According to reports from both the New York Times and Politico, the Obama Administration plans to announce new CAFE regulations tomorrow that will finally reconcile both federal and state standards. The plan is expected to combine California's strict emission rules with the federal rule, raising the national fleet mileage to around 42 mpg for cars and approximately 26 mpg for light trucks by 2016 – an increase over the current standards of 27.5 mpg for cars and 24 mpg for trucks.

The administration set a self-imposed deadline of June 30 to grant California's request to impose the state's standard to the federal CAFÉ regulations, and according to the NYT, the auto industry isn't expected to challenge the new rules as they finally set both a definitive time table and a national standard. Politico is reporting that the Obama Administration sat down with several states and a number of domestic and foreign automakers to discuss the standard, including Chrysler, Ford, General Motors, BMW and others. California Governor Arnold Schwarzenegger is expected to attend the announcement on Tuesday, at which point all the hard details will be released.

[Sources: NYT, Politico | Image Source: Alex Wong/Getty]

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