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.

More by Matt Posky

Comments
Join the conversation
4 of 51 comments
  • 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?

  • Lichtronamo Watch as the non-us based automakers shift more production to Mexico in the future.
  • 28-Cars-Later " Electrek recently dug around in Tesla’s online parts catalog and found that the windshield costs a whopping $1,900 to replace.To be fair, that’s around what a Mercedes S-Class or Rivian windshield costs, but the Tesla’s glass is unique because of its shape. It’s also worth noting that most insurance plans have glass replacement options that can make the repair a low- or zero-cost issue. "Now I understand why my insurance is so high despite no claims for years and about 7,500 annual miles between three cars.
  • AMcA My theory is that that when the Big 3 gave away the store to the UAW in the last contract, there was a side deal in which the UAW promised to go after the non-organized transplant plants. Even the UAW understands that if the wage differential gets too high it's gonna kill the golden goose.
  • MKizzy Why else does range matter? Because in the EV advocate's dream scenario of a post-ICE future, the average multi-car household will find itself with more EVs in their garages and driveways than places to plug them in or the capacity to charge then all at once without significant electrical upgrades. Unless each vehicle has enough range to allow for multiple days without plugging in, fighting over charging access in multi-EV households will be right up there with finances for causes of domestic strife.
  • 28-Cars-Later WSJ blurb in Think or Swim:Workers at Volkswagen's Tennessee factory voted to join the United Auto Workers, marking a historic win for the 89- year-old union that is seeking to expand where it has struggled before, with foreign-owned factories in the South.The vote is a breakthrough for the UAW, whose membership has shrunk by about three-quarters since the 1970s, to less than 400,000 workers last year.UAW leaders have hitched their growth ambitions to organizing nonunion auto factories, many of which are in southern states where the Detroit-based labor group has failed several times and antiunion sentiment abounds."People are ready for change," said Kelcey Smith, 48, who has worked in the VW plant's paint shop for about a year, after leaving his job at an Amazon.com warehouse in town. "We look forward to making history and bringing change throughout the entire South."   ...Start the clock on a Chattanooga shutdown.
Next