With President Obama's recent carbon emissions proposal to raise fuel efficiency ratings for cars and light trucks to 35.5 miles per gallon by 2012-16, Governor Arnold Schwarzenegger is claiming a victory for the state of California and the nation. Although some cars meet or exceed the new standard, like the Honda Civic, many brands are planning to introduce mini-cars and hybrids to bring their fleet standards up to the new standard. California had been in a dispute with automakers over its proposal to cut auto emissions by 30 percent by 2016, a stricter limit than that of the EPA.

Due to a waiver clause in the Clean Air Act, the EPA is allowing California to set its own emission standards. California's auto emissions proposal to cut emissions by 30 percent by 2016 was formulated to deal with the state's extreme air pollution issues. Automakers oppose California's stricter standards which will force them to adhere to standards above those set by the federal government.

The new proposal, set by President Obama will mitigate the conflict between automakers and Governor Schwarzenegger by creating a single, nation-wide standard. The governments proposal has thus far merited the approval of GM CEO Fritz Henderson, Toyota Motor Sales USA President James Lentz, and California Senator Barbara Boxer, applauding the institution of a single rating instead of a mosaic of standards set by individual states.