedural
history of this case. As is clear from the decision
below — and as other courts have had no difficulty
recognizing — the Second Circuit did not invalidate all
incentives or purport to. Far from taking preemption
to the furthest reaches, the court’s decision stands for
the unremarkable proposition that a Jocal rule that is
concededly preempted may not be revived by re-
drafting it to omit particular words. No principle of
preemption law would support a different conclusion.

Petitioners and amici primaniy criticize what
they take to be the Second Circuit’s reasoning, pre-
dicting that the reasoning will lead to undesirable
effects. This Court, however, reviews judgments — not
opinions. In any event, those criticisms Jack merit.
The Second Circuit applied settled principles. Indeed,
it is the petitioners’ account that neglects the text and
purpose of the preemption provision.

Notably, petitioners do not ask the Court to
review or overturn the judgment in this case on either
of the grounds it was issued — EPCA or CAA. The
only relief requested 1s a remand for the court of
appeals to determine whether the district court
committed clear error when it held that the Replace-
ment Rules “effectively mandate” the purchase of fuel
efficient vehicles. (Petitioners have conceded that an
“effective mandate” is preempted.) A decision by this
Court therefore would be essentially advisory.

Even if the Court were persuaded of the need to
address the complex, novel and abstract question
purportedly presented without any further develop-
ment in the lower courts, the singular facts and
circumstances of this case would make it an obviously
inappropriate occasion for doing so. The Court should
await a case involving preemption of what the parties
agree is (or the Court at least ‘viewed as) a simple
incentive. Consideration of this case also likely would
require deciding the significance of “circumvention”
and post-injunction reenactment, as well as_ the
significance of the fact that petitioners expressly
conceded that the Rescinded Rules were preempted.
Given the multiplicity of different and difficult case-
specific issues raised, the prospect that the Court
could or would reach the larger questions here, let
alone “bring clarity,” is infinitesimal.

B. THE ENJOINED AND RESCINDED FIRST
VEHICLE RULES

In December 2007, the New York City Taxi &
Limousine Commission (“TLC”), citing the City’s
interest in reducing air pollution and dependence on
fossil fuel, adopted rules requiring that all newly
purchased fleet taxis have a minimum “city” fuel
economy rating of 25 mpg by October 1, 2008 and
a min.:mum rating of 30 mpg by October 1, 2009.
Prior to that, the City had never set fuel economy or
emissions standards for taxi fleets. The only vehicles

qualifying under the 25/30 MPG Rules were ones
with hybrid or “clean diesel” engines.’

Respondents, owners and an owners’ trade group,
brought suit contending, among other things, that the
25/30 MPG Rules violated the EPCA preemption
provision, which prohibits localities from adopting
laws “related to fuel economy standards or average
fuel economy standards for automobiles,” 49 U.S.C.
§ 32919(a), as well as the preemption provision of the
CAA, 42 U.S.C. § 7543(a).

The district court agreed with plaintiffs, granting
preliminary injunctive relief. Metro. Taxicab Bd. of
Trade v. City of New York, No. 08-7837, 2008 WL
4866021 (S.D.N.Y. Oct. 31, 2008) (““MTBOT I”). The
City did not appeal that ruling, and it has conceded
that the 25/30 MPG Rules were preempted. App. 56a;
JA661.

C. THE REPLACEMENT RULES

Within months of the district court’s decision, the
TLC announced an ostensibly “new” set of rules,
which, rather than mandating that owners purchase
the high-mpg taxis, instead relied on “incentives” and
“disincentives” to “induce” (JA99) them to do so. Rules

1 - - . .
Because almost all the qualifying vehicles were hybrids,
that term is used here, as in the opinion below, to encompass
those with “clean diesel” engines

6

of the City of New York tit. 35 § 1-78(a)(3) (“Replace-
ment Rules”). Specifically, the Replacement Rules set
the maximum lease rate fleet owners could charge
drivers for the disfavored vehicle types at $30 per day
below that for vehicles that met the fuel efficiency
criteria. (This disparity resulted from a $12-per-shift
reduction for those leasing out conventionally-
powered vehicles and a $3 increase for those purchas
ing — and leasing — hybrids. Only the $12 penalty was
challenged.)

Adoption of this regime required the TLC to
rescind its own longstanding rule against “lowerling

any upper limitation of lease rates ... unless ... the
record ... includes substantial evidence of reduced

operating expenses of the affected medallion owners.”
JA58-59 (rescinded § 1-78(e)). The TLC conceded it
did not consider owners’ costs in reducing these rates,
and the only evidence before the Commission showed
increased costs.”

* At the same time the TLC imposed this lease cap reduc
tion, it also reduced the cap for all vehicles by shifting the cost of
sales taxes from drivers to owners. Respondents challenged both
actions in state court, alleging that failure to consider cost when
setting rates contravenes state law. That claim did not succeed
in the lower courts, but the New York Court of Appeals recently
granted review to decide, tnter alia, whether “a government
regulatory agency charged with setting rates [may] do so
without any regard to the costs borne by the companies it
regulates?” Metro. Taxicab Bd. of Trade v. Taxi and Limousine
Comm’n, No. 110594/09. On account of the federal court’s
injunction, the Rescinded Rules are no longer directly at issue in

(Continued on following page)

Nor, for that matter, was concern for costs to
drivers a significant impetus. Months earlier (when
gas prices hovered at historic highs and fleets were
almost uniformly comprised of fuel-hungry Ford
Crown Victoria sedans), the TLC had refused drivers’
request for a gas surcharge, on the ground that the
existing lease rates already “met and surpassed” its
“goal of creating a living wage for drivers.” JA501.

Rather, as City officials repeatedly emphasized,
the “‘goal’” of the Replacement Rules remained what
it had been “‘from the beginning’” “‘to get fuel effi-
cient taxis on the road using whatever appropriate
methods required.’” App. 17a (quoting press release).
As with their predecessor, the Replacement Rules’
stated “|nlumber one” purpose was “to promote
hybrids and cleaner vehicles.” JA145. The City de-

«“e ”

scribed the Replacement Rules as “‘another way’” to
reach the same goal and as a means to overcome the
““‘speed bump’” the district court’s preemption deci-
sion represented. App. 18a, 17a (quoting press re-
lease). While the Replacement Rules removed the
explicit reference to “miles per gallon,” their avowed
purpose was to “induce” (JA99) the same result, and
precisely the same vehicles that had been required
(and prohibited) under the prior regime were subject
to “incentives” and “disincentives” under the new one.

App. lla, 57a.

that proceeding. A favorable decision, however, would likely
invalidate them.

8

D. THE SECOND PRELIMINARY INJUNCTION
MOTION

Respondents amended their complaint, claiming
that the Replacement Rules were not meaningfully
different from the ones they replaced and were there-
fore preempted.

After initial brefing and oral argument, the
district court conducted an evidentiary hearing
to determine “whether the new lease cap rules pro-
vide ‘meaningful alternatives’ to taxicab owners or
whether the rules leave owners with only one ‘ra-
tional choice.” JA12 (citation omitted). In response,
plaintiffs presented testimony of three experts, in-
cluding James Levinsohn, a University of Michigan
economist, who had undertaken a_ sophisticated
economic analysis of how owners’ profits would be
affected by the Replacement Rules.

Levinsohn concluded that the “choices” offered
owners under the Replacement Rules were illusory.
One fleet, he explained, would earn only $581 per
year per Crown Victoria taxi but more than $7,000
(12 times more) were it to purchase a hybrid. Another
fleet would face a “choice” between losing $2,241
annually per Crown Victoria or a $3,258 profit per
hybrid. Using highly conservative assumptions,
Levinsohn determined that owners who continued to
operate Crown Victorias would suffer, at a minimum,
a 65 to 75% decline in profits.

Petitioners presented two experts who took issue
with Levinsohn’s conclusion — on conceptual, rather

9

than empirical grounds. (Neither had conducted an
independent economic analysis.) They maintained
that so Jong as a fleet operator could make even $1
leasing the disfavored vehicles, the Replacement
Rules should not be described as an “effective man-
date” to purchase fuel-efficient vehicles.

E. THE DISTRICT COURT’S RULING

On June 22, 2009, the district court issued a 50-
page opinion and order granting preliminary injunc-
tive relief. App. 14a-65a. The court began by under-
scoring that the case did not concern whether the
City could mandate the purchase of taxis that meet
certain mileage or emissions standards — because “the
City has conceded that it [could not].” /d. 20a. Nor,
the court continued, was it about “whether New York
City can incentivize the purchase of certain types of
taxicabs,” noting three such regulations that had
been implemented without challenge: (1) a 2003 rule
limiting certain new taxi licenses to hybrids; (2) a
2006 rule extending the service life of hybrid taxis
from three to five years; and (3) the $3 per-shift
increase adopted along with the challenged $12
penalty. App. 20a. The district court reiterated its
view that the central issue was whether “the new
lease cap regulations have the preempted effect of
mandating that taxicab owners purchase only taxi-
cabs with hybrid or clean diesel engines.” /d. 20a.

After examining the relevant caselaw, the court

explained that under both EPCA and CAA, a local

10

law is preempted if, inter alia, it “effectively man-
dates a specific, preempted outcome.” /d. 40a. Reject-
ing “the City’s argument that any rate structure that
yields more than $1 in profit does not ‘compel’ or
mandate a result” (id. 51a), the court found that the
Replacement Rules “effectively force Fleet Owners to
purchase hybrid taxicabs” (1d. 65a). The district court
explained:

The combined effect of the lease cap changes,
and even the disincentive alone, constitutes
an offer which cannot, in practical effect, be
refused. ... Looking at all the evidence, it is
clear to the Court that the Lease Cap Rules
do not present viable options for Fleet Own-
ers and instead operate as an effective man-
date to switch to hybrid vehicles.

Id. 49a, 52a.

The court also viewed the “TLC’s procedural
maneuvering” as evidence that it “intended” to com-
pel owners to purchase hybrids. Jd. 50a. The district
court underscored, inter alia: (1) that the Replace-
ment Rules would have been impermissible under the
TLC’s own longstanding rules tying lease cap changes
to operating costs; (2) that the City’s expert admitted
that he had never seen a ratemaking regime that did
not require the regulatory agency to consider costs;
and (3) that by reducing lease rates to reflect a cost
that owners had never borne, the Replacement Rules
amounted to “an immediate penalty for continuing to

use the same vehicle [Crown Victoria] that the City
mandated within this decade.” Jd. 29a, 49a.

1]

The history of the case and the public statements
of New York City’s Mayor and other officials also
reinforced the court’s conclusion that the purpose of
the Replacement Rules was to mandate hybrids. Jd.
15a-22a (quoting officials’ statements at length). And
the court also cast doubt on the City’s assertion that
the Replacement Rules were concerned with equaliz-
ing driver income, noting both the TLC’s recent
rejection of a fuel surcharge (id. 28a n.9), and the
testimony of plaintiffs’ expert as to ways the new
regime would contribute to, rather than alleviate,
income disparities among drivers."

After determining that the Replacement Rules
are a de facto mandate to purchase hybrids, the
district court turned to the questions of whether the
Replacement Rules are “related to” fuel economy
standards under the EPCA and to the control of
emissions under the CAA. /d. 22a. The court held
that the absence of a textual reference to mileage in
the Replacement Rules was merely a result of “crea-
tive drafting.” Jd. 58a. The district court relied pri-
marily on four facts in reaching this conclusion:

* For example, under the Replacement Rules, the 26 mpg
hybrid Malibu garners a $15 higher lease rate than the 22 mpg
gasoline-powered Ford Transit Connect, even though the actual
gas savings are less than $3. (Respondents had agreed to stop
purchasing the Crown Victoria if the TLC would approve for use
the Transit Connect, a relatively “clean” vehicle that Ford
recently developed for the taxi market. Petitioners would not
approve the Transit Connect because it is rated at less than 25

mpg.)

12

(1) “All of the TLC-approved hybrids or clean diesel
vehicles are rated 25 mpg or higher,” and “[t]hese are
the same vehicles that the TLC approved under the
preempted 25/30 Rules” (id. 57a); (2) one of the stated
purposes of the Replacement Rules in the City Record
“was to allow taxi owners who choose ‘a fuel efficient’
vehicle to realize greater lease income than owners
who choose “a less efficient vehicle,’” (zd. 58a); (3) “the
exact amount of the disincentive |was| based on a
calculation of miles per gallon,” (id.); and (4) the TLC
Chair had stated, “‘Our goal from the beginning was
to get fuel efficient taxis on the road using whatever
appropriate methods required to achieve our goal.’”
Id. (emphasis added by the court).

Based on this evidence, the district court con-
cluded that respondents were likely to succeed in
showing that the Replacement Rules are preempted
as “related to” fuel economy standards under the
EPCA. Id. 56a. Relying on the stated purpose of the
Replacement Rules, their practical effect, and peti-
tioners’ public statements, the court also held that
respondents were likely to succeed on their CAA
preemption claim. /d. 61a-64a.

F. THE SECOND CIRCUIT’S RULING

The court of appeals affirmed. Jd. la-13a. The
court began by setting forth the history of the case,
explaining that the Replacement Rules were adopted
in the immediate aftermath of the decision holding
the 25/30 MPG Rule preempted. /d. 3a-5a. The court

13

underscored that the case concerned only the $12
reduction — not the $3 incentive. Jd. 5a. The Second
Circuit also noted that the City did not contest the
record evidence showing that the Replacement Rules
would lower profits by 65% to 75% on each Crown
Victoria. /d. 5a, 6a.

The court then set forth the applicable legal
framework, stating that because preemption claims
“‘turn on Congress’s intent,’” courts start “‘with the
text’” of a preemption provision and “‘move on, as
need be, to the structure and purpose of the Act in
which it occurs.’” Jd. 8a (quoting N.Y. State Confer-
ence of Blue Cross & Blue Shield Plans v. Travelers
Ins. Co., 514 U.S. 645, 655 (1995)). To interpret the
term “related to” in the EPCA preemption provision,
the court of appeals looked to this Court’s decisions in
ERISA preemption cases, because that statute also
displaces state and local laws “related to” the subject
of federal law. App. 8a. Quoting from California
Division of Labor Standards Enforcement v. Dilling
ham Construction, N.A., Inc., 519 U.S. 316, 324-25
(1997), the court of appeals held that determining
“whether a state law relates to a preempted subject
matter requires examining whether the challenged
law contains a ‘reference’ to the preempted subject
matter or makes the existence of the preempted
subject matter ‘essential to the law’s operation.’” App.
8a (quoting 519 U.S. at 324-25). If the law does
neither, it may still be preempted if it “contains
requirements that amount[]} to connection[s] with the
preempted subject matter.” App. 8a n.4 (quoting

14

Dillingham, 519 U.S. at 328 and Travelers, 514 U.S.
at 658) (internal quotations omitted; alterations in
original).

Under these standards, the court of appeals held
the Replacement Rules were preempted because they
“directly reference fuel economy standards” and thus
“directly regulate the relevant preempted subject
matter.” App. lla-12a. The court held that in the
context of this case “‘hybrid’ is simply a proxy for
‘greater fuel efficiency.’” Jd. lla. In support of that
conclusion, the court noted, inter alia, that: (1) the
City’s list of approved vehicles under the “new” rules
was identical to the one under the enjoined and
concededly invalid 25/30 MPG Rules; and (2) the City
admitted that the Replacement Rules were intended
to improve fuel economy. /d. 10a-1la.

Because this conclusion was sufficient to affirm
the district court’s decision, the court found it unnec
essary to explore the economic impact of the Re-
placement Rules, or reach CAA preemption. Jd. 1la-
12a. The court did not, however, question the district
court’s “effective mandate” finding or its CAA
preemption conclusion.

REASONS FOR DENYING THE PETITION

The Second Circuit’s decision, affirming a grant
of preliminary injunction, does not warrant further
review. It does not conflict with the decision of any
circuit court or any precedent of this Court. Indeed,

15

petitioners concede that no other appellate decision
has even interpreted the provision at issue.

Notably, petitioners do not ask this Court to
overturn the judgment of the court of appeals. They
ask only that this Court remand the case so that the
court of appeals can decide whether the Replacement
Rules amount to an effective mandate. But the dis-
trict court already found, after an evidentiary hear-
ing, that the Replacement Rules are a de facto
mandate and that they are substantively identical to
the Rescinded Rules that the City has conceded are
preempted. Petitioners’ claim relies on a conundrum
and would require that this Court accept that Con-
gress meant to allow localities to adopt regulations
that are essentially identical, in both purpose and
effect, to ones concededly preempted under federal
law. And even a decision in petitioners’ favor on that
improbable claim would be of entirely academic
significance — unless they could further persuade the
court below to overturn the district court’s factual
findings and to reverse its conclusion that respond-
ents were likely to succeed on an independent basis
that petitioners do not ask the Court to consider.

As other courts have grasped, the Second Cir-
cuit’s interlocutory decision here simply did not
announce — and did not purport to announce — the
sort of sweeping, categorical rule petitioners and
amici ascribe. Their exaggerated criticisms betray a
basic unfamiliarity with this case’s actual facts and
procedural history. Claims that this decision places
“at risk” measures that are neither “proxies” for fuel

L6

economy regulation nor “effective mandates” simply
ignore that both defects were found here. Indeed, to
the extent there develops a genuine need for this
Court’s guidance as to the limits, if any, EPCA places
on local government efforts to adopt genuinely volun-
tary incentive measures, this case represents an
especially inappropriate occasion to provide it

I THE SECOND CIRCUIT’S INTERPRETA-
TION OF EPCA’S PREEMPTION PRO-
VISION IS CORRECT AND DOES NOT
CONFLICT WITH THE DECISION OF ANY
OTHER COURT

A. The Decision Is Fully Consistent With
Governing Law and Does Not Even
Colorably Conflict With The Decision
of Any Other Court

Petitioners do not even allege a decisional conflict
as to the meaning of the EPCA provision they ask the
Court to decide. On the contrary, the petition candidly
acknowledges that “the Second Circuit is the first
federal court of appeals [even] to interpret the EPCA
preemption provision.” Pet. 29. Indeed, not only has
the development of EPCA preemption law so far been
limited to the district court level, but the handful of
courts to consider incentives have upheld them (after
expressly distinguishing this case). Infra III]. Al-
though this Court does not strictly confine exercise of
its certiorari jurisdiction to questions that have
divided appellate courts, the prospect of its being in
the vanguard of “a new area of developing law” (Pet.

17

29), is ordinarily a strong reason against, rather than
in favor of, review.

Unable to identify any circuit split (or appellate
authority of any kind) involving the EPCA provision,
petitioners posit a “conflict” between the decision here
and “the framework of analysis employed by” other
circuits interpreting ERISA’s preemption provision,
which also uses the phrase “related to.” Jd. 9; see also
id. 8, 9 (accusing Second Circuit decision of “non-
adherence with this Court’s jurisprudence” to a
“degree that should not be tolerated”).

There is obvious, unexplored, tension between
petitioners’ criticism of the court for relying overly
on text at the expense of statutory purpose and
their claims of “conflict” with decisions involving an
entirely different (though similarly-worded) federal
statute. In any event, petitioners’ claims of “analyt-
ical framework” conflict — not to mention their sug-
gestion of judicial impudence — are entirely without
merit.

One of the supposedly “conflicting” circuit court
ERISA decisions held that the challenged measure
was preempted. And the two that found no preemp-
tion did not sustain a measure (1) that was adjudged
only cosmetically different from a predecessor conced-
ed to be preempted; or (2) found by a court to be a “de
facto mandate” — let alone both, as is the case here.

The decision here set forth the same legal stan-
dards as does the petition. The court of appeals stated

“

‘turn on Congress’s

that because preemption claims

18

‘

intent,” its inquiry must start “‘with the text’” and

““move on, as need be, to the structure and purpose
of the Act in which it occurs.’” App. 8a (quoting
Travelers, 514 U.S. at 655). To determine the meaning
of “related to” in EPCA’s preemption provision, the
court looked to this Court’s ERISA preemption deci
sions in Dillingham and Travelers — the same princi-
pal ones relied upon by petitioners.

Indeed, the decision carefully hewed to the
“analytical framework” set out in Dillingham for
determining “related to” preemption: state law is
displaced “if it [1] has a connection with or [2] refer-
ence to” the federally regulated subject matter. 519
U.S. at 324 (alteration in original; internal quotation
marks and citations omitted). Cf. Sup. Ct. R. 10. (“A
petition for a writ of certiorari is rarely granted when
the asserted error consists of... the misapplication of
a properly stated rule of law.”).

The court of appeals here concluded that the
Replacement Rules were preempted because they
“reference” fuel economy standards that is, they
rely on the distinction between hybrid and non-hybrid
vehicles that, under these circumstances, was a mere
proxy for fuel-economy standards. App. Ya-lla. Sce
Dillingham, 519 U.S. at 325 (A law has an impermis-
sible “reference” to a preempted subject matter when
the law “acts immediately and exclusively” in the
preempted area or “where the existence of [the
preempted subject matter) is essential to the law’s
operation”).

19

Because the Replacement Rules failed under the
“reference” prong, the court did not need to determine
whether the Replacement Rules also suffered from
an impermissible “connection with” fuel economy
standards (or whether, as the district court held,
they were also unenforceable under the CAA). See
Travelers, 514 U.S. at 668 (a law that makes no
prohibited reference is nonetheless preempted if it
“produce|s] such acute, albeit indirect, economic
effects, by intent or otherwise, as to force an ERISA
plan to adopt a certain scheme”).

Neither this result nor the reasoning conflicts in
the least with the Fourth, Sixth, and Ninth Circuit
decisions the petition cites. Although each of these
“determine|d] whether the challenged laws man-
dated, or effectively mandated, something within the
area that Congress intended to exclusively control”
(Pet. 18), this Court has nowhere suggested, let alone
“required” (id. 16), that the two prongs of ERISA
preemption be considered in any particular sequence,
or that both be considered in every case. See Dist. of
Columbia v. Greater Wash. Bd. of Trade, 506 U.S.
125, 130 (1992) (holding law that “specifically re-
fer[red] to welfare benefit plans regulated by ERISA”
preempted “on that basis alone”); Retailer Indus.
Leaders Ass’n v. Fielder, 475 F.3d 180, 193 n.2 (4th
Cir. 2007) (declining to reach the “reference to”
preemption claim because it had already found an
impermissible “connection with” the preempted area);
Associated Builders & Contractors v. Mich. Dep't of
Labor & Econ. Growth, 543 F.3d 275, 281 (6th Cir.

20

2008) (noting parties’ agreement as to no “reference”
and therefore considering only “connection” issue); cf.
Golden Gate Rest. Assoc. v. City and County of S.F,
546 F.3d 639 (9th Cir. 2008) (holding challenged law
not preempted after exonerating it under both
prongs).

Thus, the Second Circuit’s “faillure|” to reach
whether the Replacement Rules constituted an effec-
tive mandate — after it had already found preemption
due to the impermissible “reference” — could not
possibly be described as error. See Pet. 19.

Of course, petitioners’ unsupported claim as to
how the Second Circuit “should have” structured its
preemption analysis (id. 19) is all the more startling
given the circumstances of this case. The district
court had made extensive findings, after an eviden-
tiary hearing, that these Replacement Rules do
“effectively mandate the use of taxicabs with a cer
tain mpg rating.” App. 59a.

Notably, petitioners do not ask this Court to
review that determination, which was the basis for
the district court’s judgment and was not disturbed
on appeal. The only relief petitioners ask from this
Court is a remand for the court of appeals to decide
whether the district court committed clear error. This
is one of many reasons that a decision of this Court in

petitioners’ favor would be of scant practical signifi-

cance.

21

B. The Second Circuit Correctly Decided
The Preemption Question This Case
Actually Presents

Petitioners and amici offer an array of discon-
nected criticisms of the Second Circuit’s opinion
below. Petitioners complain that the court of appeals
erred in “examinl[ing] only the text of the provision in
question” and did not take sufficient account of
legislative purpose, the “nature of the effect of the
[Replacement Rules],” or the “presumption against
preemption.” Pet. 10-11.

These abstract claims fail on their own terms,
but in this case, all arguments against preemption
quickly reach the same dead end: the fact that the
regulations at issue are identical in purpose and
effect to ones petitioners expressly conceded were
preempted under EPCA. Nothing petitioners and
amici say (or could say) about the text or purpose of
EPCA, or preemption law generally, explains why
Congress would have intended that states and locali-
ties be able to re-adopt and enforce the very same
measures held properly preempted (and enjoined). In
providing for preemption, Congress presumably was
concerned about matters of substance, rather than
the draftsmanship of local regulations, and may be
expected to be especially disapproving of efforts to
circumvent the effect of its own preemption man-
dates, particularly if done in response to a valid
federal court order. Cf. Lane v. Wilson, 307 U.S. 268,
275 (1939) (regime revised in response to prior deci-

sion “partakels] too much of the infirmity of the

ye

[previously invalidated regime] to be able to sur-
vive”). And in considering the “nature of the effect” of
the challenged rules, the court below necessarily
recognized this central fact. A contrary ruling in this
case would permit the City (and all cities) to evade
congressionally-intended preemption simply through
“creative drafting.” See App. 58a.

Petitioners and their amici’s extravagant claims
about the error and importance of the decision here
disregard the actual facts and procedural history of
this case. The decision did not hold — or suggest
that local laws are preempted “whenever [they] rely
on a distinction between hybrid and non-hybrid
vehicles.” See Pet. 8 (emphasis added). The court’s
conclusion that hybrid is a proxy for fuel efficiency
standards was “for purposes of the new rules.” App.
10a (emphasis added). See Cohens v. Virginia, 19 U.S.
264, 399 (1821) (“General expressions, in every opin-
ion, are to be taken in connection with the case in
which those expressions are used.”). As both courts
recognized, every vehicle listed for “incentives” under
the Replacement Rules has at least a 25 mpg rating,
and every vehicle penalized has a less-than-25 mpg
rating. App. lla, 57a. As the district court explained,
this was no coincidence. The $15 lease rate differen-
tial was itself derived from a mpg calculation. Jd. 58a.
And petitioners’ public statements, as well as the

history of the litigation, made clear that the Re-
placement Rules’ purpose was to effectively mandate
the purchase of vehicles meeting the fuel economy
standards set in the Rescinded Rules. Jd. 15a-22a.

23

Given that the Replacement Rules favor the exact same
vehicles that were mandated under the concededly-
preempted 25/30 MPG Rules, the court’s holding that
the Replacement Rules impermissibly “referenced”
fuel economy standards is unassailable.

Claims that the Second Circuit’s “view” would
strike down any law “that affects, or reflects any
concern regarding, automobile fuel economy” are
likewise unsupportable. See Public Citizen Br. 9. Nor
did the court anywhere suggest that “every taxicab
regulation that affects a fleet owner’s vehicle pur-
chase decisions,” would be invalid. Pet. 14. Indeed,
the district court stated in so many words that this
case does not concern “whether New York City can
incentivize the purchase of certain types of taxis,”
pointing out that three City hybrid incentives remain
in place: (a) the $3 hybrid incentive passed at the
same time as the $12 penalty; (b) a 2003 rule limiting
certain new taxi licenses to hybrids; and (c) a 2006
rule extending the service life of hybrid vehicles from
three to five years. App. 20a. The court of appeals
affirmed that judgment and “view” about the $3
hybrid incentive. Id. 5a.

Moreover, after an evidentiary hearing, the
district court found that the Replacement Rules,
while styled as “incentives,” create a “de facto man-
date” to purchase vehicles with a 25 mpg rating or
higher. /d. 65a, 59a; accord id. 57a (The Replacement
Rules are “essentially a command to taxicab owners
to meet that higher mpg standard.”). Indeed, there is
a faintly Orwellian cast to describing a measure with

the purpose and effect of making operation of lower-
mpg vehicles commercially infeasible as merely
“removing disincentives.” See Public Citizen Br. 9
(citing DOJ C.A. Br. 2-3).

The district court also considered — but rejected
as pretextual — petitioners’ claim that this was an
exercise in regulating the relative incomes of drivers.
App. 28a n.9. Thus, petitioners’ assertion that the
decision restricts their “traditional police power” is
meritless.

Unable to argue that the judgment below was
wrong, petitioners and their amici spend considerable
time critiquing the court of appeals’ reasoning. This
Court, however, “reviews judgments, not opinions.”
Chevron U.S.A. Inc. v. Natural Res. Def. Council, Inc.,
467 U.S. 837, 842 & n.8& (1984); accord Texas uv.
Hopwood, 518 U.S. 1033 (1996) (Ginsburg, J., respect-
ing denial of certiorari) (same). In any event, it is
petitioners and amici — not the Second Circuit — who
misunderstand preemption law generally and this
provision in particular.

For example, petitioners assert that measures
should be preempted only if they will “have a sig-
nificant impact on the overall federal regulation of
the average fuel economy of automobile manufactur-
ers,” and argue that is not so here where no more
than about 3,000 purchase decisions would be affect-
ed. Pet. 14-15. But this is surely wrong. Indeed, it
was precisely the danger of uncoordinated 3000-car-

at-a-time local fuel efficiency policies that impelled

29

Congress to enact an explicit (and broad) preemption
provision in EPCA — not a savings clause.* Such
measures, considered individually, may be consistent
with the stat te’s substantive, energy independence
objectives, yet still violate the purposes of the
preemption clause. As the Court explained in Engine
Manufacturers Ass’n v. South Coast Air Quality
Management District, “if one State or political sub-
division may enact such rules, then so may any other;
and the end result would undo Congress’s carefully
calibrated regulatory scheme.” 541 U.S. 246, 255
(2004).°

Petitioners and amici also accuse the court of ig-
noring the word “standards” in the EPCA preemption

* Chicago also wrongly posits that preemption is warranted
only where local measures “improperly burden interstate
commerce or overly intrude on federal concerns.” See Chicago Br.
10. But these are the limitations that apply absent any indica-
tion of preemptive intent — indeed in cases involving statutes
with non-preemption provisions. See Geler v. Am. Honda Motor

Co., Inc., 529 U.S. 861, 869-73 (2000).

* Indeed, the presentation of the statute’s substantive
purposes is tellingly incomplete. The statute’s chosen means of
promoting fuel economy, corporate average standards, reflects
the high value Congress put on preserving “wide consumer
choice.” Ctr. for Auto Safety v. Thomas, 847 F.2d 843, 864 (D.C.
Cir. 1988), vacated on other grounds, 856 F.2d 1557 (D.C. Cir.
1988); accord H.R. Rep. No. 94-340, at 87 (1975). That strong
policy is impinged by the Replacement Rules here, which would
harshly penalize respondents and other owners for choosing a
relatively fuel-efficient vehicle specifically developed for the
urban taxi market, rather than a hybrid on the other side of the
25 mpg cut-off. See infra n.3.

26

provision, noting that the term “average fuel economy
standards” is a defined term in the statute and that a
regulation of purchasers would not qualify. Chicago
Br. 16. But the statute refers in the disjunctive to “or
fuel economy standards,” and the latter, which must
be presumed to have a different meaning, is not
defined in the statute. Moreover, the text does not
confine itself to locally-enacted “standards,” but
rather prohibits laws “related to” standards. In any
event, this argument was soundly rejected in Engine
Manufacturers, which held that local regulations
mandating the purchase of alternative-fuel vehicles
violated the CAA’s preemption provision. 541 U-S. at
255. The Court explained that it “would make no
sense” to treat “sales restrictions and purchase re-
strictions differently for pre-emption purposes.” Jd.°

Petitioners’ efforts (Pet. 13-14) to enlist state-
ments in this Court’s opinions recognizing outer
limits of “related to” miss the point. To accept that
“related to” does not authorize.“infinite” displacement
of local law is not to erase the dominant theme of
decades of ERISA jurisprudence: that the phrase is
unusually broad and “expansive.” See FMC Corp. v.

* The City’s amicus further obscures matters when it im-
plies that Engine Manufacturers held that the term “‘standard’”
must encompass “ ‘command, accompanied by sanctions.’” Public
Citizen Br. 7 (quoting 541 U.S. at 255). As the opinion makes
clear, the quoted language established that “commands” are
statutorily sufficient. The Court expressly left open the question
whether the CAA preemption language “refers only to standards
that are enforceable.” Jd. at 258.

27

Holliday, 498 U.S. 52, 58 (1990) (describing phrase as
“conspicuous for its breadth”); Pilot Life Ins. Co. v.
Dedeaux, 481 U.S. 41, 45-46 (1987) (“deliberately
expansive’); 7ravelers Indem. Co. v. Bailey, 129 S. Ct.
2195, 2203 (2009) (describing phrase as “expansive”).
It entails no “uncritical[] literallism]” or undue
“stretchling]” (Pet. 14) to conclude that preemption is
warranted where, as here, the measure at issue is
meaningfully indistinguishable from one the locality
itself admits is properly preempted. It could hardly be
otherwise.

The weakness of petitioners’ position is further
revealed by their heavy reliance on statutes enacted
after the EPCA was passed as evidence for the intent
of the Congress that passed EPCA. Pet. 15-16, 21-23.
While courts occasionally consider subsequent legis-
lation when ascertaining congressional intent, Mood
and Drug Admin. v. Brown & Williamson Tobacco
Corp., 529 U.S. 120, 133 (2000), this Court has re-
peatedly recognized that “the views of a subsequent
Congress,” generally “form a hazardous basis for
inferring the intent of an earlier one,” Bilski v.
Kappos, 130 S. Ct. 3218, 3250 (2010) (quoting United
States uv. Price, 361 U.S. 304, 313 (1960)); accord
Massachusetts v. E.P.A., 549 U.S. 497, 529 (2007). In
any event, some of the after-enacted statutes relied
upon by petitioners involve federal-incentives or
federally-approved state plans, such that preemp-
tion analysis may not be implicated. See Green
Mountain Chrysler Plymouth Dodge Jeep v. Ceombie,
508 F. Supp. 2d 295, 398 (D. Vt. 2007) (holding that

because the emission standards were passed pur-
suant to a federal waiver under the CAA, they were
federal, not local standards, and preemption therefore
does not apply); 42 U.S.C. §13235(a) (federally-
approved state plans under the Energy Policy Act);
42 U.S.C. §§ 7410(a), 7586 (federally-approved state
plans under the CAA); supra n.8. Others involve
incentives different in kind from those at issue here.

Finally, petitioners’ efforts to flog the “presump-
tion against preemption,” do not amount to anything.
At the outset, it is not evident from the opinion that
the Second Circuit panel did not “consider” — as
opposed to did not discuss — the presumption. Nota-
bly, the opinion petitioners quote (Pet. 11) for the
proposition that the presumption must be explored in
every preemption case was a one-Justice dissent in
Engine Manufacturers, 541 U.S. at 260-61 (Souter, J.,
dissenting). The majority opinion there specifically
acknowledged but rejected that criticism, and point-
edly found preemption without discussing the pre-
sumption. Engine Mfrs., 541 U.S. at 256.

Moreover, the Court repeatedly has held that
there are cases involving subject matters of
longstanding federal involvement or concern — where
the presumption “is not triggered.” See United States
v. Locke, 529 U.S. 89, 108 (2000). There are strong
reasons for concluding that this case falls into that
category. The regulation of vehicle fuel-economy
and emissions are areas of longstanding federal con-
cern, and “Congress’s undoubted intent was to make
the setting of fuel economy standards exclusively a

QQ

federal concern.” Green Mountain, 508 F. Supp. 2d at
354; accord Engine Mfrs. Ass’n v. U.S. EPA, 88 F.3d
1075, 1079 (D.C. Cir. 1996) (In “contrast to federally
encouraged state control over stationary sources,
regulation of motor vehicle emissions had been a
principally federal project.”). And while the regulation
of taxicab service is surely an area of traditional local
concern, the fuel efficiency concerns that animated
this regulation are not “unique local problems” (Chi-
cago Br. 10), but are of national character.’ But
whether or to what extent the presumption is opera-

tive is ultimately academic: the district court decision

The decision here no more brought “the taxicab industry
under federal regulatory control” (Pet. 12) than did this Court
decision in Engine Manufacturers, 541 U.S. at 258; or the
district court’s injunction in MTBOT J, which petitioners now
concede was correct; or this Court’s decision in Golden Stat
Transit Corp. v. City of L.A., 475 U.S. 608, 618-20 (1986) (hold
ing taxi licensing decision preempted under the National Labor
Relations Act). Indeed, the brief submitted by the federal
government below admitted that “some incentive programs
even those arising in the context of traditional state regula
tion of the taxicab industry, could be so onerous that they
effectively would command the purchase of new vehicles” and be
preempted. DOJ C.A. Br. 19 n.5

It would be particularly odd to infer an exception for tax
when the EPCA expressly provides one for vehicles purchased
for a City’s “own use.” See MT'BOT 1, 2008 WL 4866021, at *10
*12 (finding this exemption dues not apply); Gade v. Nat'l Solid
Wastes Mgm't Ass’n, 505 U.S. 88, 100 (1992) (O'Connor, J
plurality opinion) (where Congress includes a savings clause
“the natural implication is that state laws regulating the
same issue as federal laws are not saved” if they fall outside the

clause’s express terms)

30

explicitly referenced the presumption, and nonethe-
less found preemption. App. 34a. As in Engine Manu-
facturers, the presumption “demonstrably makes no
difference to resolution of the ... question.” 541 U.S
at 256.

In sum, the court of appeals’ decision finding

preemption is correct.

Il. THIS IS NOT A REMOTELY APPROPRI-
ATE CASE TO SETTLE GENERAL RULES
CONCERNING EPCA PREEMPTION
Even if the (interlocutory) decision below were

not the first appellate case to consider the provision

at issue, this case would be a singularly inappropriate
vehicle for resolving the issues petitioners and amici
ask the Court to decide.

First and foremost, the question whose im
portance and urgency they insist upon — the applica-
tion of EPCA’s preemption clause to local measures
that provide incentives for certain vehicle types — is
not actually presented here. As has been explained
above, the Second Circuit was not called upon to
decide — and did not decide — whether every voluntary
incentive is subject to preemption. The opinion ac
companying the judgment it affirmed expressly
stated that the case was not about incentives
App. 5a, 20a. And both courts explicitly acknowledged
that the judgment left in place other TLC hybrid-

promoting regulations, such as the $3 incentive. /d.

31

Although the court of appeals saw no need to
reach the question, the district court had found
(based on a developed evidentiary record) that the
Replacement Rules were not incentives but instead a
de facto mandate that would “force Fleet Owners to
purchase hybrid taxicabs.” Jd. 65a.

Moreover, as explained above, the opinion did not
hold that “hybrid” is always a proxy for “greater fuel
efficiency” — let alone that every “police power” regu-
lation that incidentally affects vehicle choice is sub-
ject to EPCA preemption. The absence of a specific
mpg standard in the Replacement Rules was held to
be only a matter of “creative drafting” (id. 58a), and
the claim that petitioners were regulating drivers’
incomes was found to be pretextual (7d. 28a n.Q).

This distinctive history and procedural posture
make clear that this case is unsuited for plenary
review. Not only does the petition ask the Court to
decide a question that was not considered by the
courts below (and has not been considered by any
appellate court), but any attempt to address these
broader questions — let alone “bring clarity” — would
necessarily be complicated by this case’s many idio-
syncratic features.

Even if the Court were to credit petitioners’
doubtful, maximal reading of the opinion below — or
the “implications” of its reasoning (Public Citizen Br.
9) - respondents would be entitled to seek affirmance
of the case on alternative grounds. Indeed, the

district court ruled in respondents’ favor on two

32

independently sufficient grounds, based on specific
findings developed after an evidentiary hearing:
EPCA preemption under the “connected to” prong and
preemption under the CAA.

The submissions of petitioners and amici read as
if the appellate court overturned the “effective man-
date” conclusion and held the Replacement Rules
were in fact a mere incentive. But that is not so: those
findings are undisturbed (and correct). And though
petitioners refrain from asking the Court to review
them (lest the full difficulty of their position be ap-
preciated), the tactical decision to proceed piecemeal
does not bind the Court. It is a testament to how
poorly suited this case is for plenary review that the
only relief petitioners claim this Court could award
would be a remand for the Second Circuit to review,
under a highly deferential standard, the district
court’s amply supported “effective mandate” determi-
nation. See Pet. 19 (claiming error only based on
Second Circuit’s “failure” to rule on that issue).

Petitioners would also be unlikely to successfully
overturn the holding that the Replacement Rules are
prohibited under the CAA. Under that statute, “ex-
clusive control over ‘standard[s] relating to the con-
trol of emissions from new motor vehicles’ is vested in
the federal government, and the states are preempted
from regulating in the area.” Am. Auto. Mfrs. Ass’n v.
Cahill, 152 F.3d 196, 198 (2d Cir. 1998) (quoting 42
U.S.C. § 7543(a)). In Engine Manufacturers, this
Court held that a law requiring “fleets of street
sweepers ... [and] taxicabs picking up airline

23

passengers” to purchase or lease “green” vehicles,
including alternative-fuel vehicles, was preempted by
the CAA. 541 U.S. at 249. Contrary to amici’s claims,
the Court in that case did not reach the question of
whether an incentive is preempted under the CAA.”
Precisely because, as petitioners argue, determining
whether an incentive is preempted may require an
analysis of the “structure, purpose, and history of the
statute” (Pet. 10), an incentive may be preempted
under the CAA but not the EPCA, or vice versa.

Deciding this case would also require the Court
to decide the significance of “circumvention” and post-
injunction reenactment, as well as the significance of
petitioners’ concession that their Rescinded Rules
were preempted. No other case raising preemption
issues is likely to involve a defendant subject to this

* When holding that a mandate to purchase alternative-fuel
vehicles was preempted, the Court in Engine Manufacturers
looked to § 246 of the CAA, which permits states to adopt
purchasing mandates and financial incentives, such as increased
vehicle registration fees, if they do so as part of a State Imple-
mentation Plan (“SIP”). 42 U.S.C. §§ 7581-7590. The Court
noted that the CAA prescribes “numerous detailed require-
ments” that must be complied with to avoid preemption and saw
that as further evidence that the CAA was intended to otherwise
preempt emissions standards directed to purchasers. Engine
Mfrs., 541 U.S. at 254 n.6. This Court then asked, “what is the
use of imposing such a limitation if the States are entirely free
to impose their own fleet purchasing standards with entirely
different specifications?” Jd. at 258.

34

significant, binding (and voluntarily-assumed) con-
. g
straint.

Given the multiplicity of different and difficult
case-specific issues raised, the prospect that the
Court could or would reach the larger questions here
is minute. The unique history of this case, as well as
the multiple alternative grounds to strike down the
Replacement Rules, make this case a particularly bad
vehicle for deciding whether true incentives may be
preempted.

Ill. THERE IS NO URGENT NEED FOR THIS
COURT'S “IMMEDIATE INTERVENTION”

While acknowledging the absence of conflicting
(or any) appellate authority concerning EPCA’s
preemption provision, petitioners and amici highlight
the ubiquity, variety, and social importance of State
and local hybrid incentive programs, which they
claim the decision below “could” put “at risk.” See Pet.
24; Chicago Br. 5; Public Citizen Br. 3, 9. They assert
that this Court’s “immediate intervention is required”
“to prevent ... state and local governments” and
lower courts from reaching erroneous legal con-
clusions. Pet. 20.

” Nor do the obstacles mentioned exhaust the barriers that
petitioners would need to surmount in order to enforce the
currently enjoined Replacement Rules. As noted above (supra
n.2), the New York Court of Appeals recently granted leave to
appeal on the question whether petitioners violated state law by
failing to consider costs when reducing lease caps.

35

Doing so would be a sharp break from this
Court’s settled approach not to seek out opportunities
to shape “new area[s] of developing law” (see id. 29.),
but rather to withhold consideration until questions
have received sustained attention from the federal
appellate courts, see Sup. Ct. R. 10(a); E. Gressman,
Supreme Court Practice 246 (9th ed. 2009). The
reasons petitioners and amici give for abandoning
that practice do not withstand casual scrutiny.

There is a logical contradiction between peti-
tioners’ claims that the decision here will lead courts
and officials outside the Second Circuit astray (Pet.
20, 29) and petitioners’ argument (id. 8-9) that the
decision conflicts with this Court’s and other circuits’
existing precedents. If a measure is considered within
the Fourth, Sixth, or Ninth Circuit courts, those
courts can presumably be counted upon, without
further instruction from this Court, to apply the
“framework of analysis” petitioners assert their
precedent correctly requires. But see supra I.A. (ex-
plaining that Second Circuit’s framework is no differ-
ent). And to the extent that “established precedents of
this Court” (Pet. 8), supply the correct answer, federal
courts in Chicago or St. Louis will likewise reach the
appropriate conclusion. Cf. United States v. Williams,
184 F.3d 666, 671 (7th Cir. 1999) (“While we carefully
and respectfully consider the opinions of our sister
circuits, we are not bound by them.”).

As for localities, it is not this Court’s office to
provide advance guidance to other branches of gov-
ernment. See Aetna Life Ins. Co. of Hartford, Conn. v.

36

Haworth, 300 U.S. 227, 240-41 (1937). Petitioners’
dire forecasts depend to a great degree on fundamen-
tally erroneous assumptions, already discussed, about
(1) what was decided (and left undecided) below and
(2) the likelihood that this Court’s review would or
even could result in broad, generally applicable
guidance.

Of course, the premise that a ruling in any single
case would or could settle the legality of the vast
array of programs listed in the petition is itself surely
mistaken. On one hand, petitioners’ alarms ignore the
reality that local reguiations otherwise “at risk” of
preemption may be permissible if they: (1) fall within
EPCA’s exception allowing localities to adopt fuel-
economy requirements for “automobiles obtained for
[their] own use,” 49 U.S.C. § 32919(c); (2) were passed
pursuant to another federal law or as part of a federal
government approved plan (supra n.8); (3) were
expressly saved from preemption as a regulation of
the “operation, or movement of registered or licensed
motor vehicles,” 42 U.S.C. § 7543(d); or (4) fall under
the “market participant” doctrine, see Hughes v.
Alexandria Scrap Corp., 426 U.S. 794, 810 (1976)
(holding the state was acting as a market participant
when it paid bounties to hulk haulers and scrap
processors). On the other hand, this Court’s decision
in Engine Manufacturers indicates that, EPCA
preemption aside, even incentives relating to the
purchase of new vehicles may be challenged under
the CAA, a statute that is at issue in this case — but
which petitioners, despite an injunction on this
ground, conspicuously do not ask the Court to “clari-
fy.” See supra n.8. And to the extent that voluntary

37

incentive measures are to be accorded distinctive
treatment, courts will be called upon to develop
standards for what qualifies.

Direct evidence casts doubt on the claimed im-
mediate danger posed by the opinion here or what
petitioners take to be its “implications.” To date,
relatively few incentives have been challenged, and
none has been held preempted by a district court. The
lower courts’ decisions show them to have had no
great difficulty (far less then petitioners and amici)
giving the opinion below a less-than-maximal read-
ing. In Association of Taxicab Operators, USA v. City
of Dallas, No. — — F. Supp. 2d — —, No. 3:10-CV-769-K,
2010 WL 5584449 (N.D. Tex. Aug. 30, 2010), the court
rejected a claim that EPCA (and the CAA) preempted
a municipal rule giving compressed natural gas taxis
front-of-the-line privileges at the airport, explaining
that “[aln incentive lke the one in this case was
never challenged in Metro Taxicab.” Id. at *7. The
court there emphasized that the Second Circuit’s
decision affirmed “the district court’s statement [that]
thlis] case is not about” incentives. Jd. at *5-*7.
Likewise the court in Green Alliance Taxicab Assoc. v.
King County, No. CO8-1048RAJ, 2010 WL 2643369
(W.D. Wash. June 29, 2010), held that a new-licensing
regime was not preempted, on the ground it was a
“voluntary incentive program,” and therefore unlike
the “mandate” in this case. Jd. at *5. Indeed, the only
decision, other than this one, to hold a taxi regulation
— indeed any local regulation — preempted under the
EPCA, Ophir v. City of Boston, 647 F. Supp. 2d 86 (D.
Mass. 2009), involved an explicit mandate, which

38

petitioners concede is preempted. (As_ petitioners
note, Boston later substituted an incentive, leading
owners to discontinue their challenge. See Pet. n.14).

The reasons for restrained exercise of certiorari —
gaining the benefit of other courts’ sifting and testing
of competing legal rules through application to con-
crete factual situations — are implicated here. If
petitioners’ alarmist predictions have even a kernel of
truth, the Court will have no shortage of opportuni-
ties to consider and decide issues in which they were
actually and cleanly presented and clearly decided,
without the awkward posture complicating features
present in this case.

CONCLUSION

The petition for a writ of certiorari should be
denied.

Respectfully submitted,

RICHARD D. EMERY

Counsel of Record
ISMERY CELLI BRINCKERHOFF

& ABADY LLP
ELIZABETH S. SAYLOR
75 Rockefeller Plaza, 20th Floor
New York, New York 10019
(212) 763-5000

Counsel for Respondents

January 24, 2011

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_2720%3A2. Public record. Not legal advice.
