States, cities sue US agencies over weaker vehicle fuel economy rules
XLY•California, New York and other states and local governments sued over revised fuel economy standards requiring a fleetwide average of 34.9 miles per gallon by 2031, down from 50.4 under Biden-era rules. The Transportation Department estimates the rules lower manufacturers’ compliance costs by $1,289 per vehicle but add more than $1,600 in fuel costs over its life.
1. States challenge standards
California, New York and two dozen other states, along with cities and counties, sued the US Transportation Department over its decision to finalize lower vehicle fuel economy standards. A coalition of environmental and consumer groups filed a separate lawsuit in the US Court of Appeals for the First Circuit.
2. Costs and fuel use
The rules require a fleetwide average of 34.9 miles per gallon by 2031, compared with 50.4 under the Biden administration’s standards. The Transportation Department estimates the regulation reduces manufacturers’ average compliance costs by $1,289 per vehicle while increasing fuel costs by more than $1,600 over the vehicle’s life. It also estimates US gasoline consumption through 2050 will rise by 4.6%, or about 121 billion gallons, compared with the previous rules.
3. Credit trading ends
The states argue the administration’s analysis ignores millions of electric vehicles and said drivers would lose nearly $220 billion in fuel savings. Transportation Secretary Sean Duffy defended the rule as allowing manufacturers to produce vehicles that meet families’ needs at lower prices. The rules also end automaker credit trading in 2028, previously a significant source of income for Tesla and Rivian.
