US appeals court voids Biden-era electric vehicle fuel economy rule

Source: Reuters

September 5, 2025 2:41 PM EDT Updated 6 hours ago


The 8th U.S. Circuit Court of Appeals in St. Louis said the Department of Energy exceeded its authority by deciding to phase out during the 2027 to 2030 model years a "fuel content" factor that artificially inflated EV fuel economy, rather than eliminating that factor.

Writing for a three-judge panel, Circuit Judge Duane Benton said the department also failed to provide notice of the range of alternatives it was considering when it sought comments for the March 2024 rule, depriving commenters a chance to provide "informed criticism."

Petroleum equivalency is used in calculating whether manufacturers meet the Department of Transportation's corporate average fuel economy (CAFE) standards.

While the final rule was watered down from an earlier proposal, the Energy Department said keeping the fuel content factor would likely encourage EV production in the near term, while "accelerating the widespread adoption of EVs in the United States during this pivotal time."

Read more: https://www.reuters.com/legal/litigation/us-appeals-court-voids-biden-era-electric-vehicle-fuel-economy-rule-2025-09-05/