15 states sue U.S. agency over delayed hike in automaker emissions penalties

• Fifteen states on Tuesday sued the National Highway Traffic Safety Administration.
• The states are suing over a deal the NHTSA made with then-President Donald Trump to delay the start of dramatically higher penalties for companies that fail to meet fuel efficiency requirements.
• The NHTSA said last month it expected the final rule to cut future burdens on industry by up to $1 billion annually.

A measuring hose for emissions inspections in diesel engines in the exhaust tube of a Volkswagen Golf 2.0 TDI diesel car.

Patrick Pleul | AFP | Getty Images

Fifteen U.S. states on Tuesday sued the National Highway Traffic Safety Administration (NHTSA) after it agreed last month under then-President Donald Trump to an auto industry request to delay the start of dramatically higher penalties for companies that fail to meet fuel efficiency requirements.

The states, including California and New York, filed suit in the U.S. Court of Appeals Court for the Second Circuit over the decision announced in the final days of the Trump administration that could save the industry hundreds of millions of dollars or more.

The NHTSA last month said it expected the final rule to significantly cut future burdens on industry by up to $1 billion annually.