The Biden administration is set to present a new proposal that will mandate automakers to raise the average fuel economy of their vehicles, as reported by Bloomberg, which cited people familiar with the matter. 

The proposal, expected to be disclosed by the National Highway Traffic Safety Administration, will apply to model years 2027 and beyond. This move comes amid a surge in gasoline prices and the administration’s aim to have 50% of all vehicle sales in the United States be electric or emissions-free by the end of the decade.

In April, the agency issued a proposal that required automakers to achieve an average fuel economy of approximately 49 miles (78.8 kilometers) per gallon by 2026. However, the recent development seeks to further increase fuel efficiency standards for future models.

General Motors Co. has raised concerns with the US Environmental Protection Agency (EPA) regarding the proposed emissions rules. 

In a July 5 filing, the automaker expressed reservations that federal regulations in six states might require the sale of more electric vehicles (EVs) than the Biden administration’s target of 50% by 2030, a goal that the Alliance for Automotive Innovation, representing several automakers including GM, previously considered ambitious.

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