CAFE Increase Becomes Law, Penalty System Remains Same

President Bush signs into law energy legislation that raises federal fuel economy standards by 40% and could cost auto makers billions of dollars, but manufacturers will find cold comfort in an enforcement structure that will remain largely unchanged.

“It will be similar to the existing structure,” a spokesman for House Speaker Nancy Pelosi (D-CA) tells Ward’s. Pelosi led the charge for a stricter corporate average fuel economy standard.

Under the current structure, auto ...