A number of industry groups, unions and auto dealers on Thursday filed lawsuits challenging the final tailpipe emissions rule EPA issued in March, arguing that it is aimed at forcing consumers to shift to electric vehicles.

In challenges filed with the U.S. Court of Appeals for the District of Columbia Circuit, the coalitions, which combined represent 36 plaintiff groups, said the agency exceeded its authority by targeting a whole class of vehicles.

"EPA's Light Duty Vehicle rule is unlawful and harmful to consumers, our economy and our national security. We are confident the court will agree that Congress has not authorized EPA to effectively ban the sale of new gas and diesel cars and overhaul the U.S. economy in such a major way," American Fuel & Petrochemical Manufacturers Chief Executive Chet Thompson said in a news release.

Other organizations challenging the rules include the American Petroleum Institute, Energy Marketers of America, NACS, the American Farm Bureau Federation and the National Corn Growers Association.

The suits ask the court to vacate the new rules, which govern model years 2027-2032. The rules require carbon emissions from new vehicles sold in 2032 to be nearly half those of vehicles that go on sale in 2026. That will require EVs to account for the equivalent of two-thirds of new-vehicle sales. Analysts with investment bank Citigroup have said the rule could displace 50,000 b/d of petroleum demand by 2030.

The rules only target tailpipe emissions, not lifecycle emissions, and therefore only impact ICE-powered vehicles, the groups say.

The agency's favoring of EVs also ignores the impact of biofuels in reducing emissions and combating climate change, farm groups said.

"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," American Farm Bureau Federation President Zippy Duvall said.

In April, a group of 25 Republican state attorneys general filed suit challenging the rule.

EPA on Thursday said it doesn't comment on pending litigation.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

06-13-24 1607ET