The environmental proposals Congress inserted into the Build Back Better plan appear to be on hold right now. But the White House is taking some executive action that should provide a significant push promoting electric vehicles in the American marketplace.

A new EPA rule announced Monday would raise the projected car mileage standards to 40 mpg by 2026. That figure is 25% higher than the Trump administration’s revised goal of hitting 32 mpg by 2026, and it’s higher than the 38 mpg the Biden administration proposed back in August. According to the EPA, meeting that target will mandate improvements of between 5-10% per year in fleet-wide emissions between 2023 and 2026.

Perhaps the most prominent way manufacturers will meet those efficiency targets is by selling battery-electric or substantially electrified plug-in hybrid vehicles. The administration’s goal is for 17% of new cars sold in 2026 to be electric or PHEV, up from 7% currently.

President Biden has, so far, generally proven to be a booster of electric vehicles. He was on hand for Ford’s first public unveiling of the F-150 Lightning, and has managed to climb behind the wheel of GM’s electric Hummer (as seen above). His administration’s legislatic priorities have backed up his enthusiasm; the infrastructure bill passed earlier this year includes a hefty investment in EV chargers, and the Build Back Better plan intended to offer up to a $12,500 tax credit on new EV purchases, although the future of that bill remains in doubt.

Automakers have already been moving toward producing more electric and electrified vehicles. Many luxury brands are planning to be all-electric by the end of the decade. General Motors will try to do so by 2035. Even typically EV skeptical brands like Dodge and Toyota announced ambitious EV plans in 2021.

Much of that is because customers are far more willing to buy EVs than initially anticipated. The biggest challenge for manufacturers may be building enough of them to meet demand. Ford is planning a dramatic expansion of Mustang Mach E production to produce around 200,000 vehicles per year by 2023. The brand is also ramping up production for the F-150 Lightning. Ford had to shut down F-150 Lightning reservations with a backlog of 200,000 vehicles to work through.

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