WASHINGTON — The National Highway Traffic Safety Administration plans to dramatically increase penalties for carmakers that fail to meet federal fuel efficiency standards in model years 2019 and later.
Under the rule signed Thursday and soon to be published in the federal register, the fine for noncompliance will increase from $5.50 for every 10th of a mile per gallon an automaker goes over the federal limit to $14 for model years 2019 to 2021. The rate will increase to $15 for model year 2022.
It's the first time automakers will pay increased penalties for falling short of fuel economy standards since 1997. Congress approved the increased fines to make up for inflation in 2015, but former President Donald Trump delayed its implementation and a legal battle ensued.