Document: 463 U.S. 29 103 S.Ct. 2856 77 L.Ed.2d 443 MOTOR VEHICLE MANUFACTURERS ASSOCIATION OF the UNITED STATES, INC., et al., Petitionersv.STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY al. CONSUMER ALERT, Petitioners v. STATE STATES DEPARTMENT TRANSPORTATION, Nos. 82-354, 82-355 and 82-398. Argued April 26, 1983. Decided June 24, Syllabus The National Traffic Motor Vehicle Safety Act of 1966 (Act) directs Secretary Transportation to issue motor vehicle safety standards that "shall be practicable, shall meet need for safety, stated in objective terms." In issuing these standards, is directed consider "relevant available data," whether proposed standard "reasonable, practicable appropriate" particular type which it prescribed, "the extent such will contribute carrying out purposes" Act. authorizes judicial review, under Administrative Procedure Act, "all orders establishing, amending, or revoking" a standard. Highway Administration (NHTSA), has delegated his authority promulgate rescinded requirement Modified Standard 208 new vehicles produced after September 1982 equipped with passive restraints (automatic seatbelts airbags) protect occupants event collision. explaining rescission, NHTSA maintained was no longer able find, as had 1977 when issued, automatic restraint would produce significant benefits. 1977, assumed airbags installed 60% all cars 40%. But by 1981 became apparent automobile manufacturers planned install approximately 99% overwhelming majority could easily detached left way permanently, thus precluding realization life-saving potential requiring same affirmative action stumbling block achieving high usage manual belts. For this reason, concluded there basis reliably predicting lead any increased restraints. Hence, NHTSA's view, reasonable practicable. Moreover, given expense implementing limited benefits arising therefrom, feared many consumers regard an instance ineffective regulation. On petitions review recission requirement, Court Appeals held rescission arbitrary capricious on grounds conclusion not predict increase belt insufficient resci sion, inadequately considered possibility nondetachable rather than detachable belts, agency failed give consideration compliance installation airbags. found congressional reaction various versions "raised doubts" "necessarily demonstrates effort fulfill its statutory mandate" therefore obligated provide "increasingly clear convincing reasons" action. Held: capricious; present adequate explanation rescinding must either matter further adhere amend along lines analysis supports. Pp. 40-57. (a) occupant crash protection subject review—the "arbitrary capricious" standard—as promulgation standard, should judged by, petitioner Manufacturers Association contends, used judge agency's refusal rule first place. expressly equates "revoking" "establishing" standards. Association's view render meaningless Congress' authorization revoking An changing course supply reasoned change beyond may required does act instance. While scope narrow court substitute judgment agency, nevertheless examine relevant data articulate satisfactory reviewing explanation, decision based factors error judgment. 40-44. (b) correctly applied regulations, but erred intensifying upon reading legislative events. interpretation statute confirmed ratified subsequent failure interpretation, here, even unequivocal ratification connote approval disapproval later rescind requirement. That remains 44-46. (c) reason finding apparently gave modifying require airbag technology utilized. Even if attain anticipated because so individuals detach mechanism were acceptable entirety, standing alone justify more amendment disallow means one effective passenger protection. It cast doubt efficacy technology. policy alternative requirement; within ambit existing 46-51. (d) too quick dismiss seatbelts. Its sufficient enable conclude product decisionmaking. took ccount critical difference between current seatbelts, offer rational connection facts pass muster 51-57. 220 U.S.App.D.C. 170, 680 F.2d 206, vacated remanded. Sol. Gen. Rex E. Lee, Washington, D.C., argued, petitioners Mr. Lloyd N. Cutler, 82-354. James F. Fitzpatrick, respondents. Justice WHITE delivered opinion Court. 1 development Americans unprecedented freedom travel, exacted price enhanced mobility. Since 1929, have been leading cause accidental deaths injuries United States. 1982, 46,300 died accidents hundreds thousands maimed injured.1 consensus exists loss life our highways unacceptably high, improving admit easy solution. 1966, Congress decided at least part answer lies design features itself.2 much building safer undeveloped untested. Before changes mandated, effectiveness studied, their costs examined, public acceptance considered. This task called considerable expertise responded enacting (Act), 15 U.S.C. §§ 1381 seq. (1976 Supp. IV 1980). created purpose "reduc[ing] traffic persons resulting from accidents," § 1381, delegate 1392(a). "is reasonable, vehicle, "extent 1392(f)(1), (3), (4).3 2 also provisions (APA), 5 706 (1976), "orders Federal standard," 1392(b). Under authority, we today acted arbitrarily capriciously n Briefly summarized, hold 3 * regulation whose bears complex convoluted history. Over 60 rulemaking notices, imposed, amended, rescinded, reimposed, now again. 4 As originally issued Department 1967, simply automobiles. 32 Fed.Reg. 2408, 2415 (Feb. 3, 1967). soon level seatbelt use low reduce level. began "passive systems"—devices do depend taken except necessary operate vehicle. Two types emerged: traditional belt, fastened interior door attached without impeding entry exit deploys automatically passenger. inflatable device concealed dashboard steering column. inflates sensor indicates deceleration forces accident exceeded preset minimum, then rapidly deflates dissipate those forces. devices immediately recognized, substantial on-the-road experience both devices, estimated prevent 12,000 over 100,000 serious annually. 42 34,298. 1969, formally restraints, 34 11,148 (July 2, 1969), thereby commencing lengthy series proceedings. 1970, revised include requirements, 35 16,927 (Nov. 1970), 1972, amended full front seat manufactured August 15, 1975. 37 3911 1972). interim, built 1973 1975 carry lap shoulder belts coupled "ignition interlock" starting connected.4 supported "substantial evidence" upheld. Chrysler Corp. Dep't Transportation, 472 659 (CA6 1972).5 6 preparing upcoming model year, most car makers chose option, highly unpopular, led prohibit permitting ignition interlock continuous buzzer designed indicate use. Schoolbus Amendments 1974, Pub.L. 9 -492, 109, 88 Stat. 1482, 1410b(b). 1974 provided satisfied system other submitted where vetoed concurrent resolution houses. 1410b(b)(2).6 7 date mandatory systems extended year until 31, 1976. 40 16,217 (April 10, 1975); id., 33,977 (Aug. 13, 1975). 1976, William Coleman initiated issue, 41 24,070 (June 9, 1976). After hearing testimony written comments, optional alternatives indefinitely suspended Although he technologically economically feasible, expectation widespread resistance systems. He instead demonstration project involving up 500,000 order smooth date. Secretary's Decision Concerning Occupant Crash Protection (December 6, 8 Coleman's successor disagreed. Within months assuming office, Brock Adams unnecessary. regulation, known 208. 34,289 5, 1977); CFR 571.208 (1977). mandated phasing beginning large extending 1984. two principal satisfy belts; choice manufacturers. Pacific Legal Foundation 593 1338 (CADC), cert. denied, 444 830, 100 57, 62 38 (1979), upheld rational, nonarbitrary consistent mandate survived scrutiny Congress, did exercise veto provision Amendments.7 next several years, industry geared comply late July, 1980, reported: "On road estimates injury-preventing When are systems, each 9,000 lives saved tens prevented." NHTSA, Automobile Protection, Progress Report No. p. (App. 1627). 10 February 1981, however, Andrew Lewis reopened rul making due changed economic circumstances and, particular, difficulties industry. 46 12,033 12, 1981). later, ordered one-year delay application cars, deadline 21,172 1981) time, possible entire 21,205 receiving comments holding hearings, final (Notice 25) contained II 11 statement Notice 25, 53,419 (Oct. 29, reflected technology, plans By cars. realized. appeared permanently. Passive once detached, obtaining levels belts." Fed.Reg., 53421. all. 12 possibly minimal benefits, view. $1 billion implement believe impose assurance accrue. addition, might adverse effect public's attitude toward safety. Given adversely affecting "poisoning popular sentiment efforts improve future." 53424. 13 State Farm Mutual Insurance Co. Independent Insurers filed States District Columbia Circuit capricious. 206 (1982). observing unrelated take instance, that, case, discretion restricted forms "reaction" issue. proceeded find three reasons. First, Standard. evidence record sustain position "only well-justified seek non-arbitrary." F.2d, 232. Second, panel8 Third, failing whatever 14 allowed 30 days submit schedule "resolving questions raised opinion." 242. Subsequently, Proposed Supplemental Rulemaking setting forth complying court's mandate. 4, staying 1, 1983, requested inform achievable. informed October representations manufacturers, appear achieved before 1985. November 8, granted certiorari, --- ----, 340, 74 382 (1982), 18, entered recalling III Unlike Appeals, appropriate "most troublesome question" case. Both concerning promulgated informal procedures 553 (1976). promulgating set aside "arbitrary, capricious, abuse discretion, otherwise accordance law." 706(2)(A). Citizens Preserve Overton Park Volpe, 401 402, 414, 91 814, 822, 28 136 (1971); Bowman Inc. Arkansas-Best Freight System, Inc., 419 281, 95 438, 447 (1974). We modification test. Section 103(b) 1392(b), states procedural apply suggests depending nature 16 Petitioner (MVMA) disagrees, contending place—a believes considerably narrower test "close borderline nonreviewability." Brief MVMA, 35. reject standards; neither nor APA revocations treated refusals Petitioner's rules. revocation extant substantially different act. Revocation constitutes reversal former views proper course. A "settled behavior embodies pursuing course, policies committed Congress. There is, then, presumption carried best settled adhered to." Atchison, T. & S.F.R. Wichita Bd. rade, 412 800, 807-808, 93 2367, 2374-2375, 350 (1973). Accordingly, 17 holding, fully recognize "regulatory agencies establish rules conduct last forever," American Trucking Assoc., Co., 387 397, 416, 87 1608, 1618, 18 847 (1967), ample latitude "adapt demands circumstances." Permian Basin Area Rate Cases, 390 747, 784, 1344, 1368-1369, 20 312 (1968). always necessarily point direction deregulation. abstract, presume prior action, revision extension If established start, presumption—contrary petitioners' views—is against justified record. removal entail monetary expenditures accordingly, easier deregulatory chooses move alter law. accepts applicability argues statute. disagree formulation.9 agency. Nevertheless, including "rational made." Burlington Truck Lines States, 371 156, 168, 83 239, 245-246, 207 (1962). "consider judgment." Transp. supra, U.S., 285, S.Ct., 442; 823. Normally, relied intended consider, entirely important aspect problem, offered runs counter implausible ascribed expertise. attempt itself make deficiencies: "We given." SEC Chenery Corp., 332 194, 196, 67 1575, 1577, L.Ed. 1995 (1947). will, "uphold less ideal clarity path reasonably discerned." 286, 442. See Camp Pitts, 411 138, 142-143, 1241, 1244, 36 106 (1973) (per curiam). purposes proceedings compiled court, . 1394, findings whole." S.Rep. 1301, 89th Cong., 2d Sess. (1966); H.R.Rep. 1776, 21 (1966), U.S.Code Cong. Admin.News 2716. 19 rescissions "raise[d] mandate," 222, 229. Specifically, significance occurrences: "In banned foreclose pursuit resolutions needed passed. house indicated support concept some airbags." 228. From acts non-acts derived "congressional commitment occupants." Ibid. 22 misguided inferences questionable. noteworthy Respondent agrees post-enactment history heighten actions. 13. Farm's concession well-taken never suggested enlarged diminished Bob Jones University 2017, 2033, 75 (1983); Haig Agee, 453 280, 291-300, 101 2766, 2774-2778, 69 640 (1981), case us, ratification—short incorporation—of 23 infer examining events cited Appeals. inclined rely inchoate drawn fail suggest improperly technically effect, see n. supra; can hardly Similarly, divined tabling intr duced 1977. reflect deference disapprove 1981. And favored it—like NHTSA—may well reach four years later. Finally, read into floor 1980 bill, bill enacted Other contemporaneous showing equal hostility restraints.10 V 24 ultimate question us conclude, was. somewhat reasons, required. deal separately applies A. 25 obvious sought achieve devices: suggestion long process only options promulgated. Indeed, original contemplated cars.11 Automatic added they believed goal 12,858, 12,859 1971). At approved detached.12 Only manufacturer's behest, approve detachability feature—and assurances feature compromise restraint.13 foreseen contain 40% ratio assure greater 26 determined mechanism. infra, at, 51-54 recent rule-making, again acknowledged airbag: "The time earlier conclusions 1976 basic sound sufficiently demonstrated ." Final Regulatory Impact Analysis (RIA) XI-4 264). 27 logical response faults very objectives addressed reasons abandonment. through airbags, rulemaking. Not sentence discusses airbags-only option. Because, stated, "NHTSA's nonexistent," 236, what said 167, 245, apropos here: "There here made, indication [agency] exercised expert discretion. prepared permit accept practice. Expert lifeblood administrative process, 'unless requirements strict demanding, expertise, strength modern government, become monster practical limits discretion.' New York 342 882, 884 [72 152, 153, 96 662] (dissenting opinion)." (footnote omitted). frequently reiterated cogently explain why manner, T Trade, 806, 2374, (1973); FTC Sperry Hutchinson 405 233, 249, 92 898, 907, 31 170 (1972); NLRB Metropolitan Ins. 380 443, 85 1061, 1064, 951 (1965); reaffirm principle today. opted airbag, surely enough regulated eschewed device. nearly decade, waged regulatory equivalent war airbag14 lost—the proven effective. Now employ revoke itself. responsive concerns. "technology-forcing" sense inducing superior design. C rysler Dept. Transp., 672-673. If, statute, defer industry's develop do, fortiori address option noted "airbags seem none problems identified seatbelts," recite number posed These range small reaction. rejecting having discussed possibility, short—and sufficient—answer submission courts appellate counsel's post hoc rationalizations 245. well-established upheld, all, articulated Ibid.; Chenery, (1947); Textile Inst. Donovan, 452 490, 539, 2478, 2505, 185 (1981).15 invoke Vermont Yankee Nuclear Power NRDC, 435 519, 98 1197, 55 460 (1978), though talisman definition unimpeachable. essence, dictate follow. misread misconstrue remand order. Yankee, additional specific Nor broadly reaching decision. true "cannot wanting every thought conceivable mind man regardless how uncommon unknown been. 551, 1215-1216. standard; technological made cost-beneficial passive-restraint abandoned whatsoever B 33 closer, light readily "even percentage minimum expected increase." 53,423. rejected "not iota" nationwide points, cost. lack probative evidence, object conclusion. uncertainty" accomplish more, agree just decline uncertain about efficacy, uncertainties explained. Rescission direct infrequent settle moving probabilities Recognizing policymaking society account uncertainty, imply merely terms justification available, Lines, 246. Generally, engaging search evidence. To conclusion, upset facts, appreciate limitations supporting start accepted ground used, unquestionably save crippling injuries. decisions reviewed, Industrial Union Petroleum Institute, 448 607, 2844, 65 1010 (1980); Inst., wearing challenged accrue, justified. fact cannot predicted yield usage. empirical record, consisting surveys drivers automobiles reveals doubling rate experienced belts.16 Much statement—and controversy centers studies. studies extrapolated across-the-board guarded interlocks purchasers tested atypical.17 Respondents insist demonstrate generalizability field precisely rests hesitant intrude. accepting tests reliable real-world rates increase. sure, opines "it usage." statements increases reconnect it, but—unlike belt—the reattached, continue function unless disconnected. Thus, inertia—a factor own seatbelts18—works favor of, against, protective 50% motorists currently wear occasions,19 occasional users Whether decide, bring bear question. correct look f incremental predicated prediction minimal. fears resent paying dependent assumption "negligible benefits." 53,424. reexamines likely usage, reconsider reasonableness associated judgment, preeminent Act: Committee intends overriding issuance bill. recognizes cost, feasibility leadtime." 2714. 39 establishing conform factors, ability factors. paramount related thereto." H.Rep. 16. argued concern solved allows "spool out" create slack extrication together category titled "option use-compelling features." concerned "complicate [a]n her car." "To features," observed, "could counterproductive [given] widespread, latent irrational fear members trapped crash." interlock, trigger analyze right, emergency release mechanisms egress buckle 1978, General Motors obtained assured spool releases safe releases. 43 21,912, 21,913-14 (1978). extricability: [such] 52,493, 52,494 entitled acceptability doing so. engender Appe ls concluded, "every points way." 234.20 equating unlike interfere operation More importantly, responsibility, Court's, VI "An interest change, circumstances. Greater Boston Television FCC, 841, 852 403 923, 2233, 701 (1971). reasoning requisite "reasoned analysis" vacate directions opinion.21 44 So ordered. 45 REHNQUIST, whom THE CHIEF JUSTICE, POWELL, O'CONNOR join, concurring dissenting part. I join parts I, II, III, IV, V-A Court's opinion. since explicitly rescinding, declined leave intact. Of 47 believe, adequately explained insofar 48 requires "[e]ach [and] safety." rejects uncertainty study being operated place voluntarily purchased equipment consumers. ante, 53, 15. decide consumer wants them linked system. 49 "there hat belts," 54, rejection grounds. seems me while model, adequate. probably worth cost F.R. 53421-54323 (1981). obligation Ante, 42, 52, quoting 246, met 50 educational promote understanding, acceptance, 53425 "initiate ensure [automatic protection] available. succeed, decade's enormous advances lost." Id., 53426. 51 election President political party. responsible administration counterparts previous administration. brought people casting votes perfectly executive reappraisal programs regulations. bounds Congress,* assess records evaluate priorities philosophy Council, Deaths (May 16, 1983). Senate Commerce Reported: promotion voluntary largely failed. unconditional imposition earliest commensurate highway death injury toll." Sess., pp. 2709, 2712. general Administrator (NHTSA). 1.50(a) (1979). interchangeably referring Administration, Transportation. Early meant 11,148. 1971, observed "some belt-based concepts advanced capable meeting complete options," add section "to testing Act's "objective." 675. Because Sixth Circuit's invalidation reimposed Amendments, warning replace prohibited buzzers. 42,692 (Dec. 1974). significantly, forced rethink tandem infra. No House Representatives. committee jurisdiction affirmatively endorsed 481, 95th 1st (1977), tabled Senate. 123 Cong.Rec. 33,332 Judge Edwards majority's points. rationality withstand Due Process Clause. constitutionality afforded legislation drafted regularity fulfilling example, Representatives voted proposal bar spending funds administer permitted purchaser select 125 H12285, H12287 (daily ed. Dec. 19, 1979). 1970 (1970), "[t]his [a] de facto air bag technologies standard." J. Graham P. Gorham, Restraints: Case Arbitrary Capricious Deregulation, Admin.L.Rev. 193, 197 (1983). supra. allow passengers accident, cautioned "[i]n separation, self-restoring release." 12,866 adopted manufacturer accomplished conventional latch—provided encourage reattachment belt. 14,593 eliminated continued See, e.g., Comments Docket 69-07, (August 1971) 2491); Memorandum Alternative Changes FMVSS 208, 44, 76-8 (1976) 2241); Response Proposal 74-14, 08 27, 1977). expresses adoption notice so, question, constitute asserts withdraw avoid forcing spend resources initiative. think permissible temporarily suspend implementation studied. But, text, revoked. Between Volkswagen sold 350,000 Rabbits interlock. 8,000 1978 1979 Chevettes similar system, 13,000 1980. averaged 34% 84% forpassive IV-52, App. 108. 1978-1979 Chevettes, calculated 71% figures 31% 70% "NHTSA lower use-inducing inhibiting detachment." 53,422. commissioned attitudes better understand using determine react reveal 20% opposed larger proportion population forgot inconvenient bothersome. RIA IV-25; 81. another survey, 38% surveyed group welcome 25% "tolerate" them. IV-37. 93. comment accompanying Four conducted report time. RIA, IV-25 81). distinguishing 34,290; 8296 II-4, 30. construe Appeals' violation Yankee's injunction imposing constraints. 544-545, 1211-1212. maintain stayed which, validly 1982. choose suspend, although rescind, pending now, us. enforce laws approve, ignore functions. concludes, 44-46,

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