President Barack Obama is set to propose a significant increase in US auto fuel efficiency, marking a historic policy initiative that will also regulate emissions for the first time and settle a disagreement with California regarding cleaner cars. The proposal includes raising fuel standards for new passenger vehicles by 10 miles per gallon to 35.5 miles per gallon between 2012-16, resulting in a 30 percent decrease in carbon emissions over the program's lifespan. The government estimates that the program will save 1.8 billion barrels of oil and all companies will be required to manufacture more efficient and cleaner cars. Major US and international automakers, such as General Motors and Toyota, are in support of the plan. In a statement, GM Chief Executive Fritz Henderson expressed that GM and the auto industry will benefit from more consistency and certainty in guiding product plans. Toyota Motor Sales USA President James Lentz stated that a single national standard will improve vehicle choices for consumers. The new program, according to the administration, will increase the cost of producing a vehicle by about $600 compared to the current law, which requires automakers to achieve a fleet average of 35 mpg by 2020, a 40 percent increase from current performance. US auto companies had opposed significant fuel standard increases for many years until Congress and the Bush administration agreed to stricter targets in 2007. Some vehicles, mostly produced by overseas manufacturers, already meet or exceed the proposed standards. California had originally sought a waiver to impose its own regulations on auto emissions, but the Bush administration denied this request. Auto companies also sued California, arguing that if other states followed suit, it would create a confusing mix of regulations. However, California has now agreed to defer to the proposed national standard if it is finalized. Senator Barbara Boxer praised this decision, calling it a victory in the fight against global warming and reducing U.S. dependence on imported oil. The 30 percent decrease in emissions is more aggressive than what California and other supportive states have requested. In April, the administration shifted policies by regulating emissions due to the danger posed to human health and welfare by climate-warming pollution, departing from the Bush administration's approach. The new policy allows flexibility for automakers to meet standards and considers the environmental impact of carbon-based fuels and other emission-producing vehicle systems, such as air conditioners. David Friedman, research director of the clean vehicle program at the Union of Concerned Scientists, believes this could be a significant advancement in promoting clean cars. The plan is based on an assumption of average gas prices reaching $3.50 per gallon by 2016, with the hope of encouraging consumers to switch to more fuel-efficient vehicles. Car manufacturers are working hard to improve hybrid and electric vehicles, but lower gas prices have led to increased sales of less efficient trucks and SUVs due to a decrease in demand caused by a recession. In an effort to boost the struggling industry, Congress is considering a bill that would provide consumers with up to $4,500 to trade in older, less fuel-efficient vehicles for ones with better gas mileage. Additionally, there is a climate change debate in the US Congress, with Democrats pushing for a bill to combat global warming while Republicans are trying to oppose certain aspects of the plan that they believe will harm the economy.