California Trucking Association v. South Coast Air Quality Management District

The federal district court for the Central District of California ruled that neither the Clean Air Act, the Federal Aviation Administration Authorization Act (FAAAA), nor the Airline Deregulation Act (ADA) preempted the South Coast Air Quality Management District’s (SCAQMD’s) Warehouse Actions and Investments to Reduce Emissions rule (WAIRE), which applies to owners and operators of warehouses with at least 100,000 square feet of indoor floor space in a single building. An owner or operator must earn a certain number of “WAIRE Points” based on the number and types of trucks that visit a warehouse annually. WAIRE Points are earned (1) by completing certain actions on a WAIRE Menu (e.g., acquisition of zero-emission (ZE) or near-zero-emission trucks (NZE); installation of zero-emission charging or fueling infrastructure; installation and use of onsite solar panels; and installation of air filters in residences, day care facilities, hospitals or community centers); (2) by performing actions in a Custom WAIRE Plan; or (3) by paying a mitigation fee. Regarding Clean Air Act preemption, the court found that the plaintiff and intervenor-plaintiff (plaintiffs) did not meet their burden of showing that WAIRE was a “standard” that the Clean Air Act expressly preempts; the court also found that WAIRE did not indirectly regulate within the preempted field “such that it effectively mandates a specific, preempted outcome” (i.e., the purchase of ZE or NZE trucks). In addition, the court found that the plaintiffs did not meet their burden of showing that WAIRE relates to the control of emissions from new motor vehicles or new motor vehicle engines. Regarding ADA and FAAAA preemption, the court found that the plaintiffs did not show that WAIRE’s effect on air carriers’ integrated air delivery system was “more than tenuous, remove and peripheral.” The parties subsequently agreed to the dismissal of state-law claims, which related to whether SCAQMD had statutory authority for WAIRE and whether it establishes an illegal tax, to permit final judgment as to all claims.