The Obama administration finalized new regulations on Tuesday, which would double the fuel efficiency of cars and trucks by 2025, according to the Associated Press.
The new standard would require cars and trucks to average 54.5 miles per gallon within 13 years, a marked increase from 28.6 mpg last year, said the AP.
"These fuel standards represent the single most important step we’ve ever taken to reduce our dependence on foreign oil," said President Barack Obama in a statement, according to the Detroit Free Press. "It’ll strengthen our nation's energy security, it's good for middle class families and it will help create an economy built to last."
According to the administration, the regulations will save families more than $1.7 trillion in fuel expenditure and save $8,000 over a lifetime for vehicles bought in 2025, said the AP.
The US Environmental Protection Agency estimated that the new regulations could reduce oil consumption by 2 million barrels a day, according to NBC News.
More on GlobalPost: Obama declares state of emergency in Louisiana as storm nears Gulf Coast
"This is truly a watershed moment. Twenty years from now we’ll be looking back on this as the day we chose innovation over stagnation," said Michelle Robinson, director of the Union of Concerned Scientists' Clean Vehicles program, according to NBC News. "These standards will protect consumers from high gas prices, curb global warming pollution, cut our oil use, and create new jobs in the American auto industry and around the nation."
More on GlobalPost: US consumer confidence drops to 9-month low
The announcement, made by Transportation Secretary Ray LaHood and EPA Administrator Lisa P. Jackson marks a compromise the White House forged between the auto industry, environmentalists and labor unions, noted The Washington Post.
"The final rule issued by EPA and NHTSA appears consistent with the proposal they issued last year," said General Motors in a statement, according to the Detroit Free Press. "While the requirements are aggressive, we intend to pursue them vigorously."