49 U.S.C. § 32903 : US Code - Section 32903: Credits for exceeding average fuel economy standards

Search 49 U.S.C. § 32903 : US Code - Section 32903: Credits for exceeding average fuel economy standards

(a) Earning and Period for Applying Credits. - When the average
fuel economy of passenger automobiles manufactured by a
manufacturer in a particular model year exceeds an applicable
average fuel economy standard under section 32902(b)-(d) of this
title (determined by the Secretary of Transportation without regard
to credits under this section), the manufacturer earns credits. The
credits may be applied to -
(1) any of the 3 consecutive model years immediately before the
model year for which the credits are earned; and
(2) to the extent not used under clause (1) of this subsection,
any of the 3 consecutive model years immediately after the model
year for which the credits are earned.
(b) Period of Availability and Plan for Future Credits. - (1)
Except as provided in paragraph (2) of this subsection, credits
under this section are available to a manufacturer at the end of
the model year in which earned.
(2)(A) Before the end of a model year, if a manufacturer has
reason to believe that its average fuel economy for passenger
automobiles will be less than the applicable standard for that
model year, the manufacturer may submit a plan to the Secretary of
Transportation demonstrating that the manufacturer will earn
sufficient credits under this section within the next 3 model years
to allow the manufacturer to meet that standard for the model year
involved. Unless the Secretary finds that the manufacturer is
unlikely to earn sufficient credits under the plan, the Secretary
shall approve the plan. Those credits are available for the model
year involved if -
(i) the Secretary approves the plan; and
(ii) the manufacturer earns those credits as provided by the
plan.
(B) If the average fuel economy of a manufacturer is less than
the applicable standard under section 32902(b)-(d) of this title
after applying credits under subsection (a)(1) of this section, the
Secretary of Transportation shall notify the manufacturer and give
the manufacturer a reasonable time (of at least 60 days) to submit
a plan.
(c) Determining Number of Credits. - The number of credits a
manufacturer earns under this section equals the product of -
(1) the number of tenths of a mile a gallon by which the
average fuel economy of the passenger automobiles manufactured by
the manufacturer in the model year in which the credits are
earned exceeds the applicable average fuel economy standard under
section 32902(b)-(d) of this title; times
(2) the number of passenger automobiles manufactured by the
manufacturer during that model year.
(d) Applying Credits for Passenger Automobiles. - The Secretary
of Transportation shall apply credits to a model year on the basis
of the number of tenths of a mile a gallon by which the
manufacturer involved was below the applicable average fuel economy
standard for that model year and the number of passenger
automobiles manufactured that model year by the manufacturer.
Credits applied to a model year are no longer available for another
model year. Before applying credits, the Secretary shall give the
manufacturer written notice and reasonable opportunity to comment.
(e) Applying Credits for Non-Passenger Automobiles. - Credits for
a manufacturer of automobiles that are not passenger automobiles
are earned and applied to a model year in which the average fuel
economy of that class of automobiles is below the applicable
average fuel economy standard under section 32902(a) of this title,
to the same extent and in the same way as provided in this section
for passenger automobiles.
(f) Refund of Collected Penalty. - When a civil penalty has been
collected under this chapter from a manufacturer that has earned
credits under this section, the Secretary of the Treasury shall
refund to the manufacturer the amount of the penalty to the extent
the penalty is attributable to credits available under this
section.