Opinion ID: 321074
Heading Depth: 1
Heading Rank: 1

Heading: statutory setting, the proceedings, and the regulations

Text: 6 These Regulations are an integral element in the complex program to reduce air pollution which Congress adopted by way of the Clean Air Act Amendments of 1970. At the core of that program, in Section 202 of the Act, is a graduated schedule for reducing exhaust emissions from new cars. Congress mandated EPA to set standards for 1975 and post-1975 model cars 'which require a reduction of at least 90 per centum from emissions of carbon monoxide and hydrocarbons allowable    in model year 1970'; for 1976 and post-1976 model cars, the standards are to 'require a reduction of at least 90 per centum from the average of emissions of oxides of nitrogen actually measured    during model year 1971.' Section 202(b)(1)(A) and (B). The Administrator was empowered to suspend these deadlines under extraordinary circumstances, but 'for one year only,' Section 202(b)(5)(A) and (B), and only if he simultaneously established 'interim standards' which 7 reflect the greatest degree of emission control which is achievable by application of technology which the Administrator determines is available, giving appropriate consideration to the cost of applying such technology within the period of time available to manufacturers. 8 Section 202(b)(5)(C). 9 Foreseeing that achievement of this schedule might require regulation of fuels, and foreseeing in particular the possible need to regulate gasoline's lead content so as to protect catalytic converters, 5 Congress authorized the Agency to promulgate regulations which 10 control or prohibit the manufacture, introduction into commerce, offering for sale, or sale of any fuel or fuel additive for use in a motor vehicle or motor vehicle engine    (B) if emission products of such fuel or fuel additive will impair to a significant degree the performance of any emission control device or system which is in general use, or which the Administrator finds has been developed to a point where in a reasonable time it would be in general use were such regulation to be promulgated. 6 11 Section 211(c)(1). The Administrator must subject his proposed regulations to a 'public hearing' before promulgating them in final form. Section 211(c)(2) (B). No fuel regulation may be undertaken 'except after' the Administrator has considered, and published 'findings' on, the comparative merits of emission control devices, in or near 'general use,' which do and which do not require use of regulated fuels. Section 211(c)(2)(B). The Administrator must also find that prohibition of a particular fuel or additive will not cause use of another fuel or additive which endangers 'the public health or welfare to the same or greater degree than the use of the fuel or fuel additive proposed to be prohibited.' Section 211(c)(2)(C). The Act mandates a 'civil penalty of $10,000' per day against 'any person who violates    the regulations prescribed,' though the Administrator may 'remit or mitigate' the penalty at his discretion. Section 211(d). 12 EPA published its proposed regulations of gasoline's lead content on February 23, 1972, 7 the proposals dealing with both the catalytic converter problem and the direct health impact of airborne lead. The Agency solicited comments from all interested parties and held public hearings on the proposals in three cities. Petitioners participated fully in these proceedings and do not challenge their regularity. 13 On January 10, 1973 the final regulations now under review were promulgated. 8 In a simultaneous decision not now before us, regulations dealing with the health impact of air-borne lead were reproposed for further public discussion. The Administrator accompanied the final Fuel Regulations with a statement explaining and justifying them (hereinafter the Statement), which we append to this opinion. So far as is pertinent to this case, the Regulations presently provide as follows: 9 14 'Unleaded gasoline' is defined as 'gasoline containing not more than 0.05 gram of lead per gallon and not more than 0.005 gram of phosphorous per gallon.' 40 C.F.R. 80.2(g). Cars fitted with catalytic converters must carry markings or design features showing that only unleaded gasoline may be used. 40 C.F.R. 80.24. On pain of a civil fine of $10,000 per day, 40 C.F.R. 80.5, retailers, and their employees and agents, are forbidden to introduce leaded gasoline into cars marked or designed for exclusive use of unleaded fuel. 40 C.F.R. 80.22(a). If the offending retailer displays a refiner's corporate trademark, the refiner is made vicariously liable for the offense, 40 C.F.R. 80.23(a)(1); if the offending retailer did not display a refiner's trademark, vicarious liability runs to 'any distributor who sold the retailer gasoline contained in the retail outlet storage tank which supplied that pump at the time of the violation   .' 40 C.F.R. 80.23(a)(2). In both cases, however, there is no vicarious liability, and the retailer alone is liable, where the retailer introduced the leaded gasoline 'from a pump from which leaded gasoline is sold.' 40 C.F.R. 80.23(c). Finally, the Regulations affirmatively require marketing of at least one grade of unleaded gasoline by 'every person who owns, leases, operates, controls, or supervises a retail outlet at which 200,000 or more gallons of gasoline was sold during any calendar year beginning with the year 1971.' 40 C.F.R. 80.22(b). 15 During and after final promulgation of the Regulations, certain events transpired which bear upon the issues before us. 10 On February 10, 1973, this court remanded for reconsideration EPA's decision, under Section 202(b)(5) of the Clean Air Act, not to suspend for one year the 1975 emission standards established by the Agency pursuant to Section 202(b)(1)(A) of the Act. International Harvester Co. v. Ruckelshaus, 155 U.S.App.D.C. 411, 478 F.2d 615 (1973). On April 11, 1973, after new public hearings, the Administrator decided to suspend the 1975 standards and to replace them with a set of 'interim standards.' 11 Under this 'interim' program, special standards apply to all 1975 model cars sold in California; these cars must produce no more than .9 gram per mile of hydrocarbons, 9.0 grams per mile of carbon monoxide, and 2.0 grams per mile of nitrogen oxides. 12 The Administrator stated: 16 These standards in my judgment will require use of catalytic converters on all 1975 passenger cars shipped to California. California sales of such vehicles constitute approximately ten percent of total United States new car sales. 13 17 The standards for 1975 model cars sold outside California are less stringent: 1.5 grams per mile of hydrocarbons, 15 grams per mile of carbon monoxide, and 3.1 grams per mile of nitrogen oxides. 14 From these standards the Administrator drew guarded conclusions about the probable use of catalytic converters outside California: 18    These standards can, in my judgment, be achieved by manufacturers generally on most models without use of catalytic devices. In my judgment these standards will not require use of catalysts on more vehicles sold outside California than manufacturers are capable of producing without the possibility of severe production difficulties. 19    I believe that the requirement to install catalytic converters on all 1975 automobiles shipped to California and on a portion of 1975 cars sold outside California    will maintain the accelerating momentum of technological progress which has so clearly characterized catalyst development for automative applications during the past two years.    20    To the extent that additional transportation controls are needed outside California, vehicles designed for California can be purchased in 1975 by fleet operators, such as taxicab companies.    21 In setting interim standards for the rest of the country, I have not felt constrained to avoid any reliance upon catalysts to enable auto manufacturers to meet the certification requirements. I anticipate that for certain model lines catalysts may be required. The likelihood that a significant number of cars will be distributed across the country equipped with catalysts will supplement the experience derived in California in a beneficial way. 15 22 The Administrator recognized that the new 1975 standards, and the catalyst use they might or might not bring forth, had an important bearing on the Fuel Regulations earlier promulgated. He concluded, however, that the Regulations remained necessary: 23 Since the interim standards established by this decision will require catalysts on all vehicles sold in California, many of which will undoubtedly travel to other parts of the country, and on a significant number of vehicles sold in the other 49 States, lead-free gasoline must be generally available nationwide by the beginning of the 1975 model year. This will be accomplished by regulations that have already been promulgated. 16 24 Subsequent to this statement, it has become clear that at least General Motors and Ford intend to fit converters on a substantial number of their 1975 cars sold outside California, as well as on all cars sold within California. On May 23, 1973 the president of Ford Motor Company testified before a Senate subcommittee: 25 We can and will meet the 1975 interim standards, in spite of the serious doubts we expressed only a short time ago. It will be done with some difficulty, however.    26    We will also have to apply to certain engines nationwide the catalytic system that we had hoped could be used only in California during the 1975-model year. 27 This may involve 15 percent of production for the other 49 states.    28    I fear, I had hoped we could confine them to California. The way it turned out, another 15 percent of the nation will get them and there will be Ford cars spread out in Oregon and Maine and Florida.    17 29 On May 30 the president of General Motors testified before the same Senate subcommittee: 30    The addition of the converters to our advanced control systems provides stronger assurance of compliance and, based upon the limited testing to date, no loss of fuel economy (perhaps even an improvement), and better performance. Only in cars where we see that catalytic converters will not be needed to provide this assurance will we market our 1975 cars without them. 31 It is    probable, based on current planning, that the majority of our 1975 cars will have new carburetion and ignition systems to maintain or improve fuel economy and engine performance; some will need air pumps, and in most cases-- perhaps all-- catalytic converters may also be necessary or desirable. 18 32 Subsequent to this testimony, the Administrator formally reaffirmed his conclusion of April 11 that converters would be in widespread use in 1975, noting that 33 statements by representatives of the motor vehicle manufacturers have indicated that a substantial percentage of 1975 vehicles manufactured for sale outside of California will be equipped with catalysts. 34 38 Fed.Reg. 28301 (October 12, 1972).