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After years of delays and denials from the Bush EPA, California finally has permission to impose strict regulations on the amount of greenhouse gas emissions produced by cars in the state. 

The formal waiver under the Clean Air Act allows California to require automakers to increase the efficiency of the vehicles they intend to sell in California by 40% over the next seven years, resulting in an average fuel economy of 35.5 miles per gallon by 2016.

President Obama proposed a national standard for automobiles in May that would largely mirror California's plan.  Since many states have already signaled their intention to follow California's lead, today's decision could speed implementation of the national standard.

This would be good news for the auto industry, since they could focus on one standard rather than 50. 

This national standard would be just the first step in the Obama administration's plan to expand regulation of pollution linked to climate change. 

As I wrote last week, many corporate counsel in energy and manufacturing companies have already begun consulting with environmental experts to get a sense of their current greenhouse gas impact, and to explore ways of complying with the eventual regulations.

After the Supreme Court's decision in Massachusetts v. EPA, which found that the agency has the ability under the Clean Air Act to regulate greenhouse gas emissions from new motor vehicles, the Bush administration dragged its feet when it came to actually regulating the gases. 

The Obama administration, on the other hand, is moving forward at full speed.  On April 17, the EPA released a finding that carbon dioxide and four other greenhouse gases are harmful to public health.  This now obligates the EPA to set rules for the emissions from new automobiles.

How much more would you pay for a less-polluting, more fuel-efficient car? 

The Obama administration is putting the number at $1,300 for you.  That's how much the new emissions limits and fuel-efficiency standards announced by the administration and automakers will end up costing consumers per vehicle once automakers fully implement them in 2016.