Opinion ID: 381241
Heading Depth: 1
Heading Rank: 5

Heading: analysis

Text: (c) Subject to subsection (d) of this section, the assessment required under this section with respect to any standard or regulation shall contain an analysis of (1) the costs of compliance with any such standard or regulation, including extent to which the costs of compliance will vary depending on (A) the effective date of the standard or regulation, and (B) the development of less expensive, more efficient means or methods of compliance with the standard or regulation; (2) the potential inflationary or recessionary effects of the standard or regulation; (3) the effects on competition of the standard or regulation with respect to small business; (4) the effects of the standard or regulation on consumer costs; and (5) the effects of the standard or regulation on energy use. Nothing in this section shall be construed to provide that the analysis of the factors specified in this subsection affects or alters the factors which the Administrator is required to consider in taking any action referred to in subsection (a) of this section. Extensiveness of assessment (d) The assessment required under this section shall be as extensive as practicable, in the judgment of the Administrator taking into account the time and resources available to the Environmental Protection Agency and other duties and authorities which the Administrator is required to carry out under this chapter. Limitations on construction of section (e) Nothing in this section shall be construed (1) to alter the basis on which a standard or regulation is promulgated under this chapter; (2) to preclude the Administrator from carrying out his responsibility under this chapter to protect public health and welfare; or (3) to authorize or require any judicial review of any such standard or regulation, or any stay or injunction of the proposal, promulgation, or effectiveness of such standard or regulation on the basis of failure to comply with this section. 42 U.S.C. § 7617 (Supp. I 1977). 47 The House Report on the 1977 amendments noted: The committee recognizes that air pollution causes significant economic costs to the public by damaging health and welfare. Such costs include an increased incidence of illness, premature death, increased expenditures for health care and insurance and loss of tax revenues. Additionally, it causes damage to real estate and crops (and other vegetation), and could result in huge economic losses for tourist-related industries. While quantifications of these losses is obviously difficult, some estimates range as high as $16.1 billion annually (in 1968 dollars). H.R.Rep. No. 294, 95th Cong., 1st Sess. 34 (1977), U.S. Code Cong. & Admin. News 1977, p. 1112. 48 The Federal Power Commission is no longer in existence. Its responsibilities have been transferred to the Secretary of Energy, 42 U.S.C. § 7151 (Supp. I 1977), and the Federal Energy Regulatory Commission, id. § 7172 49 The other cases to which petitioners refer do not warrant extended discussion. Like Amerika Linien, United States Lines, Inc. v. FMC, 189 U.S.App.D.C. 361, 584 F.2d 519 (1978), involved the Shipping Act; like Gulf State Utilities, Northern Natural Gas Co. v. FPC, 130 U.S.App.D.C. 220, 399 F.2d 953 (1968), involved the Federal Power Act. Each of these cases turned on the broad public interest standard under which the FMC and the FPC (now FERC) operate and on the legislative history of the statutes indicating congressional intent to include antitrust policy within the scope of that standard. McLean Trucking Co. v. United States, 321 U.S. 67, 64 S.Ct. 370, 88 L.Ed. 544 (1944), is clearly inapposite, for in that case the Court did not even have to imply the content of the ICC's public interest standard from the structure of the statute or its legislative history; Congress had expressly declared that antitrust policy was to be a factor in the ICC's determinations. See 321 U.S. at 82 & n.16, 64 S.Ct. 370 50 The CARB's regulations do not violate section 207(c)(3)(B), which directs that the written instructions shall not include any condition on the ultimate purchaser's using, in connection with such vehicle or engine, any component or service (other than a component or service provided without charge under the terms of the purchase agreement) which is identified by brand, trade, or corporate name; or directly or indirectly distinguishing between service performed by the franchised dealers of such manufacturer or any other service establishments with which such manufacturer has a commercial relationship, and service performed by independent automotive repair facilities with which such manufacturer has no commercial relationship. 42 U.S.C. § 7541(c)(3)(B) (Supp. I 1977); see note 68 infra. 51 In their reply brief, petitioners suggest that the history of the 1967 enactment is ambiguous on the question of the burden of persuasion, citing one remark of a supporter of the version of Section 209(b) adopted in 1967 to the effect that California 'would have the burden of proof.'  Joint Reply Br. of Petitioners at 19 n.12 (citing 113 Cong.Rec. 30979 (1967) (remarks of Rep. Harvey)). In fact, while remarks of some Congressmen are not always authoritative, the legislative history could not be less ambiguous on this question. The precise issue of the difference between the Senate and House versions of the bill as it related to the burden of persuasion was carefully explained on the floor. See 113 Cong.Rec. 30950 (1967) (remarks of Rep. Holifield). After Rep. Moss offered his amendment to the House Committee version, explaining that it contained the same language, word for word, as was adopted unanimously by (the Senate), id. at 30975, several other members again explained the difference between the House Committee version and the Senate version, specifically emphasizing that California carried the burden under the former but not the latter, see, e. g., 113 Cong.Rec. 30976 (1967) (remarks of Rep. Wilson); id. at 30977 (remarks of Rep. Roybal). The comment to which petitioners advert was made during the debate on the Moss amendment by a member who rose in opposition to that amendment, id. at 30979 (remarks of Rep. Harvey), and was part of his persistent effort to minimize the difference between the two versions, see id. at 30952 (remarks of Rep. Harvey). The House found those efforts unconvincing, and we must abide by that judgment 52 It is noteworthy that this allocation of the persuasion burden is consistent with general principles governing allocation of burdens. Because section 209 requires the Administrator to grant a waiver unless he makes certain findings, the denial of the waiver is the order to be promoted in a waiver proceeding. Proponents of an order usually bear the burden of showing the order is appropriate. See K. Davis, Administrative Law Treatise § 6:15 (2d ed. 1978). Here petitioners are the proponent of the order denying the waiver. Similarly, the burden of proof typically follows the party in control of the relevant information. When technological feasibility is in issue, the manufacturers are the ones in possession of the relevant information 53 International Harvester Co. v. Ruckelshaus, 155 U.S.App.D.C. 411, 438, 478 F.2d 615, 642 (1973); K. C. Davis, supra note 52, § 6:15 54 The House Report on the 1977 amendments cautioned: The Administrator . . . is not to overturn California's judgment lightly. Nor is he to substitute his judgment for that of the State. There must be clear and compelling evidence that the State acted unreasonably in evaluating the relative risks of various pollutants in light of the air quality, topography, photochemistry, and climate in that State, before the EPA may deny a waiver. H.R.Rep. No. 294, 95th Cong., 1st Sess. 302 (1977) (emphasis added), U.S. Code Cong. & Admin.News 1977, p. 1381. 55 International Harvester Co. v. Ruckelshaus, 155 U.S.App.D.C. 411, 438, 478 F.2d 615, 642 (1973) 56 As we noted in the preface to our analysis, the Administrator like every other administrative officer must give reasoned consideration to the issues before him, but the extent of the consideration he is required to give depends on the statute under which he is operating. This principle explains why this case differs from those petitioners cite in support of their argument that the Administrator has an affirmative obligation to make negative findings. Thus, for example, our holdings that agencies required to prepare environmental impact statements under the National Environmental Policy Act cannot sit back, like an umpire, and resolve adversary contentions presented to them turn on the fact that NEPA places primary responsibility for its enforcement in the hands of the agencies. See State of Alaska v. Andrus, 188 U.S.App.D.C. 202, 210, 580 F.2d 465, 473 (1978); Calvert Cliffs' Coordinating Committee, Inc. v. AEC, 146 U.S.App.D.C. 33, 43, 449 F.2d 1109, 1119 (1971). NEPA states that every federal agency shall consider ecological factors when dealing with activities which may have an impact on man's environment. Zabel v. Tabb, 430 F.2d 199, 211 (5th Cir. 1970) (emphasis added). Similarly, in the other case petitioners cite, Citizens Committee to Save WEFM v. FCC, 165 U.S.App.D.C. 185, 506 F.2d 246 (1974) (en banc), we held that the FCC's performance of its regulatory role did not depend upon the assiduousness of private parties because the agency had a mandate to approve applications consistent with the public interest. Id. 165 U.S.App.D.C. at 201 n.21, at 262 n.21. These cases do not hold that regardless of the statute involved the agency always bears the burden of demonstrating a particular state of facts exist. Rather they turn on the special mandate involved. Here the Administrator has no broad mandate to assure that California's emissions control program conforms to the Administrator's perceptions of the public interest. Absent the contingency that he is able to make contrary findings, his role with respect to the California program is largely ministerial 57 Letter from T.M. Fisher to Benjamin R. Jackson (August 26, 1977), reprinted in J.A. 1281-82 (cited in Joint Br. for Petitioners at 59, 65) 58 General Motors Corp., Analysis of Reports Used by the California Air Resources Board to Support the Restricted Maintenance Regulations 5-8 (submitted to the EPA February 1978), reprinted in J.A. at 1803-06 (cited in Joint Br. for Petitioners at 59, 65) 59 See California Air Resources Board, Staff Report No. 77-12-1, 19-28 (May 26, 1977), reprinted in J.A. at 180-89; California Air Resources Board, Staff Report No. 77-9-2, 21-28 (April 28, 1977), reprinted in J.A. at 146-53. Coupling the other new regulations (such as inspection procedures) with its new maintenance regulations, the CARB staff predicted a reduction in: hydrocarbons by 4 tons/day, carbon monoxide by 73 tons/day, and oxides of nitrogen by 3 tons/day in the South Coast Air Basin in 1990. These reductions represent 1.5%, 2.5%, and 0.5% of the total motor vehicle emissions at that time . . . . In addition, the proposed maintenance regulations will strongly enhance public acceptance for the (Motor Vehicle Inspection Program), and increase the chances for its success. California Air Resources Board, Staff Report No. 77-12-1, supra, at 28, J.A. at 189. We have no basis other than petitioners' unsubstantiated say-so that this prediction is not trustworthy. 60 Environmental Protection Agency, Transcript of Public Hearing on California Waiver Request 133 (Aug. 3, 1977) (statement of Ms. Petrauskas), reprinted in J.A. at 3413 (cited in Joint Br. for Petitioners at 59). The following colloquy appears in the record immediately following this statement: MR. KRUSE (Member, EPA Hearing Panel): What is your reaction to the data CARB presented which indicates your recommended maintenance is not being performed by the vehicle owners? MR. WEAVER (Emissions Planning Associate, Ford Motor Co.): I guess we have to accept that some of that is true, and where it has been demonstrated that this lack of maintenance is contributing to air quality problems, we are doing everything we can to produce maintenance-free parts. MR. KRUSE: Do you have any data of your own which you can supply? MR. WEAVER: No. 61 General Motors Corp., Statement to the California Air Resources Board on Proposed Changes in Allowable Maintenance 8-10 (May 26, 1977), reprinted in J.A. at 3310-12 (cited in Joint Br. for Petitioners at 65) 62 We have already disposed of petitioners' argument that the cost of compliance consideration requires the Administrator to develop a cost-effectiveness study of the in-use maintenance regulations. See note 40 supra In a separate brief, intervenor The Automobile Importers of America (AIA) argues that the Administrator ignored the need of manufacturers of imported motor vehicles for adequate lead time to comply with the regulations. Its complaint is based on the fact that most importers have not yet begun to use breakerless high-energy ignition systems, which are important in extending the useful life of spark plugs and otherwise reducing the maintenance needed for other ignition parts. AIA refers to no evidence supporting its assertion that it will not have the adequate lead time to incorporate the newer ignition system. The record shows that the newer system itself is virtually (an) off-the-shelf ite(m). California Air Resources Board, Staff Report No. 77-12-1, 18 (May 26, 1977), reprinted in J.A. at 179. Its argument is therefore unpersuasive. The balance of the manufacturers' technological feasibility arguments not discussed herein are either moot, see note 64 infra, or based on undocumented assertions that do not merit discussion. 63 See notes 15 & 16 supra. Still, the CARB did rely on mileage intervals to shape its in-use maintenance regulations. To set aside the Administrator's decision to waive the regulations, however, this court requires persuasive evidence that the manufacturers cannot comply with them in light of current and projected technology. On this record, the manufacturers have failed to advance any evidence attesting to that 64 See note 18 supra. One argument was that if manufacturers could not recommend maintenance there would be no assurance that certain parts (particularly air filters, fuel filters, hoses and tubing) would last for the specified mileage. Another related to possible safety implications of restricting recommended maintenance. The CARB's emergency amendments permit manufacturers to recommend additional maintenance, and thus these arguments are no longer properly before us Because we find the manufacturers did not meet their burden on the alleged inconsistency of the in-use maintenance regulations with section 202(a), we need not discuss whether the Administrator acted improperly in relying on an EPA staff synopsis of the waiver proceeding record. 65 See note 18 supra 66 Bates v. State Bar of Arizona, 433 U.S. 350, 363-66, 97 S.Ct. 2691, 53 L.Ed.2d 810 (1977); Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, 425 U.S. 748, 761-70, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976) 67 Banzhaf v. FCC, 132 U.S.App.D.C. 14, 34, 405 F.2d 1082, 1102 (1968), cert. denied, 396 U.S. 842, 90 S.Ct. 50, 24 L.Ed.2d 93 (1969), cited with approval in Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council, 425 U.S. 748, 772 n.24, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976); see Young v. Mini Theatres, Inc., 427 U.S. 50, 68, 96 S.Ct. 2440, 49 L.Ed.2d 310 (1975) 68 Usery v. Turner Elkhorn Mining Co., 428 U.S. 1, 16, 96 S.Ct. 2882, 49 L.Ed.2d 752 (1976); Lichter v. United States, 334 U.S. 742, 68 S.Ct. 1294, 92 L.Ed. 1694 (1948) Like the first amendment claim, this argument too is partly moot owing to the CARB's emergency amendments. See notes 18 & 64 supra. Moreover, like certain of the petitioners' other contentions, this argument partly draws support on proposed warranty regulations which the CARB has adopted. The Administrator has not waived preemption of these regulations, however, and hence they are not properly before us.