Mack Trucks, Inc. v. Environmental Protection Agency
United States Court of Appeals for the District of Columbia Circuit
682 F.3d 87 (D.C. Cir. 2012)
After the EPA (defendant) mandated drastic reductions in diesel engine nitrogen-oxide emissions within nine years, most manufacturers including Mack Trucks, Inc. (Mack) (plaintiff) invested in new compliant technology, but Navistar, Inc. used different technology that missed the deadline and kept selling non-compliant engines using a dwindling reserve of emission credits; as those credits ran low, the EPA, without notice and comment, issued an interim final rule (IFR) letting Navistar keep producing non-compliant engines in exchange for a $1,919-per-engine penalty. Mack petitioned for review, Navistar intervened for the EPA, and the EPA admitted the IFR was issued for Navistar's benefit but argued the APA's good-cause exception excused the lack of notice and comment.
Whether, under the Administrative Procedure Act, a federal agency has good cause to avoid notice-and-comment rulemaking solely to prevent a private party from experiencing financial hardship.