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Largest US oil trade group to sue to block Biden's EV push
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Largest US oil trade group to sue to block Biden's EV push
Jun 13, 2024 2:32 AM

June 13 (Reuters) - The nation's largest oil trade

group, which includes Exxon Mobil ( XOM ) and Chevron ( CVX ),

will file a federal lawsuit on Thursday seeking to block the

Biden administration's efforts to reduce planet-warming

emissions from cars and light trucks and encourage electric

vehicle manufacturing, the group said.

The U.S. Environmental Protection Agency issued new tailpipe

emission rules in March that will force the nation's automakers

to produce and sell more electric vehicles to meet the new

standards. Under the rule, the administration projects up to 56%

of all car sales will be electric between 2030 and 2032.

The American Petroleum Institute (API) says the EPA has

exceeded its congressional authority with a regulation that will

eliminate most new gas cars and traditional hybrids from the

U.S. market in less than a decade.

"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," API Senior

Vice President and General Counsel Ryan Meyers said.

The law suit will be filed in the D.C. Circuit Court of

Appeals.

The National Corn Growers Association and the American Farm

Bureau Federation will join API as co-petitioners. The two

groups rely on gas-powered cars to support the corn-ethanol

industry.

"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," Minnesota farmer and National Corn Growers

Association President Harold Wolle said.

In April, Republican attorneys general from 25 states on

sued the EPA to block the same rules.

The regulations are among the most significant environmental

rules implemented under President Joe Biden, who has made

tackling climate change a key pillar of his presidency. It has

also complicated his relationship with a key ally, the United

Auto Workers, who have been slow to embrace the transition to

electric vehicles.

In the final rule, Biden slashed its target for electric

vehicle adoption amid auto worker backlash, but the watering

down of the measure did little to pacify an oil industry that

needs gas-powered cars to survive.

For both Biden and his Republican rival, Donald Trump, the

road to the White House goes through industrial states Michigan,

Wisconsin and Pennsylvania where workers fear that the EV

transition threatens jobs.

Trump has repeatedly excoriated electric vehicles and

promised to rollback the new tailpipe standards.

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