Fifteen U.S. States Sue NHTSA For Delay of Fuel Standard Penalty Hikes

by Aryn Plax

Mar 2, 2021

In January, the National Highway Traffic Safety Administration agreed to delay the imposition of higher penalties for companies that do not meet fuel efficiency standards. Now, 15 U.S. states are suing the agency over the decision.

The decision, made under the Trump Administration, was expected to save the automotive industry up to $1 billion annually. California was among the fifteen states to file suit in the 2nd U.S. Circuit Court of Appeals. California Attorney General Xavier Becerra said on Twitter that the decision put “industry ahead of public health.”

In 2019, the Trump administration suspended a regulation that would have increased penalties for automakers that did not meet fuel efficiency standards. However, an appeals court overturned that ruling in August. Trump’s decision in the last days of his presidency appeared to be a response to the appeals court ruling.

Environmental groups had urged the Trump administration to keep the increased penalties established under the previous presidency. Last month, they sued NHTSA for its decision to delay the penalty increases.

Source: Automotive News