Costly CAFE: The Biden Administration Is Considering Applying Higher Fines to Car Makers
by Matthew Choi (Politico’s Morning Energy) The Biden administration is considering applying higher fines to car makers who missed fuel economy targets for model years 2019 to 2021, potentially reversing one of Trump’s midnight regulations. The National Highway Traffic Safety Administration increased the Corporate Average Fuel Economy (CAFE) penalties from $5.50 per tenth of a mile per gallon to $14 in 2016. The Trump administration’s effort to undo the hike was struck down in the courts, but just before the White House changed hands in January, NHTSA said it would delay the penalty increase until model year 2022 vehicles — to the chagrin of environmentalists, Democrats and Tesla.
Applying the higher rate to the past three years’ fleets could put hundreds of millions or even billions of dollars on the line. Because of their scope, CAFE penalties are among the biggest civilian penalties levied by the federal government. Alex Guillén has more for Pros. READ MORE
Biden admin weighs penalty increase for car companies (E&E News/Governors’ Biofuels Coalition)
