Monday's final rule would increase mileage standards, starting in 2023 model years. It is projected that industry-wide targets of 40 MPG by 2026 will be met. This figure is 25% higher than the rule issued by Trump last year and 5% more than the proposal made by the Environmental Protection Agency in august.

Michael Regan, EPA Administrator, stated in a statement that "we are setting rigorous and stringent standards that will aggressively lower the pollution that is causing harm to people and the planet - and save families money at all times."

Regan described the rule as "a huge step forward" in President Joe Biden’s climate agenda, "while paving way towards an all-electric and zero-emissions future of transportation."

This move comes just days after Democratic Senator Joe Manchin dealt a potentially fatal blow against Biden's $2 trillion environmental and social policy bill. It jeopardized Democrats' agenda and angered the White House. The West Virginia senator stated that he couldn't support the bill. It includes numerous climate proposals and is too costly.

Monday's announcement will announce the most ambitious standards for tailpipe pollution ever established for passenger cars and light trucks. Trump's standards increase mileage goals, which would see only 32 miles per gallon by 2026. In August, Biden set a goal to achieve 38 miles per gallon.

According to the administration, these standards will also help increase the market share for zero-emission vehicles. The goal is for battery electric and plug in hybrid vehicles to account for 17% of all new vehicles sold by 2026. In 2023, EVs and plug in hybrids will account for about 7% of the market.