Thirteen AGs Challenged Penalty Reductions for Heavily Polluting Vehicles

New York Attorney General Letitia James and California Attorney General Xavier Becerra led a coalition of 13 attorneys general in filing a lawsuit against the National Highway Traffic Safety Administration (NHTSA) challenging a final rule that reduces penalties on automakers for violations of national corporate average fuel economy (CAFE) standards. The AGs noted the rule violates the 2015 Federal Civil Penalties Inflation Adjustment Act, as Congress did not exempt CAFE standards from the Act’s mandate that federal agencies adjust their civil penalties to account for inflation.