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U.S. appeals court tosses Trump bid to roll back fuel efficiency penalties

WASHINGTON/NEW YORK, Aug 31 (Reuters) - A U.S. appeals court on Monday overturned the Trump administration’s July 2019 rule that sought to suspend a regulation that more than doubled penalties for automakers failing to meet fuel efficiency requirements.

Automakers had protested the hike adopted in 2016 by the Obama administration, saying it could increase industry compliance costs by $1 billion annually. The U.S. Court of Appeals for the Second Circuit in a 3-0 decision Monday said the National Highway Traffic Safety Administration did not make a timely decision to reconsider the penalties. (By Jonathan Stempel in New York and David Shepardson in Washington Editing by Chizu Nomiyama)

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