The EPA has concluded that a landmark Obama-era effort to cut vehicle greenhouse-gas emissions is too aggressive and agrees with automakers that the standards should be revised, according to people familiar with the matter.

The agency has completed a draft decision outlining the rationale for easing fuel efficiency regulations for model-year 2022-2025 cars and light trucks, two people said. Bill Wehrum, chief of the agency’s Office of Air and Radiation, plans to meet with environmental regulators in California next week to discuss the draft decision ahead of an April 1 deadline to make it public, according to the people,...