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- Title 49. TRANSPORTATION
- Subtitle VI. Motor Vehicle and Driver Programs
- Part C. Information, Standards, and Requirements
- Chapter 329. Automobile Fuel Economy
49 U.S.C. § 32903 - Credits for exceeding average fuel economy standards
Cite as | 49 U.S.C. § 32903 |
(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 subsections (a) through (d) of section 32902 (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 paragraph (1) 1 any of the 5 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 subsections (a) through (d) of section 32902 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 subsections (a) through (d) of section 32902; times
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