The U.S. Transportation Department has determined that fuel economy regulations pushed by the Biden administration overstepped legal boundaries by factoring in electric vehicles, a move now being reversed. Automaker officials confirmed Monday that Biden-era rules improperly inflated fuel efficiency standards by including EVs—vehicles that don’t even consume fuel in the traditional sense.

This announcement came as the department finalized a new rule, “Resetting the Corporate Average Fuel Economy Program,” which aims to undo the legally dubious framework the Biden team had implemented.

By removing electric vehicles from the calculations, future fuel economy targets are expected to be more realistic and less politically driven. The decision marks a sharp shift away from the Biden administration’s aggressive green agenda, which critics say often ignored legal limits and practical consequences.

A new, separate rule is expected under President Donald Trump’s administration to set revised, lawful fuel economy standards going forward.