Obama to announce new car fuel standards

President Obama plans to announce new car fuel and tailpipe emissions standards Tuesday at an event with automakers and national political leaders, including California Gov. Arnold Schwarzenegger, said an official with knowledge of the event.

The new federal standards are meant to make it easier for automakers who would otherwise have to deal with a patchwork of state regulations, said the source, speaking on condition of anonymity because the White House has not made an official announcement yet.

The Obama Administration has moved fast to reverse Bush-era environmental policies and to put on the fast track pro-environmental regulations that had been held up by the previous White House. Environmental Protection Agency Administrator Lisa Jackson began reviewing a request from California to implement tougher fuel standards since early this year.

Since Congress ultimately determines the national Corporate Average Fuel Economy (CAFE) standard, it is unclear whether Mr. Obama will announce new legislation or an executive mandate.