US declares Biden fuel economy rules exceeded legal authority

The U.S. Transportation Department on Friday declared that fuel economy rules issued under then President Joe Biden exceeded the government's legal authority by including electric vehicles in setting the rules, automaker officials said Monday.

The department made the declaration as it published a final "Resetting the Corporate Average Fuel Economy Program" rule.

Removing EVs from the calculations for credits and the regulatory mandates will likely result in lower overall fuel economy requirements.

A future separate rule from the administration of President Donald Trump will revise the specific fuel economy requirements.