California ex rel. Sacramento Metropolitan Air Quality Management District v. United States

The People of the State of California by the Sacramento Metropolitan Air Quality Management District (the “Sacramento Air Quality District”) appeal from the final order of the district court granting the motion of the Department of the Air Force, Sacramento Air Logistics Center, McClellan Air Force Base (the “United States”) for summary judgment, and denying their cross motion for summary judgment. The Sacramento Air Quality District brought this action in state court under the California Health and Safety Code to recover civil penalties from the United States for the unauthorized emission of nitrogen oxides into the air. The United States removed this action to the district court pursuant to 28 U.S.C. § 1442 (a)(1) (the “federal removal statute”).

The district court dismissed the action on the basis that Congress had not waived the United States’ sovereign immunity from liability for civil penalties imposed by states to punish past violations of state and local air quality laws. We hold that this action was improperly removed. We vacate the judgment with directions that this action be remanded to the state court, because we conclude that the district court lacked subject matter…