U.S. President Barack Obama will announce a proposal tomorrow that automobiles sold in the United States in 2016 should meet a fuel efficiency standard of 35 miles per gallon, according to people familiar with the announcement, the Wall Street Journal reported.
While a current federal law currently already requires 35 mpg efficiency by 2020, the proposal would move the requirement closer.
Obama is also expected to announce new plans for rules for vehicle emissions, which will be coordinated with the fuel standards, according to the people. Officials said Obama may announce a rule to cut emissions by 30 percent by 2016, starting with model years 2011 and beyond, the Associated Press reported.
This would be the first time a nationwide standard for green house gas pollution is set.
The measure would represent a single federal mandate eliminating confusion due to different regulations in each state. It would require automakers to invest more money to remake their fleets for the domestic market so that they are able to meet the standards.
Automakers would have to spend $46.7 billion to make vehicles that meet an efficiency standard of 31.6 mpg by 2015, according to an estimate from the Transportation Department.
General Motors Corp Chief Executive Officer Fritz Henderson and the President of the United Auto Workers Ron Gettelfinger are expected to attend the announcement tomorrow, according to the WSJ which quoted people familiar with the matter.