Industry groups and states sue to block Biden fuel economy standards for vehicles

States and industry groups filed separate lawsuits Wednesday to overturn the Biden administration’s fuel economy standards for vehicles, which aim to reduce both oil consumption and greenhouse gas emissions.

A coalition of 26 states, led by West Virginia and Kentucky, is suing the National Highway Traffic Safety Administration to overturn the agency’s finalized rules enacting stricter fuel economy standards —calling the requirements “unworkable” and arguing they would lead to a forced transition to electric vehicles. The lawsuit was filed in the U.S. Court of Appeals for the 6th Circuit.

“Congress did not give the NHTSA such power to reshape an industry in a way that would ultimately hurt the pocketbooks of consumers — this rule is legally flawed and unrealistic,” West Virginia Attorney General Patrick Morrisey said. “This will undoubtedly cause the United States to be dependent on other nations like China for our energy needs and will undermine American energy security by increasing demand and strain power grids."

In a separate lawsuit, the American Petroleum Institute, the largest U.S. oil trade group, along with the American Farm Bureau Federation and other agricultural and automotive groups, challenged the rules. The groups had similar arguments to the states’ lawsuit but furthered the case by arguing it would cause particular harm to rural and agricultural areas, which do not have as robust charging infrastructure for EVs as cities. The agricultural groups also stated the standards would endanger ethanol demand — which is integral to the business of corn farmers.

Both filings argue that the NHTSA’s final rule exceeds the agency’s statutory authority and is “arbitrary, capricious, an abuse of discretion, and not in accordance with law.”

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The NHTSA rule, which was finalized earlier this month, will increase the fuel economy standards by 2% each year for passenger cars in model years 2027 to 2031 and for new light trucks in model years 2029 to 2031. The standards will increase for new heavy-duty pickup trucks and vans by 10% annually from 2030 to 2032 and 8% annually from 2033 to 2035.

The brunt of the opposition from trade groups and states has come through the courts. The latest lawsuits come at the heels of trade groups and states filing multiple legal challenges to overturn the Environmental Protection Agency’s tailpipe emission standards.