Environmental groups and 26 states sue over 34.9 mpg fuel economy rollback

Environmental groups and a coalition of 26 Democratic-led states filed lawsuits on Friday against the Trump administration over its rollback of vehicle fuel economy standards, which cut the 2031 fleetwide target to 34.9 miles per gallon from a projected 50.4 miles per gallon under Biden-era rules. The suits ask federal courts to block the National Highway Traffic Safety Administration from enforcing the lower standard.cbsnews.com+1

The rollback matters because fuel economy requirements have shaped what Americans drive since the 1970s energy crisis, and weaker standards mean each car burns more gasoline over its life. What is new is that two separate legal actions were filed on the same day, one by environmental organisations and one by states and cities, both arguing the rule exceeds the agency's authority under the Energy Policy and Conservation Act.usatoday.com

Two suits filed Friday

The environmental groups, including the Sierra Club, Environmental Defense Fund, Center for Biological Diversity, Conservation Law Foundation and Public Citizen, filed a petition for review on Friday in the U.S. Court of Appeals against Transportation Secretary Sean Duffy and Jonathan Morrison, administrator of the National Highway Traffic Safety Administration. The states' coalition filed separately in the U.S. Court of Appeals for the First Circuit in Boston, led by California Attorney General Rob Bonta.

The rule, announced on Monday, sets a fleetwide average of 34.9 miles per gallon for passenger cars and light trucks for the 2031 model year, down from a projected 50.4 miles per gallon under rules put in place during the Biden administration. The Biden-era rule required cars to be 10% more efficient for the 2026 model year and increase efficiency 2% annually from 2027 to 2031.

The Transportation Department said the new rule will lower the average upfront cost of new vehicles by $1,300, cut annual oil consumption, and give automakers more choice in the cars they manufacture. The department also said the rule would cut yearly oil consumption in 2050 by about 1.3 billion barrels compared with 2024 levels, though the National Highway Traffic Safety Administration had estimated the 2024 standards would have saved 14 billion gallons of gasoline by that year.

What the rule changes

NHTSA's own analysis, cited by the states and environmental groups, shows that drivers would spend an extra $1,624 on gas over the life of a car purchased under the proposed rules. Under current rules, the agency said drivers would spend $15,333 on gas for a car bought under 2011 model year requirements, a figure that rises to $16,957 under the proposed lower standards. The states argue consumers would have saved almost $200 billion in fuel under the previous standards.

The states' lawsuit contends NHTSA used defective analyses about vehicle affordability, vehicle sales, fuel savings and vehicle safety in setting the new standards. New Mexico Attorney General Raul Torrez said at a news conference that past oil shocks led the country to work with industry to raise fuel economy standards and put money back into drivers' pockets. California Attorney General Rob Bonta said gas prices raise the cost of moving food and goods, and that raising prices at the store makes the rollback bad for Americans' wallets.spectrumlocalnews.com

The agency's own numbers

The Union of Concerned Scientists said CAFE standards have saved consumers over $32 billion since the Iran war began, and that any reduction in upfront vehicle costs would be outweighed by higher fuel expenses over a vehicle's lifespan. The Alliance for Automotive Innovation, which lobbies for most major carmakers, said NHTSA made the right call to better align fuel economy standards with the law and current market conditions.

Transportation Secretary Sean Duffy said the revamped rule blunts an illegal mandate that forced automakers to produce more expensive electric vehicles that American families didn't want. NHTSA Administrator Jonathan Morrison said that by reducing vehicle prices, more American families will be able to afford newer vehicles. Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown both criticised the change, with Brown calling it an unlawful gift to fossil fuel companies.

Who backs the rollback

The national average price for a gallon of gasoline on Friday was $4.40, up from $3.16 a year ago and from roughly $2.98 just before the Iran war started in late February, according to one report. Another put the Friday average at $4.30, according to AAA. A typical passenger vehicle emits 4.6 metric tons of carbon dioxide per year, and as of 2022 the transportation industry accounted for 28% of total U.S. greenhouse gas emissions, according to the Environmental Protection Agency.

The environmental groups' petition for review was filed on Friday in the U.S. Court of Appeals, and the states' case was filed the same day in the U.S. Court of Appeals for the First Circuit in Boston. The Transportation Department and NHTSA did not immediately respond to a request for comment. The next step in both cases is the courts' response to the petitions for review filed on Friday.