API, Auto and Agriculture Organizations File Latest Lawsuit Challenging Administration’s Vehicle Mandates

NHTSA Fuel Standards Hurt Consumers, Threaten Affordable Transportation

WASHINGTON, June 26, 2024 – The American Petroleum Institute (API) today filed a lawsuit in the Fifth Circuit Court of Appeals challenging the National Highway Traffic Safety Administration (NHTSA) Corporate Average Fuel Economy (CAFE) standard for model year 2027-2032 passenger cars and light-duty trucks. The CAFE rule mandates stringent new standards that appear ultimately designed to phase out liquid fuel powered vehicles. Today’s filing follows two recent lawsuits led by API challenging the EPA’s light-duty and heavy-duty vehicle rulemakings.

“American consumers are now facing a slew of unreasonable vehicle mandates that will only restrict choices and make it harder to afford new cars and trucks at a time of persistent inflation,” said API Senior Vice President and General Counsel Ryan Meyers. “Combined with tailpipe emissions standards from D.C. and California bureaucrats, this is yet another attempt to circumvent Congress and effectively ban new vehicles using liquid fuels that American drivers rely on every single day. We look forward to making our case in court and will continue to advocate for a range of solutions to reduce emissions.”

The National Corn Growers Association, American Farm Bureau Federation, Texas Corn Producers Association, Texas Farm Bureau and a group of six auto dealers representing sixteen brands and collectively operating dozens of dealerships in major markets across the country join API as co-petitioners in today’s lawsuit. The auto dealers include Mickey Anderson, president and CEO of Baxter Auto Group; Thomas Maoli, president and CEO of Celebrity Motor Cars; Roger Elswick, president and CEO of Community Auto Group; Steve Gates, owner of Gates Automotive Group; Phillip Tarver, owner of Lake Charles Toyota; and Bob Loquercio, owner of Bob Loquercio Auto Group.

“We have seen firsthand how disconnected Biden administration regulations are from the realities of today’s marketplace and our customers, who continually bypass these vehicles over concerns about affordability, charging infrastructure, performance and value,” said Tom Maoli, president and CEO of Celebrity Motor Cars. “Today I am challenging this overreaching government regulation and the unelected Washington bureaucrats who exceeded their congressional authority to force another unrealistic mandate on American consumers.” 

“Once again, we have a federal agency trying to force a one-size-fits-all solution on the American consumer through the final NHTSA CAFE rule and fuel efficiency standard, which favors electric vehicles,” said Minnesota farmer and National Corn Growers Association President Harold Wolle. “Because ethanol effectively lowers greenhouse gas emissions and combats climate change, it accounts for one-third of corn growers’ demand. We are concerned that NHTSA could be putting the country on the path to eliminating this demand, which would be a major financial blow to corn growers.” 

“Texas Farm Bureau opposes the DOT CAFE standards that are unrealistic and go beyond the agency’s regulatory authority,” said the Texas Farm Bureau. “The standards artificially force manufacturers to produce electric vehicles to meet the standards, harming agriculture and rural areas. The supply of farm vehicles that by necessity need to have internal-combustion engines will be more scarce and more costly to purchase. In addition, rural America lacks a functional electric charging network.”

“On behalf of Texas corn farmers – and family farms across the nation, TCPA is joining this petition on the NHTSA CAFE final rule that threatens existing fuel infrastructure, including ethanol,” said TCPA President Jim Sugarek. “Not only does this rule endanger the ethanol demand that is important to our corn farmers’ markets, it poses a risk to the liquid fuel industry as a whole. We simply can’t allow a federal agency to dictate rules that jeopardize the viability of both the agriculture and energy sectors that drive the Texas economy.”

API supports technology-neutral policies at the federal level that drive greenhouse gas (GHG) emissions reductions in the transportation sector, taking a holistic “all-of-the-above” approach to fuels, vehicles, and infrastructure systems. Unfortunately, NHTSA’s final CAFE rule misses the mark. 

NHTSA’s final CAFE rule for passenger cars and light trucks requires passenger cars to reach 66.4 miles per gallon (MPG) by 2032 and light trucks to 46.2 MPG, an overall fleet fuel economy average of 51.4 MPG. Comparatively, current CAFE standards for model years 2021-2026 require an overall average of 40.6 MPG by 2024. 

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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