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New York, California and three other states are suing the Trump administration, saying it must put in place higher penalties for automakers that violate federal fuel economy standards.
The US Department of Transportation more than doubled civil penalties for fuel economy violations last year after Congress ordered agencies to adjust their fines for inflation.
The new rule, which was set to take effect in July, would require automakers to pay USD 14 for every tenth of a mile per gallon of fuel a vehicle consumes over its minimum. Since the mid-1970s, automakers have paid USD 5.50 for every tenth of a mile per gallon.
Automakers objected, saying it would cost them $1 billion per year. The federal government delayed the rule in July. Vermont, Maryland and Pennsylvania filed suit as well.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)