U.S. Department of Transportation to reexamine civil penalty rate for Corporate Average Fuel Economy standards

(Washington, DC – Insurance News and Markets) – The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) will reexamine a rule that adjusts civil penalties related to the Corporate Average Fuel Economy (CAFE) standards for inflation. The rule was passed on Dec.28, 2016, and the NHYTSA is delaying the effective date whyil9e the administration reconsiders the rule.

Seeking comment on the inflationary adjustment will allow stakeholders to provide input and provide NHTSA additional information to inform the agency’s decision regarding how the CAFE civil penalty should be adjusted for inflation.

The delay will not impact current penalty levels, which were not scheduled to increase until the 2019 model year.

Source: U.S. Department of Transportation.