Obama to announce national emission standards for cars, trucks

U.S. President Barack Obama is expected to announce Tuesday the first-ever national emission limits for cars and trucks, as well as an average fuel-consumption ceiling of 6.6 L/100 km by 2016 — all costing consumers an extra $1,300 US per vehicle.

Obama's plan couples for the first time pollution reduction from vehicle tailpipes with increased efficiency on the road. It would save 1.8 billion barrels of oil through 2016 and would be the environmental equivalent to taking 177 million cars off the road, senior administration officials said Monday night.

The plan also would effectively end a feud between automakers and state legislatures over emissions standards — with the states coming out on top but the automakers getting a single national standard and more time to make the changes.

The plan still must clear regulatory hurdles at the U.S. Environmental Protection Agency and the Transportation Department.

New vehicles would be 30 per cent cleaner and more fuel efficient by the end of the program, according to officials familiar with the administration's discussions. The officials spoke on condition of anonymity because the formal announcement had not been made.

Administration officials said consumers were going to pay an extra $700 for fuel-consumption standards that had already been approved. The comprehensive Obama plan would add another $600 to the price of a vehicle, a senior administration official said.

The better fuel consumption would come at roughly a five per cent increase each year. By the time the plan takes full effect, at the end of 2016, new vehicles would cost an extra $1,300.

In a battle over emissions standards, California, 13 other states and the District of Columbia have urged the federal government to let them enact more stringent standards than the federal government's requirements.

The states' regulations would cut greenhouse gas emissions by 30 per cent in new cars and trucks by 2016 — the benchmark Obama planned to unveil for vehicles built in model years 2012 and beyond.

The Obama plan gives the states essentially what they sought and more, although the buildup is slower than the states sought. In exchange, though, cash-strapped states such as California would not have to develop their own standards and enforcement plan.

Instead, they can rely on federal tax dollars to monitor the environment.