NHTSA Declares It Lacks Authority to Set Fuel-Economy Standards for Standalone Engines

NHTSA issued an interpretive rule concluding that it possesses legal authority to set fuel-economy standards only for medium- and heavy-duty vehicles, not for standalone engines. This reverses the position NHTSA has held since 2011. It lays the legal groundwork for eliminating the engine-level component of the jointly issued NHTSA/EPA Phase 1 (2011) and Phase 2 (2016) medium- and heavy-duty fuel efficiency program. Through its engine-level standards, NHTSA had been able to set fuel-economy standards not only for expressly covered vehicles, but also separately for engines used in combination tractors, vocational vehicles such as dumptrucks, and motorhomes.