26 States Sue to Block New NHTSA Fuel Economy Rule
In a bold move, 26 states, led by Kentucky and West Virginia, have filed a lawsuit to block a new fuel economy rule by the National Highway Traffic Safety Administration (NHTSA). The states claim the rule is part of President Joe Biden’s agenda to push electric vehicles (EVs) over traditional gas-powered ones.
Kentucky Attorney General Russell Coleman stated on July 11, “The Biden administration must leave the Beltway and come to Middle America to defend its punishing electric vehicle mandate. Along with our AG colleagues in 25 other states, we are prepared to challenge this billion-dollar boondoggle. It’s time for the Biden administration to reverse its political agenda and focus on delivering real relief for Kentucky families.”
The coalition is opposing NHTSA’s rule titled “Corporate Average Fuel Economy Standards for Passenger Cars and Light Trucks for Model Years 2027 and Beyond and Fuel Efficiency Standards for Heavy-Duty Pickup Trucks and Vans for Model Years 2030 and Beyond,” which was finalized on June 7.
The Legal Battle
The states are suing NHTSA, Deputy Administrator Sophie Shulman, and Transportation Secretary Pete Buttigieg in their official capacities. The lawsuit was filed in the U.S. Court of Appeals for the Sixth Circuit, which was randomly selected from a list of possible appellate courts.
Alabama Attorney General Steve Marshall criticized the rule, saying, “The Biden administration says its new fuel-efficiency rule gives Americans ‘more choice’ and promotes ‘energy independence,’ but the truth is the opposite. This is a continuation of the Biden administration’s war against American energy. With gas prices rising and new regulations piling up on manufacturers, consumers end up paying the price during a time of unprecedented inflation.”
NHTSA’s rule requires annual increases in fuel economy by 2% for passenger cars and light trucks starting from model years 2027 and 2029 respectively, and by 10% annually for heavy-duty pickup trucks and vans starting from model year 2030. The rule also mandates an 8% annual increase for model years 2033-2035.
Voices from the States
Wyoming Governor Mark Gordon argued that the new rule imposes unworkable standards, forcing automakers to produce more EVs. “Our federal government should not be issuing overreaching mandates that manipulate the free market. Wyoming residents drive thousands of miles each year through remote areas. They should be able to decide what vehicle technology is most suitable for their needs, not the Biden administration,” said Gordon, noting that EVs are highly unpopular in his state with only 1,000 registered, accounting for just over one-tenth of 1% of total vehicle registrations.
NHTSA’s 1,004-page final rule estimates that while consumers might pay more for new vehicles upfront, they would save money on fuel costs over the lifetimes of those vehicles. The lawsuit, however, argues that the rule exceeds NHTSA’s statutory authority and is arbitrary, capricious, and an abuse of discretion.
Oklahoma Attorney General Gentner Drummond echoed these concerns, stating, “This impractical transition would bypass the free market, spike costs for families, and undermine the reliability of the electric grid.”
Industry Response
A similar lawsuit was filed on June 26 in the Fifth Circuit Court of Appeals by several industry groups including the American Petroleum Institute (API), National Corn Growers Association, American Farm Bureau Federation, and others. The groups argue that the new standards would force manufacturers to produce more EVs, harming agriculture and rural areas where internal combustion engines are necessary, and the electric charging network is insufficient.
The API highlighted that the new rule would require passenger cars to reach 66.4 mpg and light trucks to 46.2 mpg by 2032, compared to the current standards of 40.6 mpg by 2024.
As this legal battle unfolds, it reflects the broader national debate over the transition to electric vehicles and the role of government in setting industry standards.