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Administrative Law Keyed to Popper
Mack Trucks, Inc. v. Environmental Protection Agency
Citation:
682 F.3d 87 (2012)Facts
In 2001, EPA enacted a rule requiring a 95% reduction in nitrogen oxide emissions from heavy-duty diesel engines, effective in 2010. Most manufacturers, including Petitioners Mack Trucks and Volvo, invested hundreds of millions of dollars to develop “selective catalytic reduction” technology to meet this standard. Navistar, however, pursued a different technology called “exhaust gas recirculation” that proved less successful. Navistar had been able to continue selling noncompliant engines by using banked emission credits, but by October 2011, Navistar informed EPA it would run out of credits in 2012. In response, EPA hurriedly promulgated an interim final rule in January 2012 that allowed manufacturers to sell noncompliant engines by paying nonconformance penalties. EPA invoked the “good cause” exception to bypass notice and comment procedures, citing concerns about Navistar’s potential inability to certify a complete product line of engines. The rule set penalties at $1,919 per engine and permitted emissions up to 2.5 times the standard with which Petitioners complied.
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