The National Highway Traffic Safety Administration ("NHTSA") sets corporate average fuel economy ("CAFE") standards for light-duty vehicles, and penalizes automobile manufacturers who fail to meet applicable standards. In January 2021, NHTSA issued an Interim Final Rule repealing the inflation-adjusted penalty increase for Model Years 2019-2021, which we commented was untimely and disregarded critical environmental harms.
In August 2021, NHTSA proposed to rescind the Interim Final Rule. We filed comments supporting the proposal for complying with inflation-adjustment obligations, driving fuel savings, and reducing pollution.