March 27, 2018: NHTSA Proposes to Retain Existing CAFE Penalty
(U.S. Department of Transportation) NHTSA is publishing in the Federal Register a notice of proposed rulemaking titled, “Civil Penalties,” which proposes to keep the penalty rate for violations of the agency’s CAFE program as they currently stand and not adjust them for inflation. This proposed rule follows NHTSA’s July 7, 2017, request for comment on this issue. Comments will be due 30 days after the document is published in the Federal Register.
DOT and NHTSA are seeking feedback to ensure that all potential impacts concerning today’s proposal are fully considered.
Background
Penalties are paid by auto manufacturers who exceed the allowable fuel economy targets under the CAFE program. The industry projected that an increase in the penalty rate would result in at least $1 billion in increased costs annually.
The Inflation Adjustment Act requires all federal agencies to adjust their monetary civil penalties for inflation annually. A rote application of the law resulted in NHTSA initially significantly increasing the $5.50 CAFE penalty rate to $14 beginning with Model Year 2019 vehicles. Details notice of proposed rulemaking READ MORE
