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...policy, which was worked out between Washington, state governments and the auto industry, will require automakers to meet a minimum fuel-efficiency standard of 35.5 miles a gallon by model year 2016 - four years earlier than Congress currently requires. Not only could the move potentially kick-start the sputtering U.S. auto industry, while saving the equivalent of some 1.8 billion barrels of oil, it also raises hopes that the Obama Administration will be able to forge a compromise on the tricky matter of a national cap on greenhouse-gas emissions. "It's an enormous breakthrough for national legislation," says Vickie...
...pass stricter emissions standards for vehicles, the Bush EPA balked, setting up a string of legal battles. California pressed its right to green its millions of cars and trucks; U.S. automakers claimed that if California could go its own way, the result would be a patchwork of different fuel-efficiency standards around the nation, making business all but impossible. (See the top 10 green stories...
When Obama came into office in January, he promised that the EPA would review California's waiver requests. But instead of simply giving the green light to California, Obama will also largely incorporate the state's proposed rules into a new and tougher fuel-economy standard for the entire nation. The new rules will tighten fuel-efficiency requirements more slowly than California had wanted - to give the auto industry time to adjust - but ultimately the nation's automakers will end up meeting the same standards as California by model year...
...cars will need to get an average of 39 m.p.g., and trucks will need to get 30 m.p.g. - roughly 30% more fuel-efficiency than they get today. "The ramp up will be a different path than California's, but it's a national program, so you'll get emissions reductions at a rate higher than California," says a senior White House official, who provided a background briefing on the condition of anonymity...
...factories in the Rustbelt, such as steel, glass, cement, aluminum and paper plants, which would become less competitive internationally if they had to pay for permits. For its part, the hard-hit auto industry would be treated to 3% of the permits to encourage domestic production of electric and fuel efficient vehicles...