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Federal Court Voids US Light-Duty Truck/SUV Reformed CAFE Regulations
16 November 2007
The US Ninth Circuit Court of Appeals has voided the Bush Administration’s recently implemented fuel economy regulations for 2008-2011 light-duty trucks and SUVs, holding that the administration failed to monetize the value of carbon emissions, failed to revise the passenger automobile/light truck classifications, and failed to set fuel economy standards for all vehicles in the 8,500-10,000 lb. GVWR class.
The opinion orders the National Highway Traffic Safety Administration to develop new standards consistent with the court’s opinion as soon as possible and for the earliest model year practicable. NHTSA also is tasked with preparing a full Environmental Impact Statement (EIS) of the regulations.
The case, Center for Biological Diversity v. National Highway Traffic Administration, No. 06-71891, filed on behalf of the Center for Biological Diversity by the Stanford Environmental Law Clinic, is consolidated with similar challenges by California, Connecticut, Maine, Massachusetts, Minnesota, New Jersey, New York, Oregon, Rhode Island, Vermont, District of Columbia, the city of New York, and four other public-interest groups, the Sierra Club, Natural Resources Defense Council, Public Citizen, and Environmental Defense.
In 2006, US Transportation Secretary Norman Mineta announced new fuel economy standards for light trucks and SUVs, representing the first complete reform of the Corporate Average Fuel Economy (CAFE) program for pickup trucks, sport utility vehicles and minivans since the program’s inception in 1979.
The structure of Reformed CAFE for each model year has two basic elements:
A function that sets the target fuel economy levels for each value of vehicle footprint—the product of the average track width (the distance between the centerline of the tires) and wheelbase (basically, the distance between the centers of the axles); and
A Reformed CAFE standard based on each manufacturer’s production-weighted harmonic average of the fuel economy targets for footprint value.
By 2011, each automaker would have had its own fuel economy standard based on its own product mix. This results in a situation in which GM, for example, will face a projected light-duty truck CAFE level of 23.2 mpg in 2011, while Ford faces a projected 23.9 mpg, Toyota 23.8 mpg, BMW 25.8 mpg, and so on. (Earlier post.)
Plaintiffs argued that the administration violated the Act by setting low fuel-economy standards of approximately 22.5, 23.1, and 23.5 miles per gallon for upcoming model years 2008, 2009, and 2010 respectively. Plaintiffs also argued that the administration violated the National Environmental Policy Act by failing to consider greenhouse gas emissions and global warming before selecting the low mileage standards.
This is an important victory in the fight against global warming. It’s hard to imagine a federal action more significant to the problem of climate change than one which dictates fuel-consumption standards.
—Deborah Sivas, director of the Stanford Environmental Law Clinic and the attorney of record on the case
Congress passed the Energy Policy and Conservation Act in the wake of the 1973-1974 oil embargo as a technology-forcing statute to conserve energy and oil. The law requires the National Highway Traffic Safety Administration to set corporate average fuel-economy (CAFE) standards for SUVs and light trucks at the maximum feasible level.
Resources
Center for Biological Diversity v. NHTSA, Opinion by Judge Fletcher
November 16, 2007 in Fuel Efficiency, Policy | Permalink | Comments (22) | TrackBack (0)
Comments
Posted by: Arthur | November 16, 2007 at 09:59 AM
The 9th Circuit is still highly respected in many circles, especially those that have not been swayed by the last 30 years or so of packing the courts with "conservative" judges-really a misnomer, for many of the judges appointed under both Republican and Democrat administrations have taken a regressive view of the law, favoring government and business over individual liberties, and with little regard for the social consequences of their opinions. You don't see lawyers or judges in this country very often striking down the wholesale attacks on our basic civil liberties, such as habeous corpus, let alone being out there in the streets objecting, unlike the lawyers and judges in Pakistan. Shame on us. signed, a lawyer PS once the opinion is published one can have a reasoned discussion of the judges' ruling...
Posted by: | November 16, 2007 at 11:08 AM
I'm reminded of time of the Trail of Tears when President Jackson used the army to move Indians off their land in the southeast US to Oklahoma. The Indians sued and won in the Supreme Court. Jackson reponded by telling the Court to send their army to stop his army.
The Bush administration has the same attitude toward GHG regulation and CAFE standards (and various other constitutional rights).
Posted by: tom deplume | November 16, 2007 at 11:35 AM
The good news here is that this decision lays the foundation for future class action lawsuits, and liability for companies and industries that ignore the warning signs that their products are damaging the climate and the planet.
The Bush administration and their cronies in Congress will seek to shield these industries from liability, in a manner similar to the shield over Blackwater, but ultimately there will be some rationalization of international claims and damages caused by anthropogenic warming. If Libya and Iran can be held liable for terrorism damage claims than perhaps automakers, oil companies, utilities, and even governments have some future legal liability if they do not take action to mitigate the losses caused by their products.
Posted by: Joel | November 16, 2007 at 11:48 AM
Good Night Tom, How old are you????
You are correct, the court can write all the opinions it wants to, but the Judicial branch can't tell the Executive branch what to do. Not saying they won't try, but this is little more than a political stunt. And All the car companies are the real culprit here.
Posted by: Joseph | November 16, 2007 at 12:16 PM
Joel:
Most of your points are extremely unlikely.
1. This was an appelate review of administrative rulemaking. That is separate branch of law that has little effect on one's right to a private action in tort.
2. Tort claims and class actions are generally questions of state law (even if they end up in federal court because of diversity of residence). A decision concerning some substantive aspect of federal administrative law will have little impact on state laws of tort.
3. Sale of a product that is lawful, that conforms to its specifications, and whose design doesn't carry hidden consumer risks is almost impossible to penalize. Statutes shielding gun manufacturers from claims arising out of crimes committed with their guns have been upheld, even when the gun manufacturers have been skirting much closer to the line -- selling guns which they know appeal to gangsters, and which they know are easy to street-modify in a socially harmful way (i.e. from semi- to full-automatic fire).
Oil probably wouldn't even need statutory protection. It's chemistry has been well understood for decades -- the basics for well over a century -- so the proximate results from burning it are well known and subject to public control. And the customers who buy it and consume it are at least as responsible for releasing GHGs as the companies that supply them.
4. International law/claims/damages are a dead end. To the extent anyone has taken any party to court in this country over terrorism or who knows what else, it has been because a domestic statute has authorized such a claim, and if it is enforced at all, it usually only against property belonging to the miscreant that's located in this country. In the case of Iran, that's not much anymore -- while the country held assets here during the Shah's days, those were liquidated in the eighties after the revolution, and nothing's left. That sort of performance is often just a dubious way to make a point and the media all excited.
Going to court and taking a whole bunch of money away from the oil companies and giving it to -- who exactly? -- will accomplish what goal? Enriching the lawyers? (I'm not against that for personal reasons.) Robbing oil company workers of their retirement pensions? Dissipating the knowledge, capital and expertise of large, effective, well integrated and potentially useful organizations? Getting money to fund environmental initiatives? You could just raise taxes if you wanted the dough for some public purpose like that. Don't talk to me about "punishing wrongdoers." To the extent that sort of medieval nonsense has any place in civil law, it has no meaning in connection to corporations. What's left? Exhume John D. Rockefeller and spit on his corpse because he got us addicted to oil?
Face it: Save for some well-deserved slapping around over their global-warming-denialist funding, oil companies are no more guilty than the rest of us for their core activity of extracting oil from the ground, refining it, and selling it to customers. We've demanded it, we've voted for leaders and lawmakers who've allowed it, encouraged it, and taxed it far too lightly, and we burn it every day.
In many respects, oil dependence, pollution and climate change are political problems that demand solutions that start at the political echelon. And that's actually what this decision is about. The court is demanding that a governmental, regulatory body put on its thinking cap and stop being so stupid. We'll see what happens. My guess is that the Supreme Court may be reluctant to intervene, because they only way they could do so would involve mucking around with established administrative law review standards, which nobody enjoys doing. (Though it was an oil company case, Chevron v. NRDC as I recall, which gave us one of our last major admin uphevals, so who knows...).
Posted by: NBK-Boston | November 16, 2007 at 12:22 PM
NBK, these are all very well articulated and accurate points concerning court jurisdiction, immunity, and the balance of power between the executive and judicial branch. However, sometimes a very small probability of a very large damage award can impact the management, board of directors, and shareholders of a company, and ultimately change its behavior. We have certainly seen this in the Tobacco and Fast food industries.
The key point is that the public policy purpose of tort law is not to redistribute wealth, but to alter the behavior of the parties that have the lowest cost of mitigating the risk. To the extent that the government provides immunity to tort suits, (e.g., terrorism, nuclear powerplants, flood damage, etc.) they short-circuit the economic incentives to make the appropriate economic choices and investments. A carbon tax or cap and trade system can accomplish the same objectives in a more efficient manner, but absent appropriate regulation, the courts have a role to play in providing some accountability for polluters and their protectors with the state.
Posted by: Joel | November 16, 2007 at 01:02 PM
What you people fail to appreciate is who won and lost.
The plaintiff's lawyers won, they will get their fees paid by the government (your tax-payer dollars at work).
The Plaintiffs did not win. The rule they objected to will not take effect, but that just means the old rules, which they probably liked no better, will remain in effect.
The government's lawyers did not loose. They are civil service, and they will just move on to the next case.
The EPA did not lose, they will have to go back to their cubicles and re-write the rule, but that is what they do for a living anyway.
The automobile industry did not lose, they will not have to comply with a changed rule. Business as usual.
It will take the EPA two years to re-write the rule -- a year for the work and a year to politic the new administration that will be elected a year from now.
Congratulations to everybody involved, you have wasted a tremendous amount of time, paper and money.
All you BDS sufferers can pull your shorts up. It is a meaningless exercise.
Posted by: Robert Schwartz | November 16, 2007 at 01:04 PM
Robert posted: "What you people fail to appreciate is who won and lost."
What was won was the abolishment of an artificially low CAFE standard for LD trucks and SUV's. This give room for hope for a more stringent standard that will hopefully greatly reduce the number of these monsters from entering the street. The wind will change in favor of the DEM in the 2008 election, and more stringent environmental laws to come. The EPA will feel the political pressure to re-write their law accordingly. This could be interpreted as a victory for the environmentally-minded people... like uh...GCC!
Posted by: Roger Pham | November 16, 2007 at 01:56 PM
Whoever posted comments under my name has only confirmed that he is truly unhinged.
Roger: "What was won was the abolishment of an artificially low CAFE standard for LD trucks and SUV's."
No that is not so. The courts judgment suspends the new rules. The old rules, which are very lenient are left in force.
If a Democrat wins next year, she may appoint an EPA administrator who will promulgate rules more to your liking. Be aware, however, that there are many liberal Democrats like Carl Levin who are opposed to CAFE because they are concerned about the jobs of their union member constituents.
Posted by: Robert Schwartz | November 16, 2007 at 03:20 PM
Yeap, our current CAFE is pretty pathetic.
We're worse now than we were 30 years ago.
Posted by: GreyFlcn | November 16, 2007 at 03:26 PM
==If a Democrat wins next year, she may appoint an EPA administrator who will promulgate rules more to your liking. Be aware, however, that there are many liberal Democrats like Carl Levin who are opposed to CAFE because they are concerned about the jobs of their union member constituents.==
Levin is exactly the type of politician I'm scared off.
Carl Levin: "OMG DON"T INCREASE FUEL ECONOMY! GROW BIOFUELS!! GREEN BIOFUELS!! BUT FOR THE LOVE OF CARS PLEASE DON"T MAKE US CHANGE OUR FUEL ECONOMY!!"
Despite the fact that "Green" biofuels basically don't exist. And are largely just a do-nothing approach for car makers.
http://greyfalcon.net/n2ostudy.png
http://greyfalcon.net/lcarough7.png
http://greyfalcon.net/palmoil
http://greyfalcon.net/tropics3
Posted by: GreyFlcn | November 16, 2007 at 03:30 PM
Oops
Posted by: GreyFlcn | November 16, 2007 at 03:31 PM
Joel:
I grant that you've point out how the law-and-economic deterrent approach to tort liability shows how the threat of suit is meant to influence the behavior of oil companies.
I just don't think that this particular decision makes the possibility of a tort liability finding seem any more likely. I don't think oil company lawyers will rush to tell their bosses to do anything different lest the end up like the tobacco companies.
Posted by: NBK-Boston | November 16, 2007 at 03:34 PM
NBK, I doubt oil companies are the likely targets here. More likely utilities with significant portion of their generation from pulverized coal plants, automotive manufacturers, and perhaps certain states and countries that have resisted taking any actions to reduce or slow the growth of GHG emissions. I agree, that any tort action would have a miniscule chance of success, but that has to be balanced against the downside of hundreds of billions to trillions of dollars in potential damages over the next 50 years.
Posted by: Joel | November 16, 2007 at 04:15 PM
You do realise Bush won? By the time they revise everything it will be 2010 and wont be able to come into effect till 2011 2012... after the damn thing was already supposed to be over and replaced by a newer standard ... In fact by the time its appealed and all it will already be moot as the 2014-2016 cafe will be in place...
Posted by: wintermane | November 16, 2007 at 06:17 PM
This ruling does nothing but roll back the new rules, putting the old rules back in force. While all can criticize the new ones, they were better than the old and the first time they have been completely rewritten in over 25 years. That is multiple democratic and republican administrations so fault goes to all.
Maybe instead of blaming corporations who produce what people want to buy users of this site should spend more time focusing on how to change the buying habits of the general public. Autos weigh more now on aveage than ever, because people demand bigger, faster, safer cars loaded with lots of extras. Tax the consumer for buying inefficient cars and those habits will stop. Just as many on this site advocate taxing corporations for their emissions, the same should apply to those who drive inefficient cars.
Posted by: Mungai | November 16, 2007 at 06:52 PM
The American voters knew and had a chance to vote the gentleman out of office 3 years ago but they did not do it. Should the American voters (about 55%) be taken to court for their mistake and/or negligence?
What should the penalty be?
Would $1000 per voter be enough?
Many would say that $1000 per bad vote is not nearly enough and that the total penalty should be at least $1600 billions (the cost of the oil wars).
Shouldn't voters be fully responsible for their bad choice? If so, how many would admit having voted wrongly?
Posted by: Harvey D | November 17, 2007 at 10:49 AM
The voters have been paying and will continue to pay in the long forseable future, for this damage, with over-priced petrol, job losses, uncertain future and a costly, unwinnable war going into a quagmire, huge national debts...etc.
Justice is being served!
Posted by: Roger Pham | November 17, 2007 at 12:00 PM
Bush only got 50.7% of the popular vote in 2004 and 47.9% in 2000.
Posted by: Check Your Facts | November 17, 2007 at 01:04 PM
Check Your Facts,
Please Check Your Facts! Taste your own medicine. Who were responsible for the Republican-controlled congress in those years, until recently, that was complicit in commiting these "crimes against the environment..." to say the least?
Posted by: Roger Pham | November 17, 2007 at 07:22 PM
The regs put in by Bush are a joke.
Posted by: zzz | November 22, 2007 at 06:02 PM
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No need to whine about the US Ninth Circuit Court; it's the most overturned court in the country. A couple years ago, they made 27 decisions and 24 of them were reversed on appeal. Decisions from the 9th Circus are no longer taken very seriously. Their decisions sunstantially indicate how laws will NOT be treated in court.