In a significant move, the American Farm Bureau Federation, National Corn Growers Association, and six major auto dealers representing 16 brands have united with the American Petroleum Institute (API) to file a lawsuit against the U.S. Environmental Protection Agency (EPA). This coalition, which operates dozens of dealerships nationwide, lodged their challenge in the D.C. Circuit Court of Appeals. The suit contests the EPA’s recently established light-duty and medium-duty vehicle emissions standards for model years 2027-2032. It asserts that the agency has exceeded its congressional authority and decided to prioritize electric vehicles over other viable climate solutions unduly.
The plaintiffs argue that the EPA’s stringent tailpipe standards, which heavily favor EVs, neglect the significant role of corn ethanol in reducing greenhouse gas (GHG) emissions. Minnesota farmer and National Corn Growers Association President Harold Wolle emphasized ethanol’s immediate availability and effectiveness in combating climate change. He stated, “By approving tailpipe standards that focus exclusively on electric vehicles, EPA has ignored the proven benefits corn ethanol offers in reducing greenhouse gas emissions and combatting climate change. While it could take decades to get enough electric vehicles on the road to significantly lower GHG emissions, ethanol is a critical and effective climate solution that is available now. We have tried to make this case to EPA to no avail, and now we will make our case in court.”
President of the American Farm Bureau Federation, Zippy Duvall, expressed concerns over the new standards jeopardizing American farmers' sustainability efforts and investments. “Farmers answered the call to help America be more sustainable by growing the crops necessary for renewable fuels. Now, the rug is being pulled out from underneath them with unrealistic emissions goals that put years of investment at risk,” Duvall remarked. Given the current inadequacies in rural charging infrastructure, he also pointed out the impracticality of expecting farmers to transition to electric vehicles.
API’s involvement highlights the EPA’s regulations' broader economic and security implications. Ryan Meyers, API Senior Vice President and General Counsel, articulated the potential repercussions for American consumers and the automotive industry. He argued that the EPA’s mandate threatens to phase out most new gas cars and traditional hybrids from the market within a decade, posing risks to manufacturing jobs and energy security. “Today, we are taking action to protect American consumers, U.S. manufacturing workers, and our nation’s hard-won energy security from this intrusive government mandate. EPA has exceeded its congressional authority with this regulation that will eliminate most new gas cars and traditional hybrids from the U.S. market in less than a decade. We look forward to making our case in court,” Meyers said.
In March, the Biden administration finalized ambitious federal vehicle emissions standards to reduce GHG emissions from light significantly- and medium-duty vehicles. The new regulations stipulate that by 2032, 68% of new passenger vehicles and 43% of new medium-duty trucks and vans must be electric. This policy is part of the broader national strategy to combat climate change and transition to a more sustainable transportation sector.
The petitioners claim that the EPA's new rule exceeds the legal authority given to the agency by Congress and is unreasonable and unjustified, as defined by 5 U.S.C. §706(2)(A) and (C). They are asking the court to invalidate the EPA's decision, arguing that it doesn't comply with these legal standards. The court's jurisdiction to review this case is established under 42 U.S.C. §7607(b)(1).
This lawsuit underscores the complex interplay between environmental regulation, agricultural interests, and the automotive industry. The outcome of this legal challenge will have significant implications for the future of vehicle emissions standards, the role of renewable fuels like ethanol, and the pace of transition to electric vehicles in the United States.
