Red States and Business Groups Challenge Biden Administration’s Fuel Efficiency Standards

A coalition of mostly red states and business groups have launched a legal challenge against the Biden administration’s new fuel efficiency standards, marking a significant showdown over climate change policy.

The petitions for review, filed in separate courts, aim to block the implementation of the Corporate Average Fuel Economy (CAFE) standards, which require light-duty vehicles to achieve an average of 50.4 miles per gallon by 2031. The standards also mandate a 2% annual increase in fuel economy for passenger cars from 2027 to 2031.

The 26 states involved in the legal challenge argue that the new standards would bypass the free market, increase costs for families, and strain power grids. West Virginia Attorney General Patrick Morrisey stated that the rule is legally flawed and unrealistic, and would ultimately hurt consumers’ wallets.

On the other hand, a group of business organizations, including the American Petroleum Institute, have also filed a petition challenging the standards. They claim that the mandates will restrict consumer choices, make it harder to afford new vehicles, and effectively ban vehicles that rely on liquid fuels.

Transportation Secretary Pete Buttigieg has defended the CAFE standards, stating that they will decrease air pollution, save car owners money, and reduce dependence on foreign oil. However, the legal challenges highlight the contentious nature of the policy, especially as EV sales have fallen in the first quarter of 2024.

The cases, filed in the US Court of Appeals for the Sixth Circuit and the Fifth Circuit, involve a wide range of states and organizations, underscoring the deep divide over the future of fuel efficiency standards in the United States.