States, Organizations Sue Biden Administration Over EV Fuel Economy Rule

Several states and organizations filed lawsuits against the Biden administration’s recent revision of the calculation method for determining the fuel economy of electric vehicles (EVs). The Department of Energy (DOE) published a final rule on March 29, which sparked controversy. Critics argue DOE overstepped its authority in making these changes and failed to conduct an environmental impact assessment as required by the National Environmental Policy Act.

In their filings with the U.S. Court of Appeals for the Eighth Circuit, the plaintiffs contend DOE lacked the statutory power to implement a factor that adjusts the fuel efficiency of electric cars. They also claim DOE did not fulfill its obligation to assess the environmental impact of the revised standards.

DOE’s action was prompted by a 2021 petition for rulemaking submitted by the Natural Resources Defense Council and Sierra Club. The American Free Enterprise Chamber of Commerce and attorneys general from several states, including Iowa, Arkansas, Florida and others, have joined the legal battle against DOE’s decision.

Of note: Legal challenges to regulatory changes typically result in delays to their implementation as the cases proceed through the courts.

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