Top US oil trade group to sue to block Biden’s electric vehicle initiative

Oil Industry Challenges Biden's Emission Rules in Federal Lawsuit

The nation's leading oil trade organization, encompassing industry giants like Exxon Mobil and Chevron, is poised to file a federal lawsuit on Thursday to obstruct the Biden administration's initiatives to curb emissions from cars and light trucks. This lawsuit targets the administration's drive to promote electric vehicle (EV) manufacturing. The U.S. Environmental Protection Agency (EPA) recently introduced stringent tailpipe emission regulations in March, which require automakers to significantly increase the production and sale of electric vehicles to meet these new standards. The administration projects that electric vehicles could make up as much as 56% of all car sales between 2030 and 2032 under this rule.

API's Argument Against EPA’s Emission Rules

The American Petroleum Institute (API), the principal plaintiff in the lawsuit, argues that the EPA has overstepped its congressional boundaries. The API contends that the new regulations would effectively phase out most new gasoline-powered cars and traditional hybrids from the U.S. market within a decade. Ryan Meyers, API's Senior Vice President and General Counsel, stated, "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." The legal action will be initiated in the D.C. Circuit Court of Appeals.

Support from Agricultural Groups

Joining the API as co-petitioners are the National Corn Growers Association and the American Farm Bureau Federation. These groups have a vested interest in gas-powered vehicles due to their reliance on the corn-ethanol industry. Harold Wolle, a Minnesota farmer and President of the National Corn Growers Association, criticized the EPA's focus exclusively on electric vehicles, stating, "By approving tailpipe standards that focus exclusively on electric vehicles, EPA has ignored the proven benefits corn ethanol plays in reducing greenhouse gas emissions and combating climate change."

Political and Industrial Implications

In a related development, Republican attorneys general from 25 states had already filed a lawsuit in April against the EPA to block the same regulations. These emission standards are among the most comprehensive environmental policies enacted during President Joe Biden’s tenure, as he prioritizes combating climate change. However, the move has strained Biden's relationship with a key ally, the United Auto Workers (UAW), who have shown hesitance in fully accepting the EV transition.

Biden had to lower his EV adoption targets in the final rule to address the auto workers' concerns, though this adjustment did little to alleviate the oil industry's discontent, as their business fundamentally depends on gas-powered vehicles. The political ramifications are significant, with states like Michigan, Wisconsin, and Pennsylvania—crucial for any presidential victory—feeling the economic tremors of the EV shift. In these industrial states, workers fear job losses as a consequence of moving towards electric vehicles.

Trump's Stance on Electric Vehicles

On the political front, former President Donald Trump has vocally opposed electric vehicles and pledged to overturn the new tailpipe emission standards if re-elected. This issue is likely to become a central topic in the upcoming presidential campaigns, as both Biden and Trump vie for support from key industrial states.