The Trump administration is suing California over its mandates for electric vehicles and offering $1.9 billion for advanced transmission.

The new standard sets regular 2% increases in fuel efficiency for passenger cars ― sedans and SUVs ― per year between the 2027 and 2031 model years, rising from 60 mpg to 65.1 mpg.

The NHTSA issued a proposal for a major increase in national fuel efficiency standards for cars, light-duty trucks and some heavy-duty vehicles.

Increasing efficiency standards and competition from EVs means worldwide gasoline demand has likely peaked, the IEA reported.