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Will U.S. green states lawmakers impose legislation over brown states?


On January 26, 2009, U.S. President Obama directed the Environmental Protection Agency (EPA) to reconsider California’s application to define its own standards on fuel-efficiency and greenhouse gases (GHG) emissions from passenger automotive vehicles and trucks (non-commercial purpose).

This announcement comes after several years of judicial battles between, among others, the state of California (CA) and the federal government. The state of California was among the front-runners in the enactment of air quality and climate change abatement policies (see CA Climate Change Portal, in particular the 2005 Executive Order on climate change and the CA Global Warming Solutions Act of 2006). In 2002 was passed the Clean Cars Law (AB1493), for which the CA Air Resources Board set the standards in 2004, and asked the EPA for the necessary waiver to implement them in 2005. The standard would ultimately be applicable to vehicles manufactured upon 2009 models and the years thereafter.

Three landmark judgments followed. (1) In 2004, 21 automakers sued CA and three other states to repeal the law. They argued that federal fuel-efficiency standards pre-empted the states from adopting their own standards. In a December 2007 decision, a federal District Court Judge in CA dismissed the lawsuit estimating that the state did not directly regulate fuel economy (a federal matter). “The required increase in fuel economy is incidental to the state law's purpose of assuring protection of public health and welfare under the Clean Air Act.” Qualified as such, CA can pursue its “public health and welfare” policy, as allowed under the Clean Air Act.
(2) In a September 2007 decision in the same case, a federal District Judge in Vermont ruled in favour of the state, rejecting automakers arguments on pre-emption. CA can adopt stricter standards if the EPA allows enforcement.
(3) On April 2, 2007 the U.S. Supreme Court ruled that the EPA was able to grant California the waiver the state applied for, because: GHG are to be reconsidered as a pollutant; the EPA has the power to regulate them under existing law; GHG emission standards under the Clean Air Act are not pre-empted by the federal fuel economy law.

However, in March 2008, the EPA, under the Bush administration, refused to grant California a waiver under the Clean Air Act. With the entry into office of a new administration, CA’s Governor Schwarzenegger officially asked President Obama to reconsider the waiver in a public letter sent on January 21, shortly followed by another press release of satisfaction. 13 states are expected to follow California on this initiative.

Although the fact that president Obama’s declaration represents a huge step forward in terms of GHG mitigation policy, the other green legislative measures to be adopted by the end of 2009 (including a comprehensive climate bill, as confirmed by the White House) are raising fears among the so-called “brown states” highly dependent on, or producers of coal. The latter often depict the proposals as inspired by "green Californian law-makers". This demonstrates once again that there is not one single national energy policy in the U.S. but 50 energy agendas. This also raises the legal question whether two sets of standards can coexist (federal ones and more stringent ones at state level), and where to place the baseline, an issue well-known for EC lawyers.

(See map: "2007 Coal Production by Coal-Producing Region". Source: EIA).

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