Corporate Average Fuel Economy Penalties

The Environmental & Energy Law Program is tracking the environmental regulatory rollbacks of the Trump administration. Click here for the list of rules we are following

Why it Matters

Increased penalties would provide automakers with greater incentive to make their cars and trucks more fuel-efficient, saving consumers money on fuel and reducing greenhouse gas emissions.

Current Status

On April 2, 2018 The National Highway Traffic Safety Administration (NHTSA) published a Notice of Proposed Rulemaking which rejects the Obama Administration’s final rule to increase penalties for noncompliance of the standards. On April 23, 2018 the U.S. Second Circuit Court of Appeals vacated NHTSA’s July 2017 delay of the higher penalties, which had been challenged by states and environmental groups. On June 29, 2018 the U.S. Second Circuit Court of Appeals issued an opinion confirming that NHTSA does not have the authority to indefinitely delay the effective date of the increased penalty.

Click here learn more about the history of this rule and actions that have been taken on it by the Trump Administration.

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