Capitol Notebook: Court strikes down Biden rule favoring electric vehicles in Iowa-led case

Iowa Attorney General Brenna Bird on Thursday declared victory after a federal appeals court struck down a rule by former President Joe Biden’s administration that Bird said illegally inflated the efficiency of electric vehicles at the expense of ethanol and other liquid fuels.

The U.S. Court of Appeals for the Eighth Circuit agreed with Iowa and 12 other Republican-led states that the Department of Energy exceeded its authority when it issued regulations that boosted electric vehicle ratings. The court vacated the rule, saying it went beyond what Congress authorized under the Administrative Procedure Act.

“This is a victory for all Americans, but especially for Iowa ethanol,” Bird said in a statement. “The Biden Administration’s war on gas vehicles is coming to an end. We were proud to lead a coalition of states to stand up for farmers and drivers — and to stop the government from mandating what kind of vehicles we can drive.”

Bird argued the rule amounted to a federal “handout” to electric vehicles by making them appear more fuel-efficient than they are. She said that unfairly disadvantaged liquid fuel producers, car manufacturers and consumers while straining the power grid.

The lawsuit, first filed in 2023, was led by Iowa and joined by Arkansas, Florida, Idaho, Kansas, Mississippi, Missouri, Montana, Nebraska, Ohio, Oklahoma, Texas, Utah and the American Free Enterprise Chamber of Commerce.

Industry groups aligned with ethanol producers have long opposed federal policies that they say tilt the market toward electric vehicles while undermining demand for corn-based fuel. Iowa is the nation’s largest ethanol producer, and the biofuels industry plays a significant role in the state’s farm economy.

The Department of Energy has not yet said whether it will appeal the ruling or pursue a revised rule. The decision leaves in place fuel economy standards that do not include the challenged methodology.

The ruling is the latest in a series of court challenges brought by Republican attorneys general against Biden administration environmental and energy policies. It also comes as national debate intensifies over the pace of the transition away from gas-powered vehicles and the role of renewable fuels in that shift.

Judge: Insurer broke court order, must pay $481K

A Polk County District Court judge has ordered nearly half a million dollars in penalties against the Senior Health Insurance Company of Pennsylvania, Pennsylvania’s insurance commissioner and the company’s court-appointed rehabilitator for violating an Iowa injunction meant to protect policyholders.

Judge Scott Beattie on Aug. 31 found the defendants in contempt of court for sending unauthorized mailings to Iowa policyholders of long-term care insurance, despite a 2023 order barring them from changing benefits or rates without approval from Iowa regulators. The court assessed $481,500 in civil penalties — $500 for pursuing an out-of-state court order, plus $500 for each of the 962 mass mailings sent to Iowa residents this spring.

Iowa Insurance Commissioner Doug Ommen sued SHIP in 2022 after the company, which is under rehabilitation proceedings in Pennsylvania, sought to implement its “Second Amended Rehabilitation Plan” in Iowa without regulatory approval. Ommen said the company’s efforts to force policyholders into higher premiums and reduced coverage violated Iowa law and caused widespread confusion among elderly policyholders.

  Buy Photo

“Many of these policyholders are older and many are on claim in long-term care facilities,” Ommen said in a statement. “We urge any policyholders to reach out to our office with questions or concerns so they can make informed decisions.”

Testimony during the contempt hearing showed the mailings alarmed families and confused policyholders, some in their 80s and 90s. The court ruled each mailing represented a separate act of contempt, noting that SHIP deliberately sought authorization from Pennsylvania courts despite explicit warnings from Iowa regulators.

The order requires SHIP and Pennsylvania officials to immediately cease any further violations and pay the penalty within 30 days. Similar litigation is ongoing in North Dakota.

Policyholders or their families with questions are urged to contact Insurance Complaint Analyst Sue Wittmack at 515-654-6606.