FuelStandards News & Analysis

States Sue Over Fuel Standards, Lower MPG by 2031

A coalition of U.S. states and cities has filed a lawsuit against the U.S. Transportation Department over newly finalized vehicle fuel economy standards. The new rules lower the fuel economy goals to a fleetwide average of 34.9 miles per gallon by 2031, down from the previous target of 50.4 MPG. The Transportation Department claims this will reduce vehicle costs but increase fuel consumption and CO2 emissions over time. California, New York, and over two dozen other states, cities, and counties argue the new standards violate the requirement to set maximum feasible levels for fuel economy. The revised rules are seen as a reversal of former President Biden’s push for greater fuel efficiency and electric vehicles. Environmental groups and consumer advocates also filed lawsuits and criticized the expected increase in gasoline use by 121 billion gallons through 2050 compared to Biden's standards. The dispute is significant as it highlights tension between federal and state goals on climate policy and automotive standards. Auto manufacturers stand to benefit from reduced compliance costs, but drivers are expected to face higher lifetime fuel expenses.