WASHINGTON, March 20 (Reuters) - The Biden

administration is unveiling final rules on Wednesday that make

it easier for automakers to continue selling gas-powered models

and slows the projected transition to electric vehicles through

2030.

The Environmental Protection Agency's (EPA) rule, which

weakens yearly emissions targets through 2030 over the more

stringent plan proposed in April 2023, is a win for Detroit

automakers and other companies selling gas-powered models and

plug-in hybrid vehicles.

The EPA said the plan cuts fleetwide tailpipe emissions

by 50% over 2026 levels and reduces greenhouse gas emissions by

7.2 billion tons through 2055 and provide nearly $100 billion of

annual net benefits, including $62 billion in reduced annual

fuel, maintenance and repair costs.

The administration's decision to back away from the earlier

proposal that would have in effect required 67% of vehicles sold

in 2032 to be fully electric may disappoint voters who want the

government to take more aggressive action to confront climate

change.

Some environmental groups have already expressed dismay

at signs the White House intended to soften the EPA tailpipe

rules. Tesla, some Democrats in Congress and others had

urged EPA to finalize even tougher rules.

The EPA's revised proposal reflects the political squeeze

Biden faces in his re-election campaign. For both Biden and his

Republican rival, Donald Trump, the road to the White House goes

through Michigan and other industrial states such as Wisconsin

and Pennsylvania where workers fear that the shift to electric

vehicles could threaten jobs. Trump has repeatedly excoriated

EVs.

'MULTIPLE CHOICES'

The EPA stressed automakers will have flexibility to choose

among different technologies, including "advanced gasoline,"

hybrids, plug-in hybrids and fully electric vehicles.

"We designed the standards to be technology neutral and

performance-based to give manufacturers the flexibility to

choose which combination of pollution control technologies are

best suited for their consumers," EPA Administrator Michael

Regan told reporters. "There is absolutely no (electric vehicle)

mandate -- there are multiple choices that the industry can make

to comply with this technology standard."

"Let me be clear, our final rule delivers the same, if not

more pollution reduction than we set out at proposal," he added.

The EPA did not immediately explain why a drastic reduction

in forecasted EV adoption did not affect its projections for

pollution reductions.

The change in the final rules reflects lobbying by

automakers, car dealers and the United Auto Workers union that

the standards should give the industry more latitude, rather

than pushing for a rapid transition to an all-electric fleet.

The Alliance for Automotive Innovation, a trade group

representing nearly all automakers except Tesla, said

"moderating the pace of EV adoption in 2027, 2028, 2029 and 2030

was the right call because it prioritizes more reasonable

electrification targets in the next few (very critical) years of

the EV transition." It added that the rules preserve Americans

"ability to choose the vehicle that's right for them."

The EPA in early 2023 projected EVs would account for 60% of

new vehicles sold in 2030 and 67% by 2032 -- up from 8% in 2023.

Under the final rules, the EPA projects that from 2030-2032

EVs may account for about 30% to 56% of new passenger cars and

trucks. The EPA yearly stringency targets accelerate in 2031 and

2032.

Automakers won separate relief on Tuesday when the Energy

Department softened and opted to phase in new rules that will

reduce the mileage rating of EVs. That will help the Detroit

Three avoid billions of dollars in fines for not meeting fuel

efficiency standards through 2032.