President Barack Obama is set to propose a significant increase in US auto fuel efficiency, which would also regulate emissions for the first time and settle a disagreement with California over cleaner cars. The proposal would raise fuel standards for all 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. The initiative is expected to save 1.8 billion barrels of oil and has the support of US and international automakers, including General Motors Corp and Toyota Motor Corp. "The auto industry, including GM, will benefit from increased consistency and certainty in guiding product plans," stated GM Chief Executive Fritz Henderson. Toyota Motor Sales USA President James Lentz believes that a single national standard will give consumers more options when choosing vehicles. The new program, as stated by the administration, will increase the cost of producing a vehicle by about $600 compared to the current law, which mandates automakers to achieve a fleet average of 35 mpg by 2020 - a 40 percent increase from current levels. US auto companies have historically opposed stricter fuel standards, but agreed to them in 2007 after pressure from Congress and the Bush administration. Some vehicles, mainly those made by foreign manufacturers, already meet or exceed the upcoming proposed standards. California previously sought permission to set its own regulations on auto emissions due to the Bush administration's refusal to grant a waiver from federal environmental law. Auto companies also took legal action to prevent California from implementing its rules, arguing that it would lead to a confusing mix of regulations if other states followed suit instead of having a unified national standard. However, California has now agreed to defer to the proposed national standard, if it becomes official. Senator Barbara Boxer expressed her approval of this decision, stating that it is a positive step in the ongoing efforts to combat global warming and reduce America's reliance on foreign oil. The 30 percent decrease in emissions is more ambitious than what California and other supportive states have requested. In April, the administration made a significant policy change by acknowledging climate-warming pollution as a threat to human health and welfare, paving the way for emission regulations. The new policy would allow car manufacturers flexibility in meeting standards and would consider the environmental impact of carbon-based fuels and other emission-producing vehicle systems. David Friedman, research director at the Union of Concerned Scientists, sees this as a potential breakthrough for clean cars. The plan anticipates gas prices of $3.50 per gallon by 2016, which officials hope will encourage consumers to choose more fuel-efficient vehicles. Car manufacturers are actively working on improving hybrid and electric vehicles, but recent drops in gas prices have led to increased sales of less efficient trucks and SUVs. To help boost the industry, Congress is discussing a bill that would provide consumers with up to $4,500 to trade in older, less fuel-efficient vehicles for more efficient ones. In addition, there is ongoing debate in the US Congress about climate change legislation, with Democrats pushing for measures to address global warming and Republicans opposing certain aspects of the plan.