ELR Citation: ELR 20214
No(s). 06-71891 (9th Cir. Aug 18, 2008)

The Ninth Circuit reversed and remanded to the National Highway Traffic Safety Administration (NHTSA) its recent rule that set, inter alia, corporate average fuel economy standards for light-duty trucks, including many sport utility vehicles (SUVs). The rule is arbitrary and capricious and contrary to the Energy Policy and Conservation Act in its failure to monetize the value of carbon emissions, its failure to close an SUV loophole, and its failure to set fuel economy standards for all vehicles in a particular weight class. Additionally, the agency's environmental assessment (EA) is inadequate because it failed to consider all environmental impacts including cumulative impacts on climate change, and a substantial question is raised regarding the potentially significant environmental impacts of the rule, which triggers full environmental impact evaluation under the National Environmental Policy Act. On remand, NHTSA must prepare a revised EA or, as necessary, a complete environmental impact statement.

[The prior, withdrawn opinion can be found at 37 ELR 20281.]