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API lawsuit seeks to repeal new fuel efficiency standards

The proposed fuel economy improvement could save drivers more than $600 over the life of their vehicles.

Ruth Arteaga.

Published: June 30, 2024

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The American Petroleum Institute (API), along with farm and auto dealer groups, filed a lawsuit against new fuel efficiency standards proposed by the U.S. highway regulator. The API, which represents nearly 600 oil and gas companies, argues that these regulations effectively ban new vehicles powered by liquid fuels.

NHTSA imposes new fuel efficiency standards

According to NHTSA passenger car models from 2027 to 2031 must improve their fuel economy by 2% per year, and light trucks from 2029 to 2031 as well. This would raise average fuel consumption to 50.4 miles per gallon by 2031, saving drivers more than $600 in fuel over the lifetime of their vehicles. The rule was published in the Federal Register and will become effective in 60 days.

In addition, future standards are projected for passenger cars and light trucks from 2032 onwards, with an annual improvement of 2%. For heavy vehicles, a 10% annual improvement is expected for models between 2030 and 2032, and 8% for 2033-2035.

Impact on consumers and prices

These new regulations follow recent EPA vehicle emissions standards, which are also being litigated by API. According to Ryan Meyers, API’s general counsel, these mandates will restrict consumer choice and make vehicles more expensive against a backdrop of persistent inflation.

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California had already implemented similar regulations with the Advanced Clean Cars program, starting in 2012 and extending through 2035, when all new vehicles sold must have zero emissions.

API takes case to court

The lawsuit argues that NHTSA’s new rules exceed its statutory authority and are arbitrary. It was filed with the Fifth Circuit Court of Appeals against NHTSA and the Department of Transportation.

Tom Maoli, president of Celebrity Motor Cars, and Harold Wolle, president of the National Corn Growers Association, noted that these regulations would negatively affect demand for internal combustion engine vehicles and the ethanol industry, respectively. Texas Farm Bureau also expressed concerns about the availability and cost of farm vehicles.

NHTSA argues that the new regulations will contribute to climate neutrality. climate neutrality and reduce fuel costs for motorists, in addition to reducing dependence on imported oil.

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Source: rigzone

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