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Exxon Mobil Corp. v. United States Environmental Protection Agency

Citation: 217 F.3d 1246Docket: No. 99-70945

Court: Court of Appeals for the Ninth Circuit; July 7, 2000; Federal Appellate Court

Narrative Opinion Summary

This case involves a challenge by petitioners, including major oil companies, against the EPA's approval of Nevada's State Implementation Plan (SIP), which mandates a 3.5% oxygen content in gasoline sold in Clark County during winter months. The petitioners argue that the EPA misinterpreted provisions of the Clean Air Act, specifically sections 211(m) and 211(c)(4), asserting that the oxygen requirement should not exceed 2.7%. Clark County, classified as a serious non-attainment area for carbon monoxide, increased its oxygenate standard to 3.5% to combat winter temperature inversions, which was approved by the EPA in 1999. The court assessed whether the EPA's interpretation was permissible, ultimately applying Chevron deference to uphold the agency's decision. The court also addressed preemption concerns, ruling that the Clean Air Act does not preempt state regulations imposing higher oxygenate levels provided they meet federal minimums. The court affirmed the EPA's approval of Nevada's SIP, concluding that the higher oxygen standard is consistent with the statutory framework and congressional intent, thus allowing states to maintain authority over air quality regulation within their jurisdictions.

Legal Issues Addressed

Chevron Deference

Application: The court applies Chevron deference to the EPA's interpretation of the Clean Air Act, affirming that the EPA's interpretation is reasonable and consistent with Congressional intent.

Reasoning: States are required to amend their State Implementation Plans (SIPs) to ensure gasoline sold contains sufficient oxygen levels to meet carbon monoxide air quality standards by designated deadlines. While the statutory language presents some ambiguity, it supports the EPA’s final rule, warranting Chevron deference.

Interpretation of Clean Air Act Section 211(m)

Application: The EPA's interpretation of the Clean Air Act allows states to impose higher oxygen content standards in gasoline than the federal minimum of 2.7% for carbon monoxide non-attainment areas.

Reasoning: The EPA interprets this requirement as a minimum standard, allowing states the flexibility to impose higher oxygen content standards.

Preemption under the Clean Air Act

Application: The court finds that the Clean Air Act does not preempt state regulations requiring higher oxygenate levels in gasoline than federal standards, as long as states meet minimum federal requirements.

Reasoning: Consequently, the EPA's approval of Nevada's State Implementation Plan, which requires gasoline in Clark County to contain at least 3.5 percent oxygen from October to March, is not preempted by the Clean Air Act.