New York v. National Highway Traffic Safety Administration

Twelve states and the District of Columbia filed a petition for review in the D.C. Circuit Court of Appeals asking it to set aside a National Highway Traffic Safety Administration (NHTSA) final rule that reversed a December 2016 increase in the civil penalty for violating corporate average fuel economy (CAFE) standards. NHTSA concluded that the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015 did not apply to automobile manufacturers that fail to meet CAFE standards and are unable to offset the deficit with compliance credits. NHTSA also determined that even if the Act did apply, increasing the civil penalty would have a negative economic impact and that the current penalty rate should therefore continue to apply.