Featured image: u/TactfulRanger | Reddit
Tesla is urging the U.S. Court of Appeals to immediately reinstate President Obama's 2016 ruling, which had more than doubled penalties for automakers who fail to meet fuel efficiency requirements. The government's refusal to take urgent action is causing irreparable damage to companies that sell carbon credits, and likely hinders the fight against climate change.
The Trump administration has postponed the introduction of higher fines until 2022, although such action raises many questions. Tesla told the Second Circuit U.S. Court of Appeals that Trump's actions were illegal and “diminishes the value of performance-based incentives that electric vehicle manufacturers, such as Tesla, accrue under the standards,” Reuters reported.
At the moment, the National Highway Traffic Safety Administration (NHTSA) is studying Trump's action on Corporate Average Fuel Economy (CAFE) penalties and promises to complete the review in six months. Large automakers, in pursuit of profit and showing indifference to global climate problems, are opposed to immediate action.
On March 4, Tesla asked the Court of Appeal to take action, stating that “egregious action presents a situation as extraordinary as it is unjustified and inflicts immediate and irreparable injury on Tesla.” The refusal of President Joe Biden's administration to take immediate action has a negative impact on manufacturers such as Tesla and “ignores the ongoing impacts” on the credit-trading market. Tesla, which produces zero emission vehicles and can sell credits, emphasizes that Trump's rule change makes these loans less valuable.
In February, 15 US states sued NHTSA for delaying higher fines for companies that do not comply. The Sierra Club and National Resources Defense Council have also sued NHTSA for delaying penalties.
© 2021, Eva Fox. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.