49 U.S.C. § 32912 — Civil penalties

(a) General Penalty — Anyone who violates section 32911(a) owes the government a civil penalty of up to $10,000 per violation. Each day the violation continues counts as a separate violation. (b) Penalty for Manufacturer Violations of Fuel Economy Standards — Except as provided in subsection (c), a manufacturer that misses a fuel economy standard for a model year owes a civil penalty. Here is the formula, step by step: (1) start with the number of tenths of a mile per gallon by which the standard exceeds the manufacturer's actual average (as calculated under section 32904(a)(1)(A) or (B)) for the automobiles that standard applies to; (2) multiply that by the dollar rate set for each tenth of a mile per gallon; (3) multiply the result by the number of those automobiles the manufacturer made that year; and (4) subtract the value of any credits the manufacturer has under section 32903 for that model year. What's left is the penalty owed. (c) Higher Penalty Amounts — (1)(A) The Secretary of Transportation may set, by regulation, a higher dollar rate per tenth of a mile per gallon for the penalty formula in (b), if the Secretary decides raising it will meaningfully help conserve fuel and won't seriously harm the U.S. or a state's economy. (B) That rate can never exceed a set cap. (C) The Secretary can only make the "won't seriously harm the economy" finding if raising the penalty is unlikely to cause a significant jump in unemployment in a state or region, hurt competition, or significantly increase car imports. (D) A higher rate takes effect for the model year starting at least 18 months after the regulation becomes final. (2) The Secretary must publish the proposed regulation and reasoning in the Federal Register, send a copy to every automaker, give the public at least 45 days to comment, ask the FTC to comment too, and then hold a public hearing where interested people and the FTC can present views, question other presenters, and question government employees and contractors involved. (3) The Secretary can limit repetitive or unhelpful questions, and must keep a transcript of the hearing, available to the public at copying cost. (4) The Secretary must publish the final regulation in the Federal Register along with the required findings. (5) A government officer or employee who discloses certain confidential information submitted during this process — other than in a closed proceeding before the Secretary or a court — commits a violation of 18 U.S.C. § 1905. (d) Written Notice Requirement — The Secretary must impose any penalty under this section by written notice. (e) Use of Civil Penalties — Starting in fiscal year 2008, from all the money collected the prior year through enforcement under this section (including from consent decrees), the Treasury must: (1) send 50% to the account funding the Secretary's administration of this chapter, to support rulemaking; and (2) send the other 50% to the same account, to fund grants helping manufacturers retool or expand U.S. factories to build advanced-technology vehicles and parts.