An aerial view of a parking lot.

Clean Car Standards

State attorneys general have taken numerous actions to reduce harmful, climate change-causing greenhouse gas emissions and other pollutants from the transportation sector. Under the Obama administration, the Environmental Protection Agency (EPA), the National Highway Traffic Safety Administration (NHTSA), the California Air Resources Board and car manufacturers worked together to establish national Clean Car Standards that would limit greenhouse gas emissions by gradually raising fuel efficiency standards for new passenger vehicles and light trucks.

2017-2021

A multi-state coalition of attorneys general have vigorously opposed the steps the Trump administration has taken to roll back the Clean Car Standards. First, the attorneys general were part of a coalition of local leaders that released a declaration vowing to challenge the EPA’s determination that the fuel efficiency standards should be rolled back, a commitment the attorneys general fulfilled by filing a petition for review in the D.C. Circuit challenging the determination.

Next the attorneys general opposed the so-called Safer Affordable Fuel Efficient Vehicles rule (also referred to by the Trump administration as the “Safe Vehicles” rule), which only requires minimal improvements in fuel efficiency through model year 2026 vehicles. Attorneys general filed comments in opposition to the rule as it was proposed and are now challenging the lawfulness of the final rule in court.

As part of its plan to roll back the Obama-era Clean Car Standards, the Trump administration revoked California’s Clean Air Act waiver to set its own vehicle emissions standards. This was unprecedented: it is the only time in the EPA’s history that it has revoked a waiver previously granted to the state. Further, the rule prevents the “Section 177 States” that have previously adopted the California standard from continuing to employ the California standard in their states. Thirteen states, with a 14th state in Nevada and 15th state in Minnesota set to join the others, have all adopted California’s emissions standards as Section 177 States, representing over one-third of the United States population and approximately one-third of all registered vehicles in the United States.

The attorneys general initially opposed the revocation of California’s waiver in their comments opposing the Safer Affordable Fuel Efficient Vehicles proposed rule as the revocation had been included in the proposal. Once the revocation was made into its own separate rule, the attorneys general again went to court to challenge the final version of the revocation. This litigation is ongoing.

In addition to their opposition to the rollback of national Clean Car Standards, state attorneys general successfully took the Trump administration to court to force the administration to enforce a previously finalized rule increasing penalties on automakers that failed to meet national Corporate Average Fuel Economy (CAFE) standards.

Opposing the Rollback of National Clean Car Standards

Air emissions from cars and trucks are a significant source of pollutants, including smog ingredients and carbon pollution. In October 2012, the EPA and the Department of Transportation (DOT) concluded a joint rulemaking, in cooperation with the automobile industry, that harmonized greenhouse gas emissions and fuel economy standards. Under the rule, automakers agreed to progressively raise the fuel economy of their cars to an average of 54.5 miles per gallon by 2025, nearly double the average in 2012. The higher mileage requirements are projected to eliminate as much as six billion metric tons of greenhouse gases and save consumers more than $1 trillion at the pump over the lifetime of the cars affected.

2021-2024

Opposing Withdrawal of California Waiver

2017-2020

Opposing a Flawed Mid-Course Review

  • January 2017

    In January 2017, the EPA completed a mid-course review and confirmed the feasibility of staying on track and meeting the higher mileage requirements. California, which has special status under the Clean Air Act to receive waivers to impose more stringent standards, also participated in the mid-course review and endorsed the EPA’s conclusions.

  • March 2017

    In March 2017, the Trump administration announced its intention to reopen the review and potentially revise downward the mileage standards that the automobile industry has already committed to achieve through 2025.

  • June 2017

    In June 2017, a coalition of state attorneys general transmitted a letter to the EPA threatening legal action if the EPA attempts to weaken air pollution standards set for passenger cars and light-duty trucks for model years 2022-2025.

  • April 2018

    In April 2018, the EPA provided notice that, in its view, the fuel efficiency standards for cars for model years 2022-2025 previously agreed to are no longer appropriate due to allegedly changed circumstances. Subsequently, the EPA and the DOT promised to initiate a rulemaking process to revise the standards downward. The day after EPA’s determination, 12 attorneys general were joined by mayors nationwide in releasing a declaration vowing to challenge the EPA’s determination that the mileage standards should be rolled back. Separately, the attorneys general of California, Rhode Island and Vermont announced commitments to fight the rollback of vehicle efficiency standards.

  • May 2018

    Acting on the declaration, a coalition of 18 attorneys general filed a petition for review of the EPA’s determination in May 2018 with the D.C. Circuit Court of Appeals. The lawsuit, led by California Attorney General Becerra, is based on the EPA’s arbitrary and capricious decision to begin weakening the fuel efficiency standards for model years 2022-2025 in violation of its responsibility under the Clean Air Act.

  • February 2019

    In February 2019, the coalition of 18 attorneys general filed their initial brief with the D.C. Circuit challenging the EPA’s April 2018 determination that the fuel efficiency standards for model years 2022-2025 are no longer appropriate. The states noted that EPA made its determination without providing the public the opportunity to comment on the “new” evidence that the fuel efficiency standards were not feasible. Additionally, EPA ignored evidence that the emission standards could be achieved at a lower cost than previously expected. The attorneys general requested that the D.C. Circuit reverse the April 2018 determination, which served as the basis for EPA and DOT’s August 2018 proposal to freeze fuel efficiency standards at 2020 levels.

  • February 2019

    That same month, Colorado Attorney General Phil Weiser filed an amicus brief in support of the coalition of 18 attorneys general challenging the April 2018 determination that the fuel efficiency standards should be reopened. The amicus noted that EPA has improperly withheld the technical analysis that served as the basis for the April 2018 determination. Additionally, there is not, despite EPA’s claims to the contrary, a significant record supporting the determination as evidenced by the largest vehicle manufacturer’s support for maintaining the fuel efficiency standards through 2025.

  • May 2019

    In May 2019, after the EPA had filed its initial merits brief the previous month, the coalition of attorneys general filed their reply brief. The reply brief noted that EPA’s initial brief had not disputed the core component of the states’ legal argument — that the agency unlawfully ignored the substantial administrative record it had developed in the January 2017 mid-term review in certifying that the clean car standards are achievable. In particular, the attorneys general pointed out that EPA had misrepresented data on vehicle electrification and failed to consider or acknowledge its prior analysis on affordability and fuel prices.

  • October 2019

    In October 2019, the D.C. Circuit ruled that the April 2018 determination is not a final agency action and thus the court could not hear the challenge to the determination. The court emphasized, however, that the EPA will be required to provide a reasoned explanation for and cannot ignore prior factual findings in its effort to weaken the existing fuel efficiency standards for vehicles.

Opposing the Freeze/Rollback of Fuel Efficiency Standards

  • August 2018

    Initiating its rulemaking process, in August 2018, the EPA and the DOT released a proposed rule to freeze fuel efficiency standards at 2020 levels, instead of maintaining annual increases in fuel efficiency through 2026. The proposal also would rescind California’s waiver to set its own standards for regulating greenhouse gas emissions from vehicles.

  • August 2018

    On the same day the proposal was released, California Attorney General Becerra expressed the state’s willingness to use every legal tool at its disposal to challenge the proposal. Additionally, Massachusetts Attorney General Maura Healey led a coalition of 20 attorneys general in releasing a statement announcing their intention to challenge the proposed rule that will significantly increase carbon pollution, reduce air quality and cost drivers money on gas. The coalition included every attorney general from the jurisdictions that have adopted California’s more stringent fuel efficiency standards.

  • August 2018

    Later in August 2018, a coalition of 18 attorneys general requested that the EPA and the DOT extend the comment deadline on the proposal from sixty to 120 days and hold additional public hearings for the proposal. The attorneys general noted that a 120-day comment period would be consistent with past practices for similarly important and complex proposed regulations and that an additional hearing in California specifically devoted to the EPA’s unprecedented proposal to withdraw California’s Clean Air Act waiver would be appropriate. In response, the EPA only provided the public three additional days to submit comments and denied the request for an additional hearing in California.

  • September 2018

    In September 2018, California Attorney General Becerra testified at the public hearing in Fresno, California on the proposed revision of fuel efficiency standards. Attorney General Becerra opposed the proposed rollback of the fuel efficiency standards because the proposed rule violates federal law as the standards are far below the “maximum feasible level” based on technology available today and available between 2021 and 2026. Additionally, Attorney General Becerra noted that the EPA and the DOT have failed to offer sound reasons for rolling back the fuel efficiency standards. The testimony also expressed opposition to attempts to revoke California’s waiver under the Clean Air Act.

  • October 2018

    In October 2018, a coalition of 21 attorneys general filed comments requesting that the EPA and the DOT withdraw the proposed fuel efficiency rule. The comments noted that freezing fuel efficiency standards at 2020 levels violates the agencies’ responsibilities under the Clean Air Act to protect the public from air pollution. Additionally, the proposal violates the Administrative Procedure Act as the EPA and the DOT have ignored substantial evidence at their disposal that runs counter to their rollback objective and have failed to provide justifications for reversing course on fuel efficiency standards. California 12 expert reports in support of its comments.

  • December 2018

    In December 2018, a coalition of twenty attorneys general sent a letter to EPA Administrator Wheeler, requesting that EPA withdraw the proposed fuel efficiency rule in light of the Fourth National Climate Assessment. The National Climate Assessment, released in November 2018 makes clear that action is needed now to reduce climate change-causing greenhouse gas emissions in order to avoid the worst effects of climate change. At a minimum, the letter urged EPA to reopen the comment period for the fuel efficiency rule to allow for public input on and adequate consideration of the Assessment’s findings. Ten days later the coalition submitted a copy of the National Climate Assessment to the rulemaking record for the proposed fuel efficiency rule and highlighted parts of the Assessment that support the coalition’s submitted comments on the proposed rule.

  • June 2019

    In June 2019, New York Attorney General Letitia James led a coalition of ten attorneys general in sending a letter thanking the Chair and Ranking Member of the House Energy and Commerce Committee for holding a hearing on EPA’s and DOT’s proposal. The letter encouraged Congress to exercise its oversight authority over federal agencies, such as the EPA and DOT that have flouted Congress’s commands in the Clean Air Act and the Energy Policy and Conservation Act to reduce air pollution and improve fuel economy. The attorneys general concluded by noting that if the EPA and DOT finalize their proposal, the attorneys general stand ready to file suit to overturn the final rule and expect to prevail, but emphasized that they would prefer to be cooperatively working with the federal government to craft solutions to the climate change challenge.

  • July 2019

    The following month, New York Attorney General James led a coalition of twelve attorneys general in submitting supplemental comments with the EPA and DOT on the proposed fuel efficiency rule. The attorneys general noted that the EPA and DOT violated an executive order in developing the proposed rule by failing to consult with state officials about the proposal that would preempt state policies in attempting to rescind California’s waiver to set its own fuel efficiency rules and the right of other states to adopt California’s standards. The comments indicated that documents that the EPA and DOT recently provided to New York in response to a Freedom of Information Act (FOIA) request could not substantiate EPA’s and DOT’s claim in the proposed rule to have satisfied the requirement to consult with states. Consequently, the states asked the EPA and DOT to withdraw the proposed fuel efficiency rule and comply with the requirement to consult with states.

  • March 2020

    In March 2020, the EPA and DOT, having previously issued a final rule to withdraw California’s waiver to set its own vehicle emissions standards (below), issued its final version of the so-called Safer Affordable Fuel-Efficient Vehicles rule. The final rule establishes greenhouse gas and fuel efficiency standards for vehicles for model years 2021 through 2026, requiring annual fuel efficiency improvements of 1.5 percent. The 1.5 percent improvement target is far below the five percent annual improvement previously required by the Clean Car Standards. The new standard is expected to generate an additional 1.5 billion metric tons of carbon emissions by 2040.

  • March 2020

    Immediately after the final rule was released, attorneys general announced commitments to challenge the final Safer Affordable Fuel-Efficient Vehicles rule. The attorneys general of California, Colorado, Illinois, Maryland, Massachusetts, New York and Virginia released statements opposed to the final rule.

  • May 2020

    In May 2020, a coalition of 24 attorneys general led by California Attorney General Becerra filed a petition for review in the D.C. Circuit challenging the administration’s final rule. After the change in administration, the Biden administration asked the court to place the lawsuit into abeyance, where it remains as of June 2021.

Opposing Withdrawal of California Waiver

  • September 2019

    In September 2019, the EPA and the DOT issued a final rule to withdraw California’s waiver to set its own vehicle emissions standards (above). The EPA and the DOT, ignoring the explicit authority in the Clean Air Act for California to set its own standards, claimed that the state’s vehicle standards are preempted under the Energy Policy and Conservation Act and the Clean Air Act. The agencies separated out the waiver rule from the fuel efficiency rollback; they indicated their intention to finalize the fuel efficiency rule in the coming months. In addition to undermining California’s clean car rule, revocation of the California waiver also impacts the state car rules of thirteen other states and the District of Columbia, all of whom have voluntarily adopted California’s emission standards as their own standards under Section 177 of the Clean Air Act.

  • September 2019

    Within one week of its issuance, state attorneys general filed suit opposing withdrawal of California’s waiver. More specifically, California Attorney General Becerra led a coalition of twenty-four attorneys general in filing a lawsuit in federal district court in the District of Columbia to prevent the waiver withdraw from going into effect. The lawsuit notes that the assertion that California’s standards are preempted by the Energy Policy and Conservation Act and the Clean Air Act contravenes the texts of those statutes and prior case law. It also is arbitrary and capricious, in violation of the Administrative Procedure Act.

  • October 2019

    In October 2019, DOT filed a motion to dismiss the attorneys general’s lawsuit or to transfer the litigation to the D.C. Circuit Court of Appeals. The motion contends that the D.C. Circuit Court of Appeals has exclusive jurisdiction to hear the complaint from the attorneys general.

  • November 2019

    In response, in November 2019, the state attorneys general filed a protective petition for review challenging the withdrawal of California’s waiver in the D.C. Circuit, in case the D.C. federal district court determines that it does not have jurisdiction to hear the September 2019 lawsuit from the attorneys general. The November petition for review preserves the ability of the coalition of twenty-four attorneys general to challenge the September 2019 final rule withdrawing the California waiver.

  • June 2020

    In June 2020, the coalition of attorneys general filed their opening brief in the D.C. Circuit. The coalition noted that the EPA lacks authority under the Clean Air Act to withdraw California’s waiver and that the agency’s grounds for denying the waiver based on its determination that the regulated pollution is a global issue, rather than a local issue, is unlawful. The attorneys general pointed out that California has demonstrated a need for greenhouse gas and zero-emission-vehicle standards to address its long-standing challenges with local air quality and the severe threats it faces from climate change.

    In addition, the coalition noted that the appeals court lacks jurisdiction to review DOT’s preemption rule under the Clean Air Act and the Energy Policy Conservation Act and that the matter should first be heard by the district court. If the appeals court were to conclude that it has jurisdiction, the court should vacate the preemption rule because it exceeds DOT’s authority.

  • September 2020

    In September 2020, the EPA and DOT filed their opening brief in the D.C. Circuit litigation. The federal government claimed that the EPA and DOT rightly withdrew California’s waiver as California’s vehicle emission standards do not meaningfully reduce the overall U.S. contribution of greenhouse gas emissions to global emissions. The brief also asserted the D.C. Circuit could properly hear the case.

  • October 2020

    In October 2020, the coalition of attorneys general filed their final reply brief with the D.C. Circuit. The brief noted that the EPA’s waiver withdrawal is unlawful under the Clean Air Act as EPA identified no authority under the statute for its action and that EPA’s global issue determination is also not supported by the statute. The attorneys general reiterated that should the D.C. Circuit find that it has jurisdiction to review DOT’s preemption rule, the court should vacate the preemption rule issued under the Clean Air Act and the Energy Policy Conservation Act. After the change in administrations, the lawsuit was placed into abeyance where it remains as of June 2021.

Freedom of Information Act Request

  • September 2018

    Following the August 2018 release of the proposed rule to freeze fuel efficiency standards at 2020 levels, the California Air Resources Board (CARB) filed a FOIA request with EPA and DOT in September 2018. CARB requested that EPA and DOT release documents that the agencies relied on in justifying the August 2018 proposed rule because this critical information was not disclosed and contradicts previous analyses conducted by the agencies, threatening public health.

  • April 2019

    In April 2019, Attorney General Becerra filed a suit in the District of Columbia federal district court to compel EPA and DOT to make available the requested information. The lawsuit noted that EPA had violated FOIA in failing to make timely determinations on the request and that DOT had violated FOIA in providing inadequate justifications for withholding the requested documents.

  • June 2020

    The federal district court for the District of Columbia released a memorandum opinion in June 2020 holding that the EPA and DOT conducted a satisfactory search in response to the FOIA request and that the withheld information was protected under the deliberative process privilege.

Postal Service Delivery Vehicles

2021-2024

  • April 2022

    On April 28 a coalition of AGs, led by California, challenged the U.S. Postal Service (USPS) for planning to replace the majority of its truck fleet with fossil-fuel powered vehicles. The AGs argue that this action violated the National Environmental Policy Act, because USPS committed to this plan before completing its environmental impact statement (EIS), and because the complete EIS “significantly underestimates the climate impacts of maintaining a massive fleet of gas-powered vehicles for potentially the next several decades, rather than electrifying its fleet in the near term.” The complaint emphasized the agency’s failure to consider the effects of this plan on environmental justice communities, given that many USPS distribution facilities are located in communities already overburdened by pollution.

  • June 2022

    On June 10 the coalition filed an amended complaint.

  • September 2023

    The Postal Service issued a Final Supplemental Environmental Impact Statement.

  • November 2023

    Briefing has not yet occurred in California. et al. v. U.S. Postal Service, No. 22-cv-02583 (N.D. Cal.). The action remains pending.

  • February 2024

    On February 2, a coalition of 18 AGs filed the first Supplemental Complaint for Declaratory and Injunctive Relief in this ongoing case.

Light Duty Vehicles

2021-2024

  • August 2021

    In August 2021, EPA proposed to revise the greenhouse gas (GHG) emissions standards for light-duty vehicles for 2023 and later model years to make the standards more stringent. The rule would replace a less protective version from the previous administration and is expected to prevent over 3 billion tons of greenhouse gas emissions by 2050.

  • September 2021

    On September 27, 2021, California Attorney General Rob Bonta led a coalition of 22 AGs in submitting a comment letter in response to EPA’s proposal to strengthen the Clean Car Standards for Model Year 2023 and later. The coalition urged EPA to adopt more stringent greenhouse gas emissions standards for passenger cars and light trucks in order to prevent the most dangerous effects of the climate crisis and to address the inequitable distribution of climate change impacts.

  • December 2021

    A final rule was issued in December 2021. Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards. 86 Fed. Reg. 43726 (Aug. 10, 2021) and 86 Fed. Reg. 74434 (Dec. 30, 2021).

  • March 2022

    On March 8, 2022 California Attorney General Rob Bonta led a coalition of 23 AGs in filing a motion to intervene to defend EPA’s Clean Car Standards after the rule was challenged by a coalition of states led by Texas. In their motions to intervene, the AGs reject the challengers’ claims that the rule is outside EPA’s authority, and argue that the rule is necessary to protect public health and the environment, especially in communities of color and low-income communities.

  • September 2023

    Oral argument was held on September 14, 2023. The court has not yet issued a decision.

Heavy Duty Engine & Vehicles

2021-2024

Emissions Standards

  • May 2022

    On May 16, 2022, California Attorney General Rob Bonta led a coalition of 19 AGs in comments responding to EPA’s proposed rule that would reduce air pollution from highway heavy-duty vehicles and engines, including ozone, particulate matter, and greenhouse gasses. The coalition urged the agency to move quickly and to choose the option that will increase standards for new trucks in 2027 and again in 2031.

  • March 2023

    On March 27, 2023, New York Attorney General Letitia James led a coalition of 15 AGs in filing a petition for reconsideration of EPA’s air pollution standards for vehicles. The AGs urged EPA to strengthen the NOx emissions standards in the rule, arguing that the provisions in the final rule “conflict with EPA’s duty to set standards that provide ‘the greatest degree of emission reduction achievable.’” The final rule took effect March 27.

  • June 2023

    On June 14, President Biden vetoed the resolution seeking to disapprove the rule. He explained that the rule “cuts pollution, boosts public health, and advances environmental justice in communities across the country. It will prevent hundreds, if not thousands, of premature deaths; thousands of childhood asthma cases; and millions of missed school days every year.” He also noted that the “resolution would deny communities these health benefits by resulting in weaker emissions standards for heavy-duty vehicles and engines, which are significant sources of pollutants that threaten public health. If enacted, the resolution would squander $36 billion in benefits to society — and an opportunity to lead on the defining crisis of our time.” On June 21, 2023, a Senate vote failed to override the presidential veto of the resolution.

NOx Emissions

  • August 2021

    In August 2021, President Biden issued an Executive Order directing EPA to consider new NOx standards for heavy-duty engines and vehicles beginning with model year 2027 and up through at least model year 2030. Strengthening American Leadership in Clean Cars and Trucks. On August 10, 2021 EPA announced that it was working to develop standards for emissions of NOx from new on-road heavy-duty trucks and engines for model year 2027 and beyond.

  • October 2021

    On October 26, 2021, California Attorney General Rob Bonta led 14 AGs in a letter to EPA urging the agency to adopt strong regulations to limit nitrogen oxide emissions from heavy-duty trucks. The AGs pointed out that the smog-forming pollutant has a disproportionate impact on communities of color and low-income communities who are more likely to live near transportation and trade corridors.

  • November 2021

    In addition, on November 23, 2021, a separate coalition of AGs sent a letter insisting that EPA tighten the restrictions on the amount of NOx emitted by heavy-duty trucks. The tri-state coalition argued that the stronger proposed standards are not only long overdue, but are also critically important to reducing a threat to public health, especially in communities already overburdened by pollution.

  • March 2022

    The first rulemaking of the Clean Trucks Plan was a proposed rule by EPA on March 28 which focuses on reducing emissions that form smog and soot and will apply to heavy-duty engines and vehicles beginning in model year 2027. with the final rule issued on January 24, 2023 and taking effect on March 27, 2023.

  • January 2023

    On January 24, 2023 the Control of Air Pollution From New Motor Vehicles: Heavy-Duty Engine and Vehicle Standards final rule was published. The rule took effect March 27, 2023.

  • April 2023

    On April 27, 2023, EPA issued a proposal for more stringent standards to reduce greenhouse gas (GHG) emissions from heavy-duty vehicles—including vocational vehicles (such as delivery trucks, refuse haulers, public utility trucks, transit, shuttle, school buses, etc.) and tractors (such as day cabs and sleeper cabs on tractor-trailer trucks)—beginning in model year 2027. Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles-Phase 3.

California Waiver & Authority - Heavy Duty Vehicles

  • June 2022

    On June 13 2022, EPA issued request for comments on waivers it received from the California Air Resources Board requesting to set its own heavy-duty truck standards for NOx emissions and other pollution control standards. EPA held a virtual public hearing on June 29, 2022.

  • August 2022

    On August 2, 2022 a coalition of 17 AGs, led by California, filed comments urging EPA to grant the waivers.

  • April 2023

    On April 6, 2023, EPA issued a notice of decision granting the California Air Resources Board’s requests for waivers. On April 24, EPA issued a notice of proposed rulemaking, seeking to promulgate new greenhouse gas (GHG) standards for heavy-duty highway vehicles starting in model year 2028 through 2032, and to revise certain GHG standards for Model Year 2027 that were established previously under EPA’s Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles.

  • June 2023

    On June 5, 2023 a coalition of 19 AGs, led by Iowa, filed a petition for review in the D.C. Circuit. A motion to intervene on behalf of EPA was filed on June 28, 2023 by a coalition of 19 AGs and 2 cities, led by California AG Rob Bonta.

  • September 2023

    On September 19, 2023 the court issued its briefing schedule.

  • November 2023

    On November 3, 2023, Iowa filed a brief on behalf of the petitioner-AGs. Respondent briefs are due January 30, 2024. Amicus for respondent briefs are due February 6, 2024. Intervenor for respondent briefs are due March 1, 2024.

Defending Fine Increases for Non-Complying Automakers

2021-2024

  • January 2021

    In January 2021, NHTSA published an interim final rule to again delay reinstating the fine increase on automakers for non-compliance with CAFE requirements. The rulemaking stated that the fine increase will go into effect beginning in model year 2022. The interim final rule requested comments on whether it should apply the fine increase in model year 2023.

2017-2020

  • 2015

    In 2015, Congress required the EPA to update its schedule of fines for Corporate Average Fuel Economy violations.

  • July 2016

    In response, the EPA issued an interim final rule in July 2016 that adjusted the penalties imposed on automakers for non-compliance with CAFE requirements.

  • July 2017

    In July 2017, the Trump administration, acting through the National Highway Traffic Safety Administration within the Department of Transportation, announced an indefinite delay of the adjusted penalties required by the final rule.

  • September 2017

    In September 2017, five state attorneys general sued the Trump administration in the Second Circuit Court of Appeals for delaying the imposition of the new CAFE penalties, noting that the DOT’s action violated both the Administrative Procedure Act and Congress’s directive that agencies increase CAFE penalties.

  • April 2018

    The Second Circuit in April 2018 vacated the Trump administration’s delay of the imposition of new penalties. In June 2018, the Second Circuit panel released its opinion explaining its April 2018 order. The opinion faulted the Department of Transportation for lacking the statutory authority to indefinitely delay the effective date of the rule and delaying the rule without going through the notice-and-comment rulemaking process.

  • April 2018

    In April 2018, the NHTSA issued a notice of proposed rulemaking to reverse the adjusted penalties imposed on automakers for non-compliance with CAFE requirements.

  • May 2018

    California Attorney General Becerra and New York Attorney General Eric Schneiderman led a coalition of attorneys general in filing comments opposed to the NHTSA’s proposed rulemaking. The comments, filed in May 2018, noted that if the penalty for failing to comply with CAFE requirements is not sufficiently high, automakers will not be incentivized to produce fuel-efficient vehicles.

  • July 2019

    In July 2019, the NHTSA released its final rule. The final rule drastically cut fines to nearly a third of what was required by Congress in 2015 for automakers that fail to comply with CAFE standards.

  • August 2019

    Within a week of the final rule being released, in August 2019, California Attorney General Becerra and New York Attorney General Letitia James led a coalition of 13 states in suing to reverse the July 2019 final rule.

  • August 2020

    In August 2020, the Second Circuit sided with the attorneys general in again vacating the NHTSA’s latest attempt to insulate automakers from fine increases for non-compliance with CAFE requirements. The court held that the CAFE fine, despite the NHTSA’s arguments to the contrary, is a “civil monetary penalty” properly subject to the 2015 fine schedule statutory update and found untimely, and thus unauthorized, the NHTSA’s assertion that the fine increase was unwarranted as a matter of economic policy.