MotorVehicleRegs.COM

Noncompliance Penalties

On January 6, 2023, the Department of Transportation published a notice in the Federal Register listing 2023 civil penalty amounts that may be imposed for violations of certain DOT regulations.  The new amounts are effective Jan. 6, 2023.

In 2023, a typical safety standard noncompliance will be $26,315 per vehicle with the maximum penalty for a series of violations being $131,564,183.  These penalties are up about 7.75% from 2022.

CAFE noncompliance penalties for MY2023 will be $16, compared to $15 for MY2022 and $14 for MYs2019-2021.

A copy of the notice is available here.

CAFE Public Information Center

NHTSA has launched a new CAFÉ Public Information Center.  The website includes data for both light duty and heavy duty vehicles.

For light duty vehicles, the following information is available:

• Fleet fuel economy performance data
• Manufacturer fuel economy performance data
• Credit balances
• Civil penalties data
• Flex fuel/AMFA data
• MY 2011-2019 NHTSA report on the state of industry compliance with CAFE standards (the report is dated Oct. 15, 2019).
• Standardized templates for manufacturers to use when submitting CAFE compliance reports to the agency and for reporting CAFE credit transactions. 

Note: For light duty vehicles, 2017 model year data is the newest data available.

For heavy duty vehicles, the following information is available:

• NHTSA's Fleet Performance Report for medium and heavy-duty vehicles and engines – this report displays EPA-verified end of the year fuel consumption standards and performance data (measured in gallons per 1,000 ton-miles (vehicles) and gallons per 100 hp-hr (engine)) by regulatory subcategory and model year. Data is available for 2013-2019 model years.
• standardized templates for manufacturers to use when submitting a credit transaction plan to resolve credit shortages under the NHTSA fuel consumption program.

Questions about the information made available at the site can be directed to [email protected]

Regulatory and Legislative Tracking Reports for Vehicle Manufacturers and Suppliers

Since 1999, Kardos & Associates LLC has supplied the auto industry with the most comprehensive regulatory and legislative tracking reports available. We currently offer clients the following:

Motor Vehicle Safety & Emissions Regulatory Update (the REG UPDATE)

The REG UPDATE has been tracking US and Canadian regulatory activity impacting the auto industry for over twenty years. Regulations developed by the NHTSA, FMCSA, EPA, FCC, CARB, Transport Canada, and Environment Canada are the focus. For each rulemaking, the Reg Update provides a description of the rulemaking, comment deadlines, effective dates, a docket reference, and links to documents available online. Deadlines and critical path items are color-coded so that you can quickly identify what’s new and important. In addition to being an excellent tool for tracking regulatory activity, the Reg Update is a great archive of past actions. The report contains information on virtually every rulemaking affecting automakers from the past two decades. Approximately 400 pages in length.

U.S. Safety & Fuel Economy Regulatory & Legislative Update
The U.S. Safety & Fuel Economy Regulatory & Legislative Update provides a snapshot of the past month’s legislative and regulatory activities relating to safety, emissions and fuel economy. The report provides brief summaries of notices issued by DOT, EPA, CARB and others. With regard to federal legislation, the report covers newly introduced bills, information on committee hearings, etc. Activities at the state level pertaining to emerging technologies (e.g., automated vehicles, advance driver assistance systems, EVs and EV infrastructure, etc.) are also covered.

Federal Legislation Tracking Report
Our legislative tracking report focuses on matters relating to environment and energy, safety and fuel economy/climate change. The report covers two years-worth of bills (the length of each Congressional session) and includes summaries and status updates for each tracked bill. Links to bill text and related information are provided.

All of our reports are distributed monthly via email as a PDF. Subscribers also get access to an online archive of past reports.

For pricing, contact Dale Kardos at (202) 3064997 or [email protected]cleregs.com. For more information about Kardos & Associates LLC, see www.kardosllc.com.

For a PDF of this information, click here.

SAFE 2 Final Rule

On March 31, 2020, the SAFE 2 joint final rule was issued by EPA and NHTSA.  Per the final rule, the CAFE and CO2 emissions standards will increase in stringency at 1.5 percent per year from MY 2020 levels over MYs 2021-2026.  Under the old rule, the standards would have increased 5% per year.  Per the rule, EPA’s standards are projected to require, on an average industry fleet-wide basis, 201 grams per mile (g/mi) of CO2 in model year 2030, while NHTSA’s standards are projected to require, on an average industry fleet-wide basis, 40.5 miles per gallon (mpg) in model year 2030.  Some important incentives for electrification are being eliminated. Compliance multipliers for BEVs and PHEVs were not extended as requested by automakers; the last year for these incentives remains MY 2021. Incentive credits for strong hybrid pickup trucks and for pickup trucks with significant over-compliance is discontinued after MY 2021 (was MY 2025). Conversely, dedicated and dual-fuel natural gas vehicles receive a new 2x compliance multiplier starting MY22.

A copy of the final rule and associated documents can be found here.

Docket ref: NHTSA-2018-0067; EPA-HQ-OAR-2018-0283.

NHTSA CAFE Penalty

On July 12, 2019, NHTSA issued a final rule confirming the determination announced in the April 2, 2018 NPRM that the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 does not apply to the civil penalty rate applicable to automobile manufacturers that fail to meet applicable CAFE standards.  The rule also finalizes the agency’s determination that even if the Inflation Adjustment Act applies, increasing the CAFE civil penalty rate would have a negative economic impact, and therefore, in accordance with the Energy Policy and Conservation Act of 1975 (EPCA) and the Energy Independence and Security Act of 2007 (EISA), the current CAFE civil penalty rate of $5.50 should be retained, instead of increasing to $14 in model year 2019.  The decision takes effect 30 days after publication in the Federal Register.  Petitions for reconsideration are due 45 days after publication. Docket No. NHTSA-2018-0017.

CAFE Penalties

On March 27, 2018, NHTSA announced that it is proposing to retain the current civil penalty rate in 49 U.S.C. 32912(b) of $5.50 per tenth of a mile per gallon for automobile manufacturers that do not meet applicable CAFE standards and are unable to offset such a deficit with compliance credits. NHTSA’s proposal is based on its tentative determination that the CAFE civil penalty rate is not a “civil monetary penalty,” as defined by the 2015 Act, that must be adjusted for inflation. NHTSA’s previous Federal Register notices on its inflation adjustments under the 2015 Act did not consider whether the CAFE civil penalty rate fit the definition of a “civil monetary penalty” subject to adjustment under the 2015 Act, instead proceeding—without analysis—as if the 2015 Act applied to the CAFE civil penalty rate. After taking the opportunity to fully analyze the issue, NHTSA tentatively concludes that the CAFE civil penalty rate is not covered by the 2015 Act and seeks comment on four ways that the provisions of the 2015 Act could be best approached.

Comments on the notice will be due 30 days after the notice is published in the Federal Register.  A draft version is available here.

Fuel Economy and GHG Performance

On Jan. 11, 2018, EPA issued two annual reports that provide information on fuel economy and greenhouse gas emissions from light duty vehicles in the United States.  

The Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975-2017 report is the authoritative reference for real world fuel economy, technology trends and tailpipe carbon dioxide emissions, for new personal vehicles sold in the U.S. every year since 1975.  The report shows fuel economy for the U.S. fleet continues to improve.  Model year (MY) 2016 vehicle fuel economy was 24.7 mpg, slightly higher than MY 2015, and a record high overall. Since MY 2004, fuel economy and CO2 emissions have improved in ten out of twelve years.

The Manufacturer Performance Report assesses compliance performance for individual automakers and for the U.S. fleet as a whole with the greenhouse gas emissions standards for light duty vehicles.  

EPA Mid-term Review

On August 21, 2017, EPA published a notice in the Federal Register requesting comments on their March decision to reconsider the Obama administration final determination that the 2022-2025 light-duty vehicle GHG standards which were established in 2012 continue to be appropriate.

The main purpose of this request for comment is to offer interested parties an opportunity to comment on the January 2017 final determination.  EPA is also requesting comment on the separate question of whether the light-duty vehicle GHG standards established for model year 2021 remain appropriate.

According to the notice, EPA intends to make a Final Determination regarding the appropriateness of the model year 2022-2025 standards no later than April 1, 2018. 

Here are the issues for which EPA is looking to receive input on:

• The availability and effectiveness of technology, and the appropriate lead time for introduction of technology;
• The cost on the producers or purchasers of new motor vehicles or new motor vehicle engines;
• The feasibility and practicability of the standards;
• The impact of the standards on reduction of emissions, oil conservation, energy security, and fuel savings by consumers;
• The impact of the standards on the automobile industry;
• The impacts of the standards on automobile safety;
• The impact of the GHG emission standards on CAFE and a national harmonized program; and
• The impact of the standards on compliance with other air quality standards;
• The extent to which consumers value fuel savings from greater efficiency of vehicles;
• The ability for OEMs to incorporate fuel saving technologies, including those with “negative costs,” absent the standards;
• The distributional consequences on households;
• The appropriate reference fleet;
• The impact of the standards on advanced fuels technology, including but not limited to the potential for high-octane blends;
• The availability of realistic technological concepts for improving efficiency in automobiles that consumers demand, as well as any indirect impacts on emissions;
• The advantages or deficiencies in EPA’s past approaches to forecasting and projecting automobile technologies, including but not limited to baseline projections for compliance costs, technology penetration rates, technology performance, etc.;
• The impact of the standards on consumer behavior, including but not limited to consumer purchasing behavior and consumer automobile usage behavior (e.g. impacts on rebound, fleet turnover, consumer welfare effects, etc.).

The deadline for filing comments is Oct.5, 2017.

Docket reference: EPA–HQ–OAR–2015–0827

EPA contact: Christopher Lieske, Office of Transportation and Air Quality (OTAQ), Assessment and Standards Division (ASD), telephone number: (734) 214-4584; email address: [email protected].

Mid-Term Review

On July 18, 2016, NHTSA, EPA, and CARB took the first step in the mid-term evaluation of the National Program for GHG emissions and fuel economy standards for light duty cars and trucks by releasing a draft Technical Assessment Report (TAR) for public comment. The release of the TAR delivers on a commitment that EPA made in 2012 as part of the rulemaking establishing a National Program for the 2017-2025 period. The draft TAR covers model years 2022-2025.

According to the agencies, the draft TAR shows that automotive manufacturers are innovating and bringing new technology to market at a rapid pace, and that they will be able to meet the MY 2022-2025 standards established in the 2012 rulemaking with a wide range of cost-effective technologies. The agencies also state that the standards can be achieved by relying primarily on advanced gasoline vehicles. According to the report, manufacturers will be able to meet the stricter standards at similar or even a lower cost than was anticipated in the 2012 rulemaking, with substantial savings on fuel costs for consumers.

While the Draft TAR analysis focuses on the MY 2022-2025 standards, the report also shows that auto manufacturers over-complied with the standards for each of the first three years of the program, and in 2014 outperformed the standards by 1.4 miles per gallon. This occurred during a period during which the automotive industry has seen six consecutive years of sales increases and a new all-time sales record in 2015, reflecting positive consumer response to vehicles complying with the standards.

An Executive Summary of the draft TAR is available here.

After receiving public comment on the draft TAR, EPA will issue a Proposed Determination on whether the 2022-2025 standards are appropriate under section 202(a) of the Clean Air Act. The Proposed Determination will be available for public comment. If the Administrator’s proposal is that the standards should change (either more or less stringent), then this action will be a Notice of Proposed Rulemaking (NPRM), jointly with NHTSA’s CAFE NPRM. Public input on the Proposed Determination, as well as new data and information available, will inform EPA’s Final Determination.

The Final Determination will be the Administrator’s final decision on whether or not the 2022-2025 standards are appropriate, in light of the record then before the Administrator. Under EPA’s regulations, the Final Determination is required no later than April 1, 2018.  If the EPA determination is that the standards will not change, NHTSA will issue its CAFE final rule concurrently with the EPA Final Determination.  If the EPA determination is that the standards will change, the agencies will issue a joint final rule, which could be by April 2018 or a later date.   At the very latest, the agencies will complete the final rulemaking in sufficient time to promulgate final standards for MY 2022-2025 with at least 18 months lead time, but additional lead time may be provided.

Comments are due Sep. 26, 2016.

For a copy of the Federal Register notice inviting comments on the draft TAR, click here.

Increased NHTSA Penalties

Increased NHTSA Penalties - On July 5, 2016, NHTSA published an interim final rule in the Federal Register updating the maximum civil penalty amounts for violations of statutes and regulations administered by NHTSA pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015.  The final rule also amends NHTSA’s regulations to reflect the new civil penalty amounts for violations of the Safety Act authorized by the FAST Act.

New penalty amounts cover the following topics:

• CAFE (penalty amounts nearly triple)
• Bumper standard (penalty amounts nearly triple)
• Safety Act (penalty amounts triple)
• MD/HD vehicle fuel consumption
• False or misleading reports to NHTSA
• Odometer disclosure
• National Motor Vehicle Title Information System
• Consumer information
• Tire efficiency rating program
• Content labeling
• Theft protection
• School bus safety

Public comments are NOT being sought because NHTSA finds that good cause exists for immediate implementation without public comment.  NHTSA is of the view that notice and comment would be impracticable and is unnecessary.

The rule takes effect August 4, 2016.

Petitions for reconsideration are due August 19, 2016.

NHTSA contact: Thomas Healy, Office of Chief Counsel, NHTSA, (202) 366–2992.