

On July 12, 2019, NHTSA issued a final rule confirming the determination announced in the April 2, 2018 NPRM that the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 does not apply to the civil penalty rate applicable to automobile manufacturers that fail to meet applicable CAFE standards. The rule also finalizes the agency’s determination that even if the Inflation Adjustment Act applies, increasing the CAFE civil penalty rate would have a negative economic impact, and therefore, in accordance with the Energy Policy and Conservation Act of 1975 (EPCA) and the Energy Independence and Security Act of 2007 (EISA), the current CAFE civil penalty rate of $5.50 should be retained, instead of increasing to $14 in model year 2019. The decision takes effect 30 days after publication in the Federal Register. Petitions for reconsideration are due 45 days after publication. Docket No. NHTSA-2018-0017.