A federal court in New York on Monday blocked the Trump administration’s decision to delay a rule that would raise penalties for automakers who do not meet federal fuel efficiency requirements.
The second US Circuit Court of Appeals issued an order vacating the July 2017 decision of the National Highway Traffic Safety Administration (NHTSA) to suspend a 2016 Obama administration regulation.
The regulation, set to take effect in September, would more than double penalties. Automakers protested the hike, saying it could increase industry compliance costs by $1 billion annually.
Congress ordered federal agencies in 2015 to adjust civil penalties to account for inflation. In response, NHTSA proposed raising fines for every gallon of fuel that new cars and trucks consume in excess of required standards under the Corporate Average Fuel Economy (CAFE) program, but delayed the effective date to September 2018. Read More
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