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Navistar, Inc v. Lisa P. Jackson

January 17, 2012

NAVISTAR, INC., PLAINTIFF,
v.
LISA P. JACKSON, ADMINISTRATOR, UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, ET AL., DEFENDANTS.



The opinion of the court was delivered by: Colleen Kollar-kotelly United States District Judge

MEMORANDUM OPINION

Plaintiff Navistar, Inc., filed suit against Lisa P. Jackson, Administrator of the United States Environmental Protection Agency, and the EPA itself ("Defendants" or "EPA"), seeking to force the EPA to recall Model Year 2010 heavy-duty diesel engines equipped with liquid, urea-based selective catalyst reduction ("SCR") technology for failing to comply with emissions standards promulgated under the Clean Air Act, 42 U.S.C. § 7401, et seq. The EPA moved for summary judgment on the basis that Plaintiff's Complaint fails to state a claim for relief. Defs.' Mot. for Summ. J Dismissing Compl. for Failure to State a Claim upon which Relief may be Granted, ECF No. [23]. Navistar moved for discovery pursuant to Federal Rule of Civil Procedure 56(d). Pl.'s Mot. for Disc. Pursuant to Fed. R. Civ. P. 56(d), ECF No. [14]. Cummins Inc., Daimler Trucks North America LLC, Detroit Diesel Corp., Mack Trucks, Inc., and Volvo Group North America, LLC, which manufacture the engines in question and/or sell trucks equipped with the engines, moved to intervene. Mot. to Intervene, ECF No. [13]. All three motions have been fully briefed and are ripe for determination. For the reasons states below, the Motion to Intervene shall be GRANTED. Navistar's Motion for Discovery Pursuant to Federal Rule of Civil Procedure 56(d) shall be DENIED, and Defendants' Motion for Summary Judgment Dismissing Complaint for Failure to State a Claim upon which Relief may be Granted shall be GRANTED.*fn1

I. BACKGROUND

A. Statutory Framework

Under Section 202 of the Clean Air Act, the EPA is authorized to promulgate emissions standards for new motor vehicles and engines. See 42 U.S.C. § 7521(a)(1);*fn2 Pl.'s Ex. 1 (Control of Air Pollution from new Motor Vehicles: Heavy-Duty Engine and Vehicle Standards and Highway Diesel Fuel Sulfur Control Requirements, 66 Fed. Reg. 5002).The Act further requires the EPA to test all new motor vehicles and engines and issue certificates of conformity with the applicable regulations.§ 7525(a)(1); see 42 C.F.R. §§ 86.094.21-30 (regulating the certification process); Pl.'s Ex. 2 (2/18/2009 Certification Requirements for Heavy-Duty Diesel Engines Using Selective Catalyst Reduction (SCR) Technologies). All new engines and vehicles must be certified by the EPA before they are sold, offered for sale, imported, or otherwise introduced into commerce. § 7522(a)(1). Section 207(c)(1) provides a mechanism for the recall of engines when the EPA finds previously certified engines do not conform to emissions standards:

If the Administrator determines that a substantial number of any class or category of vehicles or engines, although properly maintained and used, do not conform to the regulations prescribed under section 7521 of this title, when in actual use throughout their useful life (as determined under section 7521(d) of this title), he shall immediately notify the manufacturer thereof of such nonconformity, and he shall require the manufacturer to submit a plan for remedying the nonconformity of the vehicles or engines with respect to which such notification is given. The plan shall provide that the nonconformity of any such vehicles or engines which are properly used and maintained will be remedied at the expense of the manufacturer. If the manufacturer disagrees with such determination of nonconformity and so advises the Administrator, the Administrator shall afford the manufacturer and other interested persons an opportunity to present their views and evidence in support thereof at a public hearing. Unless, as a result of such hearing the Administrator withdraws such determination of nonconformity, he shall, within 60 days after the completion of such hearing, order the manufacturer to provide prompt notification of such nonconformity in accordance with paragraph (2). § 7541(c)(1).

Section 304 of the Clean Air Act provides that private citizens can maintain a civil action "against the Administrator where there is alleged a failure of the Administrator to perform any act or duty under this chapter which is not discretionary." 42 U.S.C. § 7604(a)(2). This section further provides district courts with jurisdiction to "order the Administrator to perform such act or duty." Id.

B. Factual Background

Navistar, formally known as International Truck & Engine Company, manufactures and markets a variety of diesel engines, trucks, and service vehicles. Compl. ¶ 19. Putative Intervenors Cummins, Detroit Diesel, and Mack Trucks manufacture diesel engines. Putative Intervenors Daimler, Mack Trucks, and Volvo manufacture and sell heavy duty trucks outfitted with diesel engines. Mot. to Intervene at 3.

The dispute in this case centers around emissions control technology in diesel engines.

Navistar uses exhaust gas recirculation ("EGR") technology to control emissions, particularly nitrogen oxide emissions. Compl. ¶ 89. The Putative Intervenors manufacture and sell diesel engines utilizing urea-based selective catalyst reduction ("SCR") technology. Mot. to Intervene at 3. Navistar alleges that Model Year 2010 SCR engines certified by the EPA as being compliant with applicable emissions standards actually violate emissions standards when in use on the road. Compl. ¶¶ 6-11. Navistar further alleges that the EPA has determined "that a substantial number of [Model Year] 2010 SCR-equipped engines are not designed consistent with their certificates of conformity, do not meet maintenance requirements, or otherwise 'do not conform to the regulations prescribed under section 7521 [CAA § 202] . . . when in actual use throughout their useful life." Id. at ¶ 13. Therefore, Navistar contends, under the Clean Air Act the EPA is required to order a recall of the relevant engines.

II. LEGAL STANDARD

"The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as ...


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