Obama Orders EPA to Reconsider Denial of California Application, DOT to Raise Fuel Economy Standards

President Obama took two major steps to force American auto manufacturers to produce more energy-efficient vehicles today, issuing one memorandum requiring the Environmental Protection Agency to reconsider its denial of a request for more state flexibility to set tougher emission standards and another directing the Department of Transportation to establish higher fuel economy standards.

The order is expected to result in EPA granting California's application for a waiver of preemption under the Clean Air Act, which is necessary for the state to enforce a 2002 law that would force auto makers to lower tailpipe emissions in the state by 30 percent by 2016.

"It will be the policy of my administration to reverse our dependence on foreign oil while building a new energy economy that will create millions of jobs," Obama said during remarks in the east room of the White House today. "

The president also promised to "commit ourselves to the steady, focused, pragmatic pursuit" of energy independence.

At least 13 other states have indicated they will impose emission standards similar to California's if EPA grants the preemption waiver.

The order will require DOT to finalize rules requiring automakers to raise the average fuel economy of the nation's fleet to 35 mpg by 2020.

It will also force DOT to impose interim rules that will raise the minimum fuel economy standard by the 2011 model year.

The regulations are required by an energy law enacted in 2007.