The Biden administration is poised to issue a proposal as early as Friday ordering automakers to increase the average fuel economy of their vehicles, according to people familiar with the matter.
The proposed rule, expected to be made public by the National Highway Traffic Safety Administration, will be applicable for model years 2027 and beyond, according to the people who asked not to be identified because they weren’t authorized to speak publicly about it.
The agency didn’t immediately respond to a request for comment.
The move comes as gasoline prices are rising and the Biden administration is pushing for half of all vehicles sold in the U.S. to be electric or emissions-free by the end of the decade.
The agency’s previous proposal, issued last April, ordered automakers to increase their average fuel economy to about 49 miles (78.8 kilometers) per gallon by 2026.
General Motors Co. has already voiced concerns to the US Environmental Protection Agency over requirements for proposed emissions rules.
The automaker said in a July 5 filing that federal rules and other regulations in six states could require automakers to sell more than the Biden Administration’s goal of 50% of volume from EVs by 2030, which could be difficult to achieve.
The Alliance for Automotive Innovation, which represents automakers including GM, in April said the Biden Administration’s goal to have EVs make up half the market by 2030, “was always a stretch.”
