White House to reveal new mileage standard plan

Automotive News reports that the Obama administration will announce a new proposal on auto emissions and fuel standards that they hope will resolve a court battle between several states and the Federal EPA that has gone on for years.

President Barack Obama on Tuesday will propose the most aggressive increase in U.S. auto fuel efficiency ever in a policy initiative that would also directly regulate emissions for the first time and resolve a dispute with California over cleaner cars.

A senior administration official, speaking to reporters late on Monday on the condition of anonymity, said average fuel standards for all new passenger vehicles — cars and light trucks — would rise by 10 miles a gallon over today’s performance to 35.5 miles per gallon between 2012-16.

Climate-warming carbon emissions would fall by 900 million metric tons, or more than 30 percent over the life of the program, the official said.

“All companies will be required to make more efficient and cleaner cars,” the official said, saying the government estimates the program will save 1.8 billion barrels of oil.

A court case, California v EPA, has been going for years over this subject. California and 12 other states want the EPA to grant them a waiver under the Clean Air Act to impose stricter standards on fuel efficiency than required at the federal level. If this new plan is accepted by those states and passed by Congress, it would moot the lawsuit.

Gov. Granholm is in Washington D.C. for the announcement of this new proposal.