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.

California Trucking Association (CTA) filed a lawsuit in federal court in California seeking to block implementation of a rule adopted by the South Coast Air Quality Management District (SCAQMD). CTA alleged the rule was intended “to control mobile source emissions by imposing preempted [zero emission or near zero emission (ZE/NZE)] emissions standards on medium to heavy-duty trucks used at warehouses, backed by the threat of economic sanctions styled as a mitigation fee.” The complaint alleged that the rule imposed compliance obligations on warehouses based on the number, type, and emission characteristics of trucks that visit the warehouse facilities. CTA said SCAQMD had styled the rule as a lawful indirect source review rule but that it was “not truly concerned with indirect sources” such as vehicle trips by workers traveling to and from warehouse, construction equipment used to construct new warehouses, or direct emissions from warehouses. Instead, CTA alleged, the rule was “entirely about the trucks” and was therefore preempted by the Clean Air Act and the Federal Aviation Administration Authorization Act of 1994. CTA also alleged that the rule violated state air laws and constituted an unlawful tax.