Can a manufacturer be fined for not meeting fuel economy standards?

What the Law Says

Federal law establishes minimum average fuel economy standards for new passenger cars and light trucks sold in the U.S., enforced by the National Highway Traffic Safety Administration (NHTSA). While 49 U.S.C. § 32901 defines key terms, the penalty authority comes from related sections of the same chapter (e.g., § 32912), which authorize fines for noncompliance.

The Corporate Average Fuel Economy (CAFE) program requires automobile manufacturers to meet fleet-wide average fuel economy targets based on vehicle footprint. These standards are set annually by NHTSA and apply separately to passenger cars and light trucks.

Although § 32901 itself is a definitions section, it anchors the broader CAFE statutory framework in 49 U.S.C. Chapter 329. Enforcement and penalties are authorized under § 32912, which permits civil penalties for failure to comply with standards established under § 32902.

Penalties are calculated per noncompliant vehicle and may reach up to $14,000 per vehicle — adjusted periodically for inflation — for each vehicle in a model year that contributes to the manufacturer’s failure to meet its fleet-wide standard.

Statutory Text

In this chapter, the following definitions apply: (1) 'average fuel economy' means the number determined by dividing the total number of passenger cars or light trucks manufactured by a manufacturer in a model year by the sum of the reciprocals of the fuel economy of those cars or trucks.

— 49 U.S. Code § 32901 — Definitions

What to Do

Sources