ELR Citation: ELR 20879
No(s). 92-CV-869 (N.D.N.Y. Jan 22, 1993)

The court holds that the New York Department of Environmental Conservation (NYDEC) violated Clean Air Act (CAA) §177 by failing to adopt the "clean fuels" component of California's automobile emission regulations, by adopting emission regulations less than two years before automobile manufacturers would begin work on the model year to which the regulations applied, and by adopting sales quotas for zero emission vehicles (ZEVs) that conditioned sales of non-ZEVs on the sale of a specified percentage of ZEVs. CAA §177 allows a state other than California to adopt and enforce automobile emission regulations if the regulations are identical to California's standards, for which the U.S. Environmental Protection Agency (EPA) has granted a waiver, and California and the state at issue adopted the standards at least two years before the commencement of the model year to which the regulations apply. New York adopted California's standards for new emission levels and sales quotas for ZEVs, but did not adopt California's regulations intended to ensure the availability of clean fuels.

The court first holds that summary judgment is appropriate because there are no genuine issues of material fact and the sole issues for resolution are questions of law. The court holds that CAA §177 requires that emission regulations adopted by states other than California must contain standards identical to California's does not require New York to adopt the clean fuels component of the California program. Section 177(1) requires New York's new vehicle emission standards to be identical to California emission standards for which EPA granted a waiver under Clean Air Act §209(b). California's clean fuel regulations received a waiver under §211, under which California alone can obtain an automatic waiver for fuel regulations. To hold that New York must adopt fuel standards for which California has received a §211 waiver would ignore the apparent congressional intent to treat fuel and emission regulations differently. The court holds, however, that New York's failure to adopt California's clean fuels standards violates Clean Air Act §177, because the New York regulations, as adopted, have the effect of requiring manufacturers to create a vehicle designed differently from those designed for sale in California. Plaintiff automobile manufacturers associations presented evidence that the higher sulphur content of New York fuels will impede the effectiveness of catalytic converters designed for sale in California, requiring redesign of the exhaust emission control system.

The court holds that the New York regulations violate §177's prohibition on actions limiting the sale of California-certified vehicles, because they require that a certain percentage of vehicles sold must be ZEVs. By mandating that a certain percentage of California-certified vehicles sold in New York fall into a particular class, the NYDEC has effectively limited the sales of all other classes of California-certified vehicles. The court holds that New York's ZEV sales quota further violates §177 by requiring manufacturers to build a "third vehicle," beyond the one required for EPA testing and the one required by California's standards. To mandate a minimum number of vehicles is to mandate that manufacturers design vehicles to satisfy the demands of local climatic conditions. The court holds that the NYDEC did not violate §177 by adopting California's standards that have not yet received a federal waiver, because a contrary holding would frustrate congressional intent. Finally, the court holds that the NYDEC violated §177's requirement that states adopt emission regulations for a model year at least two years before the commencement of the model year, because the NYDEC adopted emission regulations for the 1995 model year 19 months before work would begin on the 1995 model year.

Counsel for Plaintiffs
Daniel F. Attridge
Kirkland & Ellis
655 15th St. NW, Ste. 1200, Washington DC 20005
(202) 879-5000

Counsel for Defendants
Joan L. Matthews, Ass't Attorney General
Attorney General's Office
State Capitol, Ste. 221, Albany NY 12224
(518) 474-7124

Counsel for Intervenor-Defendant
William H. Lewis Jr.
Morgan, Lewis & Bockius
1800 M St. NW, Washington DC 20036
(202) 467-7000