Department of Transportation to examine fuel economy penalties

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The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) recently announced it will examine a current rule that adjusts civil penalties related to the Corporate Average Fuel Economy (CAFE) standards for inflation.

Two notices were published in the Federal Register.

The first notice responds to a December 2016 rule called Civil Penalties. While the rule was not supposed to go into effect until June 26, the notice postponed this by 14 additional days.

“The additional 14-day delay in effective date is necessary to temporarily preserve the status quo while Department officials continue to review and consider the final rule and related laws,” the notice said.

Under Civil Penalties, the CAFE civil penalty rate established under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 would not go into effect until model year 2019. The rule was implemented after a petition for reconsideration was received from the Association of Global Automakers and the Alliance of Automobile Manufacturers.

Public comments are sought on the notice from stakeholders. NHTSA is seeking feedback and information on how the CAFE civil penalty should be adjusted for inflation.

The second notice delays the effect date of the rule until the NHTSA has completed its review.