§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.

( Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 1061 .)

Historical and Revision Notes

Revised Section	Source (U.S. Code)	Source (Statutes at Large)
32903(a)	15:2002(l)(1)(B), (4).	Oct. 20, 1972, Pub. L. 92–513, 86 Stat. 947 , §502(l); added Oct. 10, 1980, Pub. L. 96–425, §6(b), 94 Stat. 1826 .
32903(b)(1)	15:2002(l)(1)(A).
32903(b)(2)	15:2002(l)(1)(C).
32903(c)	15:2002(l)(1)(D).
32903(d)	15:2002(l)(1)(E).
32903(e)	15:2002(l)(2).
32903(f)	15:2002(l)(3).

In this section, various forms of the words "apply credits" are substituted for various forms of "credits are available to be taken into account" to be more concise and to make more clear the distinction between when credits are available and to what years they may be applied.

In subsection (a), before clause (1), the text of 15:2002(l)(4) is omitted as surplus because of 49:322(a). The words "any adjustment under subsection (d) of this section" are omitted because 15:2002(d) is omitted from the revised title as executed. The words "calculated under subparagraph (C)" (which apparently should be "calculated under subparagraph (D)") are omitted as surplus. In clauses (1) and (2), the words "with respect to the average fuel economy of that manufacturer" are omitted as surplus. The words "year for which the credits are earned" are substituted for "year in which such manufacturer exceeds such applicable average fuel economy standard" to eliminate unnecessary words.

Subsection (b)(1) is substituted for 15:2002(l)(1)(A) to eliminate unnecessary words.

In subsection (b)(2)(A) is substituted for 15:2002(l)(1)(C)(i)–(iii) to eliminate unnecessary words.

In subsection (e), the words "as provided in this section for passenger automobiles" are substituted for "as provided for under paragraph (1)" for clarity. The text of 15:2002(l)(2) (last sentence) is omitted as expired.

Section Referred to in Other Sections

This section is referred to in sections 32902, 32904, 32909, 32911, 32912 of this title.