Trump Administration Can’t Slash Fuel Efficiency Penalties (1)

The Trump administration can’t roll back a penalty imposed on car manufacturers that fail to meet Corporate Average Fuel Economy standards, the Second Circuit ruled Monday, in a win for several states and environmental groups.

Inflation-adjustment laws do apply to the penalty, according to the U.S. Court of Appeals for the Second Circuit, rejecting the National Highway Traffic Safety Administration’s claims. And the agency’s move was untimely and therefore unauthorized, the court said.

The Obama administration increased the CAFE penalty from $5.50 to $14 for every tenth of a mile per gallon below the standard multiplied by the number of ...