Second Circuit – Corporate Average Fuel Economy: New York, et al. v. National Highway Traffic Safety Administration, et al.

United States Court of Appeals for the Second Circuit

Corporate Average Fuel Economy  – Federal Civil Penalties Inflation Adjustment Act Improvements Act

New York, et al. v. National Highway Traffic Safety Administration, et al.

19-2395-ag(L)

Judges Sullivan, Park, and Nardini

Background: The petitioners sought to vacate a final rule published by the respondent, which reversed the agency’s 2016 increase to the base rate of the Corporate Average Fuel Economy penalty. The petitioners argue that the respondent erroneously concluded that the Federal Civil Penalties Inflation Adjustment Act Improvements Act is inapplicable to the CAFÉ penalty because it is not a civil monetary penalty as that term is defined by statute.

Ruling: The Second Circuit granted review and vacated the rule. The court held that the CAFÉ penalty is a civil monetary penalty under the Improvements Act and that the respondent’s reconsideration of the economic effects of its initial rule was untimely and therefore unauthorized.

Dennis Fan, for the respondents; 13 states’ attorney general for the petitioners.