Big Oil Battles Biden: Chevron, Exxon Challenge EV Emission Rules

Zinger Key Points
  • Chevron, Exxon, and API to file a lawsuit against EPA's new tailpipe emission rules promoting electric vehicles.
  • API argues EPA's regulations overstep authority, risking the phase-out of gas cars and hybrids in less than a decade.

The nation’s largest oil companies, Chevron Corporation CVX and Exxon Mobil Corporation XOM, reportedly plan to file a federal lawsuit on Thursday to oppose the Biden administration’s efforts to cut emissions from cars and light trucks and promote electric vehicle manufacturing.

The lawsuit will be filed in the D.C. Circuit Court of Appeals, reported Reuters.  

In March, the U.S. Environmental Protection Agency issued new tailpipe emission rules requiring the nation’s automakers to increase production and sales of electric vehicles to comply with the standards.

The agency aims for up to 56% of all car sales to be electric between 2030 and 2032.

The American Petroleum Institute (API) argues that the EPA has overstepped its congressional authority with a regulation that aims to phase out most new gas cars and traditional hybrids from the U.S. market in less than a decade.

API Senior Vice President and General Counsel Ryan Meyers 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,”

Minnesota farmer and National Corn Growers Association President Harold Wolle said, “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,”

In April, Republican attorneys general from 25 states sued the EPA to block these rules, which are among President Joe Biden‘s significant environmental initiatives aimed at addressing climate change.

This stance has also posed challenges in his relationship with the United Auto Workers, who have hesitated to embrace the transition to electric vehicles fully.

In the final rule, Biden reduced the target for electric vehicle adoption in response to backlash from autoworkers. However, this adjustment did little to appease the oil industry, which relies on gas-powered cars for viability.

Both Biden and his presumed Republican rival in the 2024 presidential election, former President Donald Trump, recognize that winning industrial states like Michigan, Wisconsin, and Pennsylvania hinges on addressing concerns that the transition to electric vehicles could jeopardize jobs.

Also Read: Biden Administration Invests $150M To Upgrade 4,500 EV Charging Stations Nationwide

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesLarge CapNewsCommoditiesPoliticsLegalAI GeneratedBriefselectric vehiclesJoe BidenmobilityOilStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!