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Obama Announces New Fuel Efficiency Standards

Submitted by LiveScience Staff

posted: 19 May 2009 01:21 pm ET

As expected, President Obama outlined a new plan today to cut pollution and raise mileage standards on vehicles by 30 percent.

"The status quo is no longer acceptable," Obama said. "We have done little to increase fuel efficiency of America's cars and trucks for decades."

In 2016, vehicles would have to average 35.5 mpg average for both cars and light trucks. The change represents a bigger increase in mpg requirements for cars, from 27.5 now to 35.5. The new rules will cost $1,300 per car starting in 2016 but would save a typical driver $2,800 in fuel costs over the vehicles lifetime, he estimated.

Environmentalists and even the auto industry praised the move, MSNBC.com reports.

Read full story at MSNBC.com

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