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The EPA has finalized new fuel economy rules for the years 2023 to 2026 that set tougher standards than those established during the Trump administration.

New rules will require automakers to meet a 40 mpg fleetwide average by 2026.

New rules will require automakers to meet a 40 mpg fleetwide average by 2026.

The new target raises the fleet average fuel economy requirement by 25% from 32 mpg to 40 mpg, according to Reuters. President Biden had previously proposed a 38 mpg requirement in August and has encouraged automakers to transition their lineups to 50% electric vehicles by 2030.

John Bozzella, president and CEO of the Alliance for Automotive Innovation, which represents most consumer automakers, called the plan "aggressive" and said meeting the standards "will undoubtedly require enactment of supportive governmental policies – including consumer incentives, substantial infrastructure growth, fleet requirements, and support for U.S. manufacturing and supply chain development."

The EPA announcement comes just a day after it became clear that President Biden's Build Back Better plan, which included a new maximum federal tax credit for electric vehicle purchases of $12,500, was unlikely to pass in its current form.

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The new rules represent a 28.3% reduction in emissions during the period covered and will require an increase in the market share of plug-in vehicles from a projected 7% in 2023 to 17% in 2026, according to the EPA.