California Attorney General Rob Bonta, leading a coalition of 26 states, counties, and cities, filed a lawsuit challenging the Trump administration's new fuel economy standards. The lawsuit was filed in the U.S. Court of Appeals for the First Circuit and alleges the standards violate federal law.
The National Highway Traffic Safety Administration issued a final rule that weakens corporate average fuel economy standards for new passenger cars and light trucks. According to the coalition's lawsuit, the new standards require less fuel efficiency than what the U.S. vehicle fleet actually achieved in 2021.
Federal law requires the agency to set fuel economy standards at the "maximum feasible" level. The coalition alleges that the agency improperly applied the law by ignoring millions of electric vehicles already on U.S. roads when determining what is feasible. In previous rulemakings, the agency had accounted for existing electric vehicles as part of the baseline fleet.
The coalition argues the weakened standards will cost drivers approximately $220 billion in lost fuel savings compared to the previous standards. Additionally, the new rule will end the CAFE credit trading program in 2028, a mechanism that allows automakers to trade efficiency credits and has supported electric vehicle manufacturers.
The 1975 Energy Policy and Conservation Act requires the agency to set fuel economy standards based on technological feasibility, economic practicability, and the need to conserve energy.