States Sue Trump Administration for Reduced Penalties on Fuel Efficiency

August 05, 2019

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by Rebecca Beitsch (The Hill) Thirteen states filed suit against the Trump administration Friday, arguing it was breaking the law by cutting penalties for automakers that do not meet Obama-era fuel efficiency standards. The suit, led by California's and New York’s attorneys general, goes after a National Highway Transportation Safety Administration (NHTSA) rule that lowers penalties for manufacturers from $14 to $5.50 for every tenth of a mile per gallon (mpg) they fall below fuel efficiency standards.

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The standards from the Obama administration would have required automakers to produce cars and light trucks that reach an average of 51 mpg by 2026. The deal was designed to create one national fuel economy standard after decades of allowing California and other states to adopt their own more aggressive standards.

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This suit follows another from California dealing with penalties.

“We were victorious in our earlier court battle against President Trump in maintaining the [fuel efficiency] penalty level that accounts for inflation as required by law. Now the Trump Administration seeks to make these penalties meaningless,” California Attorney General Xavier Becerra said in a statement. “We’ll take on this latest wrong-headed maneuver with the same vigor that defeated the Administration’s first attempt at backsliding.”

NHTSA did not immediately respond to request for comment.

Connecticut, Delaware, District of Columbia, Illinois, Maryland, Massachusetts, New Jersey, Oregon, Rhode Island, Vermont and Washington are also part of the suit. READ MORE

California Attorney General Xavier Becerra and New York Attorney General Letitia James Sue Trump Administration for Cutting Penalties for Industry Violations of Fuel Efficiency Standards (Sierra Sun Times)

13 States Band Together To Take President Trump To Court (Bipartisan Report)

Attorney General James Leads Lawsuit Challenging Trump Administration's Efforts To Undercut Fuel Efficiency Standards (Office of New York Attorney General Letitia James)

States sue Trump administration over fuel economy penalties (Associated Press)

In case you missed it: The White House is now reviewing the Safer Affordable Fuel-Efficient Vehicles rules (Politico's Morning Energy)

CHANGE IN JUDGES FOR AUTO EMISSIONS CASE: (Politico's Morning Energy)

AGs SUE OVER CAFE PENALTY DELAY (Politico's Morning Energy)

Excerpt from Sierra Sun Times: In the lawsuit, the Attorneys General assert NHTSA’s new rule is unlawful and rewards automakers that fail to manufacture fuel-efficient vehicles. The coalition argues that the replacement rule:

Violates the Inflation Adjustment Act, which mandated that public agencies update their civil penalties to account for inflation using a clear timetable and formula for adjustment;
Is based on an incorrect interpretation of the NHTSA’s statutory obligations;
Conflicts with the intent of Congress, which did not exempt the CAFE penalty from mandatory inflation adjustment requirements; and
Is based on inaccurate assumptions of the economic impact of the inflation-adjusted penalties.

This replacement rule follows a previous attempt by the Trump Administration to delay the updated penalty. Specifically, on July 12, 2017, NHTSA published a notice in the Federal Register to announce an indefinite delay of the penalty. However, following a lawsuit led by California and New York, the U.S. Court of Appeals for the Second Circuit ruled against the Administration on April 24, 2018.

On May 2, 2018, Attorney General Becerra and twelve other Attorney Generals submitted comments to NHTSA opposing this rollback of the CAFE penalty.

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A copy of the filed lawsuit is available here. READ MORE

Excerpt from Politico's Morning Energy: In case you missed it: The White House is now reviewing the Safer Affordable Fuel-Efficient Vehicles rules from EPA and the National Highway Traffic Safety Administration, according to a notice on the Office of Management and Budget's website. The review follows a deal recently struck between four major automakers and the state of California to continue reducing greenhouse gas emissions more aggressively than the Trump administration's plan. READ MORE

Excerpt from Politico's Morning Energy: CHANGE IN JUDGES FOR AUTO EMISSIONS CASE: The D.C. Circuit Tuesday swapped out one of the judges slated to hear the lawsuit brought by California and other states over EPA's spring 2018 decision to revisit Obama-era auto standards. The suit does not directly challenge the soon-to-debut SAFE Vehicles rule, but rather the underlying decision that led to it. Raymond Randolph, a senior-status judge appointed by George H.W. Bush, was scheduled to sit on the panel hearing the case on Sept. 6. But in a notice, the court said without explanation that his seat will be filled instead by Judge Sri Srinivasan, an Obama appointee. The other two panel members are the same: Judith Rogers (Clinton) and Nina Pillard (Obama). READ MORE

Excerpt from Politico's Morning Energy: AGs SUE OVER CAFE PENALTY DELAY: Fifteen states on Tuesday sued the National Highway Traffic Safety Administration over a late-Trump rule (Reg. 2127-AM32) delaying a hike in CAFE penalties for automakers until model year 2022, echoing a lawsuit filed last month by environmental groups. “NHTSA should not let automakers who fail to comply with Congress’s mandate to improve the fuel efficiency of their vehicles off the hook,” said Bethany Davis Noll, executive director of NYU’s State Energy & Environmental Impact Center. READ MORE