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AQMD WILL SEEK TO CONTINUE IMPLEMENTING FLEET RULES

April 28, 2004

In the wake of a Supreme Court decision today affecting the South Coast Air Quality Management District’s clean fleet rules, agency officials vowed to pursue all possible efforts to implement measures to reduce toxic and smog-forming air pollution.

In an 8-1 decision, the Supreme Court of the United States issued an opinion today that the agency is pre-empted from implementing the rules for purchases of new vehicles by privately owned fleets.  The court left the door open for fleet rules governing leased and used vehicles, and rules that “can be characterized as internal state purchase decisions,” which may well encompass more than publicly owned fleets.  It sent the case back to the trial court for further deliberation.

The majority of vehicles regulated by AQMD’s fleet rules are operated by government agencies, or are contracted to such agencies.

“We are disappointed in this decision by the court,” said Barry Wallerstein, executive officer of the South Coast Air Quality Management District.

“However, we are determined to continue implementing the rules for publicly owned fleets.  We will also consider asking the state and the U.S. Environmental Protection Agency to allow us to continue to regulate privately owned fleets.”

In its decision authored by Justice Antonin Scalia, the Supreme Court ruled today that the federal Clean Air Act generally prohibits local jurisdictions such as the AQMD from adopting regulations that require private fleet owners to purchase clean-fueled vehicles.  Nonetheless, the court held open the possibility that the fleet rules are valid as applied to public fleets, and it further suggested that they may be valid “as applied beyond the purchase of new vehicles (e.g., to lease arrangements or to the purchase of used vehicles).”

AQMD’s clean fleet rules include seven measures requiring fleet operators of transit buses, school buses, trash trucks, airport shuttles and taxis, street sweepers and heavy-duty utility trucks, to buy clean-fueled models when they replace vehicles or add to their fleets of 15 or more vehicles.  Since their adoption, the rules have put more than 5,500 clean-fueled and lower-emission vehicles on the road.  (See fact sheet for further details.)

In addition, fleet operators may voluntarily add clean-fueled vehicles to their fleets, particularly if incentive funding is available to assist them.  AQMD is sponsoring a bill this year in the California Legislature, SB 1247, authored by Sen. Nell Soto, to provide a permanent source of funding to help replace heavy-duty diesel vehicles and equipment with clean-fueled models.

In spite of today’s ruling, AQMD is moving ahead with several measures to reduce smog-forming and cancer-causing emissions from mobile sources, including:

  • a bill in the California Legislature -- SB 1397 sponsored by Sen. Martha Escutia – requiring railroads to reduce their fair share of air pollution.  Railroads in the region emit nearly 39 tons per day of smog-forming oxides of nitrogen, more than the 350 largest industrial facilities in the Los Angeles Basin combined;
  • a proposed rule to reduce emissions from “yard hostlers” used to move cargo containers at the ports; and
  • numerous additional rules to reduce emissions from the region’s businesses and industry.

AQMD’s Governing Board adopted its fleet rules following completion of the agency’s landmark Multiple Air Toxics Exposure Study, which showed that 80 percent of the cancer risk from air pollution is due to diesel exhaust.  Most of the vehicles regulated under the fleet rules are diesel-powered.

The fleet rules also were an important strategy to reduce emissions from mobile sources, which collectively are responsible for about 75 percent of the region’s smog-forming emissions.

“Today’s decision ups the ante for California and the federal government to do their part in reducing mobile source emissions,” Wallerstein said.

“In order to achieve federally mandated clean air standards, the state and federal governments must move quickly to adopt aggressive regulations on all mobile sources.  This includes cars, trucks and buses, and especially those sources that have escaped stringent emission requirements, including ships, trains, aircraft and off-road equipment.”

Although AQMD has overall responsibility under the federal Clean Air Act to achieve healthful air quality in the Southland, the agency’s authority is primarily restricted to businesses and industry, which emit less than 25 percent of all smog-forming air pollution.  The California Air Resources Board and the U.S. Environmental Protection Agency have virtually sole authority to set emission standards for mobile sources.

Fleet Rules Litigation

The Engine Manufacturers Association, a Chicago-based trade group representing diesel engine makers, sued AQMD in U.S. District Court in Los Angeles in August 2000 following AQMD’s adoption of its first fleet rules.  The Western States Petroleum Association, a Sacramento-based association representing major oil refineries, later joined the lawsuit.  Five environmental organizations -- the Sierra Club, Natural Resources Defense Council, Coalition for Clean Air, Communities for a Better Environment and Planning and Conservation League -- intervened as defendants in the lawsuit in support of AQMD.

The trial court dismissed the lawsuit in its entirety on August 28, 2001, finding that the fleet rules did not violate the Clean Air Act because they did not impose any new emission requirements on manufacturers.

Plaintiffs appealed to the United States Court of Appeals for the Ninth Circuit, which on October 24, 2002, unanimously affirmed the trial court's decision.  Plaintiffs then sought review in the Supreme Court of the United States, and on June 9, 2003, the court agreed to take up the case. (Engine Manufacturers Association and Western States Petroleum Association v. South Coast Air Quality Management District et al., Supreme Court case No. 02-1343)

Last year, the U.S. Department of Justice filed a “friend-of-the-court” brief supporting the industry plaintiffs.  Plaintiffs and the Bush Administration argued that AQMD’s fleet rules violated section 209(a) of the federal Clean Air Act.  That section bars states and local governments from adopting “any standard relating to the control of emissions from new motor vehicles.”  The Clean Air Act reserves that authority for the federal government.  The one exception is the state of California, which is allowed to set stricter emission standards than the federal government.

In oral arguments before the Supreme Court on Jan. 14, former U.S. Solicitor General Seth Waxman, representing AQMD, told the court that the fleet rules are not standards requiring vehicle manufacturers to produce or sell anything, but are instead requirements that regulated fleet owners purchase from among the cleanest vehicles that are already commercially available.

The state of California and 16 other states, along with 20 organizations including the National League of Cities, National Conference of State Legislatures, National Association of Counties and U.S. Conference of Mayors, filed friend-of-the-court briefs supporting AQMD.

AQMD is the air pollution control agency for Orange County and major portions of Los Angeles, San Bernardino and Riverside counties.

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