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 a proposal under the Obama Administration to increase penalties for noncompliance of the standards. A comment period is open until May 2, 2018.

History

On July 5, 2016 NHTSA finalized an interim final rule, enhancing penalties for noncompliance with fuel efficiency standards.

On August 1, 2016 the Auto Alliance and Global Automaker petitioned NHTSA for reconsideration.

NHTSA published a final rule on December 28, 2016, granting part of the industry petition.

Trump Era

On July 12, 2017 NHTSA announced a plan to reconsider enhanced penalties, and sought public comment through October 10, 2017.

On September 7, 2017 NRDC sued NHSTA over the penalty delay. On September 11, 2017 New York, California, Vermont, Pennsylvania, and Maryland sued NHSTA as well. Both were filed in the 2nd Circuit Court of Appeals.  

On October 24, 2017 NRDC and the five states listed above asked the 2nd Circuit Court of Appeals to immediately reinstate the higher penalties.

On April 2, 2018 The National Highway Traffic Safety Administration (NHTSA) published a Notice of Proposed Rulemaking which rejects a proposal under the Obama Administration to increase penalties for noncompliance of the standards. A comment period is open until May 2, 2018.

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