Appeals Court Says Trump Cannot Delay CAFE Penalties

Matt Posky
by Matt Posky

During the Trump administration’s year-long quest to roll back Corporate Average Fuel Economy (CAFE) targets, it attempted to give automakers in violation of the current standards a break by delaying the scheduled increase of penalties. The logic here is that the federal government is reassessing the Obama era standards, so it lumped in the new fines that were supposed to go into effect last July.

Those penalties represent an increase of $8.50 for every tenth of a mile per gallon a new car consumes above the minimum fuel standard. But with the new targets in quasi limbo, the updated fines were not being applied.

On Monday, a federal appeals court ruled the Department of Transportation cannot do that. Since the old rules are technically still in effect, the court ruled that automakers are still subject to the fine.

Plaintiffs included the State of New York, California, Pennsylvania, Maryland, and Vermont — as well as the Sierra Club, National Resources Defense Council, and the Center for Biological Diversity. Those groups collectively filed a lawsuit against the Department of Transportation, National Highway Traffic Safety Administration, NHTSA acting Deputy Administrator Jack Danielson, and Transportation Secretary Elaine Chao.

“Americans will breathe easier because the court undid the Trump administration’s bizarre attempt to encourage toxic tailpipe pollution,” said Vera Pardee, senior counsel at the Center for Biological Diversity, in a press release following the court ruling. “Cheap fines incentivize automakers to produce gas-guzzlers that fuel climate change and spew harmful pollutants. Reinstating proper penalties will help protect our kids’ lungs and our planet’s future.”

A blog post from the National Resources Defense Council claimed the court’s decision restored what it considered the proper fines. “The updated penalty impels automakers to clean up their fleets, rather than offering them a cheap license to burn more gas if they fail to keep pace with fuel economy targets,” said the council’s Clean Energy Attorney, Irene Gutierrez.

Meanwhile, EPA Administrator Scott Pruitt said the administration will continue to progress toward “more appropriate” fuel economy standards for the automotive industry. The new targets have not yet been set.

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • X-defector X-defector on Apr 24, 2018

    For those who don't believe, or simply aren't sure, whether the new CAFE standard were an earnest attempt at controlling fossil fuel dependence and pollution, or merely a power play by the ubiquitous and iron-fisted federal government, I'll just leave this right here..... https://www.edmunds.com/car-reviews/features/emissions-test-car-vs-truck-vs-leaf-blower.html And of course this is to say nothing of motorcycles, scooters, and other two-wheeled motorized transport which are everywhere yet require no emissions controls whatsoever.

    • Charliej Charliej on Apr 24, 2018

      Too bad that you are not a biker. You would know that bikes do have catalytic converters now. Motorcycle emission control first started in 1978. There is a long history of emission control in motorcycles.

  • Jeff S Jeff S on Apr 24, 2018

    Coal Rollers should have their vehicles confiscated and destroyed.

    • Dynasty Dynasty on Apr 24, 2018

      So what you're saying is if someone rolls the coal, they should pay the toll?

  • Corey Lewis Think how dated this 80s design was by 1995!
  • Tassos Jong-iL Communist America Rises!
  • Merc190 A CB7 Accord with the 5 cylinder
  • MRF 95 T-Bird Daihatsu Copen- A fun Kei sized roadster. Equipped with a 660cc three, a five speed manual and a retractable roof it’s all you need. Subaru Levorg wagon-because not everyone needs a lifted Outback.
  • Merc190 I test drive one of these back in the day with an automatic, just to drive an Alfa, with a Busso no less. Didn't care for the dash design, would be a fun adventure to find some scrapped Lancia Themas or Saab 900's and do some swapping to make car even sweeter. But definitely lose the ground effects.
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