A group of 26 state attorneys general, led by West Virginia and Kentucky, has filed a lawsuit against the Biden administration’s new fuel economy rules. The group argues that the rules are unworkable and will force automakers to produce more electric vehicles.
The National Highway Traffic Safety Administration (NHTSA) recently finalized less stringent vehicle fuel economy rules through 2031, which were initially proposed to be even stricter. The NHTSA stated that they would increase corporate average fuel economy (CAFE) requirements to approximately 50.4 miles per gallon (mpg) by 2031, up from the current 39.1 mpg.
However, the initial proposal by NHTSA was to increase CAFE requirements for passenger cars by 2% per year and light trucks by 4% per year from 2027 through 2032. The final regulation includes no increase for light trucks for 2027 and 2028 and only requires 2% increases from 2029 through 2031. Last year, NHTSA estimated that the proposal to increase fuel economy standards through 2032 would cost the industry $14 billion in projected fines over a five-year period. Under the final rule, the industry is collectively expected to face fines totaling $1.83 billion from 2027 through 2031.
President Joe Biden’s administration has taken several actions recently that have resulted in less stringent vehicle regulatory proposals than originally planned. These actions include new compliance calculations for electric vehicles that are less strict than proposed and tailpipe rules that may require automakers to produce fewer EVs than originally expected.