WASHINGTON, D.C.: The U.S. Transportation Department is expected to say that fuel economy rules created under President Joe Biden went beyond what the law allows by counting electric vehicles (EVs) in the calculations, according to car industry officials.

Transportation Secretary Sean Duffy stated that the department's highway safety agency, the NHTSA, recently submitted a new rule, titled "Resetting the Corporate Average Fuel Economy Program," to the White House for review. He claimed the previous rules used fuel economy standards as a way to force more EVs into the market, which made cars more expensive.

If EVs are no longer counted in these rules, the average fuel economy targets for cars could be lowered.

In June, the NHTSA announced plans to increase the average fuel economy for cars to approximately 50.4 miles per gallon by 2031, up from the current 39.1 mpg. However, last year, 120 Republican lawmakers claimed that the NHTSA had gone too far by setting rules that favored electric vehicles and made it harder for gasoline-powered cars to remain competitive. They said the agency used EVs in its baseline calculations, which led to stricter standards for regular cars.

Recently, House Republicans proposed ending tax credits for EVs and canceling fuel economy rules that aim to encourage automakers to build more zero-emission vehicles.

Federal law requires NHTSA to set fuel standards at the highest level that is practical.

Meanwhile, the Environmental Protection Agency (EPA) has begun reviewing the reversal of Biden-era vehicle emissions rules, which also promoted the adoption of more EVs. However, the EPA has not moved to cancel California's right to ban gas-powered cars by 2035.

The EPA is also reviewing whether to continue awarding fuel economy credit for "start-stop" systems, which are found in many new cars.

NHTSA had said last year that its rule would save 64 billion gallons of gas and reduce emissions by 659 million metric tons.