The oil industry last week launched a legal challenge against the U.S. EPA and the latest light and midsize vehicle standards set for 2027-2032 model years.
The case was filed by the American Petroleum Institute (API), which represents members ranging from valve manufacturers to Shell and Exxon Mobil. Joining were the National Corn Growers Association, in response to accusations that corn ethanol is not considered a “significant and effective climate solution,” and the American Farm Bureau Federation, which stated that the standards would increase the cost of agricultural vehicles “and force farmers to rely on charging networks that do not yet exist in rural areas.”
Also behind the auto and light truck lawsuit is a group of six auto dealers, primarily from Central America, “representing 16 brands and collectively operating dozens of dealerships in major markets around the world.” country”. There are about 18,000 new car dealerships in the US
A press release accompanying the lawsuit filing called the EPA standard an electric vehicle mandate, though that accusation was redacted from the actual case. petition.
Challenging the inevitability of plug-in vehicles
The case challenging EPA’s 2027-2032 regulations was confirmed in March and entered the federal register in April. These rules are in line with the Biden administration’s efforts to limit greenhouse gas emissions, reduce smog-forming emissions and enhance public health. The standards explicitly do not mandate electric vehicles, although based on how they are structured, the EPA predicts that electric vehicles could account for 56% of new vehicle sales by 2032—so that automakers The entire route continues to supply large amounts of gasoline. Trucks guzzle gas as well.
Pre-production GMC Hummer EV 2022 at Factory Zero in Detroit, Michigan
Over the longer term, these rules will go hand in hand with investments in electric vehicles and battery infrastructure protected by the Inflation Recovery Act.
“EPA’s final rule exceeds the agency’s statutory authority and is otherwise arbitrary, capricious, an abuse of discretion, and inconsistent with the law,” the plaintiffs sued.
EPA has revoked these latest 2027-2032 rules over the tougher rules, finalized in 2022, which called for increases of 8% in 2024 and 2025 and 10% in 2026. That was conceived in part to offset a rollback under President Trump that cut annual fleet improvements from about 5% under Obama-era rules to just 1.5%, and although steep but they have not encountered the same level of resistance from the oil industry.
MPG rules have been relaxed
The corresponding Corporate Average Fuel Economy (CAFE) final rules were revealed earlier this month and are intended to coordinate with EPA standards, Goes easy on trucks and SUVs mpg compared to what was originally proposed—which stipulated annual improvements for 2027-2031 of just 2% for passenger cars and 2% for light trucks during those model years.
This opposition also goes against the greener image that some large, multinational oil companies — which now consider themselves energy companies — want to maintain. For example, Shell has eliminated some of its gas stations in favor of electric vehicle charging, and BP has notably spoken out. to get to any stranded Tesla Supercharger location as the electric vehicle manufacturer retreats from making fast chargers.
Partner of Hertz and BP Pulse for electric vehicles and charging
Meanwhile, 13 states plus the District of Columbia have adopted California’s plan to mandate electric vehicles, aiming for 100% electric and hybrid vehicles by 2035. In April, the U.S. Court of Appeals for the D.C. Circuit once again dismissed California’s challenge to preemption in setting pollution limits.
To date, automakers have mostly supported these final rules publicly and in investment terms, although lobbying efforts may suggest otherwise. Most recognize that the electric vehicle transition is good for global competitiveness.
Organizations haven’t stopped at cars. A companion lawsuit filed Tuesday does essentially the same thing for trucks, challenging the EPA’s heavy-duty truck emissions standards, also announced in April.
Last month, Presidential candidate Donald Trump was charged provided to combine Biden EV incentives in exchange for a $1 billion campaign donation from Big Oil. But an ever more skewed regulatory landscape may not be the future that even the oil industry wants.
