The The Obama administration announced today new fuel-economy and tailpipe-emission regulations in an effort to turn the U.S. to a greener, less polluted nation. The new regulations will require automakers and their vehicles to meet an average 35.5 mpg by 2016. More specifically, passenger cars sold in the U.S. will be required to get a combined 39 mpg, while light trucks will be required to return a combined 30 mpg by 2016.

Officials estimate that the new regulations will save 1.8 billion barrels of oil and reduce greenhouse gas emissions by 900 metric tons. And although it will cost automakers an extra $1,300 to to produce their cars, consumers are expected to save around $2,800 in gas money over the life of these cars.

“In the past, an agreement such as this would have been considered impossible,” said President Obama. “That is why this announcement is so important, for it represents not only a change in policy in Washington, but the harbinger of a change in the way business is done in Washington. As a result of this agreement, we will save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years. And at a time of historic crisis in our auto industry, this rule provides the clear certainty that will allow these companies to plan for a future in which they are building the cars of the 21st century.”

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