Case No.

18-_____

IN THE UNITED STATES COURT OF APPEALS

FOR THE DISTRICT OF COLUMBIA CIRCUIT

STATE OF CALIFORNIA, by and through XAVIER BECERRA,

ATTORNEY GENERAL and CALIFORNIA AIR RESOURCES BOARD,
STATE OF DELAWARE, STATE OF ILLINOIS, STATE OF MAINE, STATE
OF MARYLAND, by and through BRIAN FROSH, ATTORNEY GENERAL
and MARYLAND DEPARTMENT OF THE ENVIRONMENT,
COMMONWEALTH OF MASSACHUSETTS, STATE OF MINNESOTA, by
and through MINNESOTA POLLUTION CONTROL AGENCY, STATE OF
NEW JERSEY, STATE OF NEW YORK, STATE OF NEW MEXICO, STATE
OF NORTH CAROLINA, STATE OF OREGON, COMMONWEALTH OF
PENNSYLVANIA, by and through JOSH SHAPIRO, ATTORNEY GENERAL
and PENNSYLVANIA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, STATE OF RHODE ISLAND, STATE OF VERMONT,
STATE OF WASHINGTON, and DISTRICT OF COLUMBIA

Petitioners,

v.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, and

ANDREW K. WHEELER, Acting Administrator, United States
Environmental Protection Agency,

Respondents.

PETITION FOR REVIEW

 Pursuant to Section 307(b)(1) of the Clean Air Act (42 U.S.C. § 7607(b)(1)),

Rule 15 of the Federal Rules of Appellate Procedure, and D.C. Circuit Rule 15,

State of California, by and through its Attorney General and the California Air

Resources Board; the States, Delaware, Illinois, Maine, Maryland, by and through

its Attorney General and Department of the Environment, Minnesota, by and

through the Minnesota Pollution Control Agency, New Jersey, New York, New

Mexico, North Carolina, Oregon, Rhode Island, Vermont, and Washington; the

Commonwealth of Massachusetts, and the Commonwealth of Pennsylvania, by and

through its Attorney General and the Pennsylvania Department of Environmental

Protection, and the District of Columbia, hereby petition this Court for review of

the final action of Respondent United States Environmental Protection Agency and

former Administrator E. Scott Pruitt, titled “Conditional No Action Assurance

Regarding Small Manufacturers of Glider Vehicles” (July 6, 2018) (Attachment 1).

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Dated: July 19, 2018 Respectfully submitted,

XAVIER BECERRA GURBIR S. GREWAL

Attorney General of the Attorney General of the
State of California State of New Jersey
DAVID C. APY
By: /s/ David A. Zonana Assistant Attorney General
DAVID A. ZONANA
Supervising Deputy Attorney By: /s/ Jung W. Kim
General JUNG W. KIM
MEGAN K. HEY Deputy Attorney General
M. ELAINE MECKENSTOCK Office of the Attorney General
MELINDA PILLING R.J. Hughes Justice Complex
Deputy Attorneys General 25 Market St., P.O. Box 093
California Department of Justice Trenton, NJ 08625-0093
1515 Clay Street, Suite 2000 Tel.: (609) 376-2804
Oakland, CA 94612
Tel: (510) 879-1248 Attorneys for Petitioner State of New
Jersey
Attorneys for Petitioner State of
California, by and through
Xavier Becerra, Attorney General
and California Air Resources Board

MATTHEW P. DENN KARL A. RACINE

Attorney General of the Attorney General of the
State of Delaware District of Columbia

By: /s/ Valerie S. Edge By: /s/Loren L. Alikhan

VALERIE SATTERFIELD EDGE LOREN L. ALIKHAN
Deputy Attorney General Solicitor General
Delaware Department of Justice Office of the Attorney General for
102 W. Water Street the District of Columbia
Dover, DE 19904 441 4th Street, NW, Suite 600 South
Tel.: (302) 257-3219 Washington, D.C. 20001
Tel: (202) 727-6287
Attorneys for Petitioner State of
Delaware Attorneys for Petitioner District of
Columbia

3
LISA MADIGAN JANET T. MILLS
Attorney General of the Attorney General of the
State of Illinois State of Maine
MATTHEW J. DUNN
Chief, Environmental Enforcement/ By: /s/ Gerald D. Reid
Asbestos Litigation Division GERALD D. REID
Assistant Attorney General
By: /s/ Daniel I. Rottenberg Chief, Natural Resources Division
DANIEL I. ROTTENBERG 6 State House Station
Assistant Attorney General Augusta. ME 04333-0006
Illinois Attorney General’s Office Tel.: (207) 626-8545
69 W. Washington St., 18th Floor
Chicago, IL 60602 Attorneys for Petitioner State of
Tel. (312) 814-3816 Maine

Attorneys for Petitioner State of

Illinois

BRIAN E. FROSH MAURA HEALEY

Attorney General of the Attorney General of the
State of Maryland Commonwealth of Massachusetts

By: /s/ Roberta R. James By: /s/ Carol Iancu

ROBERTA R. JAMES CAROL IANCU
Assistant Attorney General Assistant Attorney General
Office of the Attorney General Environmental Protection Division
Maryland Department of the One Ashburton Place, 18th Floor
Environment Boston, MA 02108
1800 Washington Blvd. Tel: (617) 963-2428
Baltimore, MD 21230-1719
Tel.: (410) 537-3748 Attorneys for Petitioner
Commonwealth of Massachusetts
Attorneys for Petitioner State of
Maryland by and through Brian Frosh,
Attorney General and the Maryland
Department of the Environment

4
LORI SWANSON BARBARA D. UNDERWOOD
Attorney General of the Attorney General of the
State of Minnesota State of New York

By: /s/ Max Kieley By: /s/ Danielle C. Fidler

MAX KIELEY DANIELLE C. FIDLER
Assistant Attorney General Assistant Attorney General
D.C. Bar No. 54550 Environmental Protection Bureau
445 Minnesota Street, Suite 900 120 Broadway, 26th Floor
St. Paul, MN 55101-2127 New York, NY 10271
Telephone: (651) 757-1244 Tel.: (212) 416-8441
Fax: (651) 297-4139
max.kieley@ag.state.mn.us Attorneys for Petitioner the State of
New York
Attorneys for the State of Minnesota,
by and through the Minnesota
Pollution Control Agency

JOSHUA H. STEIN HECTOR H. BALDERAS

Attorney General of the Attorney General of the
State of North Carolina State of New Mexico

/s/ Asher P. Spiller /s/ William Grantham

ASHER P. SPILLER WILLIAM GRANTHAM
Assistant Attorney General NM Bar No. 15585
North Carolina Department of Justice BRIAN E. MCMATH
P.O. Box 629 NM Bar No. 148105
Raleigh, North Carolina 27602-0629 Assistant Attorneys General
Tel: (919) 716-6600 201 Third St. NW, Suite 300
Albuquerque, NM 87102
Attorneys for Petitioner State of North Tel.: (505) 717-3531
Carolina
Attorneys for Petitioner State of New
Mexico

5
JOSH SHAPIRO ELLEN F. ROSENBLUM
Attorney General of the Attorney General of the
Commonwealth of Pennsylvania State of Oregon
MICHAEL J. FISCHER
Chief Deputy Attorney General By: /s/ Paul Garrahan
PAUL GARRAHAN
By: /s/ Kristen M Furlan Attorney-in-Charge
KRISTEN M. FURLAN Natural Resources Section
Assistant Director Oregon Department of Justice
Bureau of Regulatory Counsel 1162 Court Street NE
Pennsylvania Department of Salem, OR 97301-4096
Environmental Protection Tel.: (503) 947-4593
Pennsylvania Office of Attorney General
Strawberry Square Attorneys for Petitioner State of
Harrisburg, PA 17120 Oregon
Tel.: (215) 560-2171

Attorneys for Petitioner Commonwealth

of Pennsylvania by and through Josh
Shapiro, Attorney General and
Pennsylvania Department of
Environmental Protection

THOMAS J. DONOVAN, JR. ROBERT W. FERGUSON

Attorney General for the Attorney General for the
State of Vermont State of Washington

By: /s/ Nicholas F. Persampeiri By: /s/ Katherine G. Shirey

NICHOLAS F. PERSAMPIERI KATHARINE G. SHIREY
Assistant Attorney General Assistant Attorney General
Office of the Attorney General Office of the Attorney General
109 State Street P.O. Box 40117
Montpelier, VT 05609 Olympia, WA 98504-0117
Tel.: (802) 828-3186 Tel.: (360) 586-6769

Attorneys for Petitioner the State of Attorneys for Petitioner State of

Vermont Washington

6
PETER F. KILMARTIN
Attorney General for the
State of Rhode Island

/s/ Gregory S. Schultz

GREGORY S. SCHULTZ
Special Assistant Attorney General
Rhode Island Department of Attorney
General
150 South Main Street
Providence, RI 02903
(401) 274 4400
gschultz@riag.ri.gov|

Attorney for Petitioner State of Rhode

Island

7
 Attachment 1
“Conditional No Action Assurance Regarding Small Manufacturers of Glider
Vehicles” (July 6, 2018)
 UNITEDSTATESEN~RONMENTALPROTECTIONAGENCY
WASHI NGTON , D.C. 20460

OFFICE OF
July 6, 2018 ENFORCEMENT AND
COMPLIANCE ASSURANCE

MEMORANDUM

SUBJECT: Conditional No Action Assurance Regarding Small Manufacturers of Glider Ve-

hicles

FROM: Susan Parker Bodine

Assistant Administrator
,ZL_ f~ ~~
Office of Enforcement and Compliance Assurance

TO: Bill Wehrum

Assistant Administrator
Office of Air and Radiation

Pursuant to your attached request of July 6, 2018, I am today providing a "no action assurance"
relating to: (1) those small manufacturers to which 40 C.F.R. § 1037.150(t) applies that either are
manufacturing or that have manufactured glider vehicles in calendar year 2018 (Small Manufac-
turers); and (2) to those companies to which 40 C.F.R. § 1037.150(t)(l)(vii) applies that sell glider
kits to such Small Manufacturers (Suppliers).
As noted in your memorandum, in conjunction with EPA's having promulgated in 2016 the final
rule entitled Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-
Duty Engines and Vehicles-Phase 2, see 81 Fed. Reg. 73,478 (Oct. 25, 2016) (the HD Phase 2
Rule), the Agency specified that glider vehicles were "new motor vehicles" (and glider vehicle
engines to be "new motor vehicle engines") within the meaning of 42 U.S.C. § 7550(3). Effective
January 1, 2017, Small Manufacturers were permitted to manufacture glider vehicles in 2017 in
the amount of the greatest number produced in any one year during the period of 2010-2014 with-
out having to meet the requirements of 40 C.F.R. § 1037.635 (Interim Allowance). After this tran-
sitional period, beginning on January 1, 2018, small manufacturers of glider vehicles have been
precluded from manufacturing more than 300 glider vehicles (or fewer, if a particular manufac-
turer's highest annual production volume between 2010 and 2014 had been below 300 vehicles),
unless they use engines that comply with the emission standards applicable to the model year in
which the glider vehicle is manufactured. On November 16, 2017, EPA published a notice of pro-
posed rulemaking, proposing to repeal the emissions standards and other requirements of the HD
Phase 2 Rule as they apply to glider vehicles, glider engines, and glider kits. See 82 Fed. Reg.
53,442 (Nov. 16, 2017) (November 16 NPRM).
We understand that after taking into consideration the public comments received, and following
further engagement with stakeholders and other interested entities, the Office of Air and Radiation
(OAR) has determined that additional evaluation of several matters is required before it can take
final action on the November 16 NPRM. Consequently, OAR now recognizes that finalizing the
November 16 NPRM will require more time than it had previously anticipated. In the meantime,
Small Manufacturers who, in reliance on the November 16 NPRM, have reached their calendar
year 2018 annual allocation under the HD Phase 2 Rule must cease production for the remainder
of calendar year 2018 of additional glider vehicles, resulting in the loss ofjobs and threatening the
viability of these Small Manufacturers.
As noted in your memorandum, OAR now intends to move as expeditiously as possible to under-
take rulemaking in which it will consider extending the compliance date applicable to Small Man-
ufacturers to December 31, 2019.
Consistent with the intent and purpose of OAR' s planned course of action, this no action assurance
provides that EPA will exercise its enforcement discretion with respect to the applicability of
40 C.F.R. § 1037.635 to Small Manufacturers that in 2018 and 2019 produce for each of those two
years up to the level of their Interim Allowances as was available to them in calendar year 201 7
under 40 C.F.R. § 1037.150(1)(3). This no action assurance further provides that EPA will exercise
its enforcement discretion with respect to Suppliers that sell glider kits to those Small Manufac-
turers to which this no action assurance applies. This no action assurance will remain in effect until
the earlier of: (1) 11 :59 p.m. (EDT), July 6, 2019; or (2) the effective date of a final rule extending
the compliance date applicable to small manufacturers of glider vehicles.
The issuance of this no action assurance is in the public interest to avoid profound disruptions to
small businesses while EPA completes its reconsideration of the HD Phase 2 Rule. The EPA re-
serves its right to revoke or modify this no action assurance.
If you have further questions regarding this matter, please contact Rosemarie Kelley of my staff at
(202) 564-4014, or kelley.rosemarie@epa.gov.

Attachment

cc: Byron Bunker, OAR, OTAQ

Rosemarie Kelley, OECA, OCE
Phillip Brooks, OECA, OCE, AED

2
MEMORANDUM

SUBJECT: Enforcement Discretion Regarding Companies that Are Producing or that Have

l ~I tJ
Produced Glider Vehicles in Calendar Year 2018

FROM !~;i::1:':ministrator
Office of Air and Radiation

TO: Susan Parker Bodine

f-l - 19--
Assistant Administrator
Office of Enforcement and Compliance Assurance

The Office of Air and Radiation (OAR) requests that the Office of Enforcement and Compliance
Assurance (OECA) exercise enforcement discretion (No Action Assurance) with respect to both
those small manufacturers to which 40 C.F.R. § 1037.150(1) applies that either are manufacturing
or that have manufactured glider vehicles in calendar year 2018 (Small Manufacturers), and to
those companies to which 40 C.F.R. § 1037.150(t)(l)(vii) applies that sell glider kits to such
small manufacturers (Suppliers). Specifically, as a bridge to a rulemaking in which we will
consider extending the deadline for Small Manufacturers to comply with 40 C.F.R. § 1037.635,
OAR requests that OECA provide assurance that it will exercise enforcement discretion for up to
one year with respect to the applicability to Small Manufacturers and their Suppliers of 40 C.F.R.
§1037.635. Further, OAR requests that OECA provide assurance that it will not take
enforcement action against those Suppliers that elect to sell glider kits to those Small
Manufacturers of glider vehicles to which this No Action Assurance applies.

In conjunction with EPA' s having promulgated in 2016 the final rule entitled Greenhouse Gas
Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles-
Phase 2, 81 Fed. Reg. 73,478 (Oct. 25, 2016) (the HD Phase 2 Rule), the Agency clarified that
glider vehicles were "new motor vehicles" (and glider vehicle engines to be "new motor vehicle
engines") within the meaning of 42 U.S.C. § 7550(3). EPA in the HD Phase 2 Rule also stated
that glider kits constituted "incomplete motor vehicles." Effective January 1, 2017, Small
Manufacturers were permitted to manufacture glider vehicles in 2017 in the amount of the
greatest number produced in any one year during the period 2010-2014 without meeting the
requirements of 40 C.F.R. § 1037.635 (Interim Allowance). After this transitional period,
beginning on January 1, 2018, small manufacturers of glider vehicles have been precluded from
manufacturing more than 300 glider vehicles (or fewer, if a particular manufacturer' s highest
annual production volume from between 2010 and 2014 had been below 300 vehicles), unless
they use engines that comply with the emission standards applicable to the model year in which
the glider vehicle is manufactured.

On November 16, 2017, EPA published in the Federal Register a notice of proposed rulemaking,
proposing to repeal the emissions standards and other requirements of the HD Phase 2 Rule as
they apply to glider vehicles, glider engines, and glider kits. 82 Fed. Reg. 53 ,442 (Nov. 16, 2017)
(November 16 NPRM). In the November 16 NPRM, EPA proposed an interpretation of the
Clean Air Act (CAA) under which glider vehicles would be found not to constitute "new motor

-1-
vehicles" within the meaning of CAA section 216(3), glider engines would be found not to
constitute "new motor vehicle engines" within the meaning of CAA section 216(3), and glider
kits would not be treated as "incomplete" new motor vehicles. Under this proposed
interpretation, EPA would lack authority to regulate glider vehicles, glider engines, and glider
kits under CAA section 202(a)(l). EPA also sought comment on whether, were it not to
promulgate this proposed interpretation of the CAA, the Agency should increase the interim
provision's allocation available to small manufacturers above the current applicable limits (i.e.,
at most, 300 glider vehicles per year). 82 Fed. Reg. 53,447. Further, EPA solicited comment on
whether the compliance date for glider vehicles and glider kits set forth at 40 C.F.R. § 1037.635
should be extended. Id.

After taking into consideration the public comments received, and following further engagement
with stakeholders and other interested entities, OAR has determined that additional evaluation of
a number of matters is required before it can take final action on the November 16 NPRM. As a
consequence, OAR now recognizes that finalizing the November 16 NPRM will require more
time than we had previously anticipated.

OAR intends to complete this rulemaking as expeditiously as possible under these

circumstances, consistent with the Agency' s responsibility to ensure that whatever final action it
may take conforms with the Clean Air Act and is based on reasoned decision making. In the
meantime, while the emissions standards and other requirements of the 2016 Rule applicable to
glider vehicles became effective on January 1, 2017, and the Interim Allowance for calendar year
2017 ceased to apply as of January 1, 2018. As a consequence, Small Manufacturers who, in
reliance on the November 16 NPRM, have reached their calendar year 2018 interim annual
allocation under the HD Phase 2 Rule must cease production for the remainder of 2018 , resulting
in the loss ofjobs and threatening the viability of these Small Manufacturers.

In light of these circumstances, OAR now intends to move as expeditiously as possible to

undertake rulemaking to consider extending the compliance date applicable to Small
Manufacturers until December 31 , 2019. Concurrently, we intend to continue to work towards
expeditiously completing a final rule. OAR requests a No Action Assurance in order to preserve
the status quo as it was at the time of the November 16 NPRM until such time as we are able to
take final action on extending the applicable compliance date. Specifically, OAR requests that
0 ECA exercise its enforcement discretion with respect to Small Manufacturers who in 2018 and
2019 produce for each of those two years up to the level of their Interim Allowance as was
available to them in 2017 under 40 C.F.R. § 1037.150(t)(3). OAR requests that OECA leave this
No Action Assurance in place for one year from the date of issuance, or until such time as EPA
takes final action to extend the compliance date, whichever comes sooner.

I appreciate your prompt consideration of this request.

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 CERTIFICATE OF SERVICE

I hereby certify that I will cause to be served a true copy of the Petition for Review
via U.S. mail and, where specified below by additional means, on July 19, 2018
upon the following:

The Honorable Andrew K. Wheeler

Acting Administrator – Mail code 1101A
U.S. Environmental Protection Agency
William Jefferson Clinton Building
1200 Pennsylvania Ave., NW
Washington, D.C. 20460

Matthew Z. Leopold
General Counsel
Office of General Counsel – Mail code 2310A
U.S. Environmental Protection Agency
William Jefferson Clinton Building
1200 Pennsylvania Ave., NW
Washington, D.C. 20460

The Honorable Jefferson Beauregard Sessions, III

Attorney General of the United States
U.S. Department of Justice
950 Pennsylvania Ave., NW
Washington, D.C. 20530

Jeffrey H. Wood
Acting Assistant Attorney General
Environment and Natural Resources Division
U.S. Department of Justice
950 Pennsylvania Ave., NW
Washington, D.C. 20530
VIA EMAIL AND OVERNIGHT MAIL TO:

Daniel Dertke
Assistant Attorney General
Environment and Natural Resources Division
U.S. Department of Jusitice
P.O. Box 7611
Washington, D.C. 20044
Daniel.dertke@usdoj.gov
Efile_eds.enrd@usdoj.gov

By: /s/ David A. Zonana

DAVID A. ZONANA
Supervising Deputy Attorney General

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