Democratic AGs Seek Stiffer Penalties For CAFE-Standards Violations

Cozen O'Connor
Contact

Cozen O'Connor

  • A group of 13 Democratic AGs, led by California AG Rob Bonta and New York AG Letitia James, sent a letter to the National Highway Transportation Safety Administration (“NHTSA”) to restore penalties for automakers that failed to meet corporate average fuel economy (“CAFE”) standards for model years 2019-2021 vehicles.
  • The letter calls on NHTSA to immediately reverse an interim final rule promulgated by the Trump administration just before President Trump left office, which reduced a 2016 inflation-adjusted penalty from $14 to $5.50 for every tenth of a mile-per-gallon that an automaker fell below the CAFE standards beginning for model year 2019 vehicles.
  • The letter argues that NHTSA has no reason to delay the restoration of the $14 penalty rate because any CAFE-standard violations for model years 2019-2021 occurred after the $14 penalty was announced in 2016, thus negating any retroactivity concerns, and because automakers were aware of the $14 penalty since at least July 2016 and could not have reasonably relied on the $5.50 rate, among other things. The letter notes that the Trump-era rule was successfully challenged in the Second Circuit in 2018 and 2020.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Cozen O'Connor | Attorney Advertising

Written by:

Cozen O'Connor
Contact
more
less

Cozen O'Connor on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.