Federal Appeals Court Rejects Trump Administration Bid to Lower Fines Against Automakers for Missing Fuel Economy Requirements

By Ben Wolowski, Taft Stettinius & Hollister LLP

The Second Circuit Court of Appeals recently rejected the Trump Administration’s attempt to suspend a regulation that more than doubled fines for automakers failing to meet corporate fuel efficiency requirements. In 2016, under the Obama Administration, the National Highway Traffic Safety Administration (NHTSA) increased fines from $5.50 to $14 for every 0.1 mile per gallon that new cars and trucks fell short of national fuel economy standards. In 2019, NHTSA suspended that rule, freezing the increased fines at pre-2016 levels. In a ruling several states and environmental groups, the Second Circuit vacated the new final rule, finding that NHTSA’s move to suspend the fines was untimely. Go here for more information. The Second Circuit's opinion can be found here.

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