U.S. to unveil new policy on auto fuel standards

WASHINGTON (Reuters) - The Obama administration was poised to unveil on Tuesday a new auto fuel efficiency policy that would resolve a major dispute between California and the U.S. government over emissions, industry and other sources said.

The proposal to run from 2012-16 would maintain a single national standard for fuel economy and give automakers flexibility for meeting it, people with knowledge of the plan said.

The plan would harmonize California's drive to curb greenhouse gasses by reducing tailpipe emissions with the federal approach for determining miles per gallon targets based on vehicle size and other attributes, the sources said.