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US Sues California Over Electric Vehicle Rules

[ March 20, 2026   //   Gary Burrows ]

The U.S. Department of Justice, acting on behalf of the National Highway Traffic Safety Administration, has filed a lawsuit challenging California regulations that the federal government says effectively require automakers to meet state-specific electric vehicle and fuel economy standards.

The lawsuit, filed in the U.S. District Court for the Eastern District of California, names the California Air Resources Board and its executive officer as defendants.

Federal officials argue the rules conflict with the Energy Policy and Conservation Act, which assigns the federal government authority over national vehicle fuel economy standards through the corporate average fuel economy, or CAFE, program administered by the National Highway Traffic Safety Administration.

The agencies contend that allowing states to set their own requirements could force automakers to adjust vehicle production for different markets and create inconsistent standards across the United States.

California officials have long pursued vehicle emissions and electrification policies that are stricter than federal standards. The state maintains that its rules are intended to reduce greenhouse gas emissions and air pollution.

The case is listed as United States v. California Air Resources Board, case number 2:26-450. The litigation is part of an ongoing dispute between federal and state regulators over authority to set vehicle emissions and fuel economy policies.

Tags: National Highway Traffic Safety Administration, US Justice Department