26 US States Sue Trump Administration Over Fuel Efficiency Rollback

Twenty-six US states, including California and New York, have sued the administration of President Donald Trump over its decision to roll back fuel-efficiency standards for petrol-powered vehicles.

The lawsuit, filed on Friday, challenges the US Department of Transportation’s decision to reduce the required fleet average fuel economy to 34.9 miles per gallon (56km per gallon) by the 2031 model year.

Under former President Joe Biden, the target had been set at 50.4 miles per gallon (81km per gallon) by 2031.

California Attorney General Rob Bonta, who is leading the lawsuit, accused the administration of improperly changing the way federal regulators calculate fuel-economy standards.

According to the lawsuit, the National Highway Traffic Safety Administration (NHTSA) changed its methodology by excluding existing electric vehicles from the baseline used to determine how much petrol-powered vehicles could improve their fuel efficiency.

Bonta argued that the change makes it easier for the government to justify weaker fuel-economy requirements and alleged that the new rule violates NHTSA’s congressional mandate to establish standards at the “maximum feasible” level.

The US Transportation Department, however, said the rollback could save American taxpayers $138bn over the next five years.

The decision has received support from some major automakers. Stellantis North America said the revised Corporate Average Fuel Economy (CAFE) regulations were more achievable and better aligned with market conditions.

Second Lawsuit Filed

A separate lawsuit was also filed on Friday by environmental and progressive groups, including the Environmental Defense Fund and Public Citizen.

The groups argue that the rollback could increase air pollution and fuel consumption. The case was filed in a federal court in Washington, DC.

Meanwhile, shares of several major automakers declined. Ford, General Motors and Toyota each fell by about 1 percent, while Stellantis dropped more than 6 percent amid reports of weaker sales.

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