California is known as a leader in the environmental movement. Pollution and clean air standards are major factors in that. For a long time, the state has chosen to set even tougher standards on its air quality and car pollution levels than the rest of the country.
However, California's ability to set higher standards has been challenged for a long time, with one presidential administration taking it away and the next reinstating it. Now, a federal court has just issued the latest ruling giving back power to California to set its own standards. Will that decision be the final one?
EPA and State Regulation
EPA regulations can be thought of as a "floor” (as opposed to a “ceiling"). The EPA establishes national environmental regulations through laws like the Clean Air Act. These regulations set minimum standards (the floor) for pollution control that all states must meet, but states have the authority to implement stricter environmental regulations than the EPA's national standards.
This allows states to address specific environmental challenges, like unique air quality issues or sensitive ecosystems. The federal standards ensure a baseline level of environmental protection across the country, but states can tailor regulations to their specific needs and environmental priorities. This also allows states to experiment with stricter regulations, potentially leading to advancements in pollution control technology that benefit the nation.
California is a well-known example of a state with stricter air quality standards than the federal requirements, particularly regarding vehicle emission regulations. This is achieved through a provision in the Clean Air Act that allows for “emission waivers.”
How Emission Waivers Work
The EPA grants waivers under the Clean Air Act, which gives states the unique authority to set stricter air pollution standards for new motor vehicles than the federal government. To do this, California (or any other state) submits a waiver request to the EPA if it wants to set its own, more stringent, emissions standards. The EPA then reviews the request to see if it meets specific criteria.
As previously mentioned, California's standards must be at least as protective of public health and welfare as federal standards. But on top of that, the state must demonstrate a need for stricter standards based on “compelling and extraordinary conditions.” Of course, California's standards and enforcement procedures must comply with the Clean Air Act. The EPA will open a public comment period to allow interested parties to weigh in on the waiver request.
The EPA typically approves these waivers as long as California meets the criteria. This system allows California to be a leader in clean car technology while other states can choose to adopt its stricter standards.
Waiving Back and Forth
In 2013, under the Obama administration, the EPA instituted a waiver that allowed California to set its own greenhouse gas emission standards for “model years” 2021-2025. Theoretically, once California receives a waiver, other states can adopt California's stricter standards for their own vehicles—but they certainly don’t have to. Still, in 2019, the Trump administration ended the waiver on the theory that it allowed California to move the nation toward stricter fuel economy standards and even “mandatory electrification.” Carmakers have difficulty ignoring California car owners, as it is one of the nation's most populous states. The practical effect for carmakers is that they must accommodate California standards for their entire fleet, which means all cars across the U.S. end up meeting California's stricter standards.
The EPA and the National Highway Traffic Safety Administration (NHTSA) issued a joint rulemaking that withdrew the waiver.
However, in 2022, under the Biden administration, the EPA restored the waiver, once again allowing California to set its own zero-emission vehicle sales mandate and tailpipe emissions limits through 2025. But this was challenged in court by 17 different states that were led by Republicans and states where fossil fuel companies were key players. They claimed that the effect of the waiver is harming their interests because it forces manufacturers to charge higher prices for combustion vehicles. They also claimed that the setup gave California an “unconstitutional regulatory power” that other states didn’t have.
California Can Keep Waiver — For Now
The case went up to the U.S. Court of Appeals for the D.C. Circuit, the second-highest court in the country. Now, the appellate court has issued a ruling rejecting that legal challenge. In other words, it has upheld the EPA’s most recent decision to grant California the waiver through 2025. The court didn’t buy the Republicans’ argument. They said there wasn’t any evidence to support the claim that carmakers would respond by lowering their prices or selling fewer EVs.
But the matter likely isn’t settled quite yet. Many think this case is likely to land before the Supreme Court. So, while environmentalists have won the battle, the war may wage on before SCOTUS in the upcoming term.
Related Resources
- Skies Darken for the EPA's Authority (FindLaw's Federal Courts blog)
- Climate Change and the Law (FindLaw's Learn About the Law)
- SCOTUS Limits EPA Emission Control Powers (FindLaw's Federal Courts blog)
