Texas Corn Producers v. EPA

The Fifth Circuit Court of Appeals ruled that an equation formulated by EPA to calculate vehicle fuel economy was “unreasonable and unreasonably explained” because it “failed entirely to respond to several significant points in comments which, if true, would have necessitated a change in course.” As a result, the court said, EPA finalized a “sensitivity factor” for accounting for different test fuel types that was “far too low,” thereby “artificially increase[ing]” the stringency of fuel efficiency standards. In addition, as a threshold matter, the court found that petitioners—“several agricultural organizations and a trade organization representing various segments of the gasoline fuel supply chain”—had standing based on their allegations of harm from decreased demand for gasoline. The court vacated the rule to the extent it set the too-low sensitivity factor and implemented that factor by shifting the test fuel for fuel economy compliance.