New targets on vehicle emissions to be announced

The source confirmed the accuracy of news reports which said the two nations would require that automakers' combined fleets of cars and trucks get on average 35.5 miles per gallon by 2016. The current limit is 25 miles per gallon.

The vehicle emissions standards will be phased in starting with the 2012 model year.

Separate announcements will be made in the United States and Canada at around 1200 eastern (1600 GMT).

The regulations are the same as the ones set out by the U.S. Environmental Protection Agency and the Transportation Department last month.

The higher mileage requirements will reduce U.S. greenhouse gas emissions by 900 million metric tons and save 1.8 billion barrels of oil over the life of vehicles built during the 2012-2016 model years, according to the EPA.

The Globe and Mail newspaper said Canadian vehicle makers would accept the new standards on the grounds that they were being applied uniformly across both nations. The North American auto industry is highly interlinked.

U.S. automakers support the separate vehicle regulations because it would create the first national standard for controlling car and truck emissions.

Many new vehicles, especially hybrid cars, already meet or exceed the planned standards.

The EPA says the regulations mean cars and trucks will cost an average of $1,300 more in 2016 compared to now. That said, a driver would save about $2,800 over the life of a vehicle through fuel costs.

(Reporting by David Ljunggren; Editing by Frank McGurty)

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