[ad_1]
(Adds environmental groups)
By David Shepardson
WASHINGTON, July 12 (Reuters) – The Trump administration announced Friday that it was issuing the latest rules to suspend the implementation of the Obama administration's settlement in 2016, which has more than doubled the penalties imposed on automakers who do not meet the requirements for fuel economy.
The 2015 Congress directed federal agencies to adapt a wide range of civil penalties to reflect inflation and, in response, the NHTSA (National Highway Traffic Safety Administration) under the authority of the President Barack Obama has enacted rules to eventually increase fines from $ 5.50 to $ 14 per gallon of fuel that new cars and trucks consume beyond the required standards.
Car manufacturers have protested the rise, saying it could increase industry compliance costs by $ 1 billion a year.
After a group of states and environmental groups filed lawsuits, the Trump administration began the process of permanently canceling the Obama rule and proposed the freeze in 2018 .
In a late statement on Friday, NHTSA said it was faithfully following Congress's intent to have the penalty rate set at the level required by law.
She hoped that this final rule would significantly reduce the future burden on industry and consumers by $ 1 billion a year, he added.
The Alliance of Automobile Manufacturers, a group representing General Motors Co, Volkswagen AG, Toyota Motor Corp., Fiat Chrysler Automobiles NV and others, said it could increase industry compliance costs by $ 1 billion dollars per year.
On Friday night, Gloria Bergquist, a spokeswoman for the group, hailed the decision, saying "the NHTSA model clearly shows the considerable economic damage that such a dramatic and unjustified increase in penalties would have for car manufacturers, workers and ultimately consumers ".
The previous administration "did not take into account the significant economic damage that would result," she added.
Automakers have argued that the increases would significantly increase costs, since they would also increase the value of the fuel economy credits used to meet the requirements.
In September 2017, three environmental groups and some US states, including New York and California, sued NHTSA for suspending Obama's rules.
Last year, states said: "If the penalty is not severe enough, automakers do not have a vital incentive to make fuel-efficient vehicles."
Historically, some manufacturers have paid fines instead of meeting fuel efficiency requirements, including luxury automakers such as Jaguar Land Rover, owned by Indian company Tata Motors and Daimler AG.
In February, Fiat Chrysler told Reuters that it had paid $ 77 million in civil fines in 2018 in the event of non-compliance with the fuel economy requirements of the 2016 model year.
Fiat Chrysler is pleased with the decision.
It "allows us to continue our major investment projects in our manufacturing footprint in the United States and in the new technologies needed to maintain our improved fuel economy trajectory," said the automaker in a statement Friday.
Environment groups urge the administration to maintain the increase, noting that US fuel-saving fines have lost nearly 75 percent of their original value, as they have been increased only once – by $ 5 at $ 5.50 in 1997 – in more than four decades.
This decision comes as NHTSA and the Environmental Protection Agency are working to finalize a rewriting of the Obama administration's fuel economy requirements until 2026 in the coming months.
In August 2018, the administration proposed requirements for fuel economy and removal of California's right to set its own rules on vehicle emissions.
The final settlement faces a multi – year legal battle that could leave automakers in stalemate over future emissions and fuel economy requirements.
The rules of the Obama era provided for an average fuel economy of 46.7 miles per gallon by 2026, compared with 37 miles per gallon according to the option preferred by the Trump government.
Last month, 17 major automakers called for a compromise "midway" between the Obama era standards, which required an annual emissions reduction of about 5% and the company 's proposal. Trump administration.
Reuters reported in April that the authorities expect the final rule to include a slight increase in annual fuel consumption requirements. (Report by David Shepardson, edited by Jacqueline Wong and Clarence Fernandez)
Our standards: The principles of Thomson Reuters Trust.
Source link
