Agency Proposes Scrapping Higher Automaker Penalties For 'Gas Guzzlers'

"NEW YORK - The U.S. National Highway Traffic Safety Administration (NHTSA) said late on Tuesday it was proposing to cancel a planned hike in higher “gas-guzzler” penalties for automakers whose vehicles fail to meet minimum fuel-economy standards.

NHTSA in July suspended a 2016 Obama administration regulation that more than doubled penalties. Automakers protested the hike, saying it could increase industry compliance costs by $1 billion annually.

Congress ordered federal agencies in 2015 to adjust civil penalties to account for inflation. In response, NHTSA under the administration of former President Barack Obama, a Democrat, proposed raising fines for every gallon of fuel that new cars and trucks consume in excess of required standards under the Corporate Average Fuel Economy (CAFE) program, but delayed the effective date to September 2018."

David Shepardson reports for Reuters March 27, 2018.